Deregulation Obsession

Dollars & SenseNbr. 253, May 2004

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Summary


Prins reacts on the deregulation obsession of the Wall Street Journal. She says past deregulation has made a mess of the telecommunications industry and further deregulation as suggested by the Journal's editor would not accomplish anything. The Journal's editors still view telecom deregulation as a Holy Grail that will pour from the benefits of robust competition, but in reality, the fallout from deregulation is nearly always more consolidation, not more competition, and in no sector is this more apparent than in telecommunications, where a small set of mega-carriers has come to dominate the industry's landscape.

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Extract


Deregulation Obsession

The Wall Street journal's editors got their way. On March 2, the D.C. Circuit Court of Appeals voted to uphold Powell's proposal (voted down by the FCC last year 3-2) to remove the requirement that states set and regulate lease rates for the use of Bell phone lines by competing phone companies like AT&a...

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