WASHINGTON-A new study says the substance and timing of regulatory reform can determine the fate of entire industries and whether competition and consumer choice are created during times of technological disruption, a finding the authors say is a cautionary tale for lawmakers attempting to update the 1996 telecom act.
“The result in telecom is that it raises the issue of a regulatory mismatch, where new competitors, like cable telephony, are free to adjust prices and service offerings, as well as to enter or withdraw from markets, while incumbents cannot effectively respond and are restricted in their responses due to regulatory constraints,” said Charles Fine, a co-author of the report and a Massachusetts Institute of Technology professor.
The study-“Can We Avoid Repeating the Mistakes of the Past in Telecommunications Regulatory Reform?”-said wireless telephony and their consumers were winners because reform arrived at such a time when incumbents had lost significant market share to new entrants.
A press conference was held on the report today at the National Press Club.
The press release did not say who funded the study, but said the report can be obtained at the Web site of BellSouth Corp. Bell telephone companies and cable TV operators are battling each other for supremacy in the U.S. broadband market.
