The FCC and the Decline in AT & T's Long Distance Residential Rates, 1980–1992: Did Price Caps Do It?

The FCC and the Decline in AT & T's Long Distance Residential Rates, 1980–1992: Did Price Caps... From July 1, 1989, until November 23, 1995, the FCC used price caps to regulate long distance telephony. There has been heated debate over whether the decline in AT & T's rates was due to the price caps, or to the efficiencies that price caps were meant to foster. I show that, for basic schedule per call residential services, the rates fell most when Equal Access (1-Plus dialing) became widespread, several years before price caps began. In addition, the decline in access charges does not fully compensate for the decline in AT & T's rates. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

The FCC and the Decline in AT & T's Long Distance Residential Rates, 1980–1992: Did Price Caps Do It?

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 1997 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/A:1007769726331
Publisher site
See Article on Publisher Site

Abstract

From July 1, 1989, until November 23, 1995, the FCC used price caps to regulate long distance telephony. There has been heated debate over whether the decline in AT & T's rates was due to the price caps, or to the efficiencies that price caps were meant to foster. I show that, for basic schedule per call residential services, the rates fell most when Equal Access (1-Plus dialing) became widespread, several years before price caps began. In addition, the decline in access charges does not fully compensate for the decline in AT & T's rates.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Sep 29, 2004

References

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