This Time is Different (?): Telecommunications Unbundling and Lessons for Railroad Regulation

This Time is Different (?): Telecommunications Unbundling and Lessons for Railroad Regulation In the railroad industry, there have been proposals for carriers to open their networks to competitors at regulated prices in markets that lack competition. Such rail “unbundling” is intended to reduce rates by facilitating competition when the underlying economics of the network makes facilities entry infeasible. These proposals mirror arguments made in support of telephony network element unbundling under the Telecommunications Act of 1996. We examine the unbundling experience in the telecom industry to draw lessons for similar proposals in the rail industry. We suggest network unbundling in railroads is unlikely to achieve its objectives today for many of the same reasons that it largely failed in telecommunications in the past. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

This Time is Different (?): Telecommunications Unbundling and Lessons for Railroad Regulation

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Publisher
Springer US
Copyright
Copyright © 2016 by Springer Science+Business Media New York
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1007/s11151-016-9517-0
Publisher site
See Article on Publisher Site

Abstract

In the railroad industry, there have been proposals for carriers to open their networks to competitors at regulated prices in markets that lack competition. Such rail “unbundling” is intended to reduce rates by facilitating competition when the underlying economics of the network makes facilities entry infeasible. These proposals mirror arguments made in support of telephony network element unbundling under the Telecommunications Act of 1996. We examine the unbundling experience in the telecom industry to draw lessons for similar proposals in the rail industry. We suggest network unbundling in railroads is unlikely to achieve its objectives today for many of the same reasons that it largely failed in telecommunications in the past.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Apr 26, 2016

References

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