Adam Smith Assaults Ma Bell with His Invisible Hands: Divesture, Deregulation, and the Need for a New Telecommunications Policy

In this article, the author provides a comprehensive legal, political, economic, and social analysis of the divestiture and partial deregulation of America's communications giant, AT&T. He reviews the three legal regimes that now oversee the telecommunications industry-the Federal Communications Commission, the state regulatory commissions, and Judge Harold Greene. After analyzing the costs and benefits of divestiture and deregulation, the author proposes congressional adoption of specific statutory solutions to the problems that have emerged. It is argued that the Federal Communications Act of 1934 should be updated to address contemporary social and economic needs.