Creating Local Competition

The Telecommunications Act mandates the opening of local telephone markets to competition. The transition from a noncompetitive market to a competitive market promises to be a difficult journey with many pitfalls to be avoided. This speech expounds upon some of the economic principles that must guide the FCC in implementing the transition, particularly discussing the problem of achieving the goal of universal service in a competitive environment. This speech was originally presented May 15, 1996 before an open audience at the Federal Communications Commission.