Reforming Telecommunications Policy in Response to Entry into Local Exchange Markets

Current telecommunications regulation is based on a series of economic assumptions. The author considers these assumptions and analyzes their continued validity, given the emergence of local exchange competition as seen in the Rochester, New York plan. The author discusses entry barriers to local exchange and the effects of the Department of Justice 1992 Merger Guidelines. The author concludes with a summary of policy recommendations arising from entry into local exchange markets and the necessity of future policy reevaluation.