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Telephone companies in paradise

Milton Mueller

Computerization has generated dramatic advances in telecommunications, such as mobile telephones and video conferencing. Coupled with this are major changes in regulation, as telephone companies face new competitors. States are experimenting with new forms of utility regulation and deregulation in order to cope with the demands of rising competition. Here Mueller examines in detail the results of a radical telephone regulation law. In 1986, the state of Nebraska completely discarded traditional utility regulation, deregulating rates and profits of its local telephone companies. The Nebraska experiment has become a benchmark for reassessing the role of state regulation in the future of telecommunications. Using comparative data from five midwestern states, Mueller shows how deregulation affected rates, investment, infrastructure modernization, and profits. He uncovers both positive...

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