Impacts of Deregulation and Competitive Entry on Telecommunication Networks: Long Distance Telephone Service

K.H. Tiedemann (Canada)


Telecommunications, long distance service, economic regulation, regression models.


Over the past thirty years, the long distance telephone sector has been revolutionised by a series of technical and regulatory developments. In 1996, Congress passed the Telecommunications Act 1996, which substantially deregulated the telecommunications industry with the intent of increased competition. This paper uses statistical modelling to examine the impact of the Telecommunications Act on long distance telephone markets. Key findings are that the Act reduced long telephone rates, increased the number of long distance minutes used, and improved entry and competition in the long distance telecommunications sector.

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