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By Paul Eric Teske

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Extra resources for After Divestiture: The Political Economy of State Telecommunications Regulation

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This argument is flawed, however, because several new consulting firms, staffed with ex­telephone company engineers, can provide telecommunications management functions for large users.  Or, they could have mixed elements of these different policies.  If regulators change rates gradually, but not too slowly, they can avoid large­scale uneconomic bypass and then monitor the changes in telecommunications markets as the prices are adjusted. 1.  192).  On the opposite extreme is a policy of retaining the old methods of cost allocation.

It does seem clear that NTS and TS tradeoffs can be made in designing parts of a network.  Studies after divestiture, however, have found that many firms are considering further bypass (Kraemer, 1985).  This argument is flawed, however, because several new consulting firms, staffed with ex­telephone company engineers, can provide telecommunications management functions for large users.  Or, they could have mixed elements of these different policies.  If regulators change rates gradually, but not too slowly, they can avoid large­scale uneconomic bypass and then monitor the changes in telecommunications markets as the prices are adjusted.

In the course of testing the other hypotheses related to these theories, I test to see if Walker's Index still has explanatory power in state telecommunications regulation.  When the external influences approach equilibrium on a given issue, the independent role of regulatory institutions becomes important.  Pi; RS; RA; CT) When P1 through Pi represent the power of interest groups 1 through i; RS is regulatory structure; RA is regulatory attitudes; and CT is contextual (economic and technological) conditions.

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