Computerization has generated draÂmatic advances In telecommunicaÂtions, such as mobile telephones and video conferencing. Coupled with this are major changes in regulation, as telephone companies face new competÂitors. States are experimenting with new forms of utility regulation and deÂregulation 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 comÂpletely discarded traditional utility regÂulation, 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 teleÂcommunications. Using comparative data from five midwestern states, Mueller shows how deregulation afÂfected rates, investment, infrastrucÂture modernization, and profits. He uncovers both positive and negative results. Mueller found established telephone companies to be basically conservative, not aggressive and exÂpansionist, and concludes that new competition, not regulation or dereguÂlation, is transforming the telecommuÂnications industry.
This book is the first systematic emÂpirical study of the controversial NeÂbraska law and its broader effects. It will be a significant addition to the much debated issue of telecommuniÂcations deregulation. Economists, polÂicymakers, and telecommunications managers will find in this volume a substantial resource. According to Robert Atkinson, senior vice president of Teleport Communications Group: "Nebraska's experiences with telecomÂmunications deregulation—the good, the bad and the ugly—need to be unÂderstood by all telecommunications policymakers across the country so that they can emulate Nebraska's sucÂcesses and avoid its mistakes. Mueller provides the roadmap."