What does the Internet mean for telecommunications regulation?
The growth of data networks like the Internet are an increasingly important motivation for regulatory reform of telecommunications. A primary principle of the current regulatory structure, for example, is that local phone service is a natural monopoly, and thus must be regulated. However, local phone companies face ever-increasing competition from data network services. For example, the fastest growing component of telephone demand has been for fax transmission, but fax technology is better suited to packet-switching networks than to voice networks, and faxes are increasingly transmitted over the Internet. As integrated services networks emerge, they will provide an alternative for voice calls and video conferencing, as well. This “bypass” is already occurring in the advanced private networks that many corporations, such as General Electric, are building. As a result, the trend seems to be toward removing barriers against cross-ownership of local phone and cable TV companies. The reg
The growth of data networks like the Internet are an increasingly impor tant motivation for regulatory reform of telecommunications. A primary principle of the current regulatory structure, for example, is that local phone service is a natural monopoly, and thus must be regulated. How ever, local phone companies face ever-increasing competition from data network services. For example, the fastest growing component of tele phone demand has been for fax transmission, but fax technology is better suited to packet-switching networks than to voice networks, and faxes are increasingly transmitted over the Internet. As integrated services net works emerge, they will provide an alternative for voice calls and video conferencing, as well. This “bypass” is already occurring in the advanced private networks that many corporations, such as General Electric, are building. As a result, the trend seems to be toward removing of barriers against cross-ownership of local phone and cable TV companies. Th
