DOMINANCE, NON-DOMINANCE AND THE PUBLIC-INTEREST IN TELECOMMUNICATIONS REGULATION

The competitive experiment in the US telecommunications industry has been characterized by asymmetric regulation, by which is meant a non-uniformity in the rules that apply to marketplace entrants vis-a-vis the market incumbent. Two distinct stages of asymmetric regulation can be identified historically: 'competitor necessity' and 'competitive necessity' regulation. The authors recommend adoption of 'customer necessity' regulation, wherein the focus is on maximizing economic welfare rather than the welfare of competitors.