NTIA Special Study Staff

Abstract: This report provides an analysis of marketplace developments and procompetitive U.S. policies for the past 15 years, and undertakes a net assessment of the benefits and costs of competition in 14 separate telecommunications and related lines of commerce.

This broad ranging assessment of some of the quantifiable benefits and costs of a marketplace approach aims to provide communications policymakers both here and abroad with a better appreciation for some of the competitive and deregulatory changes which have occurred in the United States. . . .

Structurally, this report is in several parts. The first part surveys some of the fundamental causes for the substantial competitive and deregulatory changes which have occurred in the United States. It discusses some of the technological, demographic, economic, regulatory, and political forces which have converged and lent velocity to competitive change.

In the second part, appraisals of discernible benefits achieved and costs incurred by industry sector and activity group are undertaken. Fourteen commercial sectors are surveyed. In several sectors, there is not now an abundance of public data precisely determining causality in some instances also is difficult. Where feasible, published sources and official Commerce Department data have been employed. Also included, however, is information premised on reasonable estimates and informed perspective. It has been assumed that most readers will benefit from having information available, even if it is subject to qualifications, rather than no information at all.

The final portion of this report focuses on generalized societal and economic benefits of the deregulatory and procompetitive changes in the United States. Perhaps most difficult to document, there is nevertheless evidence indicating that communications industry developments have yielded more benefits to the public, and contributed more to the efficient evolution of our overall economy, than would otherwise have proven true had Government steadfastly sought to prevent or regulate all industry metamorphoses.

Keywords: competition policy; FCC actions; telecommunications market costs and benefits; marketplace developments

Disclaimer: Certain commercial equipment, components, and software may be identified in this report to specify adequately the technical aspects of the reported results. In no case does such identification imply recommendation or endorsement by the National Telecommunications and Information Administration, nor does it imply that the equipment or software identified is necessarily the best available for the particular application or uses.

For questions or information on this or any other NTIA scientific publication, contact the ITS Publications Office at ITSinfo@ntia.gov or 303-497-3572.

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