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Wednesday, June 2, 2004

When did the States Deregulate Retail Rates?
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No state has fully deregulated retail rates, of course. Heck, most states haven't even partially deregulated retail rates. But reading the latest post-TRO editorial at Tech Central Station might lead one to think otherwise:

The key to local competition is use of unbundled network elements. Deny new competitors access to these elements and a retail rate increase is certain - a fact that even The Wall Street Journal editorial page now admits. Rates will rise, not only for customers who now get their services from Bell competitors, but also for nearly everyone else - because, without the pressure of competition, the Bells, like any monopolist, will be free to boost prices.

I think most observers such as Mr. Glassman and those of us at PFF would agree that negotiation is a far superior approach than protracted litigation, but could we dispense with the scare tactics already? Retail rates can rise only if the states allow them to.

posted by @ 5:12 PM | General

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