Telephone Companies in Paradise

The book examines the impact of deregulation on telecommunications, focusing on Nebraska's landmark law and its implications for competition and regulation in the industry.

In Telephone Companies in Paradise, the author delves into the transformative effects of computerization on telecommunications, highlighting advancements such as mobile phones and video conferencing. These innovations have reshaped the landscape, prompting a response from regulatory bodies as traditional telephone companies encounter new competitors. The book explores how states are experimenting with various forms of utility regulation and deregulation to adapt to the competitive environment.

Focusing on Nebraska's groundbreaking 1986 deregulation of local telephone companies, the author provides a detailed examination of the outcomes stemming from this radical shift. By discarding conventional utility regulations, Nebraska set a precedent that has since served as a benchmark for evaluating the future role of state regulation in telecommunications. Through comparative analysis with five Midwestern states, the author offers insights into how deregulation has influenced rates, investments, infrastructure modernization, and profits.

Telephone Companies in Paradise presents both the positive and negative impacts of deregulation, revealing a conservative nature among established telephone companies. The author concludes that it is the emergence of new competition, rather than regulatory changes, that is fundamentally transforming the telecommunications industry. This systematic empirical study serves as a vital resource for economists, policymakers, and telecommunications managers, providing essential lessons from Nebraska's experience in deregulation.