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Ellig Texas Telecom Presentation Jan 2005

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Texas Telecommunications: Everything’s Dynamic Except the Pricing Jerry Ellig Senior Research Fellow Mercatus Center at George Mason University Prepared for the Texas Public Policy Foundation Policy Orientation for State Legislators January 2005
At a glance … ,[object Object],[object Object],[object Object],[object Object]
Equipment competition legal in 70s ,[object Object],[object Object],[object Object]
Long-distance competition legal in late 70s
Wireless spectrum doubled 1993-95 ,[object Object]
Cell phone subscribers outnumber incumbent telcos’ customers 9.16 13.54 2.17 11.37 2001 11.33 10.13 Mobile wireless 12.54 12.95 Total wireline 2.27 2.18 Competitor wireline 10.27 10.77 Incumbent wireline 2003 2002 Texas Subscribers (millions)
Internet prices continue to fall
Broadband continues to grow
Local residential rates stagnate (frozen by law in 1995)
Why? ,[object Object],[object Object],[object Object],[object Object],[object Object]
How can competitors compete? ,[object Object],[object Object],[object Object],[object Object]
Avoid stifling new technologies ,[object Object],[object Object],[object Object],[object Object]
Remove cross-subsidies ,[object Object],[object Object],[object Object]
Reform universal service ,[object Object],[object Object],[object Object],[object Object],[object Object]
For further information … ,[object Object],[object Object]

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