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The Economics of DSL Regulation
October 2002 (vol. 35 no. 10)
pp. 29-36
Ravi Kalakota, e-Business Strategies
Pavan Gundepudi, e-Business Strategies
Jonathan Wareham, Georgia State University
Arun Rai, eCommerce Institute
Richard Welke, eCommerce Institute

Despite a growing demand for highspeedInternet and network accessin the US broadband market, manydigital-subscriber-line companies aredownsizing, scaling back service, or closingtheir doors altogether. More importantly,upstart independent DSL providershave gone to war with the Baby Bells,alleging that they have purposely acceleratedthe shakeout of start-up companiesby exploiting all DSL providers' dependence on the last-mile networkinfrastructure that the Baby Bells provide.

Separating the economic interests ofincumbent exchange carriers and theiraffiliates will ultimately serve consumersbest. An open market for DSL access runexclusively by the Baby Bells would avoidexisting distortions and let regulationfocus on encouraging the regional Belloperating companies to provide access tounderrepresented areas where investmentwould otherwise be unjustified.

Citation:
Ravi Kalakota, Pavan Gundepudi, Jonathan Wareham, Arun Rai, Richard Welke, "The Economics of DSL Regulation," Computer, vol. 35, no. 10, pp. 29-36, Oct. 2002, doi:10.1109/MC.2002.1039515
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