Promoting Innovation and the Deployment of Advanced Telecommunications Services to Businesses

This paper examines the concomitant effects that competition, regulation, market characteristics, and corporate ownership have on the deployment of advanced telecommunication services to business customers through the econometric analysis of a rich data set that identifies the competitive, regulatory, and economic climate for each incumbent’s wire center in the United States. The authors conclude that local competition, InterLATA approval by the FCC, and high unbundled network element price to embedded cost ratios have positive impacts on the deployment of advanced telecommunications services, while voluntary federal price cap regulation and location in a rural area have negative impacts