ABSTRACT
To understand the development of telecommunications policy in the states in the aftermath of the divestiture of American Telephone and Telegraph (AT&T) in January 1984 requires an understanding of the structure of the telecommunications industry and the industry’s relationship to government. Social efficiency addresses the question of how much of society’s resources will be spent in providing a service or product to its citizens. Government policy and preferences ride between two poles, with government control anchoring one end and unfettered competition the other. A full complement of interests can be identified: consumers, businesses, independent telephone companies, AT&T, and the government, each seeking a solution to its telephone problem. The complaints of business resembled those of consumers, but they were probably more intensely voiced. In general, the major opponents to regulation were the major opponents of AT&T—the independent telephone companies. AT&T’s position with regard to government is surely the most complex.
