ABSTRACT
In this chapter, the author finds that there are three problems uiat obscure how regulators and other observers evaluate the rationale for reform of telecommunications regulation. First, the model of competition is often inadequate. Second, most regulators have a flawed conception of company strategy, radically different from the one held in industry. Third, regulators have the wrong priorities when they assess the benefits of deregulation. With regard to models of competition, discussions of regulatory reform among policymakers often draw on a model of competition that has a long tradition in economics. The model rests on two variables. The first variable, seller concentration, takes into account the number of competitors and their degree of concentration. By this measure of competition, inter local access transport area interexchange market is highly concentrated in comparison with the average of all industries. The second variable, barriers to entry, is not universally accepted as a part of the model of competitiveness.
