ABSTRACT
This chapter considers the type of remedy for the Postal Service, and largest existing utility. It presents a brief scenario for privatizing, divesting, and deregulating the Postal Service. All the arguments for retaining the Postal Service's monopoly have analogue in the telephone service industry. The lessons from experience in AT&T case are instructive for making Postal Service policy. The case for the optimal disposition of the Postal Service depends on the outcome of the deregulation and divestiture of AT&T. The process leading to divestiture of the Postal Service has only become a part of the public discussion. The Federal Communications Commission decision to permit entry into intercity communications and AT&T's divestiture of its local exchanges promise an era of vigorous competition in the provision of intercity telecommunications services. AT&T and its operating companies have had little experience in responding to customer needs in a timely way and will have to learn to minimize their costs if they are to survive.
