This Time is Different (?): Telecommunications Unbundling and Lessons for Railroad Regulation
نویسندگان
چکیده
Lack of competition in some rail markets has led to calls to force rail carriers to open their networks to competitors at regulated prices. Such rail “unbundling” is intended to reduce rates by facilitating competition when the underlying economics of the network makes facilities entry infeasible. These proposals mirror arguments made in support of telephony network element unbundling under the Telecommunications Act of 1996. We examine the unbundling experience in the telecom industry to draw lessons for similar proposals in the rail industry, and we suggest network unbundling is highly unlikely to achieve its objectives today for many of the same reasons it largely failed in the past.
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