As Hance discussed last Thursday, the FCC will soon rule on AT&T’s petition for regulatory forbearance. Over at Openmarket.org I blog about why the FCC should grant phone companies relief from costly reporting requirements:
America’s two largest phone companies, AT&T and Verizon, recently filed forbearance petitions asking the FCC for relief from various regulations. Verizon is asking for the freedom to set prices on wholesale connections to competitive local carriers, and AT&T has requested exemption from certain FCC audit requirements and service quality reporting mandates.The real question is, why should Verizon have to ask permission from bureaucrats to decide how much to charge for its products? And why must AT&T spend millions of dollars to fill out intricate paperwork just to prove to the FCC its product is good enough for customers? Interventionists say this is because phone companies won’t ensure service quality unless they are subject to government oversight. But this claim ignores market conditions. With competition intensifying between phone providers and new wireless networks on the verge of completion, the market will discipline any communications company that skimps on service or price. Sprint and Comcast have learned this lesson the hard way.
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