Date of Award
3-1983
Document Type
Thesis
Degree Name
Master of Science
Department
Business
First Advisor
Russell Johnson
Second Advisor
Patrick Land
Abstract
The Communications Act of 1934 established the principle that our nation' s future telecommunications policy was to be structured on the concept of "Universal Service", i.e. that telephone service is essential, and as such , should be made available and affordable for all . Deregulation of the telecornmunications industry and the soon to be accomplished Bell System divestiture will have a significant adverse impact on the universal service concept. The rationale for this premise is presented as follows . First, a theoretical analysis is made of the changes in the regulated utility revenue requirement which will result from deregulation and divestiture. An explanation of why an increased revenue requirement must be allocated to basic exchange service rates is forwarded . Following this discussion, an empirical analysis is presented which addresses the effect of price 0n demand for residence basic exchange service . The study utilizes data on growth in residence main telephones for the state of Texas over a five year period . The study results indicate a statistically significant interaction between price and demand for such service. The findings of this study are discussed and a relation to other studies in this area is made . In the summary discussion , the future of the universal service policy is examined and a recommendation for further study is forwarded .
Recommended Citation
Hancock, Edward H., "Deregulation of the Telecommunications Industry and the Bell System Divestiture - Impact on the Universal Service Concept" (1983). Theses. 828.
https://digitalcommons.lindenwood.edu/theses/828
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