The Economic Basis for Radio Deregulation

In the United States, the general global trend toward the deregulation of telecommunications has culminated in the 1996 Telecommunications Act, an act largely based on the presumptions of the effectiveness of competition and the success of earlier deregulation. This article examines the economic basis for deregulation in the radio industry, arguably the most competitive of telecommunication industries. It also reviews the economic research examining the basis and impact of previous deregulatory efforts, allowing a consideration of the validity of the economic assumptions behind the 1996 Telecommunications Act.