This paper provides an overview of telecommunications regulation in the U.S. and in Europe. For each region the history of telecommunications regulations as well as the current regulatory regime is portrayed. The focus of this overview is on the question of how unbundling regulations in the...

Price cap regulation uses a formula, set in advance, to determine the price increases for a firm's services for a period of several years. During this period, the firm may keep all the benefits of its incremental productivity gains. Customers can also benefit because the price cap formula may...