Social and Behavioral Sciences Commons^™

Divestiture, By-Pass, Entry, Cross Subsidization: Conflicting Forces In The Deregulation Of The South Dakota Telecommunications Market, Dwight Adamnson, Jack Triweiler

Economics Staff Paper Series

This study reviews the impact the divestiture of AT&T had on the South Dakota telecommunications market, and explains the technological changes that have occurred and how these changes have been translated into lower costs. The South Dakota telecommunications market is examined under the scenarios: 1) fully regulated; 2) partial regulation; and 3) unregulated market. ARIMA procedures are used to forecast changes in revenues under the two different regulatory schemes. The degree of contestability of the South Dakota Telecommunications market is investigated to determine if competitions is suitable for the unregulated scenario. The study argues that the market is competitive.