Technology, deregulation, and the public interest: preserving universal telephone service

The intertwining influences on the telecommunications industry of regulatory initiatives and technological advancement are discussed. It is argued that the combined effect of this simultaneous change has been to undermine the traditional support structure enforcing an important social goal of telecommunications policy. By focusing on this particular goal-universal telephone service-one can better understand the complex and often unappreciated impacts of technology on society. However, although technological progress has undermined the traditional method for supporting low local rates, it has provided an opportunity to maximize subscription to telephone service. The author´s suggestion is to use the new market for information services, which has resulted from numerous innovations, to support universal service. Thus, while still part of the problem, technology can simultaneously be part of the solution.<>