So much for Competition.
In a blow to the marketeering dream of competition--and its begotten sons, lower prices and greater quality--the Bush administration has decided not to appeal a DC Circuit opinion striking down rules in the 1996 Telecom Act. The rules demanded that the regional bell companies lease their lines to competitors at a reasonable rate.
Remember with me that, long ago, one phone company provided for our online conversations--a somewhat but not entirely necessary monopoly, in that you can't well give public easements for a plethora of phone lines. But the national "Ma Bell" (AT&T) monopoly was broken up in the mid 80's, and divided into our current regional and autonomous bell companies.
When other companies found new technologies to spread lines and microwave towers across the country (thus new modes to provide long distance), they needed to get into the local loops that were completely controlled by the broken up bell companies. (Remember, the public easements for these local phone lines had been granted long ago- and towns and cities have no interest in providing easements for all those companies that want to lay new lines).
Thus, the 1996 Telecom Act required the regional bell companies to lease their lines to competitors. Otherwise, for all the fiber-optic wires a company might lay across the country, it would be in vain if that company couldn't come in to port, so to say.
The DC Circuit has just struck down provisions in the Act because of concerns with states establishing the lease rates. And the Bush Administration is not only not appealing this decision to the Supreme Court, the administration asked the FCC not to appeal the decision; thus, not to protect its own rules.
Now, the regional bells can price what they want to price on their local lines. And power to price (like the power to tax) is the power to destroy.
In this case, it will destroy competition. Another brilliant move by the White House.