Summary

1.  About a year ago, we wrote that relief granted to AT&T on rates by the North Carolina PUC was a big watershed. 2.  That there was the potential for effects on other states. 3.  AT&T is seeing success in going after a large portion of the southeast.

Analysis

So far, the impact of the national elections is not adversely affecting AT&T’s efforts in some of the states.  According to the source article, bills are making progress in both Tennessee and Alabama.  There is also legislation being considered in three other states.  A greater concentration on lobbying the states is definitely paying off for AT&T.

The increased momentum for deregulation will only make changes in other states happen that more quickly.  It will become that much easier for Verizon and Qwest to get similar types of relief as well.  They will certainly benefit by arguing about the substantial decreases in access lines and a greater number of competitive alternatives.  It seems quite possible now that as the federal regulatory community towards more regulation, the potential for state deregulation efforts could actually increase – especially in red or red-leaning states.

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Samuel Greenholtz, Principal
Samuel Greenholtz

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Analyses are solely the work of the authors and have not been edited or endorsed by GLG.