Aug. 21 (Bloomberg) -- Nicholas Economides, a professor of economics at New York University's Stern School of Business, made the following comments on Federal Communications Commission rules on local-phone competition in a telephone interview. The order lets states continue to determine prices at which local-phone carriers such as Verizon Communications Inc. must lease parts of their networks to competitors including AT&T. It also limits government regulation of broadband networks, which provide high- speed Internet access:
``It's overwhelmingly expensive to have an entrant create his or her own network'' for selling local calling. ``That part of the decision is correct and hopefully will survive the various legal challenges that I'm sure will exist.''
Concerning broadband access, ``now the FCC says this leasing is going to be totally up to the parties involved,'' rather than states, he said. ``Since the local incumbent is a monopolist, and there are no real other competitors, that puts the party on the other side of the negotiations at a disadvantageous position. That means prices in broadband are going to increase.''
--Tom Giles in the San Francisco newsroom (1)(415) 912 2967, or at email@example.com. Editor: Bray.
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