The effects of the Federal Communications Commission Registration Program of 1977 on the domestic industry producing telecommunications equipment

The effects of the Federal Communications Commission Registration Program of 1977 on the structure of the domestic telecommunications equipment producing industry was evaluated. Econometric analysis and anecdotal evidence were used as the foundation for the investigation.

The major hypothesis of the paper was that the FCC Registration Program of 1977 changed the structure of the telecommunications equipment producing industry from a monopoly to an industry characterized by competition. This resulted in a change in the equilibrium price and output in the market place with price decreasing and output increasing.

The three major component subsectors, i.e., transmission equipment, switching equipment, and customer premises equipment (CPE) were discussed individually and collectively to determine any differential effects. This was particularly relevant because the FCC Registration Program focussed on CPE.

Empirically, the central hypothesis was supported. Also, differential effects in the various subsectors were found.