U.S. telecom policies shouldn’t be model for international free t...
U.S. telecom policies shouldn’t be model for international free trade negotiations in telecom sector, new report by Cato Institute said. It said Telecom Act of 1996 was “flawed model” for adoption in foreign telecom markets, especially in Japan. It…
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said U.S. Trade Representative (USTR) was pushing other countries to adopt similar policies, which “too often rely on heavy-handed regulation and innovation-stifling rules.” Study said interconnection and line-sharing mandates introduced by Telecom Act harmed domestic telecom market by retarding network investment and innovation. It also ignored emerging wireless and Internet- based telephony technologies “that may replace the older wireline telephone networks in the near future,” study said. It said USTR’s continued push to force foreign countries to adopt U.S.’s infrastructure sharing regime would harm foreign telecom companies, discourage transition of newer technologies and do little to advance truly free and open trade in telecom services worldwide. Market access talks should focus on removing barriers to direct foreign investment and business ownership, study said: “The U.S. regulatory model should be reconsidered at home, not imposed abroad.” USTR wasn’t available for response.