Competition, Diversification, and Disintegration in Regulated Industries
In telecommunication, electricity, gas, and even water, there has been significant entry by competitors and an increased trend toward diversification on the part of existing regulated utilities. Even before the breakup of the Bell System on January 1, 1984, there had been entry into the long distance business which had formerly been the exclusive province of AT&T. Since 1984, the seven Regional Holding Companies (RBOCs) have proceeded to diversify into other (usually closely related) businesses. In addition they have attempted to remove, relax, and change the regulation of their traditional businesses.
KeywordsPublic Utility Electric Utility Lexington Book Generation Business Contestable Market
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