The competitive potential of cellular mobile telecommunications

The Federal Communications Commission (FCC) has recently issued rules for the commercial operation of a telecommunications technology not previously in commercial use: the cellular mobile radio. The author has carefully considered the potential for competition between cellular systems and for competition between cellular radio and alternative communications technologies under the regulatory scheme which has been adopted by the FCC. He finds that competition between cellular and wire-line services can be viable if cellular cost and demand data are carefully tracked to avoid market congestion and if cellular or other techniques are not allowed to undercut selected local exchange rates.