Abstract

This paper examines the shortfalls of the 1996 Telecommunications Act in terms of the concept of regulatory failure. Looking at the efforts of the FCC over the past two years to define and operationalize the goals of the Ac in an historical/institutional context, it suggests than the problem at the FCC has not been one of "capture by special interests" but rather one of "capture by experts". This capture, it is argued, has occurred because the FCC staff - so intent on avoiding industry capture - has tended to mold and shape the decision-making process so that issues must be presented and resolved in accordance with their own, relatively narrow, professional standards and discipline - namely economics. While policy decisions based on such "expert" criteria and methodologies is often highly appropriate - given a broad consensus on policy goals and outcomes - it is far less likely to be effective today in such a high stakes and uncertain communications environment.