Abstract
From July 1, 1989, until November 23, 1995, the FCC used price caps to regulate long distance telephony. There has been heated debate over whether the decline in AT & T's rates was due to the price caps, or to the efficiencies that price caps were meant to foster. I show that, for basic schedule per call residential services, the rates fell most when Equal Access (1-Plus dialing) became widespread, several years before price caps began. In addition, the decline in access charges does not fully compensate for the decline in AT & T's rates.
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