Title: PURC review
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00091019/00008
 Material Information
Title: PURC review
Series Title: PURC review
Physical Description: Serial
Language: English
Creator: Public Utility Research Center, Warrington College of Business, University of Florida
Publisher: Public Utility Research Center, Warrington College of Business, University of Florida
Place of Publication: Gainesville, Fla.
Publication Date: Winter 2006
 Record Information
Bibliographic ID: UF00091019
Volume ID: VID00008
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.


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PU RReview

"Leadership in Infrastructure Policy"


Through the generous support of sponsors and friends, the Public Utility Research Center continues to provide
programs that are mutually beneficial to the energy, water, telecommunications, regulatory and academic sectors.

Who Should Regulate Telecommunications?

Markets, Regulators or Antitrust
Mark A. Jamison, Ph.D., PURC Director

he integration of telecom-
munications and comput-
ing has fueled much of this
nation's economic growth during
the past 10 to 15 years and now
touches every part of our lives. Just
imagine how Florida would have
fared during recent hurricanes if
public safety workers had not been
able to network their computers
and stay in constant contact.
But this same convergence that
has brought us so many social and
economic benefits has confounded
our traditional regulatory policies;
so much so, in fact, that there seems
to be an emerging consensus that
existing modes of regulation impede
the availability of advanced telecom-
Legacy policies that subsidize
certain types of telephone compa-
nies, control how network provid-
ers can interconnect their networks,
and restrict who can provide video
programming now limit customer
choice and provide distorted incen-
tives to some incumbent service
providers to hold onto the past. If
we are to let go of traditions that
restrain us, we must develop new
ways of thinking about communi-
cations policies, business practices,

North Dakota Public Service Commission President Tony Clark, secondfrom left, answers
participants' questions with Braulio Baez, then-Chairman of the Florida PSC, during
the 2005 PURC Fall Roundtable in Tallahassee.

and the roles of government, busi-
ness and consumers.
To advance this important dia-
logue, PURC convened a commu-
nications policy roundtable "Who
Should Regulate Telecommunica-
tions Markets, Regulators, or
Antitrust?" in October 2005 at the
offices of the Florida Public Service
Commission. Approximately 100
participants, representing state and
local government, business,
academia and consumers, listened to
speakers present their views on

what is broken and what works in
today's telecommunications indus-
try and regulation. The participants
and speakers engaged in extensive
breakout discussions to examine
alternative visions of the future of
telecommunications and what these
different views mean for govern-
ment policy.
From this dialogue, we've com-
piled a report that includes speak-
ers' remarks, summary points of

Roundtable continued on page 2




Lifeline Report
PURC's report on the Lifeline
Assistance Program (Lifeline) and
Link-Up America program (Link-
Up) in Florida has been completed
and is available online at
www.purc.ufl.edu. PURC faculty
collaborated with colleagues at UF
and the University of North Texas
for this study.
These programs, which were cre-
ated by the Florida Public Service
Commission, are part of a nation-
wide effort to provide price dis-
counts to low-income telephone
subscribers. The study examined
the accuracy of current participa-
tion rates and reasons why eligible
customers might not sign up for the

Papers and Presentations
"Public Utility Commission
Regulation and Cost Effectiveness
of Title IV: Lessons for CAIR" by
PURC Director of Energy Studies
Paul Sotkiewicz and Policy Analyst
Lynne Holt appeared in the Octo-
ber 2005 issue of The Electricity Jour-
nal. They examined the effects of
PUC regulation on compliance
choices and costs associated with
the emissions trading market for the
Title IV SO2 Trading Program for
the year 1996.
"Liquid Pricing for Digital Infra-
structure Services" by PURC Re-
search Associates Subhajyoti
Bandyopadhyay and Hsing Ken-
neth Cheng at UF, examines alter-
native pricing schemes for broad-
band. The paper has been accepted
for publication in an upcoming is-
sue of The International Journal of
Electronic Commerce.
As part of a seminar series, Re-
search Associate Troy Quast pre-
sented his paper, "An Analysis of
the Extent and Means of Entry into
Local Telecommunications Mar-

kets" at the Federal Communica-
tions Commission in Washington,
D.C. last November.
The paper, "Trait-based Imita-
tion Among Entrepreneurial Mar-
ket Entrants," by Research Associ-
ate Rich Gentry received the Booz
Allen Hamilton/SMS PhD Fellow-
ship at the SMS 25th Annual Inter-
national Conference last October.
The award is granted to the top five
Ph.D. student-authored papers pre-
sented at the Strategic Management
Society meeting. Gentry also hosted
a luncheon table at the conference.
Director Mark Jamison pre-
sented the paper "Bureaucrats as
Entrepreneurs: Do Municipal
Telecom Providers Hinder Private
Entrepreneurs?" at the Telecommu-
nications Policy Research Confer-
ence. The paper addresses how the
municipal providers of telecommu-
nications affect competition in U.S.
Articles by Dr. Holt and Re-
search Associates David E. M.
Sappington, Chunrong Ai and
Chen Lin appeared in the Septem-
ber special issue of Utilities Policy
edited by PURC faculty. An intro-
duction to the special issue on ser-
vice quality was written by Direc-
tor of Water Studies Sanford V.
The aforementioned papers can
be found online at www.purc.
Dr. Sappington participated last
fall in a National Bureau of Eco-
nomic Research conference on
regulation. Papers examining the
effectiveness of telecommunications
and energy regulation, as well as
regulation in other sectors, are avail-
able on the conference web site at
www.nber.org. >-

Roundtable continued from page 1
group discussions and issues for
future discussions.
We observed an important con-
sensus on government's need to
focus on removing barriers to com-
petition, providing consumer pro-
tection services, and rethinking uni-
versal service and network intercon-
nection policies.
There was also general agree-
ment on the need to abandon asym-
metric regulation, which treats dif-
ferent services, technologies and
service providers differently based
on their legacies.

PURC Director Mark Jamison, center,
speaks with John K. Mayo, (left) Dean of
the College of Communication at Florida
State University, and Tony Clark, President
of the North Dakota Public Service

We also observed significant
challenges to federal and state
policymakers because changing
policies will have differential impacts
and groups that view themselves as
faring better in the past than in the
future will resist change.
Furthermore, there are signifi-
cant tensions between our visions
for the future and many of the con-
ceptual frameworks and ideals that
directed our policies in the past.
Lastly, there is often significant
confusion in distinguishing be-
tween adaptive challenges, such as

2 "Leadership in Infrastructure Policy"


33rd Annual PURC Conference

February 23-24, 2006

At right, Heather Gold, Senior VP of
Government Relations at XO Communica-
tions speaks with participants during a
morning breakout group.

Above, Susan Clark, Shareholder, Radey,
Thomas, Yon, Clark, Attorneys &
Counselors at Law (standing) leads
discussion in a breakout group during the

Federal Energy Regulatory
Commissioner Nora Mead
Brownell and Senior Vice President
of Programs at the Universal Service
Administrative Company (USAC)
Irene Flannery are among the fea-
tured speakers at the 33rd Annual
PURC Conference at the Hilton
University of Florida Conference
Center, February 23 and 24, 2006
in Gainesville.
The strong lineup of speakers
includes Donald F. Santa, Jr., Presi-
dent of the Interstate Natural Gas
Assoc. of America (INGAA), J.
Alan Beamon, Director of the Coal
& Electric Power Division in the
Office of Integrated Analysis &
Forecasting at the Energy Informa-
tion Administration, John W.
Mayo, Professor of Economics,
Business and Public Policy at
Georgetown University and Sean
Carton, Dean of the School of De-
sign + Media at Philadelphia Uni-

Register online at

Following remarks by Univer-
sity of Florida President Bernie
Machen, Gulf Power Company
President and CEO Susan Story will
address attendees during the confer-
ence luncheon on Friday.
Sessions will center around im-
portant current policy issues, what
we have learned from disruptive
events in the past and how public
policy can respond to provide the
stable, efficient utility services that
our economy and society need in
the context of 100 years of regula-
tion by utility commissions in the
United States. Register online at
www.purc.ufl.edu. P-

Leadership Initiative

Dr Sanford Berg, PURC Director of Water
Studies (center) speaks with roundtable
participants during a morning break.

letting go of certain traditions, and
the technical challenges of develop-
ing new economic, political and le-
gal instruments of regulation. Read
more in the 2005 PURC Fall
Roundtable Report available online
at purc.ufl.edu. >-

PURC continues to expand its
role in leadership development for
utility commissioners with its third
leadership workshop, "Leadership
in Utilities Policy: Adaptive Work
for New Realities," February 11,
2006 before the start of the
NARUC Winter Meeting in Wash-
ington, D.C.
The workshop, sponsored by
PURC and Cambridge Leadership
Associates is designed to help regu-
lators by engaging in a dialogue
about the knowledge and skills that

are necessary for exercising leader-
ship in regulation.
PURC launched this initiative in
July at a workshop before the
NARUC Summer Meeting in Aus-
tin, Texas and in November, deliv-
ered a similar workshop in the Ba-
hamas with 27 regulators participat-
ing from throughout the Caribbean.

www.purc.ufl.edu 3

P.O. Box 117142
Gainesville, FL 32611-7142


February 11, 2006
PURC/CLA Executive
Education Workshop for
Utility Commissioners:
Leadership in Utilities Policy
Hyatt Regency
Washington, D.C.

For more information, call

February 23-24, 2006
33rd Annual PURC
Hilton University of Florida
Conference Center
Gainesville, FL

For more information, call

June 19-30, 2006
20th PURC/World Bank
International Training
Program on Utility
Regulation and Strategy
Hilton University of Florida
Conference Center
Gainesville, FL

For more information, call

Sponsors and Representatives on
the PURC Executive Committee:

BellSouth Telecommunications, Inc.
Florida Municipal Electric Assoc.
Florida Office of Public Counsel
Florida Power & Light Company
Florida Public Service Commission
Gainesville Regional Utilities
Gulf Power Company
Progress Energy Florida
Sprint-Florida, Inc.
University of Florida

Web site: www.purc.ufl.edu
E-mail: purc@cba.ufl.edu
Ph: 352/392-6148
FAX: 352/392-7796







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