The United States-Japan Negotiations on Interconnection Pricing
Volume 43, Number 2, Spring 2002 Exporting Telecommunications Regulation: The United States-Japan Negotiations on Interconnection Pricing Jeffrey H. Rohlfs∗ J. Gregory Sidak∗∗ I. Introduction On February 15, 1997, seventy countries working within the framework of the World Trade Organization (WTO) agreed on a multilateral reduction of regulatory barriers to competition in international telecommunications services.1 At the time, the signatory nations to the WTO agreement on tele- communications services represented markets generating ninety-five percent of the $600 billion in global telecommunications revenues.2 Beginning January 1, 1998, those nations started a phased process to open their tele- communications markets to competition. Since 1997, the U.S. government has attempted to use the WTO agreement on telecommunications services as a vehicle for “exporting” American principles of telecommunications regula- tion to other nations. Part II of this Article explains how in 1997 the United States took the position that the WTO agreement on telecommunications services requires ∗ A.B., Amherst College, 1965; Ph.D., Massachusetts Institute of Technology, 1969. Principal, Strate- gic Policy Research, Inc., Bethesda, Maryland. ∗∗ A.B. Stanford University, 1977; A.M., J.D., Stanford University, 1981. F. K. Weyerhaeuser Fellow in Law and Economics Emeritus, American Enterprise Institute for Public Policy Research, Washington, D.C. The views expressed here are solely our own, and not those of the American Enterprise Institute, which does not take institutional positions on speciªc legislative or regulatory matters. We thank Martin Cave, Robert W. Crandall, Gary Epstein, Harold Furchtgott-Roth, Edward M. Graham, William Lake, Herbert Marks, Mark S. McConnell, John Thorne, and Masayoshi Yamashita for helpful comments.
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