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45 Infrastructure 1 (2005-2006)

handle is hein.journals/infrastr45 and id is 1 raw text is: Vol. 45, No. 1, Fall 2005 A morning with Dr. Alfred Kahn, Part 2 On July 12, 2005, Dr. Howard J. Axelrod1 met with Dr. Alfred Kahn, at Dr. Kahn's office in Ithaca, N.Y. Dr. Kahn, now 87 years old, is well known for his landmark text, The Economics of Regulation: Principles and Institutions, published in 1970, and his service as President Carter's chairman of the Civil Aeronautics Board, during which he led the deregulation of the air- lines industry.2 Dr. Axelrod: Dr. Kahn, concerning the telecommunications industry, assum- ing that the local providers are natural monopolies, is that a valid basis for remaining regulated? Dr. Kahn: A natural monopoly remains a reasonable basis for continued regulation. Over the last 30 years or so, the tendency in telecom- munications - embodied most obviously in the 1984 Consent Decree in the AT&T antitrust case - was originally to separate the provision of local service, conceived as naturally monopolis- tic, and regulate it, both to protect consumers from exploitation and to ensure downstream competitors fair and equal access to (continued on page 7) Section chair's column 1p.2 m Editor's note p. 2 m How does the Energy Policy Act affect electric companies? p. 3 E ........ I INSIDE

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