The North Carolina Utility Commission has commissioned RTI International to conduct a survey of telecommunications providers across the state. Over the course of the next six months, the non-profit organization will study the state of telecommunications in North Carolina. The RTI proposal and an open letter from NCUC Chairman Sanford are both posted at the Commission website. The RTI plan calls for outside advice from two consultants, one of whom is NC State economist Steve Margolis. An informational meeting will take place tomorrow morning at the Commission to outline the study?s methodology, purpose etc.
Here is a blog-post with links to the study proposal, the Chairman?s letter, and two similar studies published last winter. The first study was by a think tank (written by my colleagues) with national data as well as state-specific data for five states. The second focused exclusively on telecommunications in Iowa.
My take: The methodology and survey assumptions are the most important part of the whole study and bear scrutiny. On this point, RTI will likely follow the direction of Commission staff/leaders. If the methodology/assumptions are wrong or pre-ordained to produce more regulatory outcomes, we are in for trouble. At best the whole project will be doomed and at worst, it will produce perverse policy decisions in 2005. Margolis? skills with competitive analysis will provide a skeptical eye to whole project and his participation is a boon. When Iowa regulators undertook a similar effort, it led to tentative steps toward deregulation in competitive markets. Give two cheers to Chairman Sanford, but don?t start the party yet.
