Despite criticism that wide-open markets led to the collapse of WorldCom and Global Crossing, a US telecom regulator said yesterday that too many rules would hurt consumers by stifling competition.
"Consumers will be better off if we ride out the turbulence rather than retreat from market-based policies and head back toward more heavy-handed regulation," Federal Communications Commissioner Kathleen Abernathy said.
"I have no doubts that competitive markets remain the desired outcome, because we know that competition delivers to consumers the benefits of lower prices, better services and quality, more innovation and more choice," she said.
She attributed the glut in network capacity, a key factor in the collapse of WorldCom, to a "gold rush mentality" among financial backers and unrealistic forecasts for explosive growth in demand.
"Most of the causes have little to do with regulatory policies," Abernathy told a forum sponsored by the UN agency International Telecommunications Union.
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