economic model
In economics, a model is a theoretical construct representing economic processes by a set of variables and a set of logical and/or quantitative relationships between them. The economic model is a simplified, often mathematical, framework desig ...
created in the mid-1990s as a proposal to the
Federal Communications Commission
The Federal Communications Commission (FCC) is an independent agency of the United States federal government that regulates communications by radio, television, wire, satellite, and cable across the United States. The FCC maintains jurisdiction ...
and the U.S. Congress for the healthy development of
competition
Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, indivi ...
in the
local
Local may refer to:
Geography and transportation
* Local (train), a train serving local traffic demand
* Local, Missouri, a community in the United States
* Local government, a form of public administration, usually the lowest tier of administrat ...
and
long distance telephone
In telecommunications, a long-distance call (U.S.) or trunk call (also known as a toll call in the U.K. ) is a telephone call made to a location outside a defined local calling area. Long-distance calls are typically charged a higher billing rat ...
industries in the United States.
While there was widespread support among competitors in the industry, the concept was not implemented. Instead, the
Telecom Act of 1996
The Telecommunications Act of 1996 is a United States federal law enacted by the 104th United States Congress on January 3, 1996, and signed into law on February 8, 1996, by President Bill Clinton. It primarily amended Chapter 5 of Title 47 of th ...
was implemented in a form that resulted in the reduction of
telecommunications
Telecommunication is the transmission of information by various types of technologies over wire, radio, optical, or other electromagnetic systems. It has its origin in the desire of humans for communication over a distance greater than that fe ...
competition in the
local loop
In telephony, the local loop (also referred to as the local tail, subscriber line, or in the aggregate as the last mile) is the physical link or circuit that connects from the demarcation point of the customer premises to the edge of the common ...
. The original proposal was designed and named by Roy Morris, an
adjunct professor
An adjunct professor is a type of academic appointment in higher education who does not work at the establishment full-time. The terms of this appointment and
the job security of the tenure vary in different parts of the world, however the genera ...
at Capitol College, and with US ONE Communications, one of the early entrants in the local telephone business (and, incidentally, one of the first to exit that business). The fundamental economic principles were developed based on earlier research and publications of Jerry Duvall, a prominent
economist
An economist is a professional and practitioner in the social sciences, social science discipline of economics.
The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this ...