Intrastate Switched Telephone Access Charges in Kentucky

This report examines the economic consequences of the current access rate system for intrastate long-distance calls, governed by the Kentucky Public Service Commission. At the time Kentucky created an access rate system for telephone service in 1984, the main goal of telecommunication policy was universal wireline access. Since then the telecommunications landscape has changed dramatically, as well as current policy goals. New forms of communication and policy have emerged such as cellular phones and cable telephony, as well as the introduction of the National Broadband Plan and the strong desire both nationally and in Kentucky for ubiquitous broadband availability. Economic theory, along with expert testimony, suggests that the current access system is not socially optimal.