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Economic Quarterly

Fall 2003

Boom and Bust in Telecommunications

Elise A. Couper, John P. Hejkal and Alexander L. Wolman

A transformation of the technological and regulatory environment for telecommunications precipitated a massive boom in the sector, beginning in 1997. Market forecasts of the future of telecommunications became highly uncertain and, as it turned out, highly inaccurate. A dramatic bust began in 2000. The boom and bust in telecommunications can be understood only within the context of these technological and regulatory changes.

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