Introduction Economic considerations are and have been a part of Network Management solutions. The progressive application of deregulation to the Global and National Telecommunications industries have created a situation where the economic elements to be considered in the design of network management solutions, have become dominant. The reason for this, is that fully deregulated markets create a level of competition, which makes it necessary for participating companies to be fully aware of cost

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... levels, fixed and variable, in choosing a solution to a Network Management problem. To understand the growth and dominance of the economic elements in the design of network solutions the reasons for the emergence of deregulated telecommunication service markets should be understood. The Foundations and Formation of Public Policies for Telecommunications Part A. The Foundations of Public Policies 1. Public Policies: The Combination of Forces Public policies for telecommunications were held in place from 1876 to1980 until pressure was put upon governments in power to change them. The are three combinations of forces that have changed public policies for telecommunications since 1980. Social and Economic Forces The first is a combination of social and economic forces in which the development of technology acts as a catalyst. It is this force, together with the use of micro-wave technology that enabled new entrants to offer competitive long distance telecommunications services. In this case technology was used as a catalyst to accelerate the interaction of socio-economic forces. As the market share of two telecommunications companies, MCI and Sprint, increased, they presented a serious challenge to the long distance incumbent AT&T. The challenge then developed from a technological challenge into a legal one. Legal Forces The process of litigation, starting with MCI v AT&T, led to the US Justice Department invoking the Sherman Act and opening an anti-trust case against Western Electric as representing the Bell group of companies.