US Regulation in a liberalized environment

An interesting article titled “As Regulatory Power Wanes, State Crafts New Telecom Plan” about the state of Vermont captures the problem of achieving Universal Service (US)  in an advanced, competitive and liberalized without making typical public investment mistakes and in my view underlines the importance of US Regulation.

The article points out that when much of what the telecommunications sector does is de-regulated the government has only investment as a tool to achieve the desired level of penetration. However, it cautions against the government getting involved in the following quote:

“The danger, of course, when government gets involved in these kinds of investment activities, is: Is government going to put money in the right places?”

My answer would be to better define government’s role and methodology within the regulation of US so that public interventions don’t end up doing more harm than good.