In this paper, the tools of legal and economic analysis are used to analyze the division of decision making authority between state and federal regulators of telecommunications policy. First, the principles of welfare economics are applied to the problem of defining appropriate jurisdictional boundaries. The results of this analysis are normative statements relevant to the problems of identifying a set of legal arrangements or policy rules to maximize economic welfare. Second, the way decisions are actually made is analyzed, and recent law cases resolving jurisdictional disputes arising under the 1934 Communications Act is reviewed. (16 footnotes) (EW)