Around the world, regulators since 1996 have mandated that incumbent local exchange carriers (ILECs) offer competitors access to their network at regulated prices that reflect forward-looking cost. Regulated prices for unbundled network elements are based on total element long-run incremental...

The year 2005 began with the announcements that the two leading long-distance carriers — AT&T and MCI — were being acquired by two of the four major incumbent local exchange carriers — SBC and Verizon — and ended with regulatory approval virtually completed. Shortly thereafter, the new...