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...

Recent events, such as the California energy crisis, the failures of the UK's railways, and the consequences of the third-generation (3G) mobile licence auctions, have called into question the European reliance on a strategy of network industry liberalization. Substantial concentration in energy...