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Are Regulators Forward-Looking? The Market Price Of Copper Versus The Regulated Price Of Mandatory Access To Unbundled Local Loops In Telecommunications Networks, Jerry A. Hausman, J. Gregory Sidak, Timothy J. Tardiff
Are Regulators Forward-Looking? The Market Price Of Copper Versus The Regulated Price Of Mandatory Access To Unbundled Local Loops In Telecommunications Networks, Jerry A. Hausman, J. Gregory Sidak, Timothy J. Tardiff
Federal Communications Law Journal
"The Enduring Lessons of the Breakup of AT&T: A Twenty-Five Year Retrospective."' Conference held at the University of Pennsylvania Law School on April 18-19, 2008.
Around the world, since 1996, regulators 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 cost (TELRIC), which in turn is calculated using engineering models that estimate the costs of a hypothetical carrier employing the most efficient telecommunications technology currently available and the lowest cost network configuration, given the existing …