This paper demonstrates the feasibility of the TELRIC standard. We develop an engineering-economic model of an interoffice telephone network suitable for calculating a TELRIC interconnection cost. The model utilizes the method of simulated annealing to determine an "optimal" SONET ring. Using...

In May 2002, the Supreme Court upheld the rules promulgated by the Federal Communications Commission (FCC) to implement provisions in the Telecommunications Act of 1996 (the Act) regarding mandatory resale of the components of local telephone networks. This article explains the background of the...

The Supreme Court decision in Verizon et al v. FCC et al has finally settled the legality of the FCC's methodology for setting prices for wholesale services that are "based on cost", as required by the Telecommunications Act of 1996. The Court's decision reveals unanimous agreement that...

The Supreme Court Opinion on local exchange competition in general and on pricing and unbundling in particular was much anticipated and will be much discussed. Because of the very technical nature of the pricing and unbundling rules facing incumbent local exchange carriers there is a...

This paper addresses the fundamental question of what costs and prices would look like under competitive conditions and how close the FCC's total element long-run incremental cost (TELRIC) pricing rules allow one to approximate such competitive outcomes. We consider: what types of firms would...

One of the most important issues in the debate on interconnect regulation has been use of forward looking costs for setting of interconnection charges. This debate has been ongoing within the EU as well as in US. This paper discusses the European experiences and in particular the Danish...