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...

Telecommunications regulation in the U.S. is replete with a system of subsidies and taxes. Because of budgetary spending limits, Congress is unable to increase general taxes to pay for social programs and thus funds these programs from taxes on specific sectors of the economy. In this paper I...