[11], decided in 1970 after several years' discus- sion, created a distinction between "communications" subject to regulation and unregulated "data processing." However, this created a gray area-"hybrid" services combining the two that were left to be handled on a case-by-case basis. This was hardly a satisfactory solution, as the FCC soon found itself facing many such cases. So in 1976 it began its Computer II inquiry, seeking a new boundary between regulated and unregulated activities. The Computer II decision had several important aspects. It divided tele- communications into "basic" and "enhanced" services, the former subject to regulation, the latter handled more flexibly. And apropos the customer-premise equipment business, it ruled that such equipment, ranging from lowly telephone sets to the largest PBX systems, could in the future no longer be provided under The Rebirth of Competition tariff. Enhanced services and customer-premise equipment could only be pro- vided by the Bell Operating Companies (and GTE, then the largest "independ- ent" telephone company) via a "fully separate subsidiary" (FSS) subject to strict arms-length separation requirements. This was meant to put all players on an equal footing, and it was in that regard quite successful. A few years later, the Computer III decision [12] relaxed the FSS requirement, instituting instead a system of accounting and behavioral safeguards; the restriction against tariffs for CPE, however, remained in effect. American Bell and the Embedded Base Computer II set a date of January 1, 1983, for terminal equipment detariffing. After that date, AT&T's terminal equipment sales were moved out of the BOCs and into a new FSS, American Bell Inc. (ABI). AT&T celebrated by introducing its first digital PBX that very week. Initially called Dimension/AIS System 85, the first half of the name was later dropped. It was a curious introduction. Code-named "Antelope," System 85 was a digital variant of the older Dimen- sion 2000 PBX; its design was largely completed by 1