arriers have been driven up recently by Cingular's Jan- uary 2004 bid for AT&T Wireless. 43. Sprint has offered $35 billion to purchase Nextel, which has about 15.3 million sub- scribers, or about $2,300 per subscriber. 44. For an analysis of this problem, see Robert W. Crandall and J. Gregory Sidak, "Should Regulators Set Rates to Terminate Calls on Mobile Networks?" Yale Journal on Reg- ulation 21 (Summer 2004): 261-314. 45. In a regression analysis of 1999-2001 wireless penetration across countries, using ITU data, I found that penetration is positively and significantly related to the peak three- minute local wireline rate in the country and inversely related to the average price of cellu- lar service. 46. The minutes for European countries reflect only outgoing calls, while the U.S. data include both outgoing and incoming cellular minutes. Depending on the mix of traffic, this Notes to Pages 110-115 could result in a substantial overstatement of the difference between the United States and Europe, but the large gap shown in table 7-4 could not possibly be due simply to this anomaly. Even if one doubles the minutes for EU countries, surely an overadjustment, European use is still far less than U.S. use for the average cellular subscriber. Notes to Chapter Eight 1. U.S. Department of Commerce, National Telecommunications and Information Administration, A Nation Online, 2002. See also www.zakon.org/robert/internet/timeline/. 2. Census Bureau data from www.census.gov, as reported by the National Telecommu- nications and Information Administration, U.S. Department of Commerce. 3. Jupiter Research estimate as reported by Alex Goldman, "Top 22 U.S. ISPs by Sub- scriber: 1 2004," ISP-Planet, May 20, 2004 (www.isp-planet.com/research/rankings/ usa.html [August 15, 2004]). At the end of 2002, there were 111.3 million households in the United States, according to the U.S. Census Bureau, Historical Income Tables: House- holds (www.census.gov/hhes/income/histinc/h0601.html [December 26, 2004]). 4. For a discussion of the