CC has ruled that the local telephone companies created by the breakup of AT&T now face sufficient competition to justify permitting them to offer in- region long-distance service in every state except Alaska and Hawaii (FCC 2008d). In addition, in eliminating the regulatory requirements imposed by the Computer Inquiries, the FCC recognized that those rules "were developed before separate and different broadband technologies began to emerge and compete for customers" and could no longer be justified under contemporary circumstances (FCC 2005d). Last, the FCC has acknowledged that the increase in competition has weakened the ability of last-mile providers to discriminate in favor of proprietary CPE. The FCC has concluded that the growth in competition among local exchange carriers justi- fied abolishing its prohibition of bundling CPE with telecommunications services. Even though local exchange markets were not yet perfectly competitive, the FCC concluded that the level of competition and the consumer benefits of bundling sufficiently mitigated the risk of anticompetitive harm (FCC 2001b). The FCC has also abandoned its previous role in establishing the technical criteria for intercon- necting CPE, although the FCC stopped short of repealing the interconnection requirements altogether (FCC 2000f). The rationale underlying previous examples of mandated interconnection and standardization, as well as the evolution of regulatory policy since those restrictions were initially adopted, indicates that broadband policy would be better served if such efforts were directed toward identifying and increasing the competitiveness of the last mile, which remains the industry segment that is the most concentrated and protected by entry barriers. Restated in terms of the layered model, decisions about whether to regulate the logical layer should not be driven by a desire to preserve and Networks in Telecommunications promote competition in the application and content layers. Such decisions should instead be guided by their impact