 competition in the U.S. long-distance market after 1996. An even more important event was the entry of wireless or "cellular" carriers into the market through nationwide plans. In May 1998, AT&T launched its "One-Rate" plan allowing subscribers to dial anywhere in the country from anywhere in the country at rates as low as 10 cents a minute, which was less than many res- idences were then paying for wireline long-distance service. Nextel, Ver- izon (Bell Atlantic), and Sprint followed in the next year. These plans were extraordinarily successful, as reflected in accelerating wireless revenue growth and the slower growth of "roaming" revenues. 15 But their most important impacts were experienced by long-distance carrier rates. Average interstate rates (excluding international calling) fell from $0.15 to $0.11 per conversation minute in 1992-98 and then declined to $0.07 and perhaps even less by 2002. 16 For most of the 1990s, wireless rates were far above wireline long-distance rates, but in 1998-99 wireless rates began to decline sharply (figure 6-2). By 2001 the average wireless rate was almost as low as the average long-distance carrier's rates, and many plans began to The Death of Distance and of the Long-Distance Carriers Figure 6-2. Interstate Long-Distance Rates and Wireless Rates, 1992-2002 Dollars/minute Average wireless rate Average long-distance rate Source: FCC, Telecommunications Industry Revenue Data, 2002 (March 2004); FCC, 8th Annual CMRS Competition Report (July 2003). offer large amounts-in some case unlimited amounts-of free wireless airtime after 9:00 P.M. on weekdays and any time on weekends. Much of the early decline in long-distance rates was due to reductions in regulated access charges and universal service charges, not to competi- tion. The average revenue per domestic interstate conversation minute fell from $0.149 in 1992 to $0.083 in 2001, a $0.066 reduction. During this period, switched access charges per conversation minute fell from $0.069 to $0.018, a $0.051 reduction. Thus access