ndustry Association (CTIA), Semiannual Survey (www.wow- com.com/industry/stats/surveys/ [2003]). Figure 3-8. Growth in Switched Access and Wireless Lines, 1980-2003 Millions Switched (wire) access lines Wireless subscribers Source: FCC, Trends in Telephone Service (2003); CTIA, Semiannual Wireless Industry Survey (December 2003). The First Eight Years under the New Law companies have an opportunity to exploit a major new revenue source if regulators will create an environment that allows them to do SO. Regulatory Uncertainty States continue to regulate local retail rates much as they did in 1996. The regulation of wholesale rates, required by the 1996 act, is still evolv- ing because of continuing legal challenges. The unbundling rules are still being rewritten after three previous sets of rules were overturned on appeal, and the FCC is now reconsidering its forward-looking cost rules for pric- ing the unbundled elements. These issues have been before the FCC for more than eight years, and the commission's 2003 ruling created further confusion and uncertainty.30 Similarly, the commission has been unable to provide a definitive set of rules on the provision of the new Internet broadband services, including the telephone companies' DSL services and cable television companies' cable modem services. These dual uncertainties pose particular problems for the Bell companies, whose retail revenues are shrinking because of the decline in access lines, the loss of retail lines to new competitors, and the general shift of traffic to wireless and voice over Internet protocol (VoIP) services (see chapters 4 and 5). Between 2000 and 2002, the Bell compa- nies slashed their capital spending by 50 percent as they awaited some clar- ification of these issues, even though they needed to upgrade facilities to be able to deliver broadband DSL service to many of their subscribers. They are now beginning to increase network investment once again, albeit slowly. As discussed in chapter 8, the telephone companies' DSL services com- pete