ss wireless-wireline substitution in chapter 7. 2. Verizon acquired GTE in 2000. SBC acquired Ameritech, Pacific Telesis, and South- ern New England Telephone in 1997-99. Qwest acquired U S West in 2000. 3. AT&T Corp. et al. V. Iowa Utilities Board et al., 525 U.S. 366 (2000). 4. The cable companies have outperformed the Bell companies, but their equity prices have been much more volatile over this period. 5. In 1991 they succeeded in overturning the "information services" ban of the 1982 decree. Without being able to participate in long-distance services and manufacturing activ- ity (including engineering design), however, this victory proved to be of limited value. 6. U.S. Telecom Industry Association et al. V. FCC and USA, No. 00-1012, D.C. Cir. 2004. 7. Technically, the beta measure is the covariance of the company's equity price with the overall market. A beta of more than 1.0, therefore, suggests that investors view the stock as more risky than the average for the entire market. A beta of 0.50 suggests the contrary, namely, that the security is less risky than the average for the entire market. 8. See chapter 9 for a comparison with the incumbent telephone companies in other developed countries. 9. The wholesale loop rates have been lowered in twenty-five of the forty-eight mainland states since 2001. See Billy Jack Gregg, A Survey of Network Unbundled Element Prices in the United States (National Regulatory Research Institute), periodic issues. 10. Similar results were obtained by Allan Ingraham and J. Gregory Sidak in "Manda- tory Unbundling, UNE-P and the Cost of Equity: Does TELRIC Pricing Increase Risk for Incumbent Local Carriers?" Yale Journal on Regulation 20 (2003): 389-406. 11. Growth in the Standard & Poors 500 Index, December 31, 1996, to December 31, 2003 (http://finance.yahoo.com). 12. FCC, Telecommunications Industry Revenues, 2002 (March 2004), table 3 (adjusted). Notes to Pages 65-73 13. Anna Maria Kovacs, Kristin L. Burns, and Gregory S. Vitale, The Status of 271 and UNE-Platform in the Re