d statistical significance of the Bell lines variable are not affected by the inclusion of the time trend, however. The results are: CPI-LDReal = 108.8 - 0.073 WIRELESSMIN/MO - 0.0402 RBOCLINES(-3) (t = - 11.26) (t = -2.69) where CPI-LDReal is the consumer price index for residential long distance deflated by the overall CPI. R2 (adj.) = 0.966. 24. Assuming that the price elasticity of demand is -0.7. 25. To the extent that this policy kept inefficient carriers alive, much of this transfer was also a "deadweight" loss to the economy. In addition, lower long-distance rates would have induced greater consumption of long-distance services. The increase in consumer surplus from greater long-distance calling would be about $112 million a year. 26. In July 2003, Liberty Media agreed to purchase the rest of QVC's stock for a price that translates into a market capitalization of $14 billion. 27. As this book goes to press, SBC is in the process of acquiring AT&T, and MCI is being acquired by Verizon. 28. The total capital expenditure estimates in figure 6-4 are based company reports to the SEC for AT&T, WorldCom, Sprint, Qwest, and Global Crossing. I have attempted to eliminate the capital spending by Qwest on US West facilities, by AT&T on its cable facil- ities, and by Sprint and AT&T on their wireless networks. 29. Quarterly Report to the SEC, Form 10Q, May 10, 2004. Notes to Chapter Seven 1. The FCC reported 181.4 million fixed-wire switched access lines in the country at the end of 2003. See FCC, Local Competition: Status as of December 31, 2003, table 1. At this time there were 158.7 million wireless subscribers, according to the Cellular Telecommu- nications Industry Association (CTIA), Semiannual Wireless Industry Survey (http:// files.ctia.org/pdf/CTIA_Semiannual_Survey_YE2003.pdf [2003]). Since fixed-wire lines are declining and wireless subscribers are still increasing at an annual rate of 10 percent or more, the number of wireless subscribers should exceed the number of fixed-wire switched access lines someti