oing entrepreneurial development. Under regulatory rules in many countries today, incumbent providers are required to open their networks through element unbundling, and to lease their network resources-including new technologies-at a whole- sale price to their competitors. In the minds of regulators this creates a Downloaded from Digital Engineering Library @ McGraw-Hill (www.digitalengineeringlibrary.com) Copyright © 2004 The McGraw-Hill Companies. All rights reserved. Any use is subject to the Terms of Use as given at the website. The Byzantine World of Telecom Regulation Chapter 4 Photo courtesy Option Continue to lease the phone that's in your home. Option 2: Purchase it. Regulatory and judicial action is affecting AT&T your local Bell telephone company... and you. You may know that the Bell System is changing that local Bell phone companies are being separated from AT&T But you may not know what it all means to you and the phones in your home that you cur- rently lease from your local Bell company It's really not too com- plicated Your local phone company will continue to provide you with basic phone service (dial tone). while leased telephone equipment will become the prop- erty and responsi- bility of AT&T Consumer Sales and Service part of a separate subsidiary of AT&T you lease tele- phones today. you have the option to continue leasing them or to purchase AT&T telephones you're now leasing provide you with the finest engineering craftsmanship and styling And we think you'll you make the right choice You'l II also find a agree that the price is right-whether you decide special toll-free number to call if you have to continue leasing or to purchase any questions about your AT&T leased The following information is designed to help telephones competitive marketplace, but it is artificial. In fact, the opposite often happens: The incumbents lose their incentive to invest in new technol- ogy and innovation progresses at "telco time." Under wholesale unbundling requirements, the rewards for innovative behavio