to reestablish regulation in the form of consumer pro- tection" rules. 27. In late 2004 Sprint announced its intention to merge with Nextel, reducing the number of carriers to four if the merger is consummated. 28. AT&T divested itself of its wireless operations in 2001, and AT&T Wireless recently agreed to be acquired by Cingular. Sprint still owns its Sprint PCS wireless operations. 29. The CTIA's Semiannual Wireless Industry Survey reported 169.5 million wireless sub- scribers in June 2004. According to the FCC's Local Telephone Competition: Status as of Decem- ber 31, 2003, there were 181.4 million wire-based switched access lines in the country. 30. FCC, Report and Order on Remand and Further Notice of Proposed Rulemaking, Review of the Section 251 Unbundling Obligations of Incumbent Local Exchange Carri- ers; Implementation of the Local Competition Provisions of the Telecommunications Act of 1996; Deployment of Wireline Services Offering Advanced Telecommunications Capa- bility; Appropriate Framework for Broadband Access to the Internet over Wireline Facili- ties, CC-Dockets 01-338, 96-98, and 98-147 (August 21, 2003). In December 2004, the FCC announced a new set of rules, which have not yet been published in complete detail. See FCC, "FCC Adopts New Rules for Network Unbundling Obligations of Local Phone Carriers" (www.fcc.gov. [December 15, 2004]). 31. FCC, Notice of Inquiry, In the Matter of Inquiry Concerning High-Speed Access to the Internet over Cable and Other Facilities, GN Docket 00-185 (September 28, 2000); Declara- tory Ruling and Notice of Proposed Rulemaking, GN Docket 00-185 (March 15, 2002). 32. FCC, Notice of Proposed Rulemaking, In the Matter of IP-Enabled Services, WC Docket 04-36 (March 10, 2004). Notes to Chapter Four 1. For a detailed analysis of some of the costs of this regulatory policy, see Robert W. Crandall and Leonard Waverman, Who Pays for Universal Service? When Telephone Subsidies Become Transparent (Brookings, 2000). Notes to Pages 31-35 2. See FCC, Trends in Telephone Servi