ers (such as AT&T and WorldCom) who do not report their results separately; hence I have no data on their capital spending. 33. These capital spending estimates are derived from the annual reports of forty-three public CLECs. They exclude spending by local operations of AT&T and WorldCom. Other estimates suggest a peak in CLEC investment spending of up to $21 billion in 2000. See, for example, New Paradigm Resources Group, Measuring the Economic Impact of the Telecommunications Act of 1996 (Chicago, October 2002). See also Association for Local Communications Services, Annual Reports, for even higher estimates. 34. Competitive access providers such as Teleport Group, MFS, and Brooks Fiber began to provide long-distance companies with special access services before 1996. 35. This is the market value of the outstanding shares plus the book value of the debt of forty-four publicly traded CLECs, excluding Level 3, which had a large investment in fiber- optics facilities throughout the country. Including Level 3, the total would be $150 billion. Based on www.finance.yahoo.com and author's calculations. 36. This calculation is based on twelve of the twenty-one surviving CLECs in my data- base. The estimate of value per line is undoubtedly biased upward because it is based on the book value of debt plus the market value of equity. 37. See www.finance.yahoo.com and company reports to the SEC. 38. Figure 4-4 shows end-user revenues. Total revenues include wholesale revenues, which are intercarrier revenues. 39. This calculation is not very sensitive to assumptions about the cost of capital. Even if the before-tax cost of capital were as low as 20 percent, the rate of growth would have had to be 19 percent a year. 40. FCC, Local Telephone Competition, table 2. 41. As explained later, a logit regression of CLEC subscription finds no statistically sig- nificant effect of total telecom spending by households. 42. TNS telecom data. 43. Using TNS household data for the first and second quarters of 2001, I estimated a regression