re-tax capital cost on $55 billion would require $8.25 billion in annual capital charges. 76. Morgan Stanley Dean Witter, Telecommunications Services, Industry Report (July 19, 2000); Mark Kastan and Daniel Reingold, Telecom Services-Local (Merrill Lynch, June 3, 1999). 77. Morgan Stanley, Telecommunications Services. 78. Ironically, the availability of the UNE platform at artificially low rates has made it more difficult for entrants with their own facilities to market their services. The prolifera- tion of marketing programs by UNE-P carriers increases the marketing costs per new cus- tomer for other carriers who may actually offer a new service or innovation. Remarks of John Malone, Eastern Management Group, at the CATO Institute, September 24, 2003. Notes to Pages 56-65 79. Author's tabulation based on annual reports to the SEC by thirty-two CLECs and employment data from BLS. 80. I assume that resale adds nothing to telecom output, that revenues from services using UNE loops contribute to output an equivalent of 30 percent of the revenue share from such services, and that revenues of facilities-based CLECs contribute to output in full proportion to their share of industry revenues, all based on FCC revenue data. I adjust labor input by reducing it by the share of CLEC employment in total fixed-wire industry employ- ment in 2002. I do not adjust ILEC employment. 81. This assessment does not take into the account the potentially large economic costs of denying the Bell companies the ability to compete in interLATA long distance between 1996 and 2002. Long-distance rates would surely have been much lower over this period if the Bell companies had been allowed to enter. See chapter 6 for an estimate of this addi- tional cost to consumers. 82. I discuss broadband services in chapter 8. I do not, however, attempt to measure the extent of innovation in services to small or medium businesses or any potential increase in service quality to these customers that has resulted from entry. Notes to Chapter Five 1. I addre