The Great Telecom Meltdown not yet complete. The factory sat idle for months while engineers attempted to debug a prototype of the PNX (LAN integration having moved to the back burner); finally, money ran out and the company folded. (Nobody said that foolish telecom spending was unique to the 1990s.) Ztel's contemporary was a California start-up called CXC, whose PBX was called The Rose. This was supposed to be based on a Token Ring LAN, rather than Ethernet. CXC did actually ship working PBX systems, though the LAN integration aspect was shelved. Although not a major factor in mainstream PBXs, The Rose achieved some success as an automatic call distributor, a spe- cialty with relatively high per-line prices. Integrated voice-data PBXs did end up with some niche markets, even as LANs came to dominate the office. They were useful for isolated locations where voice wiring existed and a LAN connection would have been hard to achieve. And they were sometimes useful for calls between sites; compatible IVD PBXs outperformed the modems of the day, preceding integrated services digital networks (ISDN). But these were a far cry from the promise of 1980. Computer II and the Detariffing of Terminal Equipment Before the Carterfone decision, telephone equipment such as PBX systems could only be rented from the local telephone company. Carterfone created a system in which the telephone company's rental PBXs competed with so-called inter- connect systems, which were usually purchased by their users (though private lease funding was also available). This was not a level playing field, although both sides had advantages and disadvantages. The telcos often complained that they could not compete fairly when their rates were regulated. The interconnect companies complained that their customers often received inferior service from the telephone companies, who were both unhappy competitors and essential suppliers of telephone lines. This all changed as a result of the FCC's 1980 Computer II ruling [10]. The earlier Computer I inquiry 