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This paper  addresses  the  fundamental ,question  of  what ,costs  and  prices  would ,look  like  under  competitive  conditions and how,close the FCC’s total element long-run incremental cost (TELRIC) pricing rules allow one toapproximate,such  competitive ,outcomes.  We  consider: ,what  types  of  firms ,would ,enter  in  competitive  network industries, what effect would new entry have on the asset values and prices of incumbent firms, and what impact  would  competition  have  on  (1)  the  types  and  vintages  of  capital  equipment,  (2)  prices  for  that  equipment, and (3) conditions in the operating environment? The paper concludes by highlighting alternative pricing proposals offered by contending parties and identifying the major drivers that explain what have proven to be large differences among,competing,proposals.

Pricing Unbundled Network Elements and the FCC's TELRIC Rule: Economic and Modeling Issues