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To: jack rand who wrote (8871)3/17/1998 10:58:00 PM
From: Tim Kenney  Read Replies (1) | Respond to of 13594
 
>Current regulation requires local telcos to operate Internet
service as "fully separated subsidiaries" from the operating companies, purchasing lines etc. from them on footing equal to others.<

Does anyone care if the RBOC's "subsidized" losses in the ISP subidiary with profits from the operating company if it is just on paper anyway? The only way I would think it would matter is if the paper profits from the operating company made from the ISP would force them to lower telephone rates because of regulatory caps on the return on capital. Are such return caps still binding? Please explain. Thanks.