As UNE-P Laws Fade Away, Bells Out To Win Back Users; Phaseout On March 11; Rules let telecom rivals lease lines from regional Bells at affordable rates.(INTERNET & TECHNOLOGY)

Publication: Investor's Business Daily

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COPYRIGHT 2005 Investor's Business Daily, Inc.

Byline: REINHARDT KRAUSE

March 11 could be the beginning of the end for local phone companies.

That's when federal regulators will phase out something called UNE-P -- rules that force regional Bells to rent their networks to local rivals at steep discounts.

Starting March 11, companies that lease lines and switches from the Bells won't be allowed to add new customers via UNE-P. They'll have to sign new contracts with the Bells instead. All UNE-P leasing deals will expire in March 2006.

Telecom upstarts and long-distance phone companies have benefited from UNE-P. They were able to lure millions of local phone customers away from the Bells.

Without UNE-P's price caps, most won't be able to...

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