As a condition for approving their purchases of companies they were
> supposed to compete against, SBC and Verizon should be required to
> negotiate a contract allowing each to hook into the other's local
> network on reasonable terms.
Nope. Way to whimpy a requirement. There should be companies that provide bandwidth and companies that provide services. The bandwidth providers should sell to anyone and never under any circumstances offer any content, and vice-versa. That would produce competition (and would have in the previous round of telecom reform as well :-). Any content creep into bandwidth provider territory is just asking for legal shenanagans that conform to the letter of the law but piss all over the spirit.
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