The RBOCs should be split up into a wholesale *only* division (owns the poles, wires, buildings,switches) and a services *retail* division (owns the dialtone, bandwidth, customers ). The wholesale division should sell service to the retail division at a regulated TELRIC based price which will allow the wholesale division to make enough money to build/ maintain the best infrastructure in the world.
This is more or less what BT has done in the UK by splitting off all the field engineering into a separate company called Openreach. UK already has had a thriving digital radio network and digital TV network for several years. They are already starting to shut down analog TV transmitters. We have lept ahead in deployment of broadband with a variety of providers in most cities. Perhaps there are lessons to be learned here?
More regulation of the physical infrastructure (the expensive piece) and less regulation of the bits to foster competitive solutions and bring along new innovations. The future innovations are not going to revolve around new types of fiber. They will revolve around what can be done with high bandwidth to everyone.
I doubt if even the RBOC executives understand this fundamental distinction. --Michael Dillon