1. ).) The economics indicate the opposite conclusion, however. First, the LoopCo's costs are already sunk, and it has already achieved the necessary scale economies necessary to be successful. As such, it will already be established in a market capable if sustaining only a few firms. Second, assuming arguendo that there no other local access facilities (or even a few), it is highly likely that regulators will still impose some sort of price regulation on the LoopCo. As such, it is unclear how a LoopCo would be economically unviable when its operational costs are guaranteed by regulation. Finally, it may turn out that the LoopCo would exceed its regulatory rate of return through the market because divestiture has removed its incentive to discriminate and replaced it instead with an incentive to sell as much of its producti.e., local access -to as many potential buyers it could find. Indeed, if a LoopCo is really such an inefficient business proposition, then why did British Telecom reject offers of $ 11;Jeffrey A Eisenach;Regulatory Overkill: Pennsylvania's Proposal to Breakup Bell Atlantic by,1999