CONFIDENTIAL

EXHIBIT 13

EXAMPLES OF MAJOR LEC INCENTIVE REGULATION PROGRAMS IN THE US*

STATES WITH INCENTIVE PROGRAMS

COMPANY

SCOPE

TIME FRAME

Years

Alabama

SCBT

All

5

Arkansas

SWBT

Basic

2

Connecticut

SNET

Basic

Indefinita

Delaware

DST

All

2

Florida

SBT

Basic

3

Kentucky

SCBT

Basic

1

Maryland

C&P MD

Basic

4

Nebraska

USW

All

Indefinite

Nevada

Centel

All

2

New Jersey

NJB

All

3

New York

NYT

All**

RTC

All**

♡ ♡

3

3

Vermont

Virginia

West Virginia

NET

All

3

C&P VA

→ Various

Indefinite

C&P WV

Basic

2

Wisconsin

WB

All

2

·

In addition to the approved programs listed above, more than 20 other states were reviewing some degree of incentive regulation as of March 1, 1989

**

Except competitive services

Source: PSC interviews; Regulatory Research Associates, Inc.; McKinsey analysis

McKinsey & Company, Inc.

DENTIAL

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