Opinion ID: 388054
Heading Depth: 3
Heading Rank: 1

Heading: Such costs are too difficult to determine objectively, accurately or promptly.

Text: 40 2. The difficulty of determining the real costs would create the danger that AT&T would drive out or discourage new entrants even if its cost is higher. 41 3. Low rates are not the only goal of communications policy, but must be considered along with innovation in services and improvements in quality that might come with new entry. 42 4. The Commission should judge rates as predatory by means of a standard based on long run fully distributed costs. 43 5. It is certainly true that the determination of 'fully distributed' or 'long-run average' costs involves estimates and somewhat arbitrary allocation formulas. Nevertheless, this standard is considerably more susceptible to regulatory control, and leaves less discretion in the regulated carrier, than in incremental cost approach. 44 The Commission rejected LRIC after considering the Department's current arguments in the light of its 1970 representations, together with the other relevant factors and policies. We cannot say that the Commission's conclusion, reached in the exercise of its discretion, was arbitrary or capricious and therefore we will not disturb it. 14