And yet telcos weren't happy with the regulated profit that unbundled DSL provided them. Either they're just lying (which I consider entirely credible) or it's not that simple. For example, if the regulated profit is less than in an unregulated scenario, "shareholder value" thinking will argue for deregulation. Also, there's no profit if the regulated cost-plus price is so high that nobody buys it (what if the cost of FTTH is over $100/month?).