The Commission is authorized, after notice and hearing, to order a telecommunications carrier which offers or provides both competitive and noncompetitive telecommunications service to establish a fully separated subsidiary to provide all or part of such competitive service where:
         (a) no less costly means is available and effective
    
in fully and properly identifying and allocating costs between such carrier’s competitive and noncompetitive telecommunications services; and
        (b) the incremental cost of establishing and
    
maintaining such subsidiary would not require increases in rates or charges to levels which would effectively preclude the offer or provision of the affected competitive telecommunications service.

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