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We provide a model to study how a phase of service-based competition during which the competitive local exchange carriers (CLEC) lease access to the incumbent local exchange carrier’s network affects the CLECs’ incentives to build alternative infrastructures. In line with the "stepping stone" arguments, we assume that service-based competition allows the entrants to build market share progressively. We show that the stepping stone effect can work in the opposite direction than the one expected. When market share acquisition depends on the entrant’s sales, we show that a decrease of the access charge can accelerate facility-based entry.