Functional Separation: What We Can Learn From The British Experience

This article examines functional separation as a regulatory remedy to be imposed on incumbent telecoms operators. The idea of the functional separation is to separate activities related to the network from the other services provided. The objective is to reduce regulation in the services market by creating a level playfield on the upstream network market. Taking as an example the OpenReach solution implemented by BT within the UK, the article emphasizes the challenge of creating a culture of non-discrimination. The OpenReach entity approaches the other divisions within BT as clients and applies the same procedures to them as to external clients.

Article published in the March/April 2007 edition of La Lettre de l'Autorité de Régulation des Communications électroniques et des Postes

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