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Unbundling in the Telecommunications and the Electricity Sectors: How Far should it Go?

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  • Isabel Soares
  • Paula Sarmento
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    Abstract

    In this paper we discuss the European regulation policy regarding vertical separation in communications and electricity industries. In the electricity sector the discussion concerns ownership unbundling while in communications the recent regulatory debate is about functional separation. We conclude that for electricity, ownership unbundling seems to be the best option to achieve competition in wholesale markets although there is still some risks concerning investment. Instead, for the communication sector the regulatory options are deeply dependent on the intensity of network competition between operators that combine different technological platforms. Technology also seems to be a key driver for diverse regulatory approaches concerning the unbundling requirement.

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    File URL: http://www.ersj.eu/repec/ers/papers/12_SI_p8.pdf
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    Bibliographic Info

    Article provided by European Research Studies Journal in its journal European Research Studies Journal.

    Volume (Year): XV (2012)
    Issue (Month): Special Issue on Energy ()
    Pages: 157-194

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    Handle: RePEc:ers:journl:v:xv:y:2012:i:sie:p:157-194

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    Web page: http://www.ersj.eu/

    Related research

    Keywords: Unbundling; Communications; Electricity; Next Generation Networks;

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    2. Giovanni Fraquelli & Massimiliano Piacenza & Davide Vannoni, 2005. "Cost Savings From Generation and Distribution with an Application to Italian Electric Utilities," Journal of Regulatory Economics, Springer, vol. 28(3), pages 289-308, November.
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    4. Pollitt, M.G., 2009. "Electricity Liberalisation in the European Union: A Progress Report," Cambridge Working Papers in Economics 0953, Faculty of Economics, University of Cambridge.
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    7. Jason WHALLEY & Peter CURWEN, 2008. "Is Functional Separation BT-Style the Answer?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(71), pages 145-168, 3rd quart.
    8. Pollitt, M., 2007. "The arguments for and against ownership unbundling of energy transmission networks," Cambridge Working Papers in Economics 0737, Faculty of Economics, University of Cambridge.
    9. Joskow, Paul L., 2005. "Markets for Power in the United States: An Interim Assessment," Working paper 270, Regulation2point0.
    10. Growitsch, Christian & Stronzik, Marcus, 2011. "Ownership Unbundling of Gas Transmission Networks - Empirical Evidence," EWI Working Papers 2011-7, Energiewirtschaftliches Institut an der Universitaet zu Koeln.
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