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Network Neutrality and Ownership Unbundling in Telecommunication

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  • Danis Andrej

    (Strakova 5, 811 01 Bratislava, Slovensko, 0049 171 306 7419)

Abstract

Purpuse of the article: Network Neutrality is currently being discussed all around the world. In parallel there is a need to build up next generation networks which is a very cost intensive undertaking. Last but not least, there is a strong push from the European Commission to push higher competition in the telecommunication market to increase efficiency. The question is, can a network provider charge content providers to offer their content via their network and how can we ensure that a network provider (who is an integrated company offering both content and providing retail services) can offer access to the unique architecture "Network" to other content providers at a fair price.Methodology and methods: We leverage current literature and comparative approach with similar industry which is electricity. Furthermore, based on a theroretical model we explain the benefits of ownership unbundling. The aim is to explain the topics behind network neutrality and how ownership unbundling can not only improve the efficiency in the industry but move the discussion to a different level. We found out that ownership unbundling in the telecommunication industry based on a similar model as in the utilities business could strongly increase the efficiency on one side and support network neutrality on the other. There is an indication that network concentration into one company in public or private hand can generate significant savings and increase efficiency. Furthermore, independent network not connected to the content or to retail ensure equal treatment of content providers and retail without cross subsidization. An independent network can be allowed to charge content providers for access to customers as it ensures equal treatment of all.

Suggested Citation

  • Danis Andrej, 2012. "Network Neutrality and Ownership Unbundling in Telecommunication," Creative and Knowledge Society, Sciendo, vol. 2(1), pages 44-59, July.
    • Handle: RePEc:vrs:crknos:v:2:y:2012:i:1:p:44-59:n:3
    DOI: 10.2478/v10212-011-0016-2
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    References listed on IDEAS

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    1. Pollitt, Michael, 2008. "The arguments for and against ownership unbundling of energy transmission networks," Energy Policy, Elsevier, vol. 36(2), pages 704-713, February.
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