Structural Separation and Access in Telecommunications Markets
This paper presents a basic framework to assess whether structural (vertical) separation is desirable. It is discussed within the setting of fixed telecommunications markets. From an economistâ€™s perspective, the key question that underlies the case for structural separation is: is there a persistent bottleneck? The obvious candidate is the â€˜local loopâ€™, or local access network. If yes then it makes sense to compare the costs and benefits of structural separation. The framework provides a set of options that the regulator can use strategically, by using the threat of a break-up to influence an incumbentâ€™s competitive stance in the wholesale market.
|Date of creation:||2005|
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