International Experience with Vertical Separation in Telecommunications – The Case of New Zealand

30 Pages Posted: 10 Apr 2010  

Reto Bleisch

Economics Services Branch, New Zealand Commerce Commission

J. Scott Marcus

Bruegel; European University Institute - Florence School of Regulation

Date Written: April 10, 2010

Abstract

Vertical separation is increasingly recognised as a means of ensuring competitive non-discrimination in various network industries, and in the telecommunications market in particular. The implementation of separation can be more or less intrusive depending on the specific implementation requirements, ranging from a “virtual” separation of certain parts of a business entity to a full legal separation with different ownership. Each of these forms of separation could be appropriate under certain conditions.

The functional separation regime implemented by undertakings between British Telecom (BT) and Ofcom in the UK has been intensely watched and studied. Various forms of separation have been discussed, attempted, or actually implemented in other countries, but the most comprehensive implementation outside of the UK is that accomplished by New Zealand.

This paper discusses the events that led up to the separation decision in New Zealand, provides a review of subsequent developments, and seeks to place the New Zealand experience with operational separation in context in relation to international experience and to the literature on vertical separation.

Suggested Citation

Bleisch, Reto and Marcus, J. Scott, International Experience with Vertical Separation in Telecommunications – The Case of New Zealand (April 10, 2010). Available at SSRN: https://ssrn.com/abstract=1587438 or http://dx.doi.org/10.2139/ssrn.1587438

Reto Bleisch

Economics Services Branch, New Zealand Commerce Commission ( email )

44-52 The Terrace
PO Box 2351
Wellington, 6001
New Zealand

J. Scott Marcus (Contact Author)

Bruegel ( email )

Rue de la Charité 33
B-1210 Brussels Belgium
Belgium

European University Institute - Florence School of Regulation ( email )

Florence
Italy

Register to save articles to
your library

Register

Paper statistics

Downloads
274
rank
103,184
Abstract Views
1,347
PlumX