International Experience with Vertical Separation in Telecommunications – The Case of New Zealand
30 Pages Posted: 10 Apr 2010
Date Written: April 10, 2010
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.
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