Structural separation needed to create broadband competition

Gartner Group says structural separation will be inevitable in many countries where governments have tried, via unbundling regulations and accounting separation, to create more competition in the market for broadband services:

“Despite government moves (such as unbundling and accounting separation) to encourage competition and stimulate investment, progress has been meager in most countries. Regulators believe that continued vertical integration is the primary reason for this lack of progress and are increasingly seeking separation as a policy tool.”

The European Union’s telecoms commissioner, Viviane Reding, is a proponent of structural separation and many of the EU member states’ regulators such as ARCEP in France, also favor structural separation to create a more robust market for broadband services. Structural separation rules require telecoms operators to separate out the infrastructure business from the service provider business, and to open the infrastructure (fiber, copper) to all service providers on a non-discriminatory basis.