Is Functional Separation BT-Style the Answer?

Abstract: This paper focuses on functional separation. After recounting the circumstances that culminated in the imposition of functional separation within the UK, the paper highlights the difficulties that have been encountered subsequent to the creation of Openreach. Functional separation developments outside the UK are then described and doubts raised as to whether the Openreach model is appropriate for other markets. Key words: Openreach, functional separation, UK. s regulators have sought to resolve the tensions that exist between incumbent operators and those services providers that require access to their networks, functional separation has emerged as one way to achieve the sought-after resolution. Since its adoption in the UK, a range of countries have examined the feasibility of adopting functional separation within their own markets. Some of these countries have broadly followed the UK's lead whereas others have not. Any discussion as to whether functional separation UK-style should be adopted inevitably raises two questions: what is meant by functiona