[Chapter-delegates] Structural separation in Australia

[Joly MacFie]

On Fri, Jun 3, 2011 at 8:08 AM, Holly Raiche <h.raiche at internode.on.net>wrote:

> HI Joly (and Paul and Everyone)
>
> I realise I am being a bit of a pedant, but structural separation is NOT
> what is happening if you stick to what structural separation means in other
> contexts.  Specifically, structural separation means the breaking up of a
> corporate entity into two or more corporate entities - each with their own
> Board, executive etc.  That is NOT what is happening here.
>


Thanks Holly/Paul/Tony for illuminating comments.


The difference between structural separation, functional separation, or you
might say divestiture and unbundling is a crucial one, and its implications
or shortcomings regarding connectivity provision are yet to be fully
understood, especially when it comes to the public vs economic interest.

As you may know, In the US the FCC commissioned a Berkman report that found
overwhelming evidence that unbundling promoted higher speeds and lower
prices. The incumbents so forcefully argued that it would inhibit investment
that it never made it past the gate in the recent National Broadband Plan.

Meanwhile academic activists like Tim Wu and Susan Crawford, via net
neutrality, have arrived at the topic from another aspect - the control of
content. Their concern is that monopoly ISPs will have strong vertical
integration motives that could lead to the death of the open internet as we
know it.

j


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