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The costs and benefits of accounting separation: The Australian and British debates

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  • Cave, Martin
  • Martin, Ian

Abstract

In the course of encouraging competition in telecommunications markets, regulators in both Australia and the UK are developing proposals to impose accounting separation upon dominant incumbents. This paper examines the logic behind accounting separation as an alternative to structural separation. It discusses the various forms in which between accounting separation, accounting separation can be implemented and analyses the connections between accounting separation, the rebalancing of tariffs, the funding of universal service obligations and the structure of interconnection charges. The paper concludes that accounting separation has the potential to provide a transparent framework in which efficient competition can develop, but that its potential can only be demonstrated by practical experience.

Suggested Citation

  • Cave, Martin & Martin, Ian, 0. "The costs and benefits of accounting separation: The Australian and British debates," Telecommunications Policy, Elsevier, vol. 18(1), pages 12-20, January.
    • Handle: RePEc:eee:telpol:v:18:y::i:1:p:12-20
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    Cited by:

    1. Richard Cadman, 2016. "Three forms of BT Separation: Objectives, solutions and effects," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2016-10, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    2. Cadman, Richard, 2019. "Legal separation of BT: A necessary incentive for investment?," Telecommunications Policy, Elsevier, vol. 43(1), pages 38-49.
    3. Mancuso, Paolo, 2012. "Regulation and efficiency in transition: The case of telecommunications in Italy," International Journal of Production Economics, Elsevier, vol. 135(2), pages 762-770.
    4. Fabian Queder, 2020. "Towards a vertically separated broadband infrastructure: The potential role of voluntary separation," Competition and Regulation in Network Industries, , vol. 21(2), pages 143-165, June.

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