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Does Unbundling Really Matter? The Telecommunications And Electricity Cases

Author

Listed:
  • Isabel Soares

    (CEF.UP, Faculdade de Economia, Universidade do Porto, Portugal)

  • Paula Sarmento

    (CEF.UP, Faculdade de Economia, Universidade do Porto, Portugal)

Abstract

In this paper we discuss the European regulation policy regarding vertical separation in communications and electricity industries. In the electricity sector the discussion concerns ownership unbundling while in communications the regulatory debate is about functional separation. We conclude that for electricity, ownership unbundling seems to be the best option to achieve competition in wholesale markets although there is still some risks concerning investment. Instead, for the communication sector the regulatory options are deeply dependent on the intensity of network competition between operators that combine different technological platforms. Technology also seems to be a key driver for diverse regulatory approaches concerning the unbundling requirement.

Suggested Citation

  • Isabel Soares & Paula Sarmento, 2010. "Does Unbundling Really Matter? The Telecommunications And Electricity Cases," FEP Working Papers 380, Universidade do Porto, Faculdade de Economia do Porto.
  • Handle: RePEc:por:fepwps:380
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    File URL: http://www.fep.up.pt/investigacao/workingpapers/10.07.05_wp380.pdf
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    Cited by:

    1. Tanrisever, Fehmi & Derinkuyu, Kursad & Jongen, Geert, 2015. "Organization and functioning of liberalized electricity markets: An overview of the Dutch market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 1363-1374.

    More about this item

    Keywords

    unbundling; communications; electricity; next generation networks;
    All these keywords.

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