TELECOMMUNICATIONS : IMPLEMENTATION OF FUNCTIONAL SEPARATION AT HEART OF DEBATE.

Tech Europe, May, 2008

Though less controversial, functional separation' in the telecoms sector is still nonetheless the cause of debate. The general opinion is that this tool aiming to boost competition will be retained in the future EU telecoms package.aIf a national regulator uses it, a dominant operator is then obliged to separate its network activities from its commercial activities. The goal is to prevent it from blocking access to its network for rival operators through the practice of price discrimination.

It remains to be known how national regulators will be able to use it. All eyes are now on the European Parliament, where rapporteur Catherine Trautmann (PES, France) slightly amended the draft revision of the telecoms regulatory framework. "Before moving forward in the...

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