Global - Analysis - Industry - Structural Separation

Synopsis

Archived report. This report was archived in 2008 and has not been updated. There is now more global consensus that the real solution is structural separation, which will lead to the development of very focused, cost-efficient infrastructure operators. You might recall that we started to call for this solution back in 2000. For a long time BuddeComm was a voice in the wilderness, with just a few supporters in the OECD. However with broadband rapidly becoming the major driver in the telco industry, there is a growing demand for new services, which cannot be delivered by the telcos. In order to properly address new customer demand, horizontal business structures instead of vertical structures are required. While many telcos are reluctant to change, a need for more cost efficiencies will eventually push them to structurally separate their organisations to allow for new opportunities and challenges. This report provides critical analyses of the importance of structural separation for the future of the telecommunications industry; a separate report covers this topic from a regulatory view.

Table of Contents

• 1. Synopsis
• 2. Regulatory note
• 3. A profitless industry?
• 4. Declining values – telcos need a structural change
• 5. Global infrastructure nearing collapse
  • 5.1 Wild growth in local access
  • 5.2 Dark fibre providers setting the scene
  • 5.3 Expect the bust in 2012/13
  • 5.4 Real solution is structural separation
  • 5.5 Financial world getting on board
  • 5.6 US regulatory model is bankrupt
  • 5.7 One minute to midnight
• 6.  HYPERLINK "http://www.buddeblog.com.au/the-great-separation-debate/" \o "Permanent Link to The Great Separation Debate" The great separation debate
  • 6.1 Why do it?
  • 6.2 Unleashing untapped values
  • 6.3 Europe
    • 6.3.1 BT first cab of the rank
    • 6.3.2 Ireland an even more interesting case
  • 6.4 Australia/New Zealand
  • 6.5 Other financial considerations
  • 6.6 Create new digital media companies
  • 6.7 How to proceed?
• 7. Next phase of competition
  • 7.1 Will Time Warner lead the charge towards structural separation?
• 8. Disintermediation drives market size growth
  • 8.1 Doing things differently
  • 8.2 Horizontal disaggregation
  • 8.3 Structural separation in the IT industry
• 9. Vertical integration – doomed to fail
• 10. From vertical integrated to functional organisations
• 11. Functional telco business model from ITU
  • 11.1 Mediocre telcos
  • 11.2 The Internet model
  • 11.3 Infrastructure dynamics
• 12. Telcos – losers in the march of progress?
  • 12.1 Incumbent telcos and media companies – the cracks are appearing
• 13. Related reports