Functional or structural separation continues to be an exciting development in Europe. Beginning with British Telecom, the years of debate have been acted on and during 2009 a number of plans will be implemented to alter the fundamental structure of several European incumbents. These developments are possible as much through the introduction of far-reaching regulatory reforms as through the relative fortunes of individual companies which have placed greater political and commercial pressure on them to unshackle their various divisions, and cease being vertically integrated operators. The commercial success of BT since it underwent this process is proof that component companies can generate more value separately than they would if retained under the umbrella of the parent company. This report analyses structural separation in Europe in 2009. It provides the background to this important development, assesses the main drivers pushing for reform and evaluates how the wider telco markets may fare in coming years. The report was archived in July 2013.
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