The discussion regarding the adoption of Functional Separation - the breaking up of the network operations of a Telco from the retail operations - as a means to foster competition in the telecommunications sector has been the target of much attention in the recent years (Crandall, Eisenach and Litan 2009).
In Brazil this particular discussion is highly important and urgent, due to the recent developments that might challenge competition in the sector (Coutinho and Oliveira 2009) and taking into account the attempts to foster broadband penetration that are now in place (Brazil 2009). The UK, in turn, despite all the controversy about the success of its Functional Separation (CMT 2009, Ofcom 2009) is regarded as a benchmark of its implementation.
In the light of the relevance of the issues involving a Functional Separation undertaking in developing countries, this dissertation assesses the varieties of Functional Separation focusing on the British experience. Moreover, the dissertation aims to contrast the British experience with the Brazilian perspective in order to determine how British Functional Separation best practices might have an impact on the strategies adopted in Brazil. Whilst, comparing these two markets by the point-of-view of the level of competition in the local fixed services, this dissertation aims to shed some light over the decision to be made by Brazil regarding the adoption of Functional Separation. As a conclusion for the analysis conducted in this dissertation, some findings and recommendations towards Brazil will be presented.
In Brazil this particular discussion is highly important and urgent, due to the recent developments that might challenge competition in the sector (Coutinho and Oliveira 2009) and taking into account the attempts to foster broadband penetration that are now in place (Brazil 2009). The UK, in turn, despite all the controversy about the success of its Functional Separation (CMT 2009, Ofcom 2009) is regarded as a benchmark of its implementation.
In the light of the relevance of the issues involving a Functional Separation undertaking in developing countries, this dissertation assesses the varieties of Functional Separation focusing on the British experience. Moreover, the dissertation aims to contrast the British experience with the Brazilian perspective in order to determine how British Functional Separation best practices might have an impact on the strategies adopted in Brazil. Whilst, comparing these two markets by the point-of-view of the level of competition in the local fixed services, this dissertation aims to shed some light over the decision to be made by Brazil regarding the adoption of Functional Separation. As a conclusion for the analysis conducted in this dissertation, some findings and recommendations towards Brazil will be presented.
