{"id":4677,"date":"2011-04-13T06:20:05","date_gmt":"2011-04-13T10:20:05","guid":{"rendered":"http:\/\/mhgoldberg.com\/blog\/?p=4677"},"modified":"2011-04-12T23:19:53","modified_gmt":"2011-04-13T03:19:53","slug":"functional-separation","status":"publish","type":"post","link":"https:\/\/mhgoldberg.com\/blog\/?p=4677","title":{"rendered":"Functional separation"},"content":{"rendered":"

Michael Geist<\/a> writes that the Liberals are supporting British style functional separation for Canadian telecom carriers, based on a rapid-fire on-line exchange<\/a> between Open Media’s Steve Anderson and\u00a0Marc Garneau<\/a> this past Monday {see 2:11 on chat<\/a>}:<\/p>\n

Anderson<\/em>: In Canada, we have a few companies that dominate both the business of providing access to the customer via the last mile of the Internet (wholesale), as well as the business of providing access to the wires that connect the customers to the backbone of the Internet (retail). It is this domination of both wholesale and retail markets that experts say is at least partially responsible for the high costs of Internet access in Canada, as well as the lack of choice and competition in the market. The UK and other countries have dealt with this situation by separating the two businesses in what is called \u201cfunctional separation.\u201d This appears to have lowed prices and created more choice and competition. What is the Liberals position on functional separation? Would a Liberal government adopt this approach?<\/p>\n

Garneau<\/em>: Steve, we are supportive of that concept. The UK is doing interesting stuff and we need to look at that carefully.<\/p>\n

Anderson<\/em>: Is that a yes?<\/p>\n

Garneau<\/em>: Yes.<\/p><\/blockquote>\n

Of course, functional separation has never been imposed in a country that has platform competition and it is unclear how it would be implemented or whether it makes any sense in Canada. The telephone companies are not the incumbent service providers for broadband. Cable based services were first. In virtually every geographic market, the phone companies aren’t even the market leader. So, which company would it apply to?<\/p>\n

So, how would functional separation work? More fundamentally, how would functional separation stimulate further investment?<\/p>\n","protected":false},"excerpt":{"rendered":"

Michael Geist writes that the Liberals are supporting British style functional separation for Canadian telecom carriers, based on a rapid-fire on-line exchange between Open Media’s Steve Anderson and\u00a0Marc Garneau this past Monday {see 2:11 on chat}: Anderson: In Canada, we have a few companies that dominate both the business of providing access to the customer …<\/p>\n

Functional separation<\/span> Read More »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","two_page_speed":[],"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4677","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\nFunctional separation • Telecom Trends<\/title>\n<meta name=\"description\" content=\"Michael Geist writes that the Liberals are supporting British style functional separation for Canadian telecom carriers, based on a rapid-fire on-line • April 13, 2011\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mhgoldberg.com\/blog\/?p=4677\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta 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