Is LoopCo the answer?

Abstract

Proposals have been made to separate BT vertically into two parts: an access network (LoopCo) providing services to all operators, and a core network. The aim is to counter discriminatory behaviour by an integrated firm. The paper reviews similar approaches to separation in UK utilities and establishes criteria for evaluating the LoopCo proposal. It suggests that technological developments are moving the dividing line between core and access networks. A separation made on the basis of current technology may lead to difficulties in the future in co‐ordinating investments. It proposes instead more effective means of policing discrimination.