Yankee Group: Unbundling Bites

Report, "The Race to Win the Last Mile: Local Loop Unbundling Around the Globe," highlights shortcomings of LLU schemes

August 23, 2001

1 Min Read

BOSTON -- Many nations are mandating local loop unbundling (LLU), aiming to stimulate local services competition. Unbundling policies have also targeted broadband deployment. The two objectives are not necessarily complementary, and will influence different LLU models. Unbundling opens a Pandora's box of issues. Major hurdles--technical, regulatory, and commercial--confront nations as they implement LLU, according to the Yankee Group's Global Regulatory Strategies Report, "The Race to Win the Last Mile: Local Loop Unbundling Around the Globe." Competition and end-user outcomes of LLU remain unclear; LLU is not a panacea. "One thing is for sure: unbundling will not, and cannot, address or solve all of the issues involved in the reform of local services markets," says Report author Dianne Northfield. Predictable and enforceable regulations are a must. Northfield says, "While industry negotiation is the ideal, it's a pipe dream in relation to interconnection, where commercial stakes are high and disputes continue unabated." The Yankee Group

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