Structural separation in Australia: Economic and policy issues

Structural separation is a recurring issue in debate over telecommunications regulation. Some general conclusions flow from a review of the literature. In the first place, it is not clear that the current integrated structure of Telstra is needed for efficiency. Secondly, the net benefits of structural separation would depend critically on the particular pattern of separation that is proposed. Finally, enhanced separation would only be worthwhile if it would influence the incentives confronting Telstra managers.