Local Loop Unbundling

A critical issue in the context of telecommunications market openness is the access to the local network. It is critical because a local network allows telecommunication service providers to reach the end users. It is especially critical because, despite the recent liberalization of the industry, a combination of historic and structural factors grant incumbent operators a strong, privileged position. One of the regulatory answers given in recent years is the obligation, for the incumbent, to share part of its local facilities with new operators. The possibility to lease the incumbent’s local network assets is generally referred to as unbundling of the local loop. As this article shows, the incumbent’s legal obligations to provide such access can be more or less burdensome, from both a technical and an economic point of view.