IP Convergence: Beyond VoIP, Beyond Cost Savings

News the other week that Telecom New Zealand is being split into three divisions – wholesale, retail, and network – is further evidence that the folks down under are far more aggressive in their efforts to introduce competition.  The other day, I applauded Australian Communications Minister, Helen Coonan, for her public rebuke of Telstra’s bill insert blaming regulation for its market failures.  Together with New Zealand’s action, these are the strongest examples of courageous policy makers taking the necessary steps to introduce long term, sustainable competition into the telecommunications industry despite the protests of the incumbents. 

Now we also see the European Regulatory Group issuing a report saying functional separation may be appropriate in some markets.  Also, it appears that Eircom Ltd., the incumbent telephone company in Ireland is voluntarily proposing a wholesale/retail split of its operations.  

In the U.S., divestiture was instituted by the hand of a judge.  Will history repeat itself or will U.S. incumbents learn from the past and their overseas brethren?