How to compete and connect: setting the business and regulatory context

The article addresses the technical aspects of how public network interconnection is designed and implemented. It is does not aim to cover the many and varied regulatory and commercial aspects of interconnection, which have been widely promulgated elsewhere. However, for those unfamiliar with the subject or its application in the UK, some background information is provided on the environment in which the technical arrangements are being made. Regulatory oversight of the provision of interconnection is initially inevitable, as the way it is offered and the price charged can have material effects on the development of competition. Particular difficulties can occur when retail tariffs are not yet balanced or when the burden on the incumbent operator of the universal service obligation is significant. In such cases, finding a fair pricing structure for interconnection which still promotes competitive entry can be challenging.