„Functional separation is an expensive experiment the live body of the market”
During the Polish Chamber of IT and Telecommunication (PIIT) conference on 7.04.2009 Audytel presented the results of the first independent C/B analysis of the Equivalence of Access Card proposed by Telekomunikacja Polska (TP). This analysis showed that the social welfare of this project is higher than functional separation of TP, considered by local NRA (UKE).
„Functional separation is an expensive experiment the live body of the market,” said Emil Konarzewski, Managing Partner Audytel. „The application of this remedy can bring major benefits, especially for consumers, but it is associated with a variety of risks and high costs. Therefore, one should seriously take into account the alternative scenario proposed by the TP, especially since according to our estimates, the total level of consumer benefits in this case is just a little smaller, but they will be achieved much faster. ”
Taking into account total welfare, not only benefits for consumers but also cost and benefits the operators and the Treasury, the Equivalence of Access Card turns out to be more profitable than functional separation. The difference in welfare for the benefit of the Card increases if risk of implementation delays of the two scenarios are considered. Given the legal risks associated with functional separation, the value of the expected welfare of this scenario is relatively small (approx. 267 million zloty), while in the case of Equivalence of Access Card remains at a high level – 815 million zloty.