There is a growing realisation that more fundamental structural changes are necessary if the full benefits are to be achieved for users and consumers. With this in mind, the OECD Council has adopted a Recommendation on Structural Separation of Regulated Industries which urges Member countries to consider separating the monopoly and the competitive parts of regulated industries, especially during the process of privatisation or liberalisation. Experience in the U.S. telecommunications industry provides an indication of where potential benefits can be found. Today, the U.S. long-distance telecommunications market is one of the world's most competitive and the U.S. reforms have sparked a wave of similar reforms around the globe. Various forms of separation along similar lines have already become common.
Most countries have rules preventing airlines from owning airports.
In the electricity industry, the separation of generation from transmission facilities is now common. In the telecommunications and energy sectors, several countries prevent dominant operators from operating cable television networks and natural gas producers from owning the gas pipeline network. In New South Wales, Australia, where the rail industry is structurally separated, freight rates have dropped by 20 per cent since separation and no significant complaints about anti-competitive behaviour have been filed. In contrast, in the neighbouring state of Queensland, which maintains an integrated operator, there have been many complaints about insufficient third-party access. The OECD Recommendation encourages Member states to carefully balance the benefits and costs of separation versus integration in the course of regulatory decisions.