Reasons for introduction of functional separation arise also from different motives for investment in passive infrastructure and investment in services. The passive infrastructure requires long term planning and long term strategy, which implies a stable environment. Advantages from introducing functional/structural separation are obvious, since the regulation of the basic passive infrastructure may be separated from regulation of the remaining services, which is completely justified. In this way, the regulation of prices for access to infrastructure will be simplified as well, and will become more efficient for the regulator. On the other hand, it offers a chance for increasing the competition on the market. The efficiency and the pace of implementation of all measures anticipated in the regulatory strategy of the independent regulator would significantly increase by this measure. Practically, all conditions for healthy competition based on services would be created immediately, and at the same time a more favourable environment would be created which will provide investors with more security when investing in new infrastructural projects, by which competition based on infrastructure will occur much faster. This is in line with the latest trend in Europe, and even in the USA where the local selfgovernance institutes take actions for providing accessible infrastructure of the latest generation (the so called muni FTTx projects). Regarding the treatment of large infrastructural systems, the functional/structural separation in the Republic of Macedonia is nothing new. For example, the functional/structural separation has been carried out in the electric power sector (Electric Power Supply Company of Macedonia, Macedonian Radio and Television, and currently, such process is happening in the Macedonian Railways. Measure 2.6. Preparation of a detailed study about the needs for introduction of functional/structural separation of electronic communications in the Republic of Macedonia. Page 19 of 40