accounting unbundling (or corporatization): the least substantial form of unbundling, which takes place only at the accounting level and involves the separation of accounts for different functions or services. It may also involve conversion of a government department or board into a corporation. The ownership and governance of the company itself is unchanged (i.e., it remains vertically integrated), and no separate corporate identities are created for individual segments of the value chain;
functional unbundling: separates different functions or services into different divisions within the same company;
operational unbundling: occurs when the original owner continues to hold title to the assets (and therefore receives the economic benefit of the assets), while another independent entity controls the operation of such assets;
legal unbundling: separates different functions or services into different corporate entities, but maintains some or all of them within a common (holding company) ownership structure; and
ownership unbundling (or full unbundling): separates different functions or services into unaffiliated entities, which are then owned by different parties. These separate companies have separate and distinct boards, legal identities, premises, staff, and shareholders.
