Increasing the number of operators
If bus services in the city are provided by a public or private monopoly, the number of operators must be increased to introduce an area- or route-contract system.
This may mean breaking the monopoly into smaller units, or introducing new operators to supplement the services provided by the monopoly. Or the monopoly may also be broken up in addition to introducing new operators.
If the monopoly bus operator has only one depot, it may be impractical to break it up. If it has several depots, it’s often appropriate to treat each as a separate operating unit, which may form the basis for new companies.
In most situations it’s likely that the existing operator, whether it is broken up or remains as a single unit, will need to be supplemented by new operators.
Other key issues to consider
Changes in industry structure
Consolidating small operators
Forming operators’ associations
Creating a level playing field