Tulyar - The DB plan is an interesting proposition. Full details at (although I'm sure you will have seen this):
http://www.alliancerail.co.uk/Edinburgh_Briefing_Document.pdf
Really can't see the ORR letting it happen though. It would kill the East Coast franchise holder. That's the great thing about rail privatisation - it was created to allow competition - but not the "wrong sort" of competition, which seems to be the sort that might actually benefit passengers as opposed to the holders of rail franchises.