- Project and Studies Regulators
LRIC modelling on Fixed Termination Rates for a Western European NRA
The national telecoms regulatory authority of a Western European country wanted to apply the pure Long Run Incremental Cost (pure LRIC) methodology for the estimation of Fixed Termination Rates (FTR). Our experts were asked to develop a technoeconomic tool based on the pure LRIC method.
Our experts received input from telecom operators and the national telecoms regulator to develop a model that estimated the termination rates over a period of three years based on the related avoidable costs incurred by an efficient operator.
The derived model glide path was used by the client to set the rates and comply with European Commission's recommendations.