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Regulatory and Government

Many developing markets in the midst of technology change require national regulatory authorities and Governments to analyse the economic and social impact of introducing new telecommunication services within a liberalised market framework. In deciding upon their roadmap for change, a number of key issues must be addressed:

  • Definition of strategic policy options to ensure sustainable competition
  • Develop the framework, terms and conditions for new licences
  • Develop renewal or extension criteria
  • Provision of a detailed policy framework (price setting, interconnection, quality of services, coverage obligations, universal service conditions, etc.)
  • Introduction of the relevant organisational framework and changes in order to monitor and enforce the chosen policy

Bridge can support authorities in such sector policy development, with in-depth analysis of future technology impact, market scenario development and the complete Licence tendering process.

As market liberalisation continues, many markets are faced with legislation requiring the dominant incumbent fixed network operators to grant interconnection to other providers -- wireless and wireline. The granting of interconnection by dominant market players is often on the basis of transparency, and non-discriminatory cost-orientated pricing using the so called LRIC-method. Long-Run Incremental Cost (LRIC) method is based on the adoption of a number of pricing principles shown below:

  • Cost relevancy
  • Constant Mark-up
  • Long-run incremental costs
  • Appropriate sector Return on Capital employed
  • Efficient operator basis
  • Forward looking -- non-historic
  • Current Replacement costs

Bridge can assist operators understand the benefits of meeting LRIC interconnect requirements and implement adoption the Total Service Long Run Average Incremental Cost (TSLRAIC) method, chosen by almost all European operators to adhere to the EU regulatory obligations.

Contact

BRIDGE Holding GmbH

Siegfriedstrasse 28
53179 Bonn
Germany

Phone:  +49 228 90 92 69-0
Fax:  +49 228 90 92 69-9
E-Mail:  info@bridge-consulting.de

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