Adviced a European regulator on the review of several reference offers and cost models of the incumbent telecommunications operator
The regulator sought an independent expert to evaluate the incumbent’s Reference Offers and associated costs models in order to dimension their impact on competition and profitability in the market.
Solution
We reviewed the regulated tariffs charged by the incumbent fixed operator for the non- recurring services related to several distinct wholesale products. We analysed the corresponding cost models for each service to ensure that the tariffs allowed for an appropriate return in addition to covered costs and remained impartial to alternative operators.
We also advised the regulator to mandate more information and additional sources of information to reduce the margin of error to justify the legitimacy of the cost model.
Result
We provided our client with a deep understanding of the technical aspects underlying their current policies, and appropriate adjustments to their reference offers were made.
