Cost orientation and xDSL services: Retail-minus vs. LRAIC
Forward-looking long run average incremental cost (LRAIC) bottom-up models have now established themselves as a popular methodology to guide European telecommunications regulators' setting of interconnection charges between the incumbent and other operators. The purpose of this article is to discuss the adequacy of using bottom-up LRAIC models or retail-minus to calculate bitstream access charges--the charges typically applicable to wholesale xDSL services. In particular, the author is interested in the cost drivers of such services, how different they are from circuit-switched voice services, and ultimately whether retail-minus should be preferred over LRAIC models when setting these bitstream charges.
Authors: | Gonçalves, Ricardo |
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Published in: |
Telecommunications Policy. - Elsevier, ISSN 0308-5961. - Vol. 31, 8-9, p. 524-529
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Publisher: |
Elsevier |
Subject: | Cost orientation LRAIC Retail-minus xDSL |
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