Cost orientation and xDSL services: retail-minus vs. LRAIC

Ricardo Gonçalves

doi:10.1016/j.telpol.2007.05.009

Cost orientation and xDSL services: retail-minus vs. LRAIC

Ricardo Gonçalves^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

4 Citations (Scopus)

Abstract

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.

Original language	English
Pages (from-to)	524-529
Number of pages	6
Journal	Telecommunications Policy
Volume	31
Issue number	8-9
DOIs	https://doi.org/10.1016/j.telpol.2007.05.009
Publication status	Published - 2007

Keywords

Cost orientation
LRAIC
Retail-minus
xDSL

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10.1016/j.telpol.2007.05.009

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Cost orientation and xDSL services: retail-minus vs. LRAIC

Abstract

Keywords

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