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telecoms regulation

If you would like to speak with our experts, please contact Suella email usHansen

Our advice encompasses a wide range of current regulatory issues, including interconnection, universal service, fixed-mobile convergence, next generation networks, local loop unbundling, number portability and tariffs. Our recent assignments have a particular emphasis on:

  • regulatory cost modelling
  • benchmarking
  • economic analysis
  • regulatory workshops

Establishing a new regulatory framework in Samoa

We are providing advice and assistance to the Ministry of Communications and Information Technology in Samoa on the establishment of a new regulatory framework, including the provision of a regulatory “tool-kit” of instruments necessary to enable the regulator to perform its functions. This tool-kit includes a methodology to assess interconnection and the costs of the provision of telecommunications, a radio spectrum allocation plan, a telephone numbering plan, appropriately defined Universal Service Obligations and costing of such obligations, as well as procedures to monitor service quality.

LRIC modelling

A major Asia-Pacific incumbent operator commissioned us to develop regulatory costing models for fixed and mobile interconnection services using a bottom-up LRIC-based approach. We also represented the operator in discussions with the regulator, including a detailed review of the regulator’s own LRIC models. Our review identified significant errors with the regulator’s models, and following discussions with the regulator, substantial changes were made to correct these errors and bring the results into better alignment with the cost estimations from our own models.

Universal service costing

On behalf of a regulator, we reviewed its proposed approach to costing the universal service obligation, including both principles and practices. We identified a number of weaknesses in the proposed approach and recommended alternative approaches. The regulator subsequently revised its approach based on our recommendations.

Developing benchmark estimates of interconnection rates

For an Asian regulator, we developed benchmark interconnection charges by statistical modelling of cost-based interconnection rates from incumbent operators in other jurisdictions. This technique minimises the use of discretionary judgement by adjusting for country-specific variables. The resultant estimates were used by the regulator in subsequent discussions with operators.

Regulatory advice for an incumbent operator

In response to a regulatory review and proposed major reform of the existing telecommunications laws and regulations of an emerging economy, we conducted a range of activities on behalf of the incumbent operator, including:

  • economic and regulatory analysis and advice on universal service provision and funding, access deficit funding, interconnection costing and pricing, for use in submissions to the regulator
  • construction of a techno-economic model of the operator’s access network to produce LRIC cost-based prices for rental of fixed line services, fixed local and national calls, Internet dial-up access and leased lines
  • development of a business impact model to illustrate the impact of various regulatory changes (to access and interconnection, and universal service policies) on the expected financial performance of the operator.

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