An independent assessment of critical analyses ensures that assumptions, methodologies and results are sound. Our expertise delivers valuable insights that can strengthen strategies, plans and models.

• Independent review of strategy / business proposals for Board level
• Business / financial models
• Economic / econometric analysis
• Regulatory / Government analysis and modelling
• Valuations

Public safety mobile broadband

For the Australian Productivity Commission, we conducted a peer review of its economic analysis of a public safety mobile broadband (PSMB) network in Australia under various options, including the reservation of dedicated spectrum for that purpose.

Benchmarks for mobile terminating access

We conducted a detailed peer review of the benchmarking analysis and methodology used by the Australian Competition and Consumer Commission (ACCC) to derive draft rates for the mobile terminating access service.

Strategic review

For a major utility company we reviewed its proposed strategic plan, including the major potential strategies to expand the business and / or mitigate existing risks. Our independent report was presented to the Board.

Regulatory requirements review

For a policy submission we reviewed a utility company’s spreadsheet model which was based on the regulator’s Information Disclosure Return On Investment methodology.

Spectrum pricing

For a regulator, we reviewed its spectrum pricing model based on Optimised Deprival Value methodology and the model assumptions. This model estimated the incremental value of 2.5GHz spectrum to a 4G technology operator.

Weighted Average Cost of Capital

We undertook a peer review of a regulator’s proposed WACCs for fixed and mobile wholesale telecommunications services, on behalf of an operator.

Transfer of assets

We provided an independent review of a consultant’s analysis of likely transfers to the incumbent operator, under the options presented in a Government discussion document for the Telecommunications Act Review. Our review included advice to correct and improve the analysis, together with our conclusions as to whether the results were likely to under-estimate or over-estimate the transfers.

Statistical analysis

For a wholesale broadband access pricing proceeding, we assessed a statistical trenching cost analysis which purportedly illustrated significant differences between the regulator’s modelled cost and real world costs. We found that the nature of the flaws was such that any results from the statistical analysis could not be supported.

Cost modelling

We undertook a detailed cost modelling review of Telstra’s Telstra Efficient Access (TEA) model, included as part of the undertaking on the Unconditioned Local Loop Service (ULLS) that Telstra submitted to the Australian Competition and Consumer Commission. We investigated key factors that affect service costs including capital costs in both the access and core network models, and the extent of infrastructure sharing. We also reviewed key financial parameters in the model, including annualisation factors. We identified a number of issues which we demonstrated led to an over-estimation of service costs by over 20%.

Regulated wholesale pricing

We prepared a regulatory submission on access pricing for an Asian operator, including detailed commentary on the regulator’s LRIC and Regulated Asset Base (RAB) costing models for fixed access services.

Cost comparison for international connectivity

We reviewed a financial comparison of submarine cable and satellite costs for provision of data requirements for a Pacific country, on behalf of a development agency. We advised on key assumptions and input parameters, and checked the accuracy of the calculations.