A model for calculating interconnection costs in by Paul Noumba Um, Laurent Gille, Lucile Simon, Christophe

By Paul Noumba Um, Laurent Gille, Lucile Simon, Christophe Rudelle

This guidebook and its linked CD-ROM, offer Sub-Saharan Africa-regulators and operators with a valid regulatory software permitting the choice of exact interconnection charges, hence facilitating the cost of long and dear interconnection disputes among mounted and cellular operators. the price version belongs to the family members of "Bottom-Up" versions, which calculate interconnection rate incurred via a good operator utilizing the longer term Incremental price (LRIC) method. The proposed price version takes into consideration so much positive aspects characterizing the improvement level of telecommunications networks in Sub-Saharan Africa (small dimension of fastened community, significance of rural telephony, over the top reliance on microwave expertise, explosive call for for cellular carrier, and vulnerable regulatory capacity).

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However, modification1 outside the sheets that are accessible via the Menu sheet (and the dark green boxes on these sheets) may alter the model’s performance. Filling in the Assumptions The assumptions are entered on five sheets, which are accessible via the Menu buttons in the left column of the Menu sheet: • Demand assumptions. • Network assumptions. • Routing factors. • Cost elements assumptions. • Specific assumptions for the mobile network. The color code used to differentiate cells is as follows: • Blue cells: exogenous assumptions to be filled in by the user.

Assumptions regarding the sharing of certain elements of basic infrastructure with other networks (for example, access networks) subsequently allow for the sharing of costs, which are not fully borne by the core network. To sum up, the model computation modules are provided in the following 21 sheets structured as follows: • A menu sheet for the user navigation. • Twelve sheets forming the core piece of the model described afterwards. • Four sheets specific to mobile networks (whose results appear on the general results sheet).

17. Within this context, for operators who have not undertaken the required price restructuring for whatever reason, there may be a continued need to subsidize some lossmaking services from profitable services and, on an almost general basis, a subsidy from international and long distance calls, to the access and/or local communication service. In this case, two phenomena have to be distinguished: the interconnection service must measure the value of these cost-oriented ser- 28 vices and a possible temporary “access deficit” (until the price restructuring is achieved) must compensate for the pricing equalization in force.

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