PTS takes it from the top (and bottom) in LRICal attack on Telia

2 Feb 2012

Sweden’s National Post and Telecom Agency (PTS) has issued an injunction to the country’s largest telecoms operator TeliaSonera (Telia) to lower interconnection rates in its fixed network, with immediate effect. The regulator gave the reason that Telia’s current wholesale prices are not cost-oriented. The PTS has calculated cost-oriented prices using its own hybrid model, which is based on the Long-Run Incremental Cost (LRIC) model and combines both top-down and bottom-up methodologies. The watchdog says that the two approaches are combined to ‘give a balanced view of what it would cost for an efficient operator of TeliaSonera’s size to build and operate a modern network’, with the top-down calculations, based on TeliaSonera’s actual network, balanced with the more theoretical bottom-up framework.