Danish watchdog publishes final LRAIC model for fixed networks

9 Dec 2014

Telecoms watchdog the Danish Business Authority (Erhvervsstyrelsen) has published its final decision with regards to the Long-Run Average Incremental Cost (LRAIC) model for fixed networks used to determine LRAIC based costs for certain (wholesale) access and interconnection services in Denmark for the period between 1 January 2015 and 31 December 2015. Under the final decision, wholesale prices of fixed line broadband will be reduced for the aforementioned period, in order to ‘give companies an even better opportunity to offer cheaper broadband services for the benefit of their customers.’

Helle Bojen Larsen, Head of Division at the Erhvervsstyrelsen, said: ‘The Danish LRAIC model is developed in accordance with the latest European Commission (EC) guidelines. One of the pillars is to ensure the right balance between competition and investment. The Danish Business Authority believes that the new, lower wholesale prices provide increased opportunities for competition in the Danish market, without having investment opportunities weakened.’

Denmark, Danish Business Authority (Erhvervsstyrelsen)