AKEP begins consultation on cost modelling for mobile services

3 Dec 2020

Albanian telecoms sector watchdog the Electronic and Postal Communications Authority (Autoritetit Te Komunikimeve Elektronike Dhe Postare, AKEP) has published a consultation document on cost modelling for mobile services as it looks to set a new glidepath for mobile termination rates (MTRs). To-date, AKEP has relied on a benchmark of MTRs of BEREC countries based on a pure long run incremental cost (Pure LRIC) model to calculate cost-oriented MTRs. The regulator notes, however, that whilst this approach has so far proved an efficient way to determine MTRs for Albania, it intends to develop its own cost model that accurately reflects Albania’s market conditions and characteristics. The initial consultation document – referred to by the regulator as a Model Reference Paper (MRP) – explains AKEP’s key modelling principles and the parameters upon which the new model will be based. AKEP’s proposed methodology is based upon a bottom-up LRIC (BU-LRIC) approach, and the regulator has invited comments from industry stakeholders on the model it intends to develop.