By Paul Noumba Um, Laurent Gille, Lucile Simon, Christophe Rudelle
The liberalization of the telecommunications markets in Sub-Saharan Africa ended in elevated festival at the provision and pricing of verbal exchange prone. yet, as a result of loss of applicable regulatory instruments, newly confirmed regulators are poorly built to arbitrate expanding interconnection disputes among competing operators. This guidebook and its linked CD-ROM, together with the associated fee version, have been ready to supply Sub-Saharan Africa regulators and operators with a legitimate regulatory device permitting the choice of actual interconnection expenditures, therefore facilitating the payment of long and dear interconnection disputes among mounted and cellular operators. the fee version belongs to the relatives of 'Bottom-Up' types, which calculate interconnection expense incurred via an effective operator utilizing the longer term Incremental fee (LRIC) method. The proposed price version takes into consideration such a lot positive factors characterizing the advance degree of telecommunications networks in Sub-Saharan Africa (small dimension of fastened community, significance of rural telephony, over the top reliance on microwave know-how, explosive call for for cellular provider, and susceptible regulatory capacity). 'A version for Calculating Interconnection expenses in Telecommunications' deals telecom regulators and operators not just a choice help software but in addition a stimulant to reinforce an knowing of the common sense of regulating a quarter open to festival.
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Extra info for A Model for Calculating Interconnection Costs in Telecommunications
The incremental costs of a service or element A somehow represent the cost savings, which result from not producing or not implementing A. In other words, the costs incurred to produce A over and above the portfolio of existing products are considered as the incremental cost. The long-run concept involves taking the costs incurred in a long-term perspective. The long-run incremental costs of a service or element A therefore represent all of the costs that could be avoided if A were not produced or implemented.
Specific links between transit centers (TS-TS). • Links to ISs (between LS and IS). In certain cases, the IS function can also be implemented in an LS. • Internal links within TDMA systems, or the links between the central stations and terminal stations. 4 Nodes IS IS TSW To IS LS RCU CS TS Transit Because of the small size of African networks, local exchanges (LSs) generally provide transit function. Whenever the network becomes larger in size, in terms of coverage, local areas are generally grouped into transit areas.
The second concern is to ensure that input prices allow for efficient allocation of resources. An excessively low rate for input can lead to crosssubsidization toward this service and send undesirable signals to the market. An interconnection price below cost (in case of an efficient operator) could also endanger alternative infrastructure development, as that should make new investments less attractive and profitable. Conversely, an interconnection price above cost (in case of an efficient operator) is also likely to bias the market by switching demand to infrastructures that are development costs, costs associated with headquarters expenses and the operator’s operational structure, costs for staff members who are no longer in their positions or are on leave, costs related to developing the brand name reputation or marketing, and costs associated with unused buildings.
A Model for Calculating Interconnection Costs in Telecommunications by Paul Noumba Um, Laurent Gille, Lucile Simon, Christophe Rudelle
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