Interconnection Charges – When Operators Are in Favor of Different Costing Methodologies

Monday 30 March 2015

In early 2015, TRAI invited telecom operators to discuss interconnection charges that impact mobile rates...

In early 2015, the Telecom Regulatory Authority of India (TRAI) invited telecom operators to discuss interconnection charges that impact mobile rates as the regulator will soon start the process of reviewing the interconnect charges. The discussions put in evidence 3 different perspectives on the costing models preferred by the operators: BSNL and Reliance Communication were in favor of using the ‘Bill & Keep' (BAK) model, Bharti Airtel preferred the Fully Allocated Cost (FAC) model while Vodafone was in favor of the Long Run Incremental Cost (LRIC) model. The future will tell us what approach TRAI will recommend later this year.

To learn more about these cost models and obtain the tools and techniques to successfully apply cost modeling methodologies, attend our ‘Telecom Cost Modeling: Methodologies & Applications' course on 11-15 May 2015 in London.



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