Case study

Danish forum of telecom operators

Creating realistic cost models to determine the cost of interconnection services

In response to the Danish Regulator's request a forum of competing fixed and mobile telecom operators was formed, for the purpose of creating Long Run Average Incremental Cost (LRAIC) models of the incumbent operator's (TDC) network services. The Danish Regulator (Telestrelsen) required TDC to deliver one LRAIC model of the network services based on 'top-down' modelling techniques, and the Forum to deliver an alternative model based on a 'bottom-up' modelling methodology. The Regulator issued detailed, compulsory criteria for each model.

PA Consulting Group was chosen to supply the wide range of experience required to create the models and to process the members' data, ensuring the sources of the data remained anonymous.