The Australian Regulatory Authority ACCC (Australian Competition and Consumer Commission) has published the mobile network cost model which has been developed by WIK-Consult on 1 February 2007.
WIK-Consult was engaged from the ACCC in June 2006 to develop a bottom-up cost model for determining the costs of mobile termination access services in Australia. The model calculates the termination costs according to the cost standard of total service long run incremental costs. For the reference case of a stand-alone mobile network operator with 25% market share the WIK cost model calculates the termination costs in Australia to 5.9 Australian cents per minute.
The ACCC intends to determine the mobile termination rates on the basis of the WIK cost model from 1 July 2007 onwards.
The report on the cost model has been published by the ACCC for public consultation and it can be downloaded from the website.