WIK-Consult has written a reference document for the analytical cost model of a broadband network on behalf of the German regulatory authority BNetzA, (Bundesnetzagentur for Electricity, Gas, Telecommunications, Post and Railways), published by BNetzA in May 2010, which describes the prerequisites and the framework for a bottom-up LRIC cost model for the determination of wholesale charges in broadband networks, and especially for generation and termination of voice services in Next Generation Networks (NGN). After the public consultation process now the reviewed reference document in version 2.1 has been published by BNetzA in December 2011. It includes a list of input parameters for both modules of the model (for network planning, cost determination).
The reference document describes a bottom-up LRIC cost model for a service integrating broadband network, basing on the ITU defined NGN concept. The model shall – based on a modeling method qualified by a public consultation process –provide an independent platform for conducting cost analyses for NGN-based broadband networks. The cost modeling shall be applied for improving the comprehensive understanding of cost relations and conditions in broadband networks, for the evaluation of cost data of operators, the derivation of efficient interconnection structures, the determination of cost of the efficient provisioning of wholesale services and for conducting price margin squeeze tests. The model also allows the determination of voice termination service charges based on Pure LRIC as recommended by the EU.
The reference document version 2.1, like its predecessor, is available for download on BNetzA’s homepage.
