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Calculation method of rates for traffic transmission services (interconnect) for operators and providers of telecommunications

Phases of development

ž2006 - 2008 - the general approach and study algorithm for determining the tariffs for interconnection and access on the basis of the European Union’s methodology - LRIC (long-run incremental cost)

ž2009 - 2010 - performance of a complex research projects to develop a “System of tariff regulation," by order the National Commission for Communications Regulation of Ukraine (NCCR) ž

2010 - 2011 - creating the Calculating Methodology of the tariffs on interconnection for telecom operators. Creating the Methodology of analysis calculations results for NCCR

Structure of Methodology

System tariff regulation in Ukraine


Algorithm of methodology for determining the tariffs

 

  1. Analysis of the architecture of building the operator’s network and the allocation of their types, if they are
  2. Determination the components of the operator’s network in accordance with each type of them
  3. The classification of telecommunications services of the operator and selection the basic, additional and services for each type of network
  4. Identification of groups and types of business processes that are involved in the operation of each network element, its attendant under the elements if they are
  5. Definition of costs of expenditure according to the method AB - costing for the formation the cost’s structure for each business process
  6. Distribution of costs by separating on: operating costs - costs for work of the network, overhead cost - costs for organization of work the network, administrative costs - costs for the organization of an operator as a whole
  7. Definition the volumes of each types of costs (operating, overhead and administrative) on the based on accounting information about current costing
  8. Calculation of the amount of traffic for each network type based on the definition of technical parameters
  9. Planning of  network development for the period of time not less than 5 years, the calculation of the volume of long-run incremental costs (investments in the network) and increase the volume of traffic in the planning telecommunication network
  10. Calculation of current cost of service in the existing network of each type as the ratio of operating, overhead and administrative costs to the amount of annual traffic in this type of network
  11. Calculating the share of long-run incremental costs to the development of a certain type of network as the ratio of total investment for the planned volume of traffic
  12. The calculation of tariffs for telecommunication services as the sum of current costs and discounted long-run incremental cost (investment)

 


9.Planning of  network development for the period of time not less than 5 years, the calculation of the volume of long-run incremental costs (investments in the network) and increase the volume of traffic in the planning telecommunication network
10.Calculation of current cost of service in the existing network of each type as the ratio of operating, overhead and administrative costs to the amount of annual traffic in this type of network
11.Calculating the share of long-run incremental costs to the development of a certain type of network as the ratio of total investment for the planned volume of traffic
12.The calculation of tariffs for telecommunication services as the sum of current costs and discounted long-run incremental cost (investment)
Last Updated on Monday, 07 September 2015 16:53
 
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