Long-Run Incremental Cost (LRIC) Seminar

Transcription

1 Long-Run Incremental Cost (LRIC) Seminar Feb 2014 at Origami, Raddison Royal Hotel, DUBAI CORPORATE TRAINING & CONSULTANCY FZ-LLC

2 Long-Run Incremental Cost (LRIC) Seminar Feb 2014 at Origami, Raddison Royal Hotel, DUBAI the Seminar: LRIC models are used to establish efficient costs in telecoms price regulation. Recommended by the European Commission as the preferred costing methodology for EU member states, LRIC models have been adopted not just in Europe but in countries across the world. Their use has spread from national regulators to incumbents and alternative operators, enabling these organisations to understand the cost base of an efficient network operator. This is vital in today s highly competitive telecoms markets, where prices are under constant pressure from National Regulatory Agencies, wholesale customers and end users shopping around for the best deal on offer. Seminar s Objectives: To understand the reasons for regulators adopting LRIC methodologies for various markets To understand which markets are typically subject to LRIC regulation, which are not, and the reasons behind this To understand the underlying economic principles behind the LRIC methodology To understand the variants of LRIC, and the reasons for regulators adopting each one To understand the key technology building blocks of the networks of both fixed and mobile operators from a LRIC modelling viewpoint To understand the implications of LRIC-based costing for fixed and mobile operators in the 21st Century To understand the key building blocks of a LRIC model To understand the typical inputs and assumptions, output and structure of a LRIC model To understand how LRIC works for specific type of network or parts of a network - next generation access, next generation networking and mobile Who is this Seminar for? The seminar is aimed at telecoms regulators and operating companies, both incumbents and new entrants, and especially those responsible for pricing, cost analysis and regulatory affairs, market review functions, economists, accounting executives, and commercial analysts. The seminar is also for those wishing to understand how economic fundamentals drive key telecoms operational and regulatory issues. Among those who will benefit from the seminar are: Senior Executives from Telecoms Regulatory Agencies Executives from Telecoms Operating Companies Accountants and Economists Technical experts requiring a grounding in economic principles and the LRIC methodology Regulatory and Regulatory Affairs Executives Telecoms Industry Senior Managers Responsible for Network Operations Commercial and Legal Executives, Consultants and Analysts Additional beneficiaries would be anyone involved in the following activities: Regulating pricing of wholesale telecoms services Reviewing, establishing or defending efficiency in telecoms services Defending the costs or prices of regulated telecoms services Understanding the cost base of competitors Understanding the regulator s cost models Testing the regulatory or cost impact of technologies, services or regulations Testing the impact of alternative depreciation or LRIC methodologies Comparing LRIC outputs to those obtained in other ways Sanity-checking the modelling work of others

3 The Facilitator: Peter Cartwright When and Where? The applicable fees This two days seminar will cost you AED 5500/- per seat, which will include all the required material and stationary in addition to the daily lunch and coffee breaks. Award Entity: CORTRA CORTRA is a dedicated provider of Corporate Training and Consultancy Services to a variety of public and private sector organisations across the MENA region. We specialise in providing innovative industry-focused consultancy services and courses tailored to the needs of individual organisations and the industries in which they operate. We work closely with our clients to help or support them overcome their challenges by providing expert management, consultancy support and business training courses to improve skills across a variety of business disciplines. Our extensive range of services and in-house expertise enable us to deliver significant value to our clients from both an internal HR and external consulting perspective, allowing them to achieve the best results from their HR budget. Our highly respected consultancy services, courses and in-house training are shaped by each client s unique needs and business context, and designed specifically for companies operating in and around the MENA region. As such, we specialize in customised human resource development and training in different emerging disciplines such as Shariah-compliant financial services, SME and the entrepreneurial sector. We work with our clients as partners, helping them each step of the way to create a more efficient organization. Peter is an experienced consultant in the telecommunications industry with a strong background in regulatory cost modelling, financial modelling, financial analysis and business planning. He has over 20 years of consulting and contracting experience in the telecommunications sector, having worked on projects for regulators and operators in many countries. Peter is a clear, no nonsense thinker and communicator, who works well in multi-disciplinary and specialist teams both in the UK and abroad. Peter has previously contracted for both Swisscom and Czech Telecom on LRIC modelling assignments. His consulting clients include the telecommunications regulators in Ireland, Sweden, Denmark, Italy and Slovenia and fixed and mobile operators in Europe, Africa, Middle East and the Far East. He is the Author of Interconnect Costing, a howto handbook for interconnect professionals, which has been purchased by telecoms operators and regulators in over 80 countries worldwide. Peter developed The LRIC Model in 2011 a generic cost model of fixed telecoms operators that can be applied to your local country/market/network by simply adding your own inputs into a fully working Excel model, requiring only limited professional modelling or engineering expertise. Peter also owns a small fixed-wireless-access broadband company (Loop Scorpio) that operates in rural Gloucestershire and Herefordshire with around 500 customers and has recently co-founded with Graham Wilde a small Voice over IP (VoIP) telecommunications company (Miso Communications). These businesses provide Peter with real hands-on experience of the issues involved in running and operating telecommunications businesses and strong familiarity with the various technologies involved.

4 EVENT OUTLINE Interconnection - Key Issues What is Interconnection? Why do we need to work out its cost What do we mean by cost anyway? What is Incremental Costing? What is an Efficient Operator? What does Bottom-Up mean? What does a Top-Down cost model look like? What does a Bottom-Up cost model look like? How about a Margin Squeeze model? Regulatory Pricing LRIC Economics Primer Marginal Costs Incremental Costs Price Floors and Ceilings The order of the increments Efficiency Impact of evolving networks Constraints on effectiveness of planning Scorched Node and Scorched Earth Common Cost Recovery What constitutes a common cost? Methods of recovery Fixed versus variable costs Technology Primer Packet payloads and headers Layer 2 Networking Hubs and Switches Layer 3 Networking Sub-nets and Routing VLANs, MPLS and WDM DSLAMs/MSANs An all-ip network Switches versus Routers Mobile networks Cells and cell sizing 2G, 3G, 4G Technology Primer - NGA Conventional access networks Technology used Network layout and structure Cost considerations Next Generation Access Technology contenders Component parts Trench and ducting Access chambers and junction boxes Fibre optic cable Splicing Distribution cabinets Final termination NGNs and NGN Modelling Challenges NGN Definitions NGNs versus Skype et al Modern Equivalent Assets Treatment of existing services Appropriate NGN/NGA boundary Assessing subscriber related costs within an NGN Assessing the relative value of traffic types Assessing the appropriate VoIP bit rate Bits versus packets, and bi-directionality VoIP and VoIP Interconnect What is VoIP? Where does VoIP become VoIP? How is VoIP delivered? How is VoIP routed? Quality of Service issues Codecs Latency Jitter VoIP interconnect Annualisation Purpose of annualisation Straight Line depreciation Simple Annuity Price tilted annuities Economic Depreciation WACC A Mobile Network LRIC Model A walk through of a real life Mobile Network LRIC model Cortra Human capital management is a strategic approach to the management of an organisation s most valued assets its people and as such, it is essential to the continued success of a firm. CORTRA is a dedicated provider of Corporate Training and Consultancy Services to a variety of public and private sector organisations across the MENA region. We specialise in providing innovative industry-focused consultancy services and courses tailored to the needs of individual organisations and the industries in which they operate. We work closely with our clients to help or support them overcome their challenges by providing expert management, consultancy support and business training courses to improve skills across a variety of business disciplines. Our extensive range of services and in-house expertise enable us to deliver significant value to our clients from both an internal HR and external consulting perspective, allowing them to achieve the best results from their HR budget. Our highly respected consultancy services, courses and in-house training are shaped by each client s unique needs and business context, and designed specifically for companies operating in and around the MENA region. As such, we specialise in customised human resource development and training in different emerging disciplines such as Shariah-compliant financial services, SME and the entrepreneurial sector. We work with our clients as partners, helping them each step of the way to create a more efficient organisation.

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