The European Commission has published a report on the assessment of the net cost of ensuring universal availability and affordability of broadband services in the European Union, entrusted to Axon Partners Group (previously SVP Advisors) and Van Dijk Management Consultants.
The extensive study assessed the financial implications of including broadband access within the scope of Universal Service Obligations under a broad range of scenarios. The impact of the definition of broadband service was investigated, along with the role of different wireline and wireless technologies in the efficient provision of broadband services and the differences in terms of net cost among Member States.
This study is an update and enhancement of previous work carried out for the European Commission by Axon Partners Group. The study has supported the European Commission’s policy formulation and has been reviewed by national regulatory agencies and BEREC.
The report can be downloaded here.
Axon Consulting has recently completed the review of the net cost of universal service for Portugal Telecom, for the years 2007-2009.
This incumbent operator review forms part of a range of services carried out on behalf of the Portuguese telecoms regulator, Anacom.
The project covered a critical analysis and review of the methodological approach followed by the operator in the first practical implementation of the guidelines set by ANACOM, which has resulted in adjustments being made in the operator’s methodological and calculation assumptions and choices. As a result of the review, the provisional net cost of universal service for the years 2007-2009 has been preliminary established at 66.8 million EUR, which implies a decrease of 12.8 million EUR (-16%).
Axon Consulting has carried out various projects related to the net cost of universal service on behalf of European regulatory agencies in recent years (including Italy’s AGCOM, Spain’s CMT and Greece’s EETT), along with a range of similar projects for the European Commission and regulatory bodies in other geographies.
To read more about this news item, please click in the following links (articles and releases in Portuguese)*
*Axon credited under its former name, SVP advisors
20 June 2013 – ANACOM’s determination
Decisão sobre os resultados da auditoria aos custos líquidos do serviço universal da PTC (2007-2009): click here
Auditoria aos custos líquidos do serviço universal da PT Comunicações (2007-2009) – decisão final: click here
1 August 2013 - ANACOM’s determination
Resultados finais da auditoria aos custos líquidos do serviço universal (2007-2009) ressubmetidos pela PTC – consulta: click here
Relatório de auditoria e respetiva declaração de conformidade – Axon´s report: click here
2 August 2013 – News ítems and press releases
Jornal de Negocios: click here
For the latter part of the 20th Century, Africa’s stagnated growth and unreliable infrastructure allowed for only low-level fixed-line penetration. The advent of mobile, particularly pre-paid services has seen the continent effectively skip a phase of development, with a solid trend for growth meaning that in some countries mobile penetration has reached levels of close to 15 times that of fixed-line.
Deregulation, a vast take up of mobile payment services and a recent 3G rollout has made Africa a growth hotspot for telecommunications; and despite the global economic downturn and a level of subscription which has now passed 500m, the continent still offers room for opportunity for a wide range of local, regional and international players.
There are various factors which dictate operator potential in Africa. Deregulation has in many countries led the way for the industry’s expansion, and although the groundwork has been laid for cross-country regulatory unification in some regions, having a clear grasp of the local regulatory landscape is still vital for both new entrants and established players.
The rapid increase in mobile traffic has in many cases left operators with impaired performance in terms of customer experience. Following the lead of the broadband sector, which has recently seen enormous private investment in fibre-optic submarine cables to provide high-speed links between various African and international regions, it is imperative that mobile follows suite by investing in and improving existing networks in anticipation of next generation technology and the imminent data explosion.
Africa remains one of the world’s most dynamic telecom markets, where mobile in particular is acting as a great social equalizer, offering the same products, applications and services to a wildly differing range of markets and users; empowering knowledge transfer, and in the case of mobile payments, bringing basic financial services to rural inhabitants who would otherwise have no access to such services.
Axon has a wide range of telecoms consulting experience in Africa, having completed projects in profitability enhancement, 3G deployment and the crafting of a favourable regulatory environment in various western territories.
Axon has reviewed Telefónica de España’s cost accounting results and Net Cost of Universal Service amounting to 48.3 Million EUR.
The CMT has recently published the results of the review of Telefónica de España’s regulatory cost accounts corresponding to the fiscal year 2011.
The results extracted from these revisions, prepared under the FDC-HCA/CCA and LRIC standards, are generally used by the CMT for various regulatory applications, including the general vigilance of the proper functioning of fixed-line markets and to inform the setting of wholesale rates. As integral part of this assignment, Axon has also carried out a verification of the calculation of the net cost associated to the Universal Service Obligations for the year 2011 imposed on Telefónica de España as the Universal Service Provider in Spain. Based on the results of our review works, the CMT has established the Net Cost of Universal Service in Spain at 46.3 million EUR.
In line with previous CMT’s decisions, it is expected that Spain’s biggest operators, namely Orange, Vodafone and Telefonica (both, fixed and mobile arms), are obliged to contribute to the national Universal Service fund and cover these costs for the provision of the Universal Service.
To read more about this news item, you can access to the official documents published by the CMT (files in Spanish)*:
*Axon credited under its former name, SVP advisors