Axon reviews Telefónica de España’s cost accounting results and Net Cost of Universal Service

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)*:

  • CMT’s resolution on the review of Telefónica de España’s FDC-HCA/CCA regulatory accounting system: click here
  • Axon’s report on the review of Telefónica de España’s FDC-HCA/CCA regulatory accounting system: click here
  • CMT’s resolution on the review of Telefónica de España’s LRIC regulatory accounting system: click here
  • Axon’s report on the review of Telefónica de España’s LRIC regulatory accounting system: click here
  • CMT’s resolution on the review of Telefónica de España’s Net Cost of Universal Service: click here
  • Axon’s report on the review of Telefónica de España’s Net Cost of Universal Service: click here

*Axon credited under its former name, SVP advisors

Share this post