Since 2003, the Danish Business Authority (formerly, National IT and Telecom Agency) has determined maximum wholesale prices annually for several fixed-network services, by means of a bottom-up LRIC (Long Run Incremental Cost) model. In 2019, this model required an update to cover developments in the Danish market, including the rise of several regional FTTH providers, and the necessity to balance fair competition and investment.
To this end, Axon supported the DBA in the development of a LRIC model for fixed networks, including copper, fibre and coaxial networks, which can be used to assess cost levels for wholesale access services.
The project involved the following, among other, activities:
A sample of the different materials prepared in the context of this project can be found in the following link.
DBA was provided with clear cost references for the regulated wholesale services in Denmark, together with a flexible tool that allowed it to evaluate the impact of different scenarios and/or hypothesis on cost levels. These references are expected to assist DBA in ensuring cost-orientation of the wholesale charges and safeguarding competition without stifling investment incentives for operators.