Analytical cost models are used to determine Long Run Incremental Cost (LRIC) for telecommunication networks, enabling the regulator for a price decision. They determine the cost of an efficient network and competitive prices in markets without sufficient competition because of the dominant position of one or more operators.
The models also allow to analyse cost structures within a tariff system in order to simulate technological, geographic or regulatory decisions and its consequences.
The different modules of the Broadband Network cost model allow to determine the voice termination cost, the cost of L2 or L3 bitstream access and the cost for leased lines, each described in an individual annex.
The reference document as well as the Annexes are available for download from the website of the Bundesnetzagentur.
