Model for Calculating Interconnection Costs in Telecommunications
Lucile Simon, Christophe Rudelle, Laurent Gille, Paul Noumba Um, Paul Noumba Um
This guidebook and its associated CD-ROM, provide Sub-Saharan Africa-regulators and operators with a sound regulatory tool allowing the determination of accurate interconnection costs, thus facilitating the settlement of lengthy and costly interconnection disputes between fixed and mobile operators. The cost model belongs to the family of "Bottom-Up" models, which calculate interconnection cost incurred by an efficient operator using the Long Run Incremental Cost (LRIC) methodology. The proposed cost model takes into account most features characterizing the development stage of telecommunications networks in Sub-Saharan Africa (small size of fixed network, importance of rural telephony, excessive reliance on microwave technology, explosive demand for mobile service, and weak regulatory capacity).
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