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Last Updated: 22.10.2012

ITU Asia-Pacific Centres of Excellence Expert Level Training on Telecom Network Cost Modeling for the Pacific

The ITU Asia-Pacific Centres of Excellence Expert Level Training on Telecom Network Cost Modeling for the Pacific will be held on 16-19 October, 2012. The event is hosted by the Government of Samoa and supported by the Department of Broadband, Communications and the Digital Economy, Government of Australia.

Pricing and cost modeling practices are central to a fair, competitive and healthy telecommunication and ICT sector. Striking the right balance requires the stakeholders to fully understand and analyze in detail the advantages and disadvantages of different cost models, including their implications for the calculation of cost-based tariffs for regulated retail and wholesale services and the challenges of data collection. These key costing issues are among a range of operational issues to be addressed during this five-day Expert-Level Training for policy makers, national regulatory authorities and operators on 3G mobile network cost modeling.

The Expert-Level Training will be conducted by well-known experts in this area and will be customized to the specific situation in the Pacific Island Countries. The focus of this training is to provide participants with necessary theoretical background, international experiences, practical cases, concrete exercises and hands-on practice using template training models so that they can have an in-depth understanding of cost models development and its use. Discussion sessions will also be conducted to promote dialogue and exchange of experiences among participants. Participation of experts from regulatory authorities and telecommunication operators in charge of costing issues is greatly encouraged.

The events will be conducted in English. Interested participants are kindly requested to complete the attached registration and send it to the e-mail addresses indicated in the form no later than 30^th September 2012. For further details, please contact Mr. Ashish Narayan (ashish.narayan@itu.int) or Ms. Faalelei Sua (fsua@regulator.gov.ws).

Hotel reservations should be made directly with your chosen hotel. Information concerning hotel reservations is available in the "Useful information for participants". Those participants requiring an entry visa to Samoa are requested to contact their local Embassy for information well in advance. There is no fee for joining the training program. However, the participants should cover their own travel and accommodation expenses and arrangements.

AGENDA

16 October 2012 - Price Regulation and Costs -
09:00-09:20	Registration and Opening Ceremony
	Welcome Remarks	ITU
	Welcome Remarks	Samoa
09:20-09:40	Coffee break
09:40-10:30	Welcome and Introductory Session Session 1: Course Overview
	Cost Modelling - The big picture Course Objectives Course Methodology Learning Outcomes Workshop style Self-introductions
10:30-11:15	Session 2: Price Regulation and Costing
	Objective: To examine the circumstances under which regulators seek to determine prices for services in telecommunications/ICT markets and the basis on which they do so. After this session workshop participants will understand the alternative ways in which prices may be established, and when each approach is appropriate.
11:15-12:00	Session 3: Cost Standards and their Application
	Objective: To provide a high level overview of the various approaches that may be applied to costing for telecommunications/ICTs services pricing including FDC, LRIC, LRAIC etc. At the end of the session participants will have a clear idea of the different situations in which the various cost standards might be best applied.
12:00-13:30	Lunch break
13:30-15:00	Session 4: Top Down and Bottom Up Models and Benchmarking
	Objective: To distinguish between top down and bottom up models and benchmarking in order to understand when each might be appropriate for determining network service prices.
15:00-15:30	Coffee break
15:30-16:30	Session 5: Group Work Exercise A
	Objective: To review key aspects of the day’s presentations, and, in the process, to become accustomed to working within the assigned teams.
Day 1 Summary	Understand the relationship between price regulation and costing Understand the various cost standards and their areas of useful application in telecommunications/ICTs

17 October 2012 - Network Cost Modelling -
08:30-09:15	Session 6: Weighted Average Cost of Capital – Theory and practice
	Objective: To explain the theory behind the various elements those from the Weighted Average Cost of Capital (WACC) and detail the methodologies for estimating them in practice.
09:15-10:15	Session 7: Presentation of actual cost models for mobile and fixed networks
	Objective: To become familiar through interaction with actual models (modified to include illustrative rather than real data) for mobile and fixed networks.
10:15-10:30	Coffee break
10:30-12:00	Session 8: Group Work Exercise B - Selecting Suitable Model Approaches
	Objective: To examine situations described in handout material and to report back to the plenary workshop on findings and recommendations.
12:00-13:30	Lunch break
13:30-14:30	Session 9: Data Sourcing, Building and testing a model
	Objective: To understand the issues that arises in the course of building a model and making it robust. The latter process will include discussion on whether and how there should be public consultation on a model as well as data collection strategies.
14:30-15:00	Session 10: Briefing on Group Work Exercise C
	Objective: To brief all Groups on the exercise and how they should structure themselves to best complete it as a team, with responsibilities allocated to each team member.
15:00-15:30	Coffee break
15:30-17:00	Session 11: Continuing Group Work Exercise C

Day 2 Summary	Understand the types of models, their advantages and disadvantages, and how they are used Understand the role and challenges of benchmarking Understand by inspection and interaction how each type of model works Understand how to collect and enter data
18 October 2012 - Network Cost Modelling Process -
08:30-09:30	Session 12: Limitations of Network Cost Modeling
	Objective: To understand the circumstances where accuracy or judgment is required before implementing the calculations from Network Cost Models, including the intrinsic issues associated with models themselves, as well as consideration of the complexities of the market environment. In addition, possible ways of addressing and overcoming the limitations will be discussed at length.
09:30-10:15	Session 13: Continuing Group Work Exercise C

10:15-10:30	Coffee break
10:30-12:00	Session 14: Continuing Group Work Exercise C

12:00-13:30	Lunch break
13:30-15:00	Session 15: Continuing Group Work Exercise C

15:00-15:30	Coffee break
15:30-17:00	Session 16: Group Work Exercise C – Reporting Results
	Each Group will report its results for key service costs and give reasons for the options they took and choices made on the way.
Day 3 Summary	Understand how to make the necessary enquiries, choices and judgments of a cost modeling project.

19 October 2012 - Regional Experiences and Future Issues -
08:30-10:00	Session 17: Group Work Exercise C – Presentations
	Each Group will present its results for key service costs and give reasons for the options they took and choices made on the way.
10:00-10:30	Coffee break
10:30-12:00	Session 18:
	(a) Cost modeling in practice – country case study - TBA Objective: This session would provide a detailed country case study of cost modeling exercise carried out by a Pacific Regulator. (b) Modeling in an NGN converged Environment Objective: The workshop has concentrated on cost modeling of circuit switched networks, but the emphasis is shifting to the need to model the types of networks being planned and implemented for the future converged services – NGN networks. Cost modeling for these is developing, and the session will provide important appreciation on how NGN networks and related cost models differ from current networks and models.
12:00-13:30	Lunch break
13:30-15:00	Session 19: Strategic Management Session A
	Objective: To discuss the implication of the cost modeling issues and practices in strategic management of telecommunication/ICT services.
15:00-15:30	Coffee break
15:30-16:30	Session 20: Strategic Management Session B
	Objective: To discuss the implication of the cost modeling issues and practices in strategic management of telecommunication/ICT services.
	Wrap Up & Workshop Close

AT A GLANCE

Dates: 16-19 October 2012

Registration Deadline: 30 September 2012

Location: Apia, Samoa

Organised by: ITU & PITA

Hosted by: Government of Samoa

Contact: For detailed information, please contact

Mr. Ashish Narayan
Advisor, ITU Regional Office for Asia and the Pacific
Email: ashish.narayan@itu.int

Ms. Faalelei Sua
Email: (fsua@regulator.gov.ws)

Lead Expert’s Profile:

Mr. Jim Holmes (JH) and Mr Matt O’Rourke (MO), ITU Experts, have worked widely in the Pacific and have developed many cost models for use by regulators or reviewed cost models for regulators and operators.

HOST & ORGANISER
Hosted by: Organised by: Supported by:
DOWNLOAD
Day 1 - Presentation Day 2 - Presentation Day 3 - Presentation Day 4 - Presentation Cost Modeling and Strategic Management ICT Eye - Interconnection 2011 Cost Modeling Experience - Samoa Invitation Letter Tentative Programme Registration Form Useful Information for Participants