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Last Updated: 02.07.2014
ITU/TRCSL Workshop on Network Cost Modelling Training for Mobile, NGN and Cable Landing Services  

Monday 16 June 2014

08:30-09:00 Registration
09:00-09:30 Welcome - TRC and ITU
09:30-10:00 Session 1: Introduction: The Place of Network Cost Modelling in Regulation
[ITU Presentation]   [Presentation]
Summary: The role of cost in price setting and the purposes of price strategy, in turn, are examined to provide a context for the workshop. This session will examine the types of cost that may be relevant to regulation and price setting.
10:00-10:30 Tea/Coffee break
10:30-11:30 Session 2: Understanding Cost Standards  [Presentation]
Summary: This session will examine the difference between fully allocated, stand alone, and incremental costs and their application in price regulation.
11:30-12:30 Session 3: Costing approaches – a practical exercise [Exercise A]  [Presentation]
Summary: A simple exercise in which teams representing the incumbent and a new entrant in an interconnection negotiation consider some fundamental questions about the nature of regulatory solutions, taking account of what has been discussed in the sessions so far.
12:30-13:30 Lunch break
13:30-14:00 Session 4: Working Groups consider their positions on Exercise A
14:00-14:30 Session 5: Working Groups report on Exercise A
14:30-15:00 Session 6: Types of Models and their Limitations  [Presentation]
Summary: An examination of the structure and differences of bottom up and top down models, together with reference to benchmarking and to hybrid models. Common mistakes with models and modelling are discussed, together with the circumstances where different models might be best used.
15:00-15:30 Tea/Coffee break
15:30-17:00 Session 7: Using the ITU training cost model to establish costs and prices for mobile termination [Exercise B]  [Presentation for Session 7 - 9]   [Presentation with answers for Session 7 - 9]  
Summary: The ITU Mobile LRIC training model is introduced in the context of an exercise in which the Working Groups (representing two of the operators in the discussion) use the model to establish preferred mobile termination rates and also possible solutions that might be applied by the regulator.

Tuesday 17 June 2014

09:00-10:00 Session 8: Working Groups consider their positions on Exercise B
10:00-10:30 Tea/Coffee break
10:30-11:30 Session 9: Working Groups report on Exercise B
11:30-12:30 Session 10: Cost Allocation Principles and Application in a 3G Environment
Summary: This session reviews the general principles applicable to the allocation of costs to services and, in particular, the principle of cost causation. The challenges of allocating shared and common costs in a 3G environment are raised. They are dealt with in later sessions as well.
12:30-13:30 Lunch break
13:30-14:00 Session 11: Data Issues  [Presentation]
Summary: The practical issues of collecting and verifying data are discussed. The fundamental question for regulators is also discussed; what to do when operators do not cooperate and do not share reliable data? The ways in which proxy data might be developed to fill some gaps is discussed.
14:00-15:00 Session 12: Cost modeling for NGN interconnection and access  [Presentation]
Summary: This important background session deals with the typical topologies of Next Generation Fixed Networks, and examines the way interconnection and access issues are trending. Given the way in which IP networks and Internet peers have interwor5ked the session discusses the question of whether NGN costs models are necessary. The discussion deals separately with modelling interconnection costs and modelling access costs.
15:00-15:30 Tea/Coffee break
15:30-17:00 Session 13: Role play of an NGN interconnection negotiation (Exercise C)
[Presentation]   [Presentation with answers]
[Briefing Paper A]   [Briefing Paper B]
Summary: This role play includes two short negotiation sessions. The point of the exercise is to sort through relevant and marginal considerations that impact on wholesale price setting for interconnection in an NGN environment.

Wednesday 18 June 2014

09:00-10:00 Session 14: Working Groups consider their positions on Exercise C and undertake the negotiation 
10:00-10:30 Tea/Coffee break
10:30-11:30 Session 15: Working Groups report on Exercise C
11:30-12:30 Session 16: International trends and case studies in NGN interconnection
Summary: This session is optional if time permits. It looks at the approaches to NGN generally in the EU, Australia and Hong Kong, and within that overall approach the specific consideration of NGN interconnection.
12:30-13:30 Lunch break
13:30-15:00 Session 17: Regulatory Hearing on NGA costs and prices using Access Model [Exercise D]
[Presentation for Session 17 - 19]   [Presentation with answers for Session 17 - 19]
Summary: This case is concerned with the cost of a NBN and requires Working Groups to use the ITU Bottom-up LRIC NGA Training cost model to refine their views on these matters and whether subsidies should be established to assist in defraying costs. The balance of this session will be taken up with Working Groups examining the exercise and determining their position.
15:00-15:30 Tea/Coffee break
15:30-17:00 Session 18: Working Groups consider their positions on Exercise D

Thursday 19 June 2014

09:00-10:00 Session 19: Working Groups report on Exercise D
10:00-10:30 Tea/Coffee break
10:30-11:30 Session 20: Discussion on lessons learned from Exercise D about Fixed Next Generation Networks, and the use of models
11:30-12:30 Session 21: Is it time to leave cost-based interconnect behind? What is the new role of regulators?  [Presentation]
Summary: This session reviews a paper on the future of cost-based interconnection in a converged broadband environment which was first delivered to ITU’s GSR13 event in July 2013. The paper (and the session) considers what insights might be gained from the physical sciences into the way in which broadband telecoms systems operate and interwork. The discussion will conclude on the issue of how regulators should intervene, if at all, on NGN interconnection and QoS, and whether the market might not sort these issues out better.
12:30-13:30 Lunch break
13:30-14:00 Reserved: This time has not been allocated in case earlier sessions over run.
14:00-15:00 Session 22: Discussion on issues associated with existing Data Cost Structures in Sri Lanka
Summary: This session will be an open discussion led by TRC representatives and the ITU Expert on the Data Cost Structures currently employed by TRC SL to collect per MB cost data. Participants will have the advantage of the ITU training model to suggest alternative data requirements.
15:00-15:30 Tea/Coffee break
15:30-17:00 Session 23: Licensing frameworks for submarine cable landing stations
Summary: This session looks at the way cable systems are financed (club, consortium and private) and the key constituent elements of a cable system. The session is a background brief for the CLS exercise that follows, and an opportunity to discuss the issues that arise for regulation with CLS.

Friday 20 June 2014

09:00-09:30 Session 24: Addressing the cable landing station monopoly and the challenge of initial pricing
[Presentation A]   [Presentation B]
Summary: This session covers the types of competition problems (and remedies) that arise with cable landing stations. It also covers the application of open access principles and includes time for discussion on that point. A number of key issues need to be taken into account in setting initial (inaugural) prices, including by the regulator if regulatory approval is required.
09:30-10:00 Session 25: CLS - Determining cost based access prices (Exercise E)
[Presentation]   [Presentation with answers]
Summary: This session is a briefing on the use of an ITU cable landing station training cost model to assist with CLS pricing decisions. Two mini-exercises are included in the brief to Working Groups.
10:00-10:30 Tea/Coffee break
10:30-11:30 Session 26: Working Groups consider their positions on Exercises E1 and E2, and report back
11:30-12:30 Session 27: Adapting a Cable Landing Station pricing model to develop regulatory positions (Exercise F)  [Presentation for Session 27 - 29] [Presentation with answers for Session 27 - 29]
[Briefing Paper A]   [Briefing Paper B]
Summary: This exercise is based on use of the ITU CLS training cost model to resolve various positions associated with lagging broadband penetration. International cable capacity costs are rightly seen as relevant to this problem.
12:30-13:30 Lunch break
13:30-14:30 Session 28: Working Groups consider their positions on Exercise F
14:30-15:00 Session 29: Working Groups report on Exercise F
15:00-15:30 Tea/Coffee break
15:30-16:30 Open Session: To discuss issues that have not been fully covered or which need clarification
16:30-17:00 Workshop close – formal close by TRC SL
16-20 June 2014

Location: Colombo, Sri Lanka

Organised by: ITU & TRCSL

Hosted by: TRCSL

For detailed information, please contact

Mr. Sameer Sharma
Regional Director, a.i.
ITU Regional Office for Asia and the Pacific

Organised by:


Hosted by:



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Network Cost Modelling Training for Mobile, NGN and Cable Landing Services