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ITU Executive-level Training for Heads of Regulatory Authorities: Strategic Impact of Cost modeling on ICT development

Geneva, Switzerland, 10-11 November 2008

 

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Provisional Programme

Monday 10 November 2008

08:30 - 09:00

Registration

09:00 - 09:15

Opening Ceremony

Session 1: Introduction to the economics of competition, competition law  and regulation

09:15 - 10:15

  • Why does competition create benefits for the economy and citizens alike?

  • Methods to determine static and dynamic welfare effects of competition;

  • How to ensure a competitive environment?

  • General concepts of competition law and merger control (abuse of market power, cartels);

  • Markets with high and persistent entry barriers, regulation.

 10:15 - 10:30

Coffee break

10:30 - 11:30

Follow up session 1: Introduction to the economics of competition, competition law and regulation

11:30 - 12:00

Discussion and questions

12:00 - 14:00

Lunch

Session 2: Basic concepts of regulation, structure and purpose of market reviews, remedies

14:00 - 15:30

  • Markets relevant for regulation;

  • 3-Criteria-Test, contestable markets;

  • Defining markets correctly: commodities and services included in the market, geographical extension;

  • Proper use of Small but Significant and Non-transitory Increase in Price Test (SSNIP-Test);

  • Analyze competitive structure of market, Significant Market Power (SMP), instruments to designate SMP;

  • Description of possible remedies for certain types of imperfect competition: transparency, non discrimination, regulatory accounting, access obligations, price controls.

 15:30 - 15:45

Coffee break

15:45 - 16:30

Follow up session 2: Basic concepts of regulation, structure and purpose of market reviews, remedies

16:30 - 17:00

Discussion and questions

Tuesday 11 November 2008

Session 3: Regulatory accounting and cost models

09:00 - 10:00

  • Principles of regulatory accounting and accounting separation; strategic role of regulatory accounts for monitoring pricing;

  • Cost modeling concepts: from FDHC (fully distributed historic costs) to FLRIC (forward looking long run incremental costs), Cost models (COSITU and World Bank models);

  • Overcoming data collection challenges;

 10:00 - 10:15

Coffee break

10:15 - 11:30

Follow up session 3: Regulatory accounting and accounting separation in detail

11:30 - 12:00

Discussion and questions

12:00 - 14:00

Lunch

Session 4 : Price controls and its relation to cost modeling, accounting and regulation

14:00 - 15h30

  • Types of price controls, price controls and creation of competition;

  • Price controls and investment incentives;

  • How to use regulatory accounts to determine regulated prices; which information is critical for the calculation of correct price ceilings?

  • Impact of convergence and NGN on price controls: is it time to refocus

 15:30 - 15:45

Coffee break

15:45 - 16:30

Follow up session 4: Price controls and its relations to cost modeling, accounting and regulation

16:30 - 16:45

Discussion and questions

16:45 - 17:00

Concluding remarks

 

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Updated : 2008-09-29