This training was provided in cooperation with the ITU ASP CoE Business Management Node hosted by the Ministry of Information and Communications Technology, Thailand and the ITU ASP CoE Policy & Regulation Node hosted by the Pakistan Telecommunication Authority. This training was held at TOT Academy in Bangkok, Thailand, from 9 to 13 November 2009.

Because changing technologies are having a profound effect on the structure of the telecommunication and information and communication technology (ICT) sector, and because pricing and cost modeling practices are central to fostering a fair, competitive and healthy telecommunication and ICT sector that ensures affordable access to ICTs and promotes investment incentives for all market players, striking the right balance requires a full understanding and ability to 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.

The training workshop was conducted on a highly participative basis using excel based training models, engagement and discussions. The scope of this workshop included:

• The importance of costing and the economic rationale;

• Cost standards;

• Methodologies and their application;

• Data sourcing;

• Actual models and model-building;

• Using model outputs.

Presentations, small groups working together and case study analysis were used as learning tools to provide practical insights on key issues.

Target Audience:

This workshop helped:

• Finance professionals involved in pricing and cost modeling, and

• Finance personnel involved in the calculation of cost-based tariffs for regulated retail and wholesale services and data collection for auditing and compliance purposes.

Learning Objectives:

At the end of the course, participants were expected to have an understanding of:

• the relationship between price regulation and costs;

• the various cost standards and their areas of useful application in telecommunications;

• the types of models, their advantages and disadvantages, and how they are used;

• the role and challenges of benchmarking;

• how each type of model works, by inspection and interaction;

• how to find and enter data;

• how to make the necessary enquiries, choices and judgments needed when carrying out a full cost modeling project.