Changing technologies are having a profound effect on the structure of the telecommunication and information and communication technology (ICT) sector. Pricing and cost modeling practices are central to the regulator’s and operator’s role in 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 regulators and operators 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.

In addition, because of rapid technological development, it is necessary to provide technical staff in charge of costing, with sufficient cost modeling tools and knowledge to enable them understand how to develop their own cost models or to adapt existing cost models to the changing environment. These key costing issues are among a range of operational issues addressed during the training.
 

Work programme:

• Fair pricing as set by the regulator to foster competition and healthy ICT sector as primary goal of regulatory agencies;
• Process of liberalization and regulation;
• Accounting and cost modeling basic concepts;
• Accounting standards and differentiation of costing models in LRIC, LRAIC, ABC and FDC;
• Cost modeling process an definitions of parameters and development of cost model on a step-by-step approach;
• Traffic distribution assumptions, data requirements, depreciation/amortization, data  sources;
• Process reporting and auditing;
• Case study on setting up a national cost modeling scenario by the regulator.