Costing and Pricing Methodologies in the Digital Economy
In the digital economy, broadband networks are increasingly based on fibre optic cables, 4G and 5G mobile and IP transmission, optimized for data rather than voice traffic. This means that regulators have to establish new costing and pricing approaches for the broadband era. In this brave new world cost models continue to be needed, but their application should be focused on specific economic bottlenecks – essential infrastructure that cannot economically be replicated. Just as importantly, regulators have to make the transition from ex-ante to ex-post market intervention, so that investment and innovation can thrive.