Ofcom moves to pure LRIC approach for mobile termination rate charge control

Ofcom yesterday announced a forward looking charge control on the UK’s mobile operators which is designed to reduce mobile termination rates to pure LRIC over the four year period of the price cap. The effect of this will be to reduce mobile termination rates by 80% from c. 4.18 to 0.69 pence per minute over …

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DSAC an appropriate test for assessing LRIC cost-orientation

Today’s CAT judgment confirmed that Ofcom’s use of distributed stand-alone cost (“DSAC“) was an appropriate method to assess whether a regulated Communications Provider who had been found to possess Significant Market Power in a particular market was charging in a way that was ‘reasonably derived from the costs of provision based on a forward-looking long run incremental cost approach, allowing an appropriate mark-up …

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