EXPERT LEVEL TRAINING ON TELECOM NETWORK COST MODELING FOR THE PACIFIC

Facilitators: Jim Holmes and Matt ORourke

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International Telecommunication Union

ITU EXPERT-LEVEL TRAINING ON NETWORK COST MODELING FOR THE PACIFIC

Day 3

International Telecommunication Union

Day 3 - Agenda
Day 3 - Exercises with the computer training cost model
Goals: >Scenarios and practice Limitations on cost modelling

Working Groups: Experimenting with different parameter values (case studies) Experimenting with different data sets (case studies) Presentations by each Working Group to the Plenary Discussion/Critiques by another WG operators comment on the model output of a regulator WG, and vice versa

International Telecommunication Union

Session 12: Limitations of Network Cost Modelling

International Telecommunication Union

Cost models are an aid, not necessarily the answer

Managers make the decisions, not the cost model How often do regulators rely on the calculation of the cost model as the answer, when it is an input into a regulatory decision that usually has other policy factors built in. Here is a simple example: Assume that the purpose of the model is to calculate mobile termination rates (MTRs) for the next 3 years This year (Year 0) the rate is 16 cents per minute The regulators model calculates the rates for the next three years as Year 1 11 cents per minute Year 2 9 cents per minute Year 3 8 cents per minute The regulator makes a determination setting the rates as per the models calculations for the next 3 years
Source: RTR by end of /2003

Is the regulator necessarily right? If you were in his position what else might you have considered?
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Sessions 13-15: Group work on Exercise C

International Telecommunication Union

Sessions 16: Group Reporting on Exercise C

International Telecommunication Union