Costing methodology and the transition to next generation access

10/03/2011
Project
Client: ETNO
Telecommunications

Plum produced a report on costing methodology and the transition to next generation access which reached the following conclusions:

  • To support customer migration to fibre the price of copper should reflect replacement cost.
  • Competition will intensify as regulated copper competes with fibre (in addition to other platforms).
  • If ex ante price controls are applied to fibre a long-term approach to costing is required which addresses the need for commitment to support investment and which reflects demand uncertainty and anticipated demand growth.

Plum presented the findings to the Head of Cabinet, DG Information Society and Media.