Access Pricing in Telecommunications

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30 Jan 2004
9789264105942 (PDF) ;9789264105928(print)

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This report addresses an issue which arises in virtually every public utility industry – the regulation of access to essential facilities. The regulation of the terms and conditions under which competing firms have access to essential inputs provided by rivals has become the single biggest issue facing regulators of public utility industries. Development of competition and the success of liberalisation often depend on the access terms and conditions chosen, and public policy interest in getting these terms and conditions right is important.

Prepared by the OECD’s Competition Committee, this report focuses on the telecommunications industry and seeks to deepen the understanding of access regulation. Access issues are not easy issues for regulators and competition policy-makers - they can be both difficult technically and the source of noisy disputes in practice. By bringing together theory and practice, this report seeks to help regulators and policy-makers learn from OECD experience to achieve efficient and competitive outcomes.

Also available in French
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Table of Contents

Chapter 1. The Theory of Access Pricing
-One-Way Access Pricing
-Two-Way Access Pricing: Interconnection of Many Competing Networks with One Central Network
-Two-Way Access Pricing: Interconnection of Two Competing Networks
Chapter 2. The Practice of Access Pricing in Telecommunications
-Regulatory Arbitrage and Links between Different Access Prices
-Call Origination for Internet Services
-Local Loop Unbundling
-Call Termination on Mobile Networks
Chapter 3. Measurement of the Costs of Access Services
-The Cost Allocation Problem
-Review of Basic Principles, Depreciation, and the Regulatory Asset Base
-Historic Cost vs. Replacement Cost, Optimisation and Cost Models
-The Optimal Path of Earnings
-The Effect of Uncertainty
Glossary of Terms

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