What We Do
Modelling and Policy
Telecommunucations regulation is complex and evolving. BWCS bring together strengths in economics, finance and engineering, together with operational experience running various aspects of telecoms operators. Regulators call on us when they need help to design regulatory policy, and operators and other players call on us to help them shape it.
We build cost models for regulatory purposes, covering both fixed and mobile communications networks. For our regulatory clients in the EU, we build these models to comply with European Commission guidance on Long Run Incremental Cost Models (LRIC). Since we have considerable engineering expertise, we are often at the forefront of building models so that they use the Modern Equivalent Asset (MEA).
For example, our work for the Swedish Regulator PTS was the first LRIC model which reflected the use of Next Generation Network technology. Our models have been used to cap the prices of interconnection, unbundling, bitstream wholesale, collocation and mobile termination services.
We have also worked in developing and analysing margin squeeze models, for regulators, incumbents and other players.
We work in interconnection, both developing and reviewing incumbent operators’ Reference Interconnection Offers (RIOs) and Reference Unbundling Offers (RUOs).
Our work encompasses universal service obligations (USO). We work with regulators to help them understand the scale of USO costs, so that those operators who are covered by USOs are appropriately compensated for their obligations.
Finally, we are able to advise on costs of capital in telecommunications and related markets. The cost of capital – which is usually made up of both debt and equity – is an important input into setting interconnection, wholesale and unbundling rates.
Find out more from Graham Wilde