The real challenge: Calculating costs for fair prices
Posted: Tue Apr 22, 2025 9:01 am
If the tariff structure is an instrument which allows the regulator to better target the objectives sought by the cost-orientation remedy, it is therefore best placed to judge the best tariff structure for a given situation, in particular on the basis of the market information available to it.
However, given the importance of pricing, at least equal to cost modelling, we could expect more in-depth thinking at national level by the legislator for example or the supervisory authority for the establishment of "good practices" which could guide the national regulator in its choices.
Indeed, unlike the methods of tariff bahrain mobile database and the methods of cost calculation, the decision-making bodies (the public authorities) must be able, if not supposed to decide, on the instruments relating to the methods of establishing tariff scales, even if it is true that it is necessary to provide for and maintain freedom to establish adequate pricing according to market needs.
It is true that greater transparency on the pricing models used by the regulator should allow it to refine its choices, depending on market circumstances. But it must also be recognized that, raising very complex economic assessments, it is necessary that a significant margin of discretion be left to the regulator. Indeed, the choice between the different methods of price regulation and the methodological choices underlying the calculation of costs, the choices in terms of pricing these costs considerably influence the decisions of electronic communications operators in their commitment to invest in the network, which requires great flexibility in its supervision.
However, given the importance of pricing, at least equal to cost modelling, we could expect more in-depth thinking at national level by the legislator for example or the supervisory authority for the establishment of "good practices" which could guide the national regulator in its choices.
Indeed, unlike the methods of tariff bahrain mobile database and the methods of cost calculation, the decision-making bodies (the public authorities) must be able, if not supposed to decide, on the instruments relating to the methods of establishing tariff scales, even if it is true that it is necessary to provide for and maintain freedom to establish adequate pricing according to market needs.
It is true that greater transparency on the pricing models used by the regulator should allow it to refine its choices, depending on market circumstances. But it must also be recognized that, raising very complex economic assessments, it is necessary that a significant margin of discretion be left to the regulator. Indeed, the choice between the different methods of price regulation and the methodological choices underlying the calculation of costs, the choices in terms of pricing these costs considerably influence the decisions of electronic communications operators in their commitment to invest in the network, which requires great flexibility in its supervision.