How to price the unbundled local loop in the transition from copper to fiber access networks?
LRIC wholesale access pricing is extended to an old technology that is replaced by a new one. LRIC of new technology is adjusted for differences in performance of old and new technology. Adjustment by performance delta makes the two technologies equivalent for users. A numerical competition model is applied for testing the properties of the proposed method. The results are stable and tend to understate the measured compared to a theoretical performance delta.
performance delta copper access fiber to the home (ftth) modern equivalent asset long-run incremental costs (lric)