This section focuses of how avoidable costs are established, whereby the specificity of the calculation of 2014 CLSU (inputs used in this calculation for the purpose of obtaining data for the January-May period of this year) has already been dealt with in the preceding chapter.
The establishment of CLSU associated to the obligations of connection to the public telephone network at a fixed location and access to publicly available telephone services through that connection, and of the public payphone service, starts by determining the avoidable costs and lost revenues in each of the considered geographical areas in case the service provision was discontinued therein.
In this context, the methodology explains that avoidable costs per access are determined, for each Main Distribution Frame - MDF, in the framework of MEO’s regulatory accounting system, all costs requiring a thorough examination to ascertain whether they should be classified as avoidable or not. For the purpose of CLSU calculation, only costs which are effectively related to access and which would be avoided (cease) on the moment a certain area was discontinued, are taken into consideration.
The methodology further refers that, where the USP demonstrates in a justified fashion that it lacks detailed information to identify costs effectively allocated to accesses, that are avoidable, it may use alternative approaches for breaking down costs by MDF, namely by using cost breakdown functions. Notwithstanding, approaches adopted must be without prejudice to the final target of ensuring the due reliability of costs considered for each MDF and the portrayal of their specific characteristics.
- 3.2.1. Establishment of avoidable costs and of avoidability ratios https://www.anacom.pt/render.jsp?categoryId=389220
- 3.2.2. Geographical de-averaging of access costs https://www.anacom.pt/render.jsp?categoryId=389221
