3.4. Unprofitable customers in profitable areas (FTS)

After unprofitable areas have been determined, the methodology determines that unprofitable customers in profitable areas must be identified. As such, customers whose revenue is insufficient to cover the respective costs, and customers that present high individual access costs that exceed the generated revenue, even if such revenue is equal to or higher than the national average, must be identified, whereby the former are not be considered for the purposes of CLSU calculation, except where these customers show unusually high access costs¹.

The calculation of CLSU associated to unprofitable customers in profitable areas is based on an approach similar to the one used to determine unprofitable areas, avoidable costs and lost revenues being identified. The methodology established by ANACOM provides also that, in the absence of detailed information of the breakdown of costs, alternative approaches may be used to determined avoidable costs.

In the scope of the decision on the MEO for calculation of CLSU to be applied in 2014, it was determined, as far as unprofitable customers are concerned, that results obtained in the model of unprofitable customers in profitable areas would be fully allocated to the FTS component without the need for any amendments.

• 3.4.1. Adjustment for the purpose of the accounting of traffic between unprofitable customers in profitable areas https://www.anacom.pt/render.jsp?categoryId=389224
• 3.4.2. De-averaging access costs according to customers and de-averaging net revenues https://www.anacom.pt/render.jsp?categoryId=389226
• 3.4.3. Determination of unprofitable customers with unusually high access costs https://www.anacom.pt/render.jsp?categoryId=389227