Economic cost model for the fixed telecommunications network (The Hybrid Cost Proxy Model)

/ Updated on 12.02.2008

On 17 November the Hybrid Cost Proxy Model (HCPM) - Portuguese version was publicly presented. This model main purpose is to determine the economic costs of telephone fixed network services provided by Portuguese operators with significant market power.

The model has been developed at ICP, with the collaboration of external consultants, who designed an identical model adopted by the FCC, the American Telecommunications Regulator, to determine the Universal Service costs. The external consultants also participated in the above-mentioned public presentation, as well as representatives of the Portuguese telecommunications service providers.

In the supporting document that has been distributed, attention was drawn to the fact that comments from the operators and equipment suppliers would be most useful, especially with regard to the engineering parameters, the prices of inputs, and the way in which one should determine the benefits associated to the universal service provision obligation (benchmark value), necessary for the calculation of this service net cost. For this purpose, the following address may be used.

As mentioned at the opening of the presentation, ICP foresees that this model, which is being developed for the fixed telecommunications network (access and Interconnection network segments), may also be extended to both the IP and mobile networks, with suited adaptations.


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