Supported a fixed broadband network operator developing its response to a public consultation on its costing/pricing regime

The problem

• In the context of a public consultation, launched by the national regulator, on the principles that apply to the costing of services supplied by the exclusive wholesale-only fixed broadband network operator in a Middle Eastern country, Analysys Mason was commissioned by the operator to assist it in developing its response
• The response had to take into consideration our client’s strategic position, and the relevant stakeholders in the internal organisation also had to be educated on the key concepts and implications of the consultation and expected future steps in the process

The solution

• We supported our client in identifying the key strategic topics to factor into its consultation response, highlighting the key arguments that should be included in the response document to justify our client’s position
• We engaged with various teams within the client’s organisation, including the regulatory, finance and commercial teams, to ensure that all the relevant issues were considered in the response and that the client was well prepared to formulate a comprehensive position on all relevant issues ahead of the consultation. Those engagements included educational sessions on the following topics:
  • main issues and relationship between costing and pricing, from a regulatory perspective
  • key concepts involved in the specification of different cost modelling options
  • expected process/next steps that may follow post-consultation response

Figure: Approach to providing support with the consultation

The result

• We drafted a comprehensive and compelling response to the consultation, providing key benchmarks and economic arguments to support our client’s positions, in a limited timeframe. This response was commended by the regulator and opened a fruitful discussion on the most appropriate regulatory framework for costing/pricing