The first reduction is to a level calculated as 75% of the start tariff (set as the end of 2004) and 25% of LRIC
. The second step is calculated as 50% of the start rate and 50% of LRIC
, the third step as 25% of the start rate and 75% of LRIC
and the last step as 100% of LRIC
(13.) Based on the European Commission's Recommendation from 2009, MTRs should be set on a "pure LRIC
" basis, that is, reflecting the LRIC
exclusive of any fixed and common costs.
On the other hand, LRIC
pricing of transmission service involves more assumptions about the costs and scenarios of expansion (M.
is fitted out with the partners' equipment allowing visitors to see the technology in a working environment.
British consultancy BWCS' telecom expert Peter Cartwright said bottom-up LRIC
models are used to establish efficient costs in telecoms price regulation.
are not less than the Long Run Incremental Cost (LRIC
) of such services or offerings."
1997: BT accepts new RPI-X% control for interconnect charges, to be established on a current cost and LRIC
* Understanding how to apply pure LRIC
methodology to develop new costing models
[Kassel: Baren-rciter, 2008- ]), rather than die more problematic nineteenth-century editions or especially Lric
The Commission has also discussed different methodologies for calculating costs, which include said evaluation methods, as well as the LRIC
(long-run incremental cost) method, which bases its calculation on long-term differential costs, and the FDC (fully distributed cost) method, which takes into account all the costs affected by the operator's profits.