A Study of the Calculation Base of Fixed Telecommunication Network Interconnection Charges in Taiwan
Dr. Her-Jiun Sheu
|關鍵字:||增量;全元件長期增支成本;現時成本;現時等值資產;Increment;Total Element Long Run Incremental Cost;Current Cost;Modern Equivalent Assets|
After the liberalization of telecommunications, the private sectors was able to joint the telecommunication services industry. Although the entrants do not need to construct fixed network infrastructure themselves, it is necessary for them to pay the surcharges to the dominant carriers. “Network Interconnection” is defined as the network connections between telecommunications carriers enables communication between subscribers of other telecommunications carriers. Market pricing between telecommunication carriers has changed at many stages. Marginal cost was a trend at one time, but it was not appropriate since marginal cost for each single call was quite minimal. It is not possible for the carriers to cover its huge investments and routine maintenance perpetually. Incremental cost which is based on incremental calculation therefore proposed and adopted. Because a great deal of fixed cost was missing in the calculation in incremental cost, an improved pricing called Long Run Incremental Cost (LRIC) was then developed. LRIC makes fixed cost variable so that it could be included in the calculation. However, because no common cost was included in the calculation, a more reasonable pricing was applied instead. An even reasonable approach is to adopt LRIC on one hand and apportion relevant common cost on the other. Moreover, current cost in stead of historic cost is a better base in calculation. Because current cost reflects modern equivalent assets and the functionality increases with technology improvement, especially the costs that would be incurred in the current period by an efficient supplier of the service at issue, it is widely applied by telecommunication carriers now a days. According to the principle of cost separating and the theories of apportionment of common cost of dominant carrier, this study constructs a model which inserting virtual value, and using an increment defined in terms of the total volume of the service, including both sales to competitors and the incumbent’s supply for Chunghwa Telecom. It is found that the interconnection charges calculated by the dominant carrier has the basis of TELRIC and is determined by the cost of the unbundled network elements. The dominant carrier uses a reasonable increment and a fair proportion of common costs in an effective carrier base. It also has long term beneficial pricing, an effective calculated method and process, and clear plans for the cost pools and cost drivers. These benefits meet the requirements of the regulator’s rule.
|Appears in Collections:||Thesis|