Accounting Separation in Telecoms

The Situation

A Pakistani telecommunications operator required assistance in complying with the accounting separation requirement imposed upon it by the Pakistani Telecommunication Regulator (PTA).

NERA's Role

NERA provided advice and assistance to the operator on a number of tasks including:

  • A review of an existing historical cost accounting (HCA) model;
  • Advice on asset valuation in order to calculate current costs (CCA);
  • Advice on the derivation of LRIC costs using cost volume relationships (CVRs); and
  • Specification of the separate accounts.

The Result

The operator implemented NERA's advice and produced the separate accounts required by its regulator.