Mobile LRIC Modeling for a Middle Eastern Client

The Situation

A Middle Eastern client required the construction of a mobile long run incremental cost (LRIC) model in order to inform the regulation of mobile termination rates (MTRs).

NERA's Role

NERA constructed a mobile LRIC model capable of calculating MTRs using both LRAIC and "pure LRIC" methodologies. This involved modeling the costs of three network operators with different spectrum allocations and different combinations technologies for voice, SMS (text message) and MMS (multimedia message) termination, data services, and wholesale access for national roaming. Project tasks also included participation in a consultation process, and a critical review of a model submitted by another party.

The Result

A new set of MTRs came into force in September 2010 based on NERA's modeling.