note on the concept and application of long-run incremental cost in telecommunications
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note on the concept and application of long-run incremental cost in telecommunications by Edwin Allen Rosenberg

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Published by National Regulatory Research Institute in [Columbus, Ohio] .
Written in English



  • United States.,
  • United States


  • Telephone -- Rates -- Government policy -- United States.,
  • Telephone -- Rates -- Government policy -- United States -- States.

Book details:

Edition Notes

Includes bibliographical references.

StatementEdwin A. Rosenberg.
ContributionsNational Regulatory Research Institute (Ohio State University)
LC ClassificationsHE8825 .R67 1994
The Physical Object
Pagination12 p. ;
Number of Pages12
ID Numbers
Open LibraryOL924312M
LC Control Number95223007

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Total service long-run incremental cost (TSLIRIC): an approach to calculating the total forward-looking incremental cost of providing a service in a hypothetical efficient system built from scratch using current technologies. Long-run average incremental cost (LRAIC): essentially the same as total service long-run incremental cost (TSLIRIC). Forward Looking Long Run Incremental Costs for the calculation of interconnection fees Page 4 of 19 In contrast to unbundling a party requesting interconnection does not have exclusive rights of use of the network or parts of the network of the interconnection provider. The interconnection provider’s network is. • Total Element Long Run Incremental cost (TELR IC) - The FCC developed the TELRIC charging approach to implement the interc onnection provisions of the Telecommunications Act. The evaluation of efficient costs must be based on current cost values, and the cost methodology to calculate efficient costs must be based on a bottom-up modelling approach using long-run incremental traffic-related costs of providing the wholesale service (i.e. .

Long Run Incremental Cost A foreseen, future change in the incremental cost to a company, which is the cost of a company producing one more unit of a product. Long run incremental costs are likely changes to the inputs of making a product, such as the cost of raw materials. For example, if making a product requires a significant amount of oil, and oil. 22 The Michigan state commission’s September order implementing a long-run incremental cost method for leasing local-exchange network elements, which the FCC considered, see First Report and Order , and n. , makes this limitation more explicit by specifying that rates are to be set based on the costs of elements using the most.   with TSLRIC as defined in the Telecommunications Act, depending on the circumstances and how they are applied. TSLRIC as a forward looking long-run incremental cost methodology uses the concept of the hypothetical efficient operator as a means of estimating the price which would be charged in a competitive market for the regulated service. The number of administrations stating that they use the long run incremental costing (LRIC) concept increases according to the level of development. It can also be seen that some developed countries use the current cost accounting (CCA) concept. Western Europe and Asia, however, have a considerable lead on the other regions.

The following points highlight the five main types of classification of costs. Cost Classification by Nature 2. Cost Classification in Relation to Cost Centre 3. Cost Classification by Time 4. Cost Classification for Decision Making 5. Cost Classification by Nature of Production Process. The total cost of a product or service is basically. Austrian Controller Award This book develops a comprehensive concept of regulatory risk integrating existing theoretical and empirical research. The focus is on explaining how the design of the regulatory system influences the risk of a rate-regulated firm, as well as on elaborating appropriate methods for the determination of the. Verizon Communications Inc. v. Federal Communications Commission, U.S. (), is a United States Supreme Court case in which Verizon Communications argued that the FCC had an unreasonable way for setting rates for leasing network elements. It held that the FCC can require state commissions to set the rates charged by incumbents for leased elements on a forward-looking basis untied to Citations: U.S. (more) S. Ct. ; L. . Operating in a political arena, these regulators view regulation as an exercise in "fairness," protecting residences, small businesses, and rural Americans from having to pay the full (long-run incremental) cost of basic telephone service. 1 As a result, it is widely accepted that other services "subsidize" basic local service for these groups.