Telecommunication
Development Bureau (BDT)
Ref.:
BDT/AO-Barbados/DM/348
Geneva, 12 August 2013
ITU Member States
National Regulatory Authorities and
Operators in The Caribbean Region
Subject:
ITU Expert-Level Training on Regulatory Accounting and Cost Modeling in a
Broadband Environment for National Regulatory Authorities and Operators,
Antigua and Barbuda, 14-17 October 2013
Dear Sir/Madam,
In today’s converged digital environment, pricing and cost modeling practices are central to ensuring a fair
and healthy competitive environment. In addition, resolving related disputes expeditiously has emerged as
a major challenge for regulators. Striking the right balance between different interests requires heads of
regulatory authorities to be well informed on current costing and pricing strategies, their impact and
implications on the national competitive landscape and the related skills required by staff. In addition,
traditional interconnection regulation has involved setting cost-based prices primarily for voice calls using
circuit-switched network technology. These per-minute prices have often been established through the
construction of network cost models, in most cases bottom-up long-run incremental cost models developed
by the regulator for this specific purpose. However next generation networks (NGNs) are increasingly
migrating to the use of IP technology.
For a while interconnection remained unchanged (with conversion back to circuit-switching at the point of
interconnect), but as IP becomes the network technology of choice, so regulators have to establish new
costing and pricing approaches for NGN interconnection. Is this a case of simply updating the technology
used in their cost models, or are cost models themselves becoming redundant? Or, given that the Internet
manages without regulation, is the migration to NGN a signal for regulators to step back from
interconnection regulation altogether?
It is with great pleasure that I invite you to participate in this Expert-Level Training that will be held in
Antigua and Barbuda, from 14 to 17 October 2013, at the kind invitation of the Ministry of Information,
Broadcasting, Telecommunications, Science and Technology of Antigua and Barbuda.
This workshop will explore these critical issues through a mixture of lectures, case studies and role plays to
demonstrate the on-going role of cost accounting and cost modeling in a broadband environment.
Discussion sessions will also be conducted to promote dialogue and exchange of experiences among
participants. Participation of experts from regulatory authorities in charge of costing issues is greatly
encouraged as the training will be at an advanced level. Please find enclosed the Provisional Agenda (Annex
1).
International Telecommunication Union • Place des Nations • CH-1211 Geneva 20 • Switzerland
Tel: +41 22 730 5111 • Fax: +41 22 730 5545/730 5484 • E-mail: bdtmail@itu.int • www.itu.int/itu-d
–2–
Information concerning hotel reservations, visa requests, as well as practical information is also attached
(Annex 2).
Please note that there are no training fees applicable to this course. However, participants should cover
their own travel and accommodation expenses and arrangements.
For further information Ms Sheron Small is at your disposal by telephone: +1 246 431 0343/4; Fax: + 1 246
437 7403; and e-mail: sheron.small@itu.int
I look forward to your active participation.
Yours faithfully,
[Original signed]
Brahima Sanou
Director
Annex 1: – Provisional Programme
Annex 2: – Useful information for participants-P. Lovato
–3–
Annex 1
ITU EXPERT-LEVEL TRAINING ON REGULATORY ACCOUNTING AND COST MODELING IN A BROADBAND
ENVIRONMENT FOR NATIONAL REGULATORY AUTHORITIES
AND OPERATORS
ANTIGUA 14-17 OCTOBER 2013
AGENDA
Day 1
Goal: Introduction to the appropriate use of cost controls as a strategic regulatory tool
08.30
09.00
Delegate Registration
09:00
10:30
Welcome, introduction, expectations, team building
10:30
10:45
Coffee Break
10:45
12:30
Understanding the place of regulatory accounting and cost modeling in a converged
broadband environment
12:30
14:00
Lunch Break
14.00
15:30
Practical exercise 1: determining the best approaches to cost-based price regulation
15:30
15.45
Coffee Break
Session 4
(interactive)
15.45
17:00
The seven habits of highly effective cost-based regulation
Day 2
Goal: Understanding the regulatory process for cost accounting and cost modeling
Session 5
(lecture)
09:00
10:30
The regulatory process for cost accounting and cost modeling – implementation issues:
what is involved and how should it be addressed?
10:30
10:45
Coffee Break
10:45
12:30
Practical exercise 2: using the ITU training cost model as part of a hypothetical regulatory
procedure to establish costs and prices for wholesale and retail mobile services.
Establishing the background; preparing the calculations in working groups
12:30
14:00
Lunch Break
14:00
15:15
Practical exercise 2: using the ITU training cost model as part of a hypothetical regulatory
procedure to establish costs and prices for wholesale and retail mobile services.
Session 1
(interactive)
Session 2
(lecture)
Session 3
(working groups)
Session 6
(working groups)
Session 7
–4–
(working groups)
Session 8
(lecture)
Presenting and discussing the findings
15:15
15.30
Coffee Break
15.30
16:45
Common pitfalls in regulatory cost modeling – international case study examples
16.45
17:00
Introduction to Practical Exercise 3 – including bedtime reading!
Day 3
Goal: Understanding how cost modeling and cost-based regulation must change in an IP broadband
environment
Session 9
(lecture)
09:00
10:30
Cost modeling for NGN interconnection. To understand the differences between costmodeling for an NGN and cost-modeling for a legacy circuit-switched network; to
examine the role of cost models in future regulation and identify their strengths and
limitations.
10:30
10:45
Coffee Break
10:45
12:30
Practical exercise 3: Role-play of an IP interconnection negotiation in a broadband
environment. In this first part, teams will be assigned specific roles and will prepare
presentations to take into the negotiation.
12:30
14:00
Lunch Break
14:00
15:30
Practical exercise 3: Role-play of an IP interconnection negotiation. In this second part,
the negotiation will be conducted between the teams, after which the outcome will be
critiqued in plenary session.
15:30
15.45
Coffee Break
Session 12
(lecture)
15.45
17:00
International trends and case studies in IP interconnection. Illustrating the main
current and emerging issues involved in establishing interconnection charges for
NGN through a review of international experience and practice
Day 4
Goal: A closed session for regional regulators to share experience in the development and use of cost
models, with a focus on the challenges encountered and solutions found.
Session 13
(lecture)
09:00
10:30
Regional Case Study: ECTEL or/and OUR. Using the results of a cost model in the
regulatory sphere. Recent developments with focus on how to use the results of the cost
model and the challenges (foreseen and present) and plans to overcome them.
10:30
10:45
Coffee Break
10:45
12:30
Panel discussion. Representatives from regional regulators share views and opinions in
open, structured discussion on approaches to regulatory costing in the Caribbean Region
– open discussion
12:30
14:00
Lunch Break
14:00
15:30
Plenary session: - Is it time to leave cost‐based interconnect behind? What is the new
role of regulators? Open discussion
Session 10
(working groups)
Session 11
(working groups)
Session 14
(interactive)
Session 15
Summary of learning points, conclusion of workshop.
–5–
Annex 2
LOCAL INFORMATION
1. Place
The Workshop will take place at the Jolly Beach Resort & Spa
2. Registration of delegates
Registration of delegates will take place at the place of the Workshop, starting on
14 October at 08.00
3. Working languages
The working language will be English
4. Health
Prior to departure to Antigua travelers should enquire about the necessary vaccinations according
to WHO international regulations.
5. Visa
No Visa Requirements.
6. Transportation
Taxis are available outside the VC Bird International Airport (rates vary depending on destination).
7. Telecommunications
There are three (4) providers in Antigua.
1.
2.
3.
4.
LIME
Digicel
Antigua Public Utilities Authority (APUA)
Antigua Computer Technology (ACT)
–6–
8. Local currency, change and payment
The official currency is Eastern Caribbean Dollars (EC), however, United States currency (US) is
widely accepted.
1 US $ =
1 EURO =
2.67 EC$
3.40 EC$ (depending on rate fluctuation)
9. Electrical Network
120 volts/60Hz
10. List of Hotels
Participants are invited to make their own hotel reservation and to inform the local coordinators
about their choice.
Hotel name
Jolly Beach Resort
Ordinary
rate
US$ 143 per night
Negotiated rate
US$ 105 per night
(Standard Room)
US$173 per night
US$130 per night (Superior Room)
Both rates incl. of Breakfast only!!!
Tel:
(268) 462-0061
Fax
(268) 562-2302
11. Contacts
Mr. Daryl Jackson
Tel.:
(268) 562-1868
Fax :
(268) 562-1872
E-mail :
daryl.jackson@live.com
Ms. Michele Michael
Tel.:
(268) 562-1868
Fax:
(268) 562-1872
E-mail:
micheleamichael@gmail.com
E-mail
info@jollybeachresort.com
reservations@jollybeachresort.com