Project Management

Brasil Telecom: The Briefing of a Case on Telecom Regulation in Emerging Markets

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Executive Summary

In 2005, the telecom regulator in Brazil asked incumbents to undertake the account separation and cost modeling. The goal was allowing the regulator to set prices based on an assessment of incumbents finance and physical data, especially the definition of cost-based prices at the wholesale market (interconnection, leased lines and unbundling prices) and the measurement of productivity to define X-factor applied to the retail tariffs in the price cap readjustment. In 2003, Brazilian government issued a decree introducing cost based regulation for the Brazilian telecommunications sector to establish interconnection fees and leased line prices.

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