Brikena Tolli

Authors country of origin: Albania
Institutional affiliation: Marin Barleti University, Tirana, Albania,
Email address:

 Abstract: The fundamental problem in the Telecommunications market, which contributes to slowing down the competition, lies in the local and central access network, necessary to be able to offer regulated services. In order, to be able to stimulate competition in the telecommunications market effectively, the European Commission intervened with a series of directives forcing the only historical operators who own the network, to provide regulated access. This regulation was then extended to all of the operators with the significant market power. The national regulatory authority is the authority that determines the right access price to encourage downstream competition and at the same time encourage the prospects of new operators to build their own infrastructure. Different methodologies are used to allocate costs for calculating access prices by national regulatory authority in European countries. They use accounting methods, preferring them over what economic theory advises, however these methods are affected by a variety of limitation. The telecommunications sector in Albania comprise a similar situation that deserves the attention of operators, regulators and academics. This sector is subject to ex ante regulation and access regulation is of public interest. It is therefore of strategic importance to find the right balance between promoting competition in the short term – allowing new operators to enter in the market – and promoting long-term competition – through appropriate incentives to invest in alternative infrastructure. The research is based in qualitative method. There is no information on the costs of operators and their calculations but a qualitative analysis of the collected facts as well as a qualitative analysis of the author based on his background. Primary sources are obtained from documents published by the regulator and operators, legal and sub-legal acts; secondary data are collected from various scientific and professional articles and publications of academics and researchers, books and documents of regulators of other countries. Electronic and Postal Communications Authority is the Albanian regulator that verifies the compliance of the regulated rates with the method and conditions set for the regulation of the rates. Even though since 2010 the Albanian regulatory has formally accepted the application of the Bottom-up Long-Run Incremental Cost method, it continues to apply a Benchmark model with reference to the rates calculated by the regulators of the Body of European Regulators for Electronic Communications countries. So there has been no evidence of data being used to do a complete research in order to decide whether the results obtained by using the Benchmark model would have been more / less consistent and more / less efficient than those obtained from using the Bottom-up Long-Run Incremental Cost model (cost-oriented model). The author conclude that the regulatory complies with the requirements of the law, but with limited application, it implements the minimum / maximum average rate model of Body of European Regulators for Electronic Communications countries with a gradual correction (glide path). The implementation of bottom-up Long-Run Incremental Cost method would be the best way to reduce the fixed network termination/transition rates thus promoting competition. The regulatory should carry out a full study on the calculation of termination/transition rates according to the pure Bottom-up Long-Run Incremental Cost method and also should prepare a manual of procedures for operators with significant market power on how to identify their costs.

Key words: Telecommunication, interconnection rates, cost methodologies, BULRIC, AKEP

Field: Social sciences

Volume 3.No.1(2020): April

ISSN 2661-2666 (Online) International Scientific Journal Monte (ISJM)
ISSN 2661-264X (Print)

DOI : 10.33807/monte.202004655


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