Carrying out sector-based regulation implies defining and then applying fair access rules to essential resources as well as providing reasonable tariffs. These points are derived using transparent, non-discrimination criteria and proportionality tests. Defining and applying these rules guarantees competition in regulated markets, and require rigorous economic models.
Since its creation TERA has developed best practices in modelling alongside its academic partners to ensure that these practices are worldwide. Our services include top-down and bottom-up cost modelling, accounting separation of businesses, finding the right allocation for direct and indirect costs, modelling average incremental costs, as well as long term incremental costs, evaluating a sustainable margin (CPMC/WACC, ROCE, RoI), designing bids for tender and auctions, calculating universal service for avoidable costs, as well as defining obligations for services of general economic interest.
TERA assists operators and regulators design or answer public consultations regarding regulatory or statutory issues.
TERA has unique expertise and know-how. The models we design and develop are used by regulators and operators in more than 50 countries and cover telecommunications, postal services, transportation as well as energy.
Our team’s cross-industry skills comprising engineers, economists and statisticians are the building blocks for the unparalleled skills we provide to our clients.
TERA models are specifically developed for our clients’ situations, and model parameters are consequently adapted to meet their needs. Our model designs include required reliability objectives and ergonomic criteria to ensure that clients appropriate and use the models once our mission ends. These models are transparent and documented to ensure that they can be easily updated and maintained to retrace and master all calculations and results so that clients can explain the models to third-parties.
In the context of FTTH deployments in France, a major telecom operator contended that the planned regulatory policy which promoted competition in infrastructure was very inefficient from an economic point of view.
TERA, international consulting and economic expertise firm founded in 1995, works in the fields of sector regulation, competition, litigation and damage assessment.
39 rue d’Aboukir, 75002 Paris – France
+33 (0) 1 55 04 87 10 / +33 (0) 1 53 40 85 15
