All mobile operators are obliged to provide interconnection to other operators or termination in their mobile networks at a cost-oriented price. A cost-oriented price must cover the cost of producing the service and yield a reasonable return. PTS uses a costing model to work out the cost-oriented price
Revised every three years and updated annually
PTS updates the costing model annually using current traffic volumes and forecasts based on market trends.
A revision of the model takes place less frequently, though at least every three years. This is a significantly more extensive process, as PTS examines and if necessary modifies the basis of the model. PTS then looks at everything, from the technology used in different parts of the network to the basic cost assumptions and indexes for distributing overheads, depreciation periods, required return and so on. PTS then also compiles information about the operators’ costs.
Background
PTS uses a costing model to determine the price that operators are allowed to charge each other when they receive (terminate) calls in their networks. In accordance with current rules, PTS must regularly revise the costing model for mobile networks. The reason for this is that the economic and technological conditions for setting up and operating a network change over time. This affects the costs, which must be reflected in the model. The last revision was made in 2008.