LRAICLong Run Average Incremental Cost
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Recently, the Commission refined its intentions for future intervention when it clarified that a price squeeze is considered a refusal to deal and adopted LRAIC as a benchmark.
In its endorsement of LRAIC as the best measure of an
as requiring international settlement rates to be based on LRAIC.
cost-based" to mean based on LRAIC, and included the United
has some economies of scope, price must deviate from LRAIC.
LRAIC where the efficient costs are determined for each operator based on his individual costs.
Firstly, the alternatives of enhancement of the current LRAIC methodology are discussed (see Table 1).
Enhancements of the current LRAIC standard: The variations of these alternatives to the existing regulation seem to differ only marginally, nevertheless different outcomes exist.