at 21 (paragraph 66) ("Normally only pricing below LRAIC
283) Although the cost model used by the regulatory authority to assess the undertaking's wholesale prices was based on the LRAIC, it was used to define the maximum prices for wholesale access ex ante, while the assessment of price compatibility with Article 102 considered ex post historical data.
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
has some economies of scope, price must deviate from LRAIC.
as requiring international settlement rates to be based on LRAIC.
cost-based" to mean based on LRAIC, and included the United
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.
It is likely that there are better incentives for efficiency when identical LRAIC are applied for all operators (especially when the efficiency standard is defined by the benchmark of a hypothetical operator) than when there are individual LRAIC for different operators.