Scope of the document. Responses to the 1st Consultative Document. Consultation Process. Other Relevant regulatory Developments. Oftel' Advisers.
Chapter 2 - Approach and Overview
Background. Retail Price Control. Network Charge Control.
Definition of Markets for Regulatory Purposes. Technological Progress/Network Convergence. Customer Groups. Competitiveness of Services. Competition Matrix.
Chapter 4 - General Issues in Price Cap Regulation
Global Price cap. The appropriate Index for Price Control. New Services. Profit Sharing. Impact of Exogenous Factors Including Growth Rates. Duration. Roll-over. Price Control Mechanics. Price Control Mechanics. Provision for Carry-over. One-off Adjustment. Investment.
Chapter 5 - Network Charge Control
Introduction. Competitive Services. Prospectively competitive Services. Call Termination Services. Other Interconnection Services. The Cost Base: Incremental costs, Common Costs, and Equal Mark-ups. Possible Values of X. Flexibility of BT's Charge setting. Call Termination on Other Networks. Quality of service. Interaction of Network and Retail Caps.
Chapter 6 - Retail Price Control
Background. Consultation Responses. Approach. Price Cap or Bill Controls?. Scope of the Price Control Basket. Price control Period. Alternative Options. Possible Values of X. Effect on Bills. Other Issues. Subsidiary Objectives.
Chapter 7 - Cost of capital, asset Base, and Financial Modelling
Cost of Capital. Asset Valuation and Asset Base. Financial Modelling
Chapter 8 - Summary of conclusions, Proposals, and Questions
Annex A - Licence Modifications to implement the Proposed Network Price Controls
Annex B - Licence Modifications to implement the Proposed Retail Price Controls
Annex C - Long Run Incremental Costs
The Bottom-up Model. Components for the Network Controls. Floors and Ceilings in the Bottom-up Model. Including Private circuits in the Network.