Cost models

This bottom-up long-run incremental cost (BU-LRIC) model of a mobile network was used in the past to set the wholesale termination price for voice calls on mobile networks. It was subject to public consultation in June 2016, and this version reflects the prices approved in the mobile termination market analysis of January 2018.

The model includes all technologies deployed by operators, such as 4G/LTE, and in addition to the incremental cost of termination, it allows for the extraction of the network cost of all services provided by a mobile operator.

However, currently, the termination price is set by the European Commission through a Delegated Regulation.

This bottom-up long-run incremental cost model (BU-LRIC) determines the construction costs for an efficient operator of a nationwide access network that includes both passive infrastructures (civil works) and the necessary physical conductive means (copper pair and fiber optic cable deployments), allowing the establishment of prices for the following wholesale products: (i) copper pair unbundling (OBA), (ii) indirect access over copper pair and fiber optic (passive part of ADSL-IP and NEBA), and (iii) infrastructure rental (MARCo).

The model considers a service demand evolution over a 20-year period and determines the appropriate network sizing -in terms of civil works and cabling from the distribution frame to the socket inside homes- to support the mentioned demand during the considered period.

This version was used in the resolution for the review of unbundled access pricing in July 2013.

This bottom-up long-run incremental cost (BU-LRIC) model for fixed telephony service was used in the past to set the termination price in the analysis of wholesale call termination markets on fixed networks in September 2014. To ensure transparency in the process, a public consultation on the model was conducted between December 2012 and January 2013.

However, currently the termination price is set by the European Commission through a Delegated Regulation.

ATTENTION: Read this NOTE before downloading and executing the model

This bottom-up long-run incremental cost model (BU-LRIC) determines the costs of providing indirect access services over Telefónica's network. The model includes the network segments used for the provision of these services, but not the passive infrastructures (external plant).

The demand for fixed broadband access and traffic is modeled for a ten-year period (2016-2026). This is a public version of the model, in which confidential data has been modified.

The model has been used to establish the capacity price in PAI for the wholesale NEBA service. The latest revision of the model was used for the prices set in May 2021.

This bottom-up long-run incremental cost model (BU-LRIC) determines the costs of building a national passive access infrastructure network (ducts, manholes, handholes, and poles). The model has been used to set the price of the passive infrastructure access service of Telefónica (wholesale MARCo service) in June 2025.