PRICING AND COSTING PRACTICES IN TELECOMMUNICATIONS: THE BRAZILIAN EXPERIENCE AND CHALLENGES

  • Sergio Luis Franklin Jr. Pontifícia Universidade Católica do Rio de Janeiro, Department of Industrial Engineering
  • Nelio Domingues Pizzolato Pontifícia Universidade Católica do Rio de Janeiro, Department of Industrial Engineering
Keywords: telecommunications, pricing, costing, interconnection and access, regulation

Abstract

In this paper we provide an overview of the Brazilian regulatory framework for telecommunications, emphasizing the policies and models adopted for setting interconnection and access prices. In particular, we show how the regulations on interconnection and access services have evolved over time since the liberalization of the telecommunications sector (from July 1997 to December 2012), describe the two costing methodologies adopted, and formulate alternative approaches to address the regulatory challenges associated with the pricing/costing mechanism used, the target balance between service-based and facilities-based competition, and the impact of real options on the cost-based prices of regulated telecommunications services.

Author Biographies

Sergio Luis Franklin Jr., Pontifícia Universidade Católica do Rio de Janeiro, Department of Industrial Engineering

Sergio Franklin is technical analyst at SUSEP (Superintendence of Private Insurance), where he works in the Solvency/Underwriting Division. Prior to SUSEP, Sergio worked as executive and principal consultant in a number of companies, including Telcordia Technologies, Analysys Consulting, and IBM, where he led several consulting assignments in the areas of strategy, corporate finance, regulatory economics and cost modeling. He holds a doctorate degree from  the Pontifícia Universidade Católica, Rio de Janeiro, Brazil (PUC-Rio), a master degree from the Institut Européen d'Administration des Affaires, Fontainebleau, France (Insead), and a graduate degree in engineering at PUC-Rio.

Sergio Luis Franklin Jr. a, b

a Pontifícia Universidade Católica, Department of Industrial Engineering, R. Marquês de São Vicente, 225, sala 950L,Gávea - 22453-900, Rio de Janeiro - RJ, Brasil.

b Internet Economics Group.

sergio.franklin@uol.com.br; 55-21-8442-2000.

Nelio Domingues Pizzolato, Pontifícia Universidade Católica do Rio de Janeiro, Department of Industrial Engineering

Nelio D. Pizzolato is associate professor of the Industrial Engineering Department at the Pontifícia Universidade Católica, Rio de Janeiro, Brazil (PUC-Rio). His teaching and advising experience includes various subjects such as cost studies, operations research, logistics, among others. He holds a master degree from PUC-Rio (1971), a Ph.D. degree from the Business School of the University of North Carolina (1977) United States, and post doctoral studies at the Université de Montréal (1987) Canada.

Nelio Domingues Pizzolato c

c Pontifícia Universidade Católica, Department of Industrial Engineering, R. Marquês de São Vicente, 225, sala 950L,Gávea - 22453-900, Rio de Janeiro - RJ, Brasil.

Published
2013-08-02
How to Cite
Franklin Jr., S., & Pizzolato, N. (2013). PRICING AND COSTING PRACTICES IN TELECOMMUNICATIONS: THE BRAZILIAN EXPERIENCE AND CHALLENGES. Brazilian Journal of Operations & Production Management, 10(1), 7-24. Retrieved from https://bjopm.emnuvens.com.br/bjopm/article/view/V10N1A1
Section
Articles