Cost-based access pricing in the brazilian telecommunications sector

  • Sérgio Luís Franklin Jr. Telcordia Technologies
  • Madiagne Diallo PUC-Rio
Keywords: telecommunications, costing, interconnection, access, LRIC


The opening of the fixed telephony, mobile and data communications markets to competition, in conjunction with the subsequent reduction and elimination of entry barriers have allowed new telecommunications operators to launch their operations and develop. While traditional telecommunications business models required large amounts of money to be raised up-front in order to finance huge investment in network infrastructure, new business models are based on new entrants obtaining access to incumbents’ “essential facilities” through interconnection and access agreements. In this paper, we analyze the costing methodologies adopted for pricing interconnection and access services in Brazil, and the regulatory challenges associated with setting cost-based access prices in telecommunications networks taking into account the technological uncertainty, demand uncertainty and the move to a full-service broadband (IP) network.

Author Biographies

Sérgio Luís Franklin Jr., Telcordia Technologies

Sergio Franklin is Principal Consultant of Telcordia Technologies responsible for the company´s regulatory and strategy service line in South America. Prior to Telcordia Sergio worked for Analysys Consulting, Anatel (Brazilian Regulatory Authority in Telecommunications) and IBM. Sergio is graduated in Electrical Engineering at PUC-Rio with a Master of Science degree from INSEAD in France. He is presently a Ph.D student at the Industrial Engineering of the Pontifícia Universidade Católica, Rio de Janeiro, Brazil, where his academic project focus on network cost modeling and strategic investment (real options and games) applied to telecommunications networks.


Madiagne Diallo, PUC-Rio

Madiagne Diallo is Professor at the Department of Industrial Engineering of the Pontifícia Universidade Católica, Rio de Janeiro, Brazil (PUC-Rio). He was member of EURONGI in Costs and Payment Models workpackage JRA 6.2, and worked for ENST--Télécom Paris and CNRS--Centre National de la Recherche Scientifique de France. He holds Bacharel in Mathematics of Universidade Federal de Juiz de Fora (1998) Brazil, Master of Science in  Optimization and Statistics of  Universitat Kaiserslautern (2000) Germany, Ph.D. in  Computational Methods  for Industrial Systems (Pricing Telecom Services and Networks) (2003), Posdoct in Transport Planning at Centre National de la Recherche Scientifique (2004-2005) France and Posdoct in Telecom Business Development at École Nationale Supérieure des Télécommunications (2005-2006) France. Madiagne has published papers in Transactions of Operations Research,

Investigação Operacional,WSEAS Transactions on Computers,  IEEE Transaction on Selected Areas in Communications, 2007, Discrete Optimization, 2006, Edition Elsevie,r  Electronic Notes in Discrete Applied Maths, Series on Computer and Operations Research, Lecture Notes in Computer Science.

How to Cite
Franklin Jr., S. L., & Diallo, M. (1). Cost-based access pricing in the brazilian telecommunications sector. Brazilian Journal of Operations & Production Management, 7(1), 37-51. Retrieved from