Case Studies

Post och Telestyrelsen (Sweden)

Sweden’s telecommunications regulator Post och Telestyrelsen (PTS) selected BWCS to help it set a range of wholesale telecoms price caps. Like most EU regulators, PTS relies on a bottom-up model (read more about bottom up modelling here), which simulates the costs of running an efficient fixed line telecoms operator to serve current and future levels of national demand for various services. PTS then combines information in this model with data from a top-down model produced by the incumbent, Telia. Other telecoms operators can also input to the process via consultations.

PTS’s model has been in existence for several years. However, it is regularly overhauled to keep pace with new developments in telecoms technology, demand and costs. The process for each update takes around one year, and includes several industry consultations and rounds of data collection. We’re proud to say we have run two successive updates for PTS, and have completely changed the model to reflect new network technologies (including next generation network, or NGN, IP technology in the core network), new services (such as IPTV, for example), improved calculation methods and current levels of demand. This has allowed PTS to set a fair price cap for many services, including local loop unbundling.

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