This public consultation document commences ICTA's proceeding on the development and application of a forward-looking long-run incremental cost (FLLRIC) model. The Authority anticipates this document will be the first of several in this proceeding that seeks comment and clarification from interested parties.
The purpose of constructing a FLLRIC model is threefold: the FLLRIC model will be used to establish cost-based interconnection rates, provide cost inputs for imputation tests, and quantify any access deficit. The initial purposes of the FLLRIC model are set out in C&W's Licence, of which the relevant portions are discussed in greater detail in the following section. FLLRIC may be used for other purposes than those identified in the C&W Licence; and these likely will become evident as the liberalisation process evolves and competition develops.
In this document, the Authority sets out the overall process for the FLLRIC proceeding which is comprised of three phases. In the first phase, the Authority seeks to establish the foundation of a FLLRIC model; that is, to identify generally accepted economic and "best practice" regulatory costing principles to be adopted by Cable & Wireless (Cayman Islands) ("C&W") in a FLLRIC model. In Phase 2, the Authority will evaluate a preliminary implementation of the FLLRIC model based on the initial Phase 1 determinations. Finally, in Phase 3, C&W will be directed to implement the FLLRIC model consistent with the Authority's Phase 2 determinations.
Initial Proposal filed Sep 2003