---

Issue: Project management and technical assistance during regulatory audit

---

Project description

Our client, designated as a significant market power operator on interconnection and retail markets is required to have its annual regulatory accounts and cost calculation audited by an independent auditor.

PwC was engaged to support our client in planning and managing the course of the audit, participating in meetings with the auditor and the regulator, as well as providing advice on technical issues relating to the cost models and separated accounts, e.g. network optimization adjustments and changes in the current cost valuation methodology.

Result

As a result of our support the client reached agreement with the auditor in respect of the areas in question, such as optimal network structure and current cost valuation. Following the positive completion of regulatory audit, our client gained reliable indicator of its cost-based tariffs, useful for its discussions with the regulator.

---

Issue: High-level analysis of the BSA cost model

---

Project description

Fixed line operator has been notified as a significant market power operator on the wholesale broadband access market and is be required to calculate Bit Stream Access tariffs based on the cost model.

We have been engaged to review existing BSA cost model prior to its approval by the regulator and the audit of BSA tariffs based on that model, in order to identify potential inconsistencies with regulatory principles and recommend suitable remedies in advance.

Result

As a result of our work the client received a set of identified departures from the regulatory principles as well as recommendations on how to address them before the formal regulatory audit process. Our technical arguments were invaluable to the client during the development of its cost model and during the audit process.

---

Issue: Benchmarking study of MTRs

---

Project description

Mobile operator was discussing with the regulator the level of Mobile Termination Rates.

We have been engaged by the mobile operator to perform a study of MTRs reductions and glide paths implemented across the EU. On this basis, we estimated MTRs and proposed a glide path to be implemented in Poland.

Result

As a result of the project our client acquired a better understanding of the MTRs reduction process across EU. Our study, which included a complex analysis from different perspectives, was used by our client as one of the main tools in its discussions with the market regulator.