Vafer offers its clients in-depth advice with cost modelling and price regulation, setting cost-based prices for interconnection and performing retail price modelling. We can develop price control mechanisms on regulated markets, performing cost and revenue modelling for said markets. Vafer’s pricing models practice has also developed financial planning models appropriate for regulators to validate price regulation with hard data.
Vafer’s price squeeze pricing model allows for the testing of the ‘price squeeze’ mechanism by dominant service providers with the ability to offer customers service bundling. The model enables calculations and conversions of bundled service pricing into per service pricing for retail and wholesale services, and is able to provide direct comparisons of dominant providers’ engagement in vertical price squeeze.
The pricing model is suitable for regulators and service providers alike. The model permits regulators to determine the acceptable retail floor price in relation to defined (regulated) wholesale prices; it can also be applied to the Equally Efficient Operator test (EEO test) as well as the Reasonably Efficient Operator test (REO test).
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