Lraic-ed Dokumentation 14042011 PDF

Report for National IT and Telecom Agency

2010/11 upgrades to the NITA fixed LRAIC model

Implementation of an economic depreciation

calculation

14 April 2011

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.

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Contents

1 Introduction 1

2 Overview of the economic depreciation methodology 2

2.1 Merits of economic depreciation 2

2.2 Principles of economic depreciation 3

3 Description of the economic depreciation implementation 6

3.1 Expenditures C+F Model 9

3.2 ED C+F Model 12

3.3 Plotting results 14

Annex A: Summary of the code for the ED C+F calculation

Copyright © 2011. Analysys Mason Limited has produced the information contained herein

for the National IT and Telecom Agency (NITA). The ownership, use and disclosure of this

information are subject to the Commercial Terms contained in the contract between

Analysys Mason Limited and NITA.

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UK

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Registered in England No. 5177472

http://www.analysysmason.com

2010/11 upgrades to the NITA fixed LRAIC model | 1

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1 Introduction

The National IT and Telecom Agency ( NITA ) has commissioned Analysys Mason Limited

( Analysys Mason ) to undertake a series of upgrades to its long-run average incremental cost

(LRAIC) model for fixed networks. The objective of this project is to upgrade the LRAIC model

to inform future NITA decisions on the pricing of regulated services, where required, in

Markets 3 5. Specifically these upgrades relate to understanding the costs of:

wholesale fixed voice termination consistent with the EC Recommendation (Market 3)

wholesale access on TDC s fibre network (Markets 4 and 5)

bitstream access (BSA) on TDC s cable-TV network (Market 5).

As part of these upgrades, NITA has determined that it would be useful to investigate the costs of

the modelled networks using multi-year economic depreciation, in addition to the single-year tilted

annuity depreciation in the existing LRAIC model. This document describes how this

implementation has been undertaken and is set out as follows:

Section 2 provides an overview of the economic depreciation (ED) methodology

Section 3 describes the implementation of the ED calculation within the LRAIC model

Annex A provides more detailed descriptions of the macros used to automate the processes

within the economic depreciation calculation.


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2 Overview of the economic depreciation methodology

This section provides an overview of the concepts underpinning ED.

Section 2.1 describes the merits of ED over other methodologies.

Section 2.2 describes the principles behind ED.

2.1 Merits of economic depreciation

There are four main potential depreciation methods:

Historical cost accounting (HCA) depreciation

Current cost accounting (CCA) depreciation

Tilted annuities

Economic depreciation.

Figure 2.1 summarises the factors considered for the various depreciation methods used in

regulatory cost models.

HCA1 CCA2 Tilted annuity Economic depreciation

MEA3 cost today

Forecast MEA cost

Output of network over time

Financial asset lifetime 4

(feasible) (feasible)

Economic asset lifetime

Figure 2.1: Factors considered by depreciation methods [Source: Analysys Mason]

Theoretically, economic deprecation is a highly appropriate method for regulatory costing since it

takes into account all the underlying factors influencing the economic value of an asset:

projected trends in operating expenditures associated with the asset (MEA opex trends)

projected trends in replacing the asset with its MEA (MEA investment trends)

the economic output that can be generated by the network asset over time.

1 Historic cost accounting

2 Current cost accounting

3 Modern equivalent assets

4 Both tilted annuities and economic depreciation can use financial asset lifetimes, although the latter should strictly use economic

lifetimes (which may be shorter, longer or equal to financial lifetimes).


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It is this third factor that specifically differentiates economic depreciation from the other methods

that take into account the MEA cost trends (both CCA and tilted annuity depreciation can do this,

albeit in different ways). HCA does not take the MEA cost trends into account.

Although tilted annuities determine cost recovery in a way that reflects the underlying costs of

production over time, the method effectively assumes a steady rate of network output over the

network lifetime. Adding a tilt can reflect price trends in network equipment over time; tilt

adjustments can also allow for networks undergoing a small and gradual change in network output

over time (i.e. closely approximate the results of a full economic depreciation calculation). Hence,

in the situation where the output of an asset is not expected to change much over its lifetime, the

result of an economic depreciation calculation is similar to a tilted annuity.

Until now the change in demand on the modelled fixed networks (i.e. the copper access network)

have been sufficiently small that tilted annuities have been sufficient for the purposes of cost

modelling. They are also considerably simpler to implement. However, the upgraded LRAIC

model now also takes into consideration the fibre network purchased by TDC in late 2009, which

is a network with a small footprint and low level of utilisation (in subscriber terms). It has a non-

national footprint and (currently) a very small base of active subscribers. The existing tilted

annuity deprecation method may therefore give results that are not suitable for the network cost

calculation of services on these networks.Changing utilisation over time is also recognised to be an

important factor for the core voice and data platforms. This changing utilisation of the platform

can be captured in the model by implementing an ED calculation. Therefore, ED is a useful

approach for considering the costs of services on both the fibre and other platforms.

A further advantage of ED is that it deals consistently with operating expenditures and capital

expenditures. The projected cost recovery profile fully recovers expenditures plus the opportunity

cost of tying-up capital (i.e. a return on thus-far unrecovered capital or operating costs).

2.2 Principles of economic depreciation

An ED algorithm recovers all efficiently incurred costs in an economically rational way by

ensuring that the total of the revenues5 generated across the lifetime of the business are equal to the

efficiently incurred costs, including cost of capital, in present value (PV) terms. This calculation is

carried out for each individual asset class, rather than in aggregate, in order to allow the price

trends and opex cost trends for each asset to be reflected.

5 Strictly cost-oriented revenues, rather than actual received revenues.


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2.2.1 Present value calculation

The calculation of the cost recovered needs to reflect the time value of money. This is accounted

for by the application of a discount factor on future cashflows, which is equal to the weighted-

average cost of capital (WACC) of the modelled operator.

The business can be assumed to be operating in perpetuity and investment decisions are made on

this basis. This means it need not be necessary to recover specific investments within a particular time

horizon (e.g. the lifetime of a particular asset), but rather throughout the lifetime of the business. In

the ED models, this situation can be approximated by explicitly modelling a period of 80 years. At

the real discount rate applied (which is derived using the WACC), the PV of the cashflows in the

last year of the model is very small and thus any perpetuity value beyond 80 years is regarded as

immaterial to the final result.

2.2.2 Cost recovery profile

The constraint on cost recovery (NPV of costs = NPV of output

calculated unit costs) can be

satisfied by (an infinite) number of possible cost recovery profiles. However, it would be

impractical and undesirable from a regulatory pricing perspective to choose an arbitrary or highly

fluctuating recovery profile.6 Therefore, we choose a cost recovery profile that is in line with

revenues generated by the business. In a competitive and contestable market, the revenue that can

be generated is a function of the lowest prevailing cost of supporting that unit of demand, thus the

price will change in accordance with the costs of the MEA for providing the service.7 The unit cost

is therefore assumed to follow the MEA price trend for that asset class. The cost recovery profile

for each asset class is therefore the product of the demand supported of the asset (i.e. its economic

output) and the MEA price trend. This gives a unique solution.

2.2.3 Capex and opex

The efficient expenditure of the operator comprises all the operator s efficient cash outflows over the

lifetime of the business, meaning that capex and opex are not differentiated for the purposes of cost

recovery. As stated previously, the model considers costs incurred across the lifetime of the business to

be recovered by revenues across the lifetime of the business. Applying this principle to the treatment of

capex and opex leads to the conclusion that they should both be treated in the same way since they both

contribute to supporting the revenues generated across the lifetime of the operator.

Although capex and opex are not treated differently by the calculation, their economic costs must be

derived separately. This is because the cost trends for these two components for a given asset can

6 For example, because it would be difficult to send efficient pricing signals to interconnecting operators and their consumers with an

irrational (but NPV=0) recovery profile. 7

In a competitive and contestable market, if incumbents were to charge a price in excess of that which reflected the MEA prices for

supplying the same service, then competing entry would occur and demand would migrate to the entrant which offered the cost-

oriented price.


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differ, and hence the ED calculation needs to be applied separately to each. In fact, since the existing

model distinguishes between equipment and installation cost, which can also have different cost trends

for the same asset, capex must in fact be further subdivided into these two components in order for the

calculation to work correctly.

2.2.4 Details of implementation

The PV of the total expenditures is the amount which must be recovered by the revenue

stream. The discounting of revenues in each future year reflects the fact that delaying cost

recovery from one year to the next accumulates a further year of cost of capital employed.

This leads to the fundamental of the ED calculation that is:

PV (expenditures) = PV (unit cost output)

The unit cost

output which the operator gains from the service in order to recover its

expenditures plus the cost of capital employed is modelled as output

year 1 unit cost

MEA price index. This quantity is discounted because it reflects future cost recovery. (Any

costs recovered in the years after a network element is purchased must be discounted by an

amount equal to the WACC in order that the cost of capital employed in the network element

is also returned to the operator.).

output

the service volume carried by the network element

MEA price index

the cumulated input price trend for the network element which thus

proportionally determines the trend of the unit cost that recovers the expenditures

(effectively, the percentage change to the cost of each unit of output over time).

This leads to the following general equations:

cost recovery (year n) = unit cost in year 1

output

MEA price index

Using the relationship from the previous section, the above equation is equal to:

PV (expenditures) = PV (unit cost in year 1

output

MEA price index)

This equation can be rearranged as follows:

unit cost in year 1 = PV (expenditures) / PV (output

MEA price index)

Then, returning to the original equation for cost recovery in year n, the yearly access price

over time is simply:

yearly unit cost over time = unit cost in year 1

MEA price index

This yearly access price over time is calculated separately for the capital equipment, capital

installation and operating components in one step in the model.


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3 Description of the economic depreciation implementation

We have implemented ED in the LRAIC model using an exogenous approach. This enables the

existing LRAIC model to be used as the central engine of the network design calculation, by

deriving the demand volumes, asset counts and associated network costs for each year in the

modelling timeframe.

The output asset counts and costs are then stored in separate files in order to undertake the ED

calculations. Due to the volume of data involved, separate multi-year models have been assembled

for the ED calculations.

The new ED models are thus bolted on to the other workbooks in the LRAIC model, as

illustrated in Figure 3.1.

Access modelCopper

Core model Consolidation model

Co-location model

Fibre/Cable-TV Access modelNon-national cable-TV

Non-national fibre

Pure LRIC model

EconomicDepreciationmodels

Figure 3.1: Relationship of the new ED model to the existing LRAIC model [Source: Analysys Mason]

The existing workbooks developed for the single-year cost calculations (Access, Core,

Consolidation, Co-location, CATV+Fibre Access and Pure LRIC) are largely unchanged, apart

from some additional named ranges or output tables for use by the ED calculations. In particular,

these workbooks can still function as a single-year LRAIC model, independently of the ED

models.


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Figure 3.2 illustrates the relationship between the multi-year models and the existing model.

Single-year models

Access modelCopper

Core model Consolidation model

Co-location model

CATV+Fibre Access model

Cable-TV Fibre

Pure LRIC model

Expenditure C+F model ED C+F model

Multi-year models

Macro to run the model for a number of

years

Figure 3.2: Relationship of the ED, multi-year models to the whole LRAIC model [Source: Analysys

Mason]

Implementations of ED will normally use a long timeframe. NITA s mobile LRAIC model uses a

timeframe of up to 50 years, with the longest lifetime being 20 years. Since the longest lifetime in

the fixed network model is 40 years, we have included the ability to model up to 80 years into the

future (i.e. two full asset cycles for the longest-lived assets, as described in Section 2.2.1). The

user, if they so wish, can restrict the timeframe for an ED calculation to a smaller number of years.

The modelling period is thus at most 2008 87.

The first year in which deployment is considered is usually assumed to be 2010. However, the

years 2008 09 are required in order to capture advance purchase of assets for installation in the

network. This is because, in a multi-year calculation, it would be unreasonable to assume

simultaneous purchase, installation and activation of assets. Currently, a planning period of 1 12

months is included in the model for each asset to allow prior purchase. Therefore, assets are

purchased 1 12 months prior to when they are actually installed and activated. The periods used

can be found on the I_Asset worksheet in the CATV+Fibre Access model.


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Each ED model contains a macro that should be used to run the single-year models (Core, Access,

Consolidation, Co-location and CATV+Fibre Access) for each year in the modelling timeframe. The

macro:

clears the data stored from the previous run

pastes data into the single-year models and re-calculates the network costs for each year in the

modelling timeframe

pastes the output demand, assets and network costs into the ED model

restores any inputs to their 2010 values (the current costing year).

When this macro has been run, all models can be closed except for the ED models to make

calculations faster. The ED models are designed to be mutually independent and do not need to be

all run at the same time (although their inputs are consistent).

In the rest of this section we describe the four multi-year models in greater detail.

Sections 3.1 and 3.2 describe the Expenditures C+F model and the ED C+F model respectively,

which are used to calculate ED for both the modelled cable-TV and fibre networks

Section 3.3 describes how results for a service can be viewed graphically in the ED models.

For each model, we summarise the workbook structures, explain how to run the model and then

describe (as required) first the expenditure calculations and then the economic cost calculations.

For the avoidance of doubt, the cable-TV and fibre network calculation is split into two workbooks

for size purposes, since the expenditure calculation must be completed for twenty geotypes.

It should be noted that the ED models each contain the same hard-coded inflation rate. If this

needs to be updated, then it must be separately updated in each of the workbooks.

It should also be noted that all of the models (single-year and multi-year) should all be kept in the

same directory, as illustrated below. This will ensure that the inter-workbook links are maintained.

Single-year model

Multi-year models

Altnetmodel

Figure 3.3: Directory

structure for the models

[Source: Analysys

Mason]


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3.1 Expenditures C+F model

The Expenditures C+F model is a multi-year, multi-geotype model. It contains a macro that runs

the single year models for a specified number of years. The major outputs of the models are then

collated in the Expenditures C+F model, which performs intermediate calculations whose outputs

are then fed into the ED C+F model.

The links to external workbooks should always be verified before any calculation using the Edit

Links dialog box (this can be found using the shortcut Alt+E+K).

3.1.1 Workbook structure

In Figure 3.4, we describe the worksheets within the Expenditures C+F model. The worksheets in

this model are prefixed with a two-character string, e.g. A1, B0. These are intended to optimise

calculation sequence in order to reduce the calculation time in earlier versions of Excel. Since this

prefix could change, a worksheet in these models called A1WorkSheet1 will be referred to in this

document without the prefix i.e. as WorkSheet1.

Worksheet name Description

C Contents sheet, summarising the worksheets within the workbook

V Summary of the version history of this workbook

S Describes the cell formatting used within the workbook

I_wkbk Lists the workbook names within the LRAIC model

I_Lists Defines the names of commonly used lists in the Expenditures C+F model

I_Ctrl Contains button to run the multi-year calculation via a macro

I_Links Contains external workbook links from the other models

I_Demand Determines demand profiles over time for the fibre and cable-TV network

I_Asset_Inp Storage sheet for asset data over time by geotype

I_Capex_Inp Storage sheet for capex data over time by geotype

C_Calc Calculation engine for automated calculations by geotype over time

O_Output Stores results across the geotypes. It also stores opex results pasted by the macro. These are then output to the ED C+F model

Figure 3.4: Description of the Expenditures C+F model worksheets [Source: Analysys Mason]

3.1.2 Running the model

As demonstrated in Figure 3.5, the control panel worksheet I_Ctrl contains a macro button labelled

Update model . The multi-year calculation can be triggered by pressing the Update model

button on the I_Ctrl worksheet. By default the macro would rerun the single year models 80 times,

once for each year. Then it would record the relevant time-varying outputs in relevant sections in

the Expenditures C+F model. A full rerun of the single-year models requires several minutes.


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When running the macro in the Expenditures C+F model, the Consolidation, Core, Access,

Co-location and CATV+Fibre Access models should also be open.

If the user determines that a modelling timeframe of less than 80 years is appropriate, inputs have

been included on this worksheet to rerun the single-year models for a subset of years, defined by

the two parameters First year and Last year . This does not allow a partial re-run of a

calculation, since all arrays of stored data are cleared at the start of the macro.

Furthermore, the option to migrate subscribers away from the fibre network in the long term can

also be modelled, in conjunction with a finite network lifetime. For example, in order to model a

40-year fibre network lifetime, the user can set cells I_Ctrl!N85:N104 in the CATV+Fibre Access

model to 40 and choose Option 1 using the dropdown box in cell I_Demand!C12 in the

Expenditures C+F model.

This option can be de-activated (i.e. a network existing in perpetuity can still be assumed) by

setting cells I_Ctrl!N85:N104 in the CATV+Fibre Access model to a sufficiently large number of

years (e.g. 100) and by choosing None using the dropdown box in cell I_Demand!C12 in the

Expenditures C+F model.

Figure 3.5: Control panel

of the Expenditures C+F

model [Source: Analysys

Mason]

After the macro is completed, the ED C+F model (described in Section 3.2) can then be opened to

complete the ED calculation. The single-year model workbooks can be closed to reduce

calculation time. The ED C+F model can then be re-calculated by pressing Ctrl+Alt+F9.

The ED model for the cable-TV/fibre networks are unable to generate economic costs by geotype.

In order to determine such costs, the macro must be run for the desired sub-national network. For

example, in order to determine the access network costs of the existing fibre network, the user

should run the C+F Expenditure model with PTP only deployed in the CATV+Fibre Access model

for geotypes 1 6 and 18 (active geotypes are set on the I_Ctrl worksheet).

3.1.3 Expenditure calculation

The major data points from the single-year models pasted into the Expenditures C+F model are:

year average network element required for each asset


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unit capex per network element (nominal DKK), split into equipment and installation

components

total opex across all geotypes by network element (nominal DKK).

The asset and capex inputs are geotype-specific. They are stored in the I_Asset_Inp and

I_Capex_Inp worksheets. The opex is not split by geotype and is stored directly in the O_Output

worksheet. Having stored all of this data, the macro then uses the C_Calc worksheet to determine

the equipment purchased (accounting for planning periods and replacement) in each year using the

year-average network elements, as well as the total equipment capex and total installation capex

across all geotypes. All three of these outputs are stored, by asset, in the O_Output worksheet.

Once the macro has been re-run, the Expenditures C+F model can be fully re-calculated by

pressing Ctrl+Alt+F9. This calculation flow is illustrated in Figure 3.6 below, including how it

relates to the calculations undertaken within the macro.

Colour key General inputs Calculations Outputs

Year-average elements required

(asset, time, geotype)

Retirement delay (asset, geotype)

Deployed assets with retirement


Asset lifetime (asset, geotype)

Annual activation, inc. replacement


Planning period(asset, geotype)

Equipment purchase, inc replacement


Unit capex per element (real)


Unit capex per element (nominal)


Total annual capex for annualistion

(real) (asset, time)

Total opex(nominal)

(asset, time)

Total opex for annualisation


Unit capex cost trend index (real) (asset, time)

Unit opex cost trend index (real) (asset, time)

For each geotype(within the macro)

Aggregated

Time varying inputs (pasted using the macro)

Annualised or expensedindex (asset)

Total opex for annualistion (real)

(asset, time)

Real discount rate(time)

Total capex per element (real)


Total capex per element (real)

(asset, time)

Figure 3.6: Calculation of capex and opex in the Expenditures C+F model [Source: Analysys Mason]

When running the single-year model over the modelling timeframe, the CATV+Fibre Access

model can model a network which is deployed in (geotype-by-geotype) over time, rather than just

in one-year. The inputs governing this calculation can be found in cells I_Ctrl!F29:H48 and

I_Ctrl!K85:M104 for the cable-TV and fibre networks respectively. For each geotype, the

parameters are first-year of deployment in that geotype and the number of years required to cover

that geotype. Furthermore, the total buildings to pass in Denmark can also be assumed to increase

over time, using the forecast functionality in the new I_NwDsFrcst worksheet in the CATV+Fibre

Access model.


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The capex index (separately for equipment and installation) will not vary by geotype, so it is

calculated using the trends from geotype 1. The full-time equivalent (FTE) opex index by network

element is calculated based on the real opex cost trend being equal to the nominal change in unit

FTE maintenance costs less inflation.

All expenditures are converted into real 2010 Danish kroner (DKK), by removing inflation, for the

purposes of the ED calculation. The WACC is also converted into real terms, using the inflation

rate forecast from NITA s mobile LRAIC model.

After the macro has been completed, the single-year models can be closed (they do not need to be

saved, since the inputs will not have been changed) and the ED C+F model (described below in

Section 3.2) can then be opened.

3.2 ED C+F model

The ED model is a multi-year model. It links in the outputs from the Expenditures C+F model and

then performs further calculations to arrive at the LRAIC and LRAIC+ results. The links to

external workbooks should always be verified before any calculation using the Edit Links dialog

box (this can be found using the shortcut Alt+E+K).

3.2.1 Workbook structure

In Figure 3.7, we describe the worksheets within the ED C+F model. Similarly to the Expenditures

C+F model, the worksheets are prefixed with a two-character string, e.g. A1, B0.

Worksheet name Description

C Contents sheet, summarising the worksheets within the workbook

V Summary of the version history of this workbook

S Describes the cell formatting used within the workbook

I_Lists Defines the common lists referenced within the workbook within the ED C+F model

I_DF Calculates inflation rates and discount factors

I_Inputs Contains external workbook links from the other models

C_ED Calculation engine for ED

C_LRAIC+ Performs calculations of LRAIC and common costs

O_Results Outputs the LRAIC and LRAIC+ results based on ED also carries out several checks to ensure overall consistency of the various calculations

Figure 3.7: Description of ED C+F model worksheets [Source: Analysys Mason]


Ref: 18424-121 .

3.2.2 Running the model

This model uses outputs from the Expenditures C+F model. When the Expenditures C+F model

macro has been re-run, the ED C+F model can be re-calculated by pressing Ctrl+Alt+F9.

3.2.3 Economic cost calculation

The calculation flow of the ED C+F model is illustrated in Figure 3.8.

Capex cost per unit output

(asset, time)

Opex cost per unit output

(asset, time)

LRAIC result (service, time)

Colour key Input Calculation Output

Total cost per unit output

(asset, time)

Real discount rate divider

(time)

Opex cost weighted output

(asset, time)

Network element output

(asset, time)

Opex cost index (asset, time)

Capex cost weighted output

(asset, time)

Capex cost index (asset,

time)

Demand (service, time)

Service routeing factors

(asset, service)

Recovery profile (asset, time)

Total opexfor annualisation


Total capexfor annualisation


Total economic costs

(asset, time)

Proportion of assets that are common (time)

Total common cost

(asset, time)

Total incremental cost

(asset, time)

EPMU (time)

LRAIC+ result (service, time)

Figure 3.8: Calculation of the LRAIC(+) in the ED C+F model [Source: Analysys Mason]

The total annual capex and capex cost index are linked into the I_Inputs worksheet from the

Expenditures C+F model. These are used to derive the capex cost weighted output. When

combined with the real discount rate, this gives the capex contribution per unit service output. The

distinction between installation and equipment capex is maintained to this point (i.e. we have

equipment capex contribution per unit service output and installation capex contribution per unit

service output derived separated). Separate discount rates are applied to the cable-TV network

assets and fibre network assets, since the two networks have separately defined WACCs in the

model.

The opex contribution per unit of service output is derived in a similar fashion, using the opex cost

weighted output and the real discount rate (distinguishing between that for fibre assets and cable-

TV assets). The total cost per unit of service output is then taken to be the sum of these

contributions. Within the C_ED worksheet, routing factors and the network element output are


Ref: 18424-121 .

applied to the total cost per unit of service output to derive the LRAIC. A recovery profile is used

to restrict cost recovery to the years in which the assets are active.

The proportions of assets that are common are then used to derive the total common costs in the

C_LRAIC+ worksheet. These are applied to the LRAIC unit costs using the equi-proportionate

mark up (EPMU) method. The resultant output is the unit LRAIC+ by service.

The output results can be found on the O_Results worksheet. There are also several cross-checks at

the top of this worksheet, which verify that:

all assets required in the lifetime are purchased

all assets have routing factors

the discounted economic costs are equal to the discounted expenditures.

3.3 Plotting results

There is a dropdown input that allows the unit costs of a chosen service to be plotted. This is

illustrated in Figure 3.9 for the ED C+F model.

Figure 3.9: Viewing the LRAIC results of the ED C+F model [Source: Analysys Mason]

By selecting different services in cells B516 and B517 from the drop-down selection (ringed in

blue above), the unit cost result for either one or two services can be plotted on the chart embedded

within the worksheet. The cross-checks described at the end of Sections 3.2.3 can also be viewed

in Figure 3.9 (ringed in red).

2010/11 upgrades to the NITA fixed LRAIC model | A 1

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Annex A: Summary of the code for the ED C+F calculation

As described in Annex F of the model documentation, the multi-year calculation must be updated

by running a macro in the Expenditures C+F model, whilst the one-year models are also all open

(i.e. Core, Access, Consolidation, Co-location and CATV+Fibre Access). This annex contains the

summary of these macros.

There are two macros in the workbook: UpdateModel and InsertDataForSelectedYear . The

main macro is UpdateModel , which is activated when the button on the I_Ctrl worksheet is

pressed. It will then take the following steps:

Set the time when the macro starts to run, so that the duration can be tracked

Clear named ranges where data will be stored during the running of the macro

Read in the first year and last year in which the model should be run

Then, for each of the years in this period in turn:

change the costing year in the Consolidation model to the current year

run the subroutine InsertDataForSelectedYear , which pastes inputs from the

Expenditures C+F model into the CATV+Fibre Access model regarding cable-TV traffic

usage, cable-TV subscribers by service and fibre subscribers (based on a forecast of

migration from the copper network to the fibre network)

paste calculated demand by service, opex by category and business overheads data from

the CATV+Fibre Access model into the Expenditures C+F model

paste the unit capex and asset counts from the CATV+Fibre Access model to the

Expenditures C+F model

Then, for each geotype in turn, re-calculate the C_Calc worksheet in order to determine the

total equipment purchased and capex incurred for that geotype. These results are then

cumulatively pasted onto the O_Output worksheet

Restore the cost model to its 2010 inputs.

Documents

Lraic-ed Dokumentation 14042011 PDF