6. Price-Setting for Passive Infrastructure Sharing
6.1.
Basic Principles
An infrastructure provider’s charges for infrastructure sharing shall be:
(a) determined in a transparent manner, subject to any confidentiality
claims to which the Authority has to agree; in order to assure
transparency, details on how charges for infrastructure sharing have
been determined, may need to be disclosed to the Authority upon
request;
(b) non-discriminatory in order to ensure that an infrastructure provider
applies equivalent conditions in equivalent circumstances in
providing equivalent services, as the infrastructure provider
provides for itself, any non¬affiliated licensee or any subsidiary or
affiliate of the infrastructure provider;
(c) reciprocal for the same service in order that the infrastructure
provider and infrastructure seeker pay the same rate for providing
each other the same services, except for any applicable
contribution towards an access deficit that may be approved by the
Authority;
(d) preferably such that non-recurring costs shall be recovered through
non-recurring charges and recurring costs shall be recovered through
recurring charges;
(e) such that charges that do not vary with usage shall be recovered
through flat charges and costs that vary with usage shall be
recovered through usage-sensitive charges; and
(f) initially based on a fully-allocated cost methodology; RURA reserves
the right to call for a consultation process to determine whether a
forward-looking long-run incremental cost methodology is applicable
to Passive Infrastructure sharing.
6.2.
Price setting methodologies
6.2.1 When determining the maximum prices for infrastructure sharing,
there are three basic approaches:
- leaving price-setting to the market, i.e. based on negotiations
between licensees
- price-setting based on benchmarking
- cost-based price setting
6.2.2 Negotiation-based price setting is most adequate, if there is an
efficient market of players with similar market power. However, in case of
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