Telecoms regulation and interconnect

Coleago counts several regulators, including the UK’s Ofcom, among its clients and Coleago’s CEO Stefan Zehle served as the Director for Strategy & regulatory Affairs for a GSM operator.  Our services in the regulatory field include:
  • Regulatory cost modelling and retail price controls
  • Interconnect agreements and reference interconnect offers (RIO)
  • Regulatory complaints
  • Regulatory and interconnect strategy
  • Telecommunications policy advice
  • Managing licence bids on behalf of regulators
Having worked on both sides of the regulatory divide, Coleago consultants understand the thought processes of regulated operators and can thus advise on how to negotiate compromises with which both sides are pleased to accept - a win-win outcome.

Coleago’s approach is result orientated. For example, in Algeria Coleago worked for a new mobile entrant and filed the first regulatory complaint with regards to leased line pricing and cost sharing.  Coleago managed to reduce interconnect leased line costs immediately by 80% and showed that is was possible to win regulatory complaints on the basis of merit.

For regulators, Coleago concentrates on providing practical and realistic advice tailored to the regulatory environment, rather than producing theoretical solutions. Our consultants can help in all stages of the regulatory process, from policy objective setting, to market and economic analysis and finally to decision making and implementation.

For operators, Coleago can set out a regulatory strategy, and provide the tools and information required to negotiate with the regulator and interconnect partners, in order to provide the best outcome from a commercial perspective.  In order to produce a negotiating strategy we conduct a full analysis of the potential regulatory outcomes, identifying those elements which are key to the financial success of the business, and those which can be used to "trade" with the regulator to ensure a solution which is acceptable to both sides. The analysis can be backed up by financial modelling and scenario analysis tools.

Main contact:

Stefan Zehle
CEO
UK +44 7974 356 258
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Interconnect Cost Reduction Case Study
During an interim management assignment Coleago provided the Director of Strategy and Regulatory Affairs for a new mobile operator in North Africa. It was accepted wisdom that mobile operators pay 100% of the cost interconnect leased line to the fixed network and incumbent mobile operators thought it would not be possible to change the status quo. Coleago’s approach was to file a formal regulatory complaint, using good argumentation in conjunction with benchmark data. As a result the regulator ruled that interconnect leased line costs had to be shared, leading to an immediate 50% in cost for the mobile operator. In addition Coleago obtained a reduction in interconnect leased line prices. Coleago’s willingness to challenge the status quo yielded excellent results and it was not even necessary to involve lawyers.


White paper

Telecoms Regulation and Interconnect Experience Statement