English to Polish Law/Patents Telecom(munications) EU law

Within the LRIC model, the relevant increment should be defined as the wholesale
voice call termination service provided to third parties. This implies that in evaluating
the incremental costs NRAs should establish the difference between the total long-run
cost of an operator providing its full range of services and the total long-run costs of
this operator in the absence of the wholesale call termination service being provided to
third parties. A distinction needs to be made between traffic-related costs and nontraffic-
related costs, whereby the latter costs should be disregarded for the purpose of
calculating wholesale termination rates. The recommended approach to identifying the
relevant incremental cost would be to attribute traffic-related costs firstly to services
other than wholesale voice call termination, with finally only the residual traffic related
costs being allocated to the wholesale voice call termination service. This
implies that only those costs which would be avoided if a wholesale voice call
termination service were no longer provided to third parties should be allocated to the
regulated voice call termination services. Principles for calculating the wholesale voice
call termination service increment in fixed and mobile termination networks
respectively are further elaborated in the Annex to this Recommendation.

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The different cost categories referred to herein should be defined as follows:
– common costs are those costs which are not directly attributable to specific
services, such as a manager’s salary;
– incremental costs are those costs that can be avoided if a specific increment is no
longer provided (also known as avoidable costs).