Toolkit

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5 Regulating Prices

If effective competition is not possible in wholesale or retail markets, it may be necessary to regulate the prices dominant firms can charge. Without price regulation, dominant firms can increase prices above competitive levels, harming their customers.

This section of the toolkit covers key issues in regulating prices:

In addition, this section provides an overview of economic concepts that are particularly relevant to price regulation, and key pricing principles.

RELATED INFORMATION
Setting Interconnection Prices

Contents

5.1 Why Regulate Prices? 5.2 Economic and Accounting Measures of Cost 5.3 Useful Economic Concepts 5.4 Pricing Principles for the ICT Sector 5.5 Setting the Level and Structure of Prices 5.6 Tariff Rebalancing 5.7 International Benchmarking of Prices 5.8 Rate of Return Regulation 5.9 Incentive Regulation 5.10 Rate of Return Regulation versus Price Caps 5.11 Implementing Price Caps 5.12 Towards a Double Price Cap 5.13 Price Regulation and Multiple Play Offerings

Reference Documents


Practice Notes

Last updated 06 Sep 2008

The ICT Regulation Toolkit is a joint production of infoDev and the International Telecommunication Union.

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