Consulting assistance in connection with the modification and development of The Danish Business Authority’s (DBA) existing fixed line calculation model based on the LRAIC methodology (Long Run Average Incremental Cost) which calculates a number of wholesale prices on the regulated parts of the copper, fibre and cable-tv network including co-location services.

The consulting assistance includes assistance for the assessment of the need for a general revision of the LRAIC model; assistance for introducing relevant changes in the LRAIC model (including assistance with specific calculations and corrections in the model); assistance for the modification of input and parameter values for the LRAIC model.

The first task for the selected tenderer will be to propose a detailed timetable for the model development work.

In collaboration with the DBA the selected tenderer is to draw up a model reference paper on how the model should be modified and developed, i.e. define the model design and describe the main parameters in the model. The selected tenderer has to review and modify the model, following the principles of the model reference paper and assist the DBA in achieving a broad acceptance among market participants in regard to the model developing process, the principles used in the model and the resulting model.

The selected tenderer is to prepare a complete documentation of the data, methods, principles, etc. used in the model. This model documentation must be sufficiently comprehensive for parties in the development process to achieve a full understanding of the model.

The selected tenderer is to describe how the model can be used by the DBA in its determination of maximum prices. It is the intention that the review and modification of the LRAIC model must be completed, so that the final prices after a national consultation and consultation of the European Commission can be determined by the DBA no later than December 2014.