In 2003, the Danish National IT and Telecom Agency changed the method for calculating the price of access to the raw copper. I.e. the part of the telecommunications’ network which connects the end user to the local switch. On behalf of the Agency, Copenhagen Economics has developed a method to calculate whether the change gives TDC – who owns the raw copper in Denmark – an over-recovery for the costs of the raw copper. The method is described in the report "Over-recovery for the costs of raw copper" KPMG has used the method and real data to calculate the actual size of the over-recovery. Based on these calculations, the Agency concludes that TDC is likely to gain an over-recovery, but that it has not been realised yet. By the end of 2030, TDC is likely to have gained an over-recovery of about 200 million DKK from selling access to the raw copper. The actual size of the over-recovery will, however, depend on the market developments until 2030. The Agency’s conclusions can be seen here Further information please contact Partner Martin Hvidt Thelle
New method to calculate over-recovery on the cost of raw copper
April 13, 2015