A new idea has come up in the ongoing negotiations on license renewal for the incumbent local exchange carriers (ILECs). Telcomp, the association of competitive local exchange carriers (CLECs), has proposed the creation of a ?competition target plan? and the idea has been accepted by Anatel VP Antônio Valente. The current licenses expire in 2005.
Telcomp also wants to see tighter rules on concentration of ownership, taking into account the market power of each telco and the level of competition in each locality. Anatel hasn?t decided whether to accept that part of the proposal.
Anatel should oblige the monopolistic telcos to base interconnect and unbundling rates on incremental costs, Telcomp argues. The greater the concentration, the more weight should be given to incremental costs. Amortization and capital expenditure would influence interconnect rates more as a given local market became more competitive.