Regulatory Approach to Cost-Oriented Retail Pricing, Bundling of Services, and Promotional Pricing for Telecommunications Services and Products

REQUEST FOR EXPRESSIONS OF INTEREST (CONSULTING SERVICES – FIRMS SELECTION) Country : Federal Democratic Republic of Ethiopia Name of Project : Eastern Africa Regional Digital Integration Project (EARDIP) Project ID: P180931 Assignment Title: Selecting a consulting firm for Regulatory Approach to Cost-Oriented Retail Pricing, Bundling of Services, and Promotional Pricing for Telecommunications Services and Products. Reference No .: ET-MINT-556595-CS-QCBS The Federal Democratic Republic of Ethiopia has received financing from the World Bank toward the cost of the Eastern Africa Regional Digital Integration Project (EARDIP) and intends to apply part of the proceeds for consulting services. The consulting services (“the Services”) include Selecting a consulting firm for Regulatory Approach to Cost-Oriented Retail Pricing, Bundling of Services, and Promotional Pricing for Telecommunications Services and Products. Introduction The importance of Establishing a clear regulatory foundation is critical to guide the market towards fair competition, innovation, and long-term viability. A fundamental pillar of this foundation is a cost-based retail pricing model. Such a model provides the regulator with a transparent, objective methodology for determining the true cost of providing telecom services. The aim is to assist the Ethiopian Communications Authority (ECA) to evaluate retail tariffs effectively, protect consumers from excessive charges while preventing destructive price wars. 2. Objectives The primary objectives of this assignment are to: 2.1 Determine fair and reasonable cost-oriented retail prices for a set of telecommunications services through the development and application of a robust cost model. The model may utilize an Activity-Based Costing (ABC) methodology, or an equivalent, to ensure analytical rigor and consistency with international standards (e.g., ITU-T D.140, BEREC). The model should also consider the determination of SMP is specific market segments, 2.2 Develop a regulatory guideline for bundled services that promotes fair competition and protects consumer interests. This includes developing quantitative tools and methodologies to assess margin squeeze, ensuring bundle prices are sustainable relative to standalone cost-based services. 2.3 Develop a directive for marketing and promotional activities that promotes ethical behavior, prohibits deceptive practices, such as purposeful price confusion, foster a healthy and competitive market and pro