Economists and statisticians at AACG Economic Consulting have substantial experience in regulatory matters.

AACG economists have testified and filed affidavits before state and federal communications commissions. AACG’s economists have deep experience in telecommunications, including:

  • Evaluation of the Competitiveness of Traditional and Emerging Telecommunications Markets
  • Pricing/Rate Design/Revenue Enhancement
  • Depreciation Analyses
  • Cost of Service Studies
  • Analysis of Pole Attachment/Infrastructure Sharing Arrangements
  • Objective Third-Party Expertise in Performance/Quality Measurement and Operation Support System Readiness
  • Technical Expertise (e.g., Economic and Statistical Analysis)
  • Expert Testimony
  • Public Policy Development
  • Regulatory Strategy Development
  • Price Cap/Incentive Regulation/Deregulation Analysis
  • Wholesale/Access Pricing


The speed at which the communications industry is evolving means rapid change in regulation and increasing complexity for businesses trying to optimize profits, satisfy regulatory requirements, and avoid or respond to litigation. For example, implementation of the Federal Communication Commission’s (FCC) plan for broadband expansion, competitive neutrality, and upgrading access for all Americans would affect how companies invest their resources and compete with one another when offering broadband services at prices consumers find attractive. In this environment, telecommunications companies can benefit from expert assistance in designing (and, if necessary, defending) their investment and pricing decisions. The economists at Advanced Analytical Consulting Group (AACG) have a deep understanding of the complexities of the industry and extensive experience in helping their clients face the business, regulatory, and legal challenges present in historically regulated, newly deregulated, and competitive environments.

How We Can Help

Advanced Analytic Technology: Example of Pricing and Profitability Optimization

Changing competition and an evolving regulatory landscape often demand companies to reassess the business impact associated with various pricing strategies and bundled offerings in order to optimize profit. AACG’s Pricing and Profitability Optimization techniques draw on decades of research and experience to provide a customized tool for clients. By inputting a continuous stream of complex data into multiple, competing analytical and statistical models, AACG is able to provide various revenue and profit scenarios for clients to choose from to meet their long-term and short-term business objectives.

Capacity for Large-Scale Data Analysis

Telecommunications engagements often require analysis of large amounts of data. For example, economic analysis of the competitiveness of increasingly complex product offerings (in business planning, regulatory, and/or litigation settings) may rely on corporate databases that include revenue and product cost information. The size and complexity of these datasets often calls for a team of economists and econometricians well-versed in applied economic analysis. AACG economists have supported some of the most data-intensive telecommunications cases, synthesizing concise, persuasive analysis, and arguments based on reliable, tested empirical research.

Expert Testimony

Our economists have testified as experts in legal and regulatory proceedings before the Federal Communications Commission, state regulators, and arbitration panels. These proceedings often have high stakes, typically involving multiple parties and multi-million dollar financial consequences. AACG economists have extensive experience in the methodologies used to evaluate the economic merits of competing positions. We have calculated damages (and critiqued opposing damage claims) for matters such as billing disputes, outstanding uncollectible balances, Lanham Act Claims, Alter Ego claims, billing and provisioning problems, heightened levels of customer churn, contract disputes, and consumer class actions. We are experts in the application of “real world” parameters to our economic analyses, including the utilization of relevant market data, comparative company data, market trends, knowledge of industry pricing (including tariff requirements) for traditional and emerging wireline and wireless services.

Selected Industry Experience

Issue Clients Approach
Pricing Strategies for Bundled Offerings Leading US Telecommunications Companies Determined own-price and cross-price elasticities using internal and external data for select products across several geographies.  Results improved take-up rates and profitability of new and existing offerings.
Reporting for Regulatory Agencies Major Landline Telecommunications Provider Multi-year project that provided thousands of monthly quality-of-service reports.  Developed statistical methods, programs and reporting systems, assisted in regulatory strategy, and testified before government agencies.
Anticompetitive Pricing Claim Incumbent Local Exchange Carrier Analyzed state of competition and provided expert testimony.  Clients’ pricing was ruled reasonable.
Alleged Damages Claims Analysis Long Distance Carrier Provided key document analysis, financial insight and trial support.  Client was awarded damages for tens of millions of dollars.
Wireless Termination Charges Caribbean Wireless Carrier Provided economic analysis and testimony in support of client’s proposed rates.  Arbitration decision approved rates close to client’s proposal, which resulted in annual payment savings of tens of millions of dollars less than what the opposing party had requested.