Telecoms tax: centralised networks

The holding company centrally manages the network operations.  The functions of the wholly owned subsidiaries or LBUs is to take care of local marketing in their regional geographies.  A network company is created is capture the cost of running the global network in a single entity.

LBU’s customers are connected to the LBU switch through local access lines.  In turn the LBU’s switch is connected to the global network or backbone through indefeasible rights to use (IRUs) or international circuits.