What measure of cost is appropriate for unbundling?

The viability of the retail market demands that all costs attributable to the service be unbundled. This requires:

• A precise retail service definition
• A mapping of retail services to UDC functions
• An estimate of resource costs by function
• The unit cost of these resources (marginal or average)
• A calculation of attributable cost savings:
  - "marginal" if UDC is default provider
  - "average" if UDC is not default provider

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