LRIC is the method used for calculating regulated prices and is stipulated in the Telecommunications Services Ordinance (FDV). LRIC stands for "long run incremental costs".

Pursuant to Art. 11 LTC, Swisscom has been obliged, since 1 January 2000, to offer all regulated services at cost-based and transparent prices in accordance with the LRIC method in a non-discriminatory manner.

The LRIC cost model is based on the long-term additional costs of providing interconnection services and a reasonable surcharge for common costs, including reasonable interest payments on the capital employed, insofar as these costs are actually necessary for the provision of the service. The principles for price setting, which apply for all regulated services for which Swisscom holds a dominant market position, are specified in Art. 45 FDV. The relevant costs are recalculated annually.