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Software to Manage Costs and Performance

Telecom

Cost standards

The Telecom sector sets additional requirements to Cost Management. There is an evolving need for Cost Management that can be grouped around 3 themes:

  • Pricing
  • Efficiency
  • Regulation

In the Telecom sector several Cost Standards need to be calculated. Among them are:

  • Fully Allocated Cost (FAC),
  • Long Run (Average) Incremental Cost (LR(A)IC),
  • Pure-LR(A)IRC plus Markup and
  • Standalone cost.

Complex models and LRIC

Another reason the Telecom Sector sets different requirements to costing is because Telecom Networks are complex, requiring a complex cost model. CostPerform allows for these areas of additional requirements:

  • CostPerform offers great flexibility in modeling. A multi layer model is available, in a telecom cost model ususally 10-20 layers are used, much more than the 3 layers our competitors have.
  • LRIC (and SAC and MC) are integrated modules on top of the FAC model
  • CostPerform offers loads of reports and graphical options of analysis like dashboards, graphical navigation, roll-up reports, OLAP cubes, whiteboard etc.

Success stories

KPN, the Dutch incumbent telephone operator has around 8 million customers. KPN uses CostPerform for their regulatory reporting to the telecom authority. In a costing department (>10 FTE) they prepare a model that is audited by an external auditor.

Telecom Thailand needed CostPerform to advise the Telecom Regulating Authority on the correct cost per unit of land-line products. Telecom Thailand used the Long Run Incremental Cost approach for that purpose.

Clients

  • KPN, The Netherlands
  • TOT, Thailand
  • Telkom Group Ltd., South Africa
  • Mena Telecom, Bahrain
  • BTC, Bahamas
  • Batelco, Bahrain
  • Sure Guernsey
  • Jersey Telecom
  • Ooredoo, Qatar
  • Qualitynet, Kuwait
  • Lattelecom, Latvia
  • Slovak Telecom, Slovakia
  • Telecom Srbija
  • GO, Malta,
  • SPTC, Swaziland
  • Telia, Sweden (M&S only)