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