What's changed in the second edition?

Since the publication of the first edition of Interconnect Costing, the dynamics of the telecoms industry have changed. In particular, IP-based services, including broadband Internet access, IP transit and metro Ethernets have grown considerably in importance. Many of the world's most powerful carriers are now in the process of designing, sourcing and installing native IP infrastructure to replace aging TDM equipment. The new world of IP brings with it not only new network elements and cost structures, but new products aimed at consumers, enterprises and other licensed operators.

The second edition of Interconnect Costing has been updated and revised to account for the 'new world' of IP. Although the fundamental principles of LRIC and TELRIC remain the same, the second edition shows how they can be applied to IP-based as well as traditional networks.

Interconnect Costing is a handbook designed to aid anyone who is responsible for arriving at the cost-based pricing for interconnect products and services on behalf of telecoms operators. Written by Peter Cartwright, a leading consultant in the field, the 250+ page handbook takes you step by step from general principles through to detailed implementation of cost based models.

Over 130 organisations (including over 30 regulators) in 82 countries have bought the first edition of Interconnect Costing.

The handbook's style is easy to read, and takes you clearly through all the major issues involved in creating cost-based models. It views interconnection even-handedly, examining and explaining key issues for both incumbents and new entrants. Among the many topics covered are:

• Introduction to incremental costing and fully allocated costing
• Differentiating between TELRIC and TSLRIC (Total Element, and Total Service Long Running Incremental Costs)
• Defining an "Efficient Operator"
• Elements of a cost model
• Fixed common versus variable common costs
• Modelling telecommunications businesses, processes and products
• How and where to gather data for cost models
• Using the cost model as a decision support tool

What's the business case for buying Interconnect Costing?

Interconnect Costing is designed to fill a niche that conferences and consultants cannot fill. Neither conferences nor consultants are optimum vehicles for providing a step-by-step guide to the world of cost allocation - a step-by-step guide that can be studied over a period of time and referred back to when necessary. The handbook represents the culmination of the author's many years in the telecoms industry, and is laid out in a clear and easily understood way.

To make the business case, simply take the subscription fee (£2,300) and divide by the fully allocated cost of your own time, your staff's time or the time of a specialist interconnection costing consultant. The resulting number is how many hours of time the handbook needs to save you over the next budget year to be worth buying. We think you'll find the case quite easy to make!

About the author

Peter Cartwright wrote the first edition of Interconnect Costing in 2000. He is a leading expert in cost allocation and modelling within the telecommunications industry, with over 14 years' experience in the field.

Peter joined the UK telecoms consulting practice of Deloitte and Touche in 1990 after an earlier career as a manager in electronic engineering. Among his early clients was the Hungarian operator Matáv, for whom he developed a detailed cost allocation model in the early 1990s. More recently he spent 17 months as the LRIC Adviser to Swisscom, working on the implementation of LRIC-based interconnection prices for the year 2000, followed by eight months in a similar capacity at Czech Telecom.

He has worked on assignments across Europe, the Middle East, Africa and Asia, from developed markets such as Sweden and Denmark to developing markets such as the Philippines and Palestine.

Since working on the first edition of Interconnect Costing, Peter has conducted Interconnect consulting and training assignments for fixed line operators, cellular operators and regulators in Europe and the Middle East.