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Interconnect Costing - 3rd Edition: The Transition to NGNs


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Interconnect Costing - 3rd Edition: The Transition to NGNs

 

Interconnect Costing is a handbook designed to aid anyone who is responsible for arriving at cost based pricing for interconnect products and services in telecommunications. Written by Peter Cartwright, a leading consultant in the field, the 300 page handbook takes you step by step from general principles through to detailed implementation of cost based models.

 

Over 200 organisations (including over 30 regulators) in 116 countries have bought the first two editions 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 

The Transition to NGNs

 

Next Generation Networks (NGNs), characterised by IP based communications and soft switching, are being deployed around the world, both by incumbent telcos and newer entrants. These networks present new challenges for cost based interconnection, for operators and regulators alike.

 

Traditionally, cost based interconnection regulation has focused on voice communications, and the industry has worked within a per-minute based costing regime. However, when traffic becomes IP based, and broadband communications are widely deployed, voice communications becomes a very small part of all packet based traffic. Furthermore, it becomes more difficult to account for voice traffic on a per-minute basis.

 

At the same time, it is becoming possible for networks to prioritise (apply different quality of service to) different types of traffic across a single IP based interconnection. So, for example, video packets and voice packets could be offered a higher quality of service than other packets.

 

The third edition of Interconnect Costing has been thoroughly updated and revised to address the issues of transitioning to NGNs. The author, Peter Cartwright, has worked on several regulatory and modelling assignments related to NGNs since the publication of the second edition, and brings a unique and authoritative perspective to the issues of NGNs and IP interconnection.

 

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. The second edition was published in 2004.

 

He is a leading consultant in cost allocation and modelling in the telecommunications sector, with over 17 years' experience in the field.

 

Peter joined the UK telecoms 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 Matav, for whom he developed a detailed cost allocation model in the early 1990s. Later he spent 17 months as the LRIC advisor to Swisscom, working on the implementation of LRIC based interconnection prices, and eight months in a similar capacity for Czech Telecom.

 

His experience spans developed markets such as Sweden and Denmark to developing markets such as the Philippines and Palestine.

 

About BWCS

 

BWCS is a specialist consultancy focusing on strategy, marketing and regulation in the telecommunications and IT industries. Our regulatory experience includes LRIC modelling, bottom up modelling, inter-connection and unbundling regulatory framework development, and price benchmarking studies.

 

Our regulatory practice has worked with operators and regulators in Denmark, Hong Kong, Ireland, Italy, New Zealand, Qatar, Saudi Arabia and the UK.




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Interconnect Costing - 3rd Edition: The Transition to NGNs