PENTARIFAN KULIAH4:COSTCONCEPT

G.N.SandhyWidyasthana widyasthana@gmail.com 02270702020 081225702020

Agenda
CostConcept TelecommunicationCostingConcept CaseStudy

CostConcept

Costdan Harga
Biaya adalah seluruh sumber daya yang dikonsumsi untuk menghasilkan produk Costperlu dipertimbangkan dalam menentukan harga,tetapi jangan sampai menjadi satusatunya faktor yang dipertimbangkan dalam menentukan harga Ada banyak definisi biaya.Mana yangperlu diperhatikan dalam menentukan harga jastel?
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CostTerminology(1)
Terminologi Biaya
AllocatedCost atau biaya yangdialokasikan,merupakan biaya gabungan (jointcost)atau biaya umum (commoncost)yangtelah dibagibagi kepada obyekobyek biaya (costobjects)berdasarkan formulatertentu atau berdasarkan pertimbanganpertimbangan tertentu. AverageCost atau biaya ratarata,merupakan jumlah biaya (biasanya biaya total)dibagi dengan kuantitas outputnya. AvoidableCost atau biaya yangdapat dihindari,merupakan biaya yangtidak akan muncul bila suatu alternatif tidak dilakukan. CommonCost atau biaya umum,merupakan biaya yangtimbul manakala proses produksi menghasilkan lebih dari satu produk atau jasa dimana biaya ini digunakan untuk kepentingan semua produk/jasa.

CostTerminology(2) Terminologi Biaya

DirectCost atau biaya langsung,merupakan biaya yang secaralangsung bisa ditelusuri terhadap obyek biayanya. Biaya langsung tidak membutuhkan alokasi biaya. FixedCost atau biaya tetap,merupakan biaya yangtidak berubah seiring dengan perubahan volume penjualan/produksi. Sunkcost.Atau biaya terbenam,merupakan biaya yangtelah dikeluarkan akan tetapi sudah tidak bisa laagi digunakan untuk menghasilkan pendapatan. IncrementalCost atau biaya tambahan,merupakan tambahan biaya yangtimbul sebagai akibat dari adanya peningkatan produksi atau penjualan atau aktifitas strategis lainnya.
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CostTerminology(3)
Terminologi Biaya
JointCost atau biaya gabungan,merupakan akumulasi biaya dari satu atau serangkaian proses produksi/jasa sebelum diproses lebih lanjut menjadi produk/jasa yangberbeda. LongRun suatu periode dalam hal mana seluruh factorfaktor produksi,termasuk modalbersifat variable.Dalam prakteknya jangka waktu 1015tahun digunakan oleh regulatoruntuk analisis LRIC. LongRunIncrementalCost(LRIC) atau tambahan biaya dalam jangka panjang,merupakan biaya tambahan yangtimbul dalam jangka panjang (1015tahun)akibat penambahan volumeproduksi. LRICumumnya dihitung dengan menggunakan teknologisaat ini dan standar kinerja terbaik saat ini.

CostTerminology(4)
Terminologi Biaya
MarginalCost atau biaya marginal,merupakan perubahan dalam total biaya akibat adanya perubahan kecil dari volumeproduksi. MarkUp merupakan suatu angka dalam persentase atau jumlah satuan moneter tertentu yangdigunakan untuk memasukkan biaya gabungan (joint costs)dan biaya umum (commoncosts).Biasanya dilakukan sebagai kompensasi karena biaya gabungan (jointcosts)dan biaya umum (common costs)tidak dimasukan dalam perhitungan sebelumnya. StandaloneCost atau biaya yangberdiri sendiri,merupakan biaya total untuk untuk menghasilkan produk/jasa tertentu dalam proses produksi yang dilakukan secaraterpisah. TotalCost atau biaya total,jumlah keseluruhan dari biayabiaya yang timbul dalam memproduksi sejumlah volume.Jumlah biaya tetap (fixedcost) dengan biaya variable(variablecost)juga sama dengan biaya total. VariableCost atau biaya variable,merupakan biaya yangberubah seiring dengan peningkatan volumeproduksi.

COSTINGPERSPECTIVE
AccountingCost EngineeringCost EconomicCost

COSTINGPERSPECTIVE
AccountingCost
Perspektif ini fokus terhadap pencatatan atas biayabiaya aktual operatoryangtelah timbul. Fokus terhadap biayabiaya historis sehingga bersifat backwardlooking. Sumber datatermasuk laporan akuntansi keuangan perusahaan dan pengukuranpengukuran dalam akuntansi manajemen yanglebih rinci

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COSTINGPERSPECTIVE
EngineeringCost
Perspektif ini lebih menekankan pada keputusan keputusan manajemen yangbersifat forwardlooking. Analisis Biaya teknik dihitung dengan berbagai cara untuk mendapatkan sasaran tertentu,seperti provisioningdari jumlah kapasitas tertentu. Tujuan dari biaya teknik adalahsecaraumum untuk menentukan metoda yangoptimaldalam membangun suatu fasilitas telekomunikasi

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COSTINGPERSPECTIVE
EconomicCost
Tujuan dari perspektif ini adalahuntuk menentukan struktur hargaharga yangefisien yaitu hargaharga yang dapat memaksimasi surplusdari konsumen dan produsen. Biaya ekonomi menggunakan pendekatan forward lookingyangmenekankan konsep variabilitas harga (cost variability),biayabiaya tambahan (incrementalcosts) dan biayabiaya peluang (opportunitycosts).

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COSTINGMETHODOLOGY
Which interconnect pricing standard? Return on capital employed? Equal mark-up? Efficient component pricing rule?

Fully allocated costs?

Incremental costs?

Mark-up Ramsey pricing?

Historic?

Forward looking?

Historic?

Constrained mark-up?

Actual best practice?

Theoretical best practice?

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COSTINGMETHODOLOGY
CostAllocationApproach
TopDown BottomUp ReadAcross

CostAllocationBase
HistoricalCostAccounting(HCA) CurrentCostAccounting(CCA) ForwardLookingCostAccounting(FLC)

CostAllocationProcedure
FullyDistributed/AllocatedCosts(FDC/FAC) EmbeddedDirectCosts(EDC) StandAloneCosts(SAC) MarginalCosts(MC) IncrementalCosts(IC)

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CommonCostdan IncrementalCost
Revenue A TIC A Revenue B TIC B Revenue C TIC C Revenue D TIC D

Group A&B Common Cost

Group C&D Common Cost

Corporate Common Cost

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LongRunIncrementalCost (LRIC)
Untuk keperluan regulasi,maka yangdihitung adalah longrunincrementalcost Shortrun:suatu jangka waktu di mana biaya tertentu akan tetap,dalam artian tidak bisa dihindari meski pada saat produksi dihentikan Longrun:suatu jangka waktu di mana semua biaya dapat diperlakukan sebagai biaya variabel Penggunaan longrundalam LRICberarti biaya yang dianalisis mencakup biaya tetap dan biaya variabel dari produk
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Beberapa pendekatan
Untuk keperluan praktis,ada beberapa pendekatan yangdikembangkan oleh badanbadan regulasi telekomunikasi di berbagai negara :
EuropeanCommission:LongRunAverageIncrementalCost (LRAIC) US:TotalElementLongRunIncrementalCost(TELRIC) Australia:TotalServiceLongRunIncrementalCost(TSLRIC)

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TSLRIC
Ada dua produk,Adan B Untuk memproduksi kedua produk tersebut dibutuhkan 3 elemen jaringan,yaitu X,Ydan Z,dengan biaya masing masing elemen Cx,Cydan Cz. Xdibutuhkan oleh kedua jasa (commoncost).Tidak ada pengurangan biaya jika salah satu produk dihentikan Yadalah switchyangdigunakan bersama oleh Adan B, tetapi kapasitas Ytergantung pada trafik yanglewat.Jika salah satu produk dihentikan,biaya Yberkurang 1/3 Zhanya digunakan oleh B

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TSLRIC(2)
LRICdari suatu jasa adalah perbedaan dari total costyangterjadi ketika perusahaan memproduksi semua produk (termasuk jasa yangdianalisis) dengan totalcostyangterjadi ketika perusahaan menset outputdari produk yangdianalisis sebesar nol,dengan catatan outputdari semua produk lain tetap

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TSLRICA=1/3Cy
Jika memproduksi Adan B AB
Cx Cy Cz Cx 2/3 Cy
1/3 Cy

Jika memproduksi Bsaja (produk Atidak ada) B

Cz
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TSLRICB=1/3Cy+Cz
Jika memproduksi Adan B AB
Cx Cy Cz

Jika memproduksi Asaja (produk Btidak ada) A

Cx 2/3 Cy
1/3 Cy

Cz
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TSLRIC(3)
Berdasar definisi pada TSLRIC(2),untuk contoh yangdibahas,maka :
LRICA=[Cx +Cy+Cz] [Cx +2/3Cy+Cz ]=1/3Cy LRICB =[Cx +Cy+Cz] [Cx +2/3Cy]=1/3Cy+Cz Commoncost=[Cx +Cy+Cz] [LRICA +LRICB]=Cx +1/3Cy

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CommonCost
Jika harga semua produk sama dengan LRIC,maka perusahaan rugi karena commoncostbelum tercover. Biaya bersama perlu dialokasikan ke produkproduk yangada,maka ada markup

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Alokasi CommonCost
Umumnya alokasi commoncostdilakukan berdasarkan minutesofuse Misalnya proporsi commoncostyangdialokasikan ke jasa Badalah sdan Aadalah 1 S,maka
TSLRIC+B =LRICB +s.CC,di mana CCadalah commoncost TSLRIC+B =sCx +(1+s)1/3Cy+Cz TSLRIC+A =(1s)Cx +(2s)1/3Cy

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TELRIC
Pendekatan TELRICmemodifikasi pendekatan TSLRIC untuk diaplikasikan ke elemen jaringan secara individual Jadi jaringan untuk menyediakan layanan dibagi atas elemenelemen jaringannya,dan kemudian dihitung biaya untuk setiap elemen

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TELRIC(2)
Menggunakan contoh yangsama dengan contoh kasus di TSLRIC,elemen Xdigunakan bersama oleh produk Adan B,maka biaya elemen Xatau Cx dialokasikan ke Adan B Jika proporsi yangdialokasikan ke Badalah sdan yangdialokasikan ke Aadalah (1s)
TELRICB =sCx +sCy+Cz TELRICA =(1s)Cx+(1s)Cy

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ForwardLookingCost
Untuk keperluan regulasi,estimasi biaya biasanya dibuat berdasarkan biaya dari thebesttechnology currentlyavailable Jika ada dua teknologi.Teknologikedua adalah teknologiterbaik yangtersedia saat ini dengan biaya lebih rendah dibanding teknologipertama. Maka LRICakan dihitung berdasar teknologikedua

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TelecommunicationCostingConcept

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TLCMarketEvolutionandCostingRequests
Monopoly
Fewattentiononservices&businesscostsinformation Technologydrivenchoices Focusandcontrolonresourceallocationefficiency

RegulatedMarket
CostcontrolinordertocopewithAuthorityrequestsinterm ofpricingforliberalizedservices. Authoritydefines:
whattoliberalize(services,networkelements) whichpricetofix howtodefinetheprice(costmethodologies,proxies)

OpenMarket(FullCompetition)
Costsarekeyinorderto:
Performacorrectpositioningonthemarket(pricefloor) SupporttheDecisionmaking

Increasing Interest for strategic positioning and pricing

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 FROM Budgetcheck ResourceallocationControl TO StrategicAnalysis ProfitabilityAnalysis InvestmentManagement

FromCostKnowledge toCostUnderstanding
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Increasing Interest for strategic positioning and pricing

Newrolesforcostaccounting

CurrentCostKnowledgeneedsforTLCOperators
Area: Control Profitability analysis related to Service, Business Unit and Company as a whole Costs and Revenues forecast in case of different demand and offer scenarios Cost information requirements from National Regulatory Authority
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TLC TLC OPER OPER

Area: Strategic Planning

Area: Regulatory Affairs

CostKnowledgeneedsforTLCOperators
Profitability analysis related to Service, Business Unit and Company as a whole Costs and Revenues forecast in case of different demand and offer scenarios Cost information requirements from National Regulatory Authority Target: define actions in order to modify cost structure Target: define correct strategy and market positioning Target: present evaluation for cost and services
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Newcostneedsvs.newmethodologies
-to perform budget control and forecast projection... -To understand cost analysis in a single moment (static picture)... -To catch cost dynamic and to relate with demand evolution... Responsibilities (Cost) centers

... Fully Distributed Cost

... Long Run Incremental Cost

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FullyDistributedCostMethodology
TotalamountofcostsisallocateduponOperator services Itpicturestheaccountingsituationinaspecific moment Itallowstofindanswerstothefollowingquestions:
Whichistheactualcostofaspecificservice? Whicharethecostsduetospecificelementsor functionalities?

ItdoesNOTallow:
Tohighlightcost/volumerelationships Toperformefficiencyanalysis
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FullyDistributedCostsapproach costsflow
Investments & Costs Service models
%1 %2 %3

SERVICES & BU COSTS Network & ABC models Account info (SAP)

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FullyDistributedCostsapproach profitabilityflow
Investments, Costs & Revenues Service models
%1 %2 %3

Costs

SERVICES & BU PROFITABILITY Network & ABC models Account info (SAP) Revenues
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LongRunIncrementalCostMethodology
Costsduetoincrementalvolumesofdemandare allocatedonservices Itallowstohighlightafunctionallinkamong:
Demand Resources(PlantsandOperations) Values(InvestmentsandCosts)

Itestimatesnewentrantoperatorscosts Anefficientcoststructurecanbedefined TwotypesofLRICmethodologiesareapplied:

Top Down Bottom Up
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LongRunIncrementalCostsapproach BOTTOMUP
Network models and dimensioning
Equipments and other resources

Investments & Costs Evaluation

%1

%2

%3

Forecasted Service Demand New technologies and services

Service models

SERVICE COST TREND 38

LongRunIncrementalCostsapproach TOPDOWN
CURRENT COST Network models

Investments & Costs Evaluation

%1 %2 %3

OPERATOR ASSETS

Service models

SERVICE COST TREND

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MethodologiesRelationships
REGULATION INTERCONN. USO ADC

Operative Actions

REAL Costs

MARKET Costs

Strategic

Regulatory Accounts

TARGET Costs

Positioning

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FDC/LRICcomparison
DECISIONS: ROOM OF MANOUVRE

PRESENT COSTS

TARGET COSTS

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FOCUS:Strategic Planningand InvestmentManagement

IncrementalCosts Providecostinformationtosupport strategicplanninginordertodecidenetworkandoffer evolution Nowadayschallenge:maximizeoperatorprofitability,through thedefinitionofBESTMIX among:
SERVICEDEMAND PRODUCTIVECAPACITY SERVICESPRICE

NOT BESTTECHNOLOGY(tooexpensive) NOT LOWERPRICES(lowrevenues) YES MAXPROFITABILITY

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Strategic PlanningLever
INCOMES DEMAND LRIC COST PRICE PROFITABILITY

STRATEGIC STRATEGIC PLANNER PLANNER

EVOLUTION PLAN
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Strategic PlanningLever COST/ QUANTITYRELATIONSHIP

cost
Scenario A

Scenario B

StrategicPlanner canchoosethebest technologybecause heknowstheCOST QUANTITY relationshipfor everyscenario

D0

D1

demand

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Strategic PlanningLever PRICE

price

StrategicPlanner canactonspecific servicespriceto maximizetheuseof thecurrent technologicalmix. Service 1 Thedemand Service 2 resilience(elasticity) Service 3 demand foreachservice shouldbeknown.
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CaseStudy:TelecomItalia

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COSTINGMETHODOLOGIESINTELECOMITALIA(1/2)
TelecomItalia,by1995,hasbeenusingcostaccountingsystemsand methodologiesinordertocoverallthreeareasdefinedabove: ControlArea anextendedCostAccountingsystem,firstlyoperated inNetworkDivisionareaandextendedtowholeTelecomItalia,has beenimplementedusingFDCmethodology.Currentlyitismanagedin AdministrationandControlAreaandproduces,onamonthlybasis, informationoncostsandrevenuesoneachdifferentTelecomItalia service.Itallowsspecificanalysis.Itisuptodatetoallnetworkand offerevolutions,andincludesNGNnetworkandoffers. StrategicPlanningArea basedonCostAccountingresults,some specificincrementalanalysisareperformedinordertoidentify possiblecostandrevenuesevolutionsandBESTMIXidentification

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COSTINGMETHODOLOGIESINTELECOMITALIA(2/2)
TelecomItalia,by1995,hasbeenusingcostaccounting systemsandmethodologiesinordertocoverallthreeareas definedabove: RegulatoryArea thisareaimplementedaspecificcosts accountingsystemtailoredonNationalRegulatory indications,andinlinewithEuropeanCommunity definitionofrelevantmarkets.
Relevantmarkets marketsegmentsinwhichitispossibleto differentiateTLCcompetition(definedbyEUCommissionin ordertoidentifydominantposition) EuropeanNRAare calledtomonitorthesinglemarketineachcountry(seenext slide)
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RELEVANTMARKETS
WholesaleMarkets:
Markets8,9,10:Origination,termination,transitforcallsinfixedPSTN Market11:WholesaleUnbundledaccessforbroadbandandvoice services Market12: WholesaleBroadbandaccess Market13,14:Terminationforleasedlines

RetailMarkets
Market1,2:Retailaccesstofixedforresidentialandnoresidential market Market3,5:Local,NationalandFixedMobileservices,availabletoretail customersonPTSNfixednetworkforresidentialandnoresidential Market4,6:Internationalservices,availabletoretailcustomersonPTSN fixednetworkforresidentialandnoresidential Market7: Retailleasedlines
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COSTACCOUNTINGinTELECOMITALIA FDCSYSTEM
TheFDCCostAccountingsystemhasthegoaltoguaranteetheallocation ofallcosts(sustaind byTelecomItalia)andrevenues(obtainedinTelecom Italia)foraspecificperiodoftime,ontheservicesprovidedtocustomers (bothfinalcustomersorwholesale) Thesystemisdirectlyconnectedwith: GeneralLedger/SAPaccountingsystem,inordertoobtaincosts and revenuesinformation Technicalandcommercialdatabase(traffic,numberoflines,)in ordertoobtaintheinformationrequiredtocorrectlyperformthe allocationprocess Thesystemproducesreportatdifferentlevelandallowstoperform specificdetailedanalysis,ondemand.

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FDCSYSTEM ALLOCATIONPROCESS
1) Listofservices 2)Listofresources,equipments(bothtechnicaland operative) 3)Definitionofresources/equipmentsusedbyeach service(productiveprocessdefinition) 4)Definitionofinformationrequiredtoallocate resourcesandequipmentonservices(driver) 5)Feedingwithaccountinginformation 6)Reportproductionandoutputanalysis
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FDCSYSTEM ALLOCATIONPROCESS
1)LISTOFSERVICE
Thedefinitiononthelistofservicesiskeyinordertoobtain correctprofitabilityanalysis.Thelistdependsonmany elements:
Useofcostaccountingoutput(internalvs.regulatory) Levelofdetail(nationalvs.local) Costfocus(equipmentvs.operatingprocess) Intercompanyrelationships(businessunitvs.holding)
Service Layer / Business Unit Layer

SERV 01

SERV 02

SERV 03
SERVICE LAYER
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FDCSYSTEM ALLOCATIONPROCESS
2)LISTOFEQUIPMENT
Thesystemrequiresthedefinitionofalltheequipments involvedinserviceproductionprocess Equipmentcanbegroupedinlayer accordingtological/ physicalnetworkhierarchy(i.e.transmissionlayer,switching layer,accesslayer,datalayer) C.C.21 C.C.22 C.C.31 C.C.32
LAYER 3

LAYER 2

C.C.11

C.C.12

C.C.13

C.C.14
LAYER 1
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FDCSYSTEM ALLOCATIONPROCESS
3)PRODUCTIVEPROCESS
Eachserviceisprovidedusingdifferenttypesofresources: Dedicated(orReserved forasingleserviceorahomogenousclass ofservice) i.e.DSLAM Sharedamongdifferentclassofservices i.e.Transmission Backbone Forthisreason,resourcesandequipment,usedinTelecomItalia,canbe dividedintodedicated/shared/support(OSS) Theproductiveprocessofaserviceallowstoidentifytherelationship amongtheelementsofthedifferentplatforms,involvedinorder to provideeachsingleservice(howandwheneachequipmentis involved)
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FDCSYSTEM ALLOCATIONPROCESS
Service Layer / Business Unit Layer

SERV 01

SERV 02

SERV 03
SERVICE LAYER

C.C.21

C.C.22

C.C.31

C.C.32
LAYER 3

LAYER 2

C.C.11

C.C.12

C.C.13

C.C.14
LAYER 1
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FDCSYSTEM ALLOCATIONPROCESS
4)DRIVER
AllocationDRIVERisanindex(%)usedinordertosharetheuse ofa specificresourceorequipmentondifferentotherequipments/resources orservices Theseindexescanbecalculatedonthebasisoftechnicalinformation providedbydifferentinternalsystems Trafficanalysis Bandwidthusage Numberofcustomers Additionally,theindexforoperativeprocess,canbecalculated through ActivityBasesCostinganalysis
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FDCSYSTEM ALLOCATIONPROCESS
Service Layer / Business Unit Layer

SERV 01
DRIVER 3

SERV 02
DRIVER 4

SERV 03
SERVICE LAYER

DRIVER 5

C.C.21

C.C.22

C.C.31

C.C.32
LAYER 3
DRIVER 2

LAYER 2
DRIVER 1

C.C.11

C.C.12

C.C.13

C.C.14
LAYER 1

TECHNICAL DATA

OPERATIONAL DATA

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FDCSYSTEM ALLOCATIONPROCESS
5)ACCOUNTINGINFORMATION
Theallocationprocessisactivatedwhencostsand revenuesinformationareinsertedinthesystems. TheseinformationareprovidedbySAPmodules. Revenuesallocationissimplerthancosts,because, inmostcases,revenuescanbedirectlyallocatedon service,withoutallocationprocessanalysis

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FDCSYSTEM ALLOCATIONPROCESS
Service Layer / Business Unit Layer

SERV 01
DRIVER 3

SERV 02
DRIVER 4

SERV 03
SERVICE LAYER

COST FLOW

DRIVER 5

C.C.21
COSTS INFO

C.C.22

C.C.31

C.C.32
LAYER 3
DRIVER 2

LAYER 2
DRIVER 1

C.C.11

C.C.12

C.C.13

C.C.14
LAYER 1

TECHNICAL DATA

OPERATIONAL DATA

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FDCSYSTEM ALLOCATIONPROCESS
REVENUES REPORTING MODULE Cost of each service Cost component value Profit contribute per service Benchmarking utilities

TELECOM ITALIA SERVICES

COST ALLOCATION MODULE

SAP info
COSTS
Operative & Technical data Driver

Overhead cost allocation Cost allocation on Plant cost centre (progressive allocation module) Operative and overhead cost allocation (ABC module)
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FDCSYSTEM ALLOCATIONPROCESS
6)OUTPUTANALYSIS
Accordingtothelevelofdetailincludedinthesystem(bothin termof serviceandequipment)itispossibletoobtaindifferentoutput analysis.
EQUIPMENT & INVESTMENT TRENDS FOR OLD & NEW SERVICES TYPE OF COST ANALYSIS (Depreciation Personnel Costs,..) TYPE OF CUSTOMER & TARIFF PLAN ANALYSIS ACTUAL PROFITABILITY FOR SERVICE & BU

TECHNICAL COST COMPOSITION

GEOGRAPHICAL & INTERCONNECT. ANALYSIS

ECONOMIC PERFORMANCE & VALUE CREATION ANALYSIS

PROFIT & LOSS ANALYSIS

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FDCSYSTEM OUTPUTANALYSIS
ACTUAL PROFITABILITY FOR SERVICE & BU

Costs

Revenues

Total & Per Unit Costs & Revenues Income Statement for the different services provided. Total costs & revenues and the Income statement can also be provided for Business Unit
11,236 5,109

National Traffic

Margin.: +6.126 Per Minut Cost: 36,5 Margin.: +20 Per Minut Cost: 79 Margin.: +738 Per Message Cost: 2,3 Margin.: 11 Per Minut Cost: 55 Margin.: -473 Per Minut Cost: 1327

SERVICES

Intern'l Traffic SMS Voice Mail Box Customer Care

0

877 857 807 69 79 68 16 490 2,000 4,000 6,000 8,000 10,000 12,000

(sample data for presentation purpose only)

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FDCSYSTEM OUTPUTANALYSIS
TYPE OF COST ANALYSIS (Depreciation Personnel Costs,..)

Costs can be divided into different categories (Depreciation, Personnel costs,...) This analysis can be performed both in absolute or relative values.

National Traffic

SERVICES

Intern'l Traffic SMS Voice Mail Box Customer Care

0.0% Depreciation Commercial Intern'l cost 20.0% 40.0% 60.0% 80.0% 100.0%

Personnel General

Industrial Managment Fee

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(sample data for presentation purpose only)

FDCSYSTEM OUTPUTANALYSIS
TECHNICAL COST COMPOSITION

To assess the impact, in terms of costs, due to the different technical components involved in the productive process.

SERVICES

On-Net Calls Mob.-Fix Calls Mob.-Intn'l Calls

0 10 20 30 40 50

Access Inter MSC Link Interconn. Link

Switching Interconnection Fee

(sample data for presentation purpose only)

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FDCSYSTEM OUTPUTANALYSIS
GEOGRAPICAL & INTERCONNECT. ANALYSIS

Special care on geographical distribution of the services on the Operators territory. All the interconnection relationships with other fixed and mobile carriers are also taken into account. Pk 50.1 O-Pk 36.4

Average cost: 36.7

Peak: Off/Peak: 39.0 29.9

MSC AREA N. 02

MSC AREA N. 01 Pk 64.2 O-Pk 46.6

METROPOLITAN Area Pk 30 O/Pk 23 MSCs AREA Met. 01

(sample data for presentation purpose only)

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FDCSYSTEM OUTPUTANALYSIS
TYPE OF CUSTOMER & TARIFF PLAN ANALYSIS

To analyse the profitability for the different customers type. Tariff Plan analysis are also possible, in case detailed information on billing are available.
Minutes
5,935 11,271

6%

PostPaid

16 %

PrePaid

49,498 83,112

78

Other

2,057 2,165

%
PostPaid Other PrePaid

20,000

40,000

60,000

80,000

100,000
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(sample data for presentation purpose only)

FDCSYSTEM OUTPUTANALYSIS
ECONOMIC PERFORMANCE & VALUE CREATION ANALYSIS Volumes Volumes Unitary revenues Unitary revenues OPEX OPEX Tax Tax

To analyze the Economic Value Added (EVA) per service: this allows to evaluate how a single service contributes to create value for the Operator.

ROI ROI WACC WACC Net Capital Net Capital

EVA EVA
EVA = (ROI WACC )* Net Capital
EVA Service 1

VALUE CHART

+
EVA Net Capital

EVA Service 2

low

EVA Service 3

high

Net Capital
(sample data for presentation purpose only)

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FDCSYSTEM OUTPUTANALYSIS
PROFIT & LOSS ANALYSIS

To produces Profit & Loss Analysis at Service & Business Unit level. Different types of costs / revenues and types of margins can be provided, according to the accounting structure of the Operator
Business Unit num.1

Service Revenues Other Revenues Total Revenues Industrial Costs Commercial Costs Other Operative Costs Total Operative Costs E.B.I.T.D.A. Amortizacion Depreciation E.B.I.T. Financial Costs NET PROFIT / LOSS

100 30 130 40 20 20 80 50 10 30 10 5 5
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(sample data for presentation purpose only)

NGNCosting
NGNispartofTelecomItaliaCostAccountingsystem,being:
agroupofservices,providedbothtoWholesaleandFinalCustomers (Alice,IPTV) agroupofresourcesandequipmentrequiredtoprovidedthese services,andmodeledaccordingtothesameprocessandapproach describedabove

AccordingtoCostAccountingmethodology:NO DIFFERENCEINCOSTINGAPPROACHISAPPLIEDFOR NGNSERVICESANDEQUIPMENTSINTELECOM ITALIA

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Reference
Farda Hasun,One DayTutorialICTel 2008, BottomUpLRIC,ITTelkom StefanoLIsa,DefiningCostingModeland ValueBasedPricingforNGNPlatform Framework,TelecomItalia PT.Telekomunikasi Indonesia,DiktatRegulasi Harga/Tarifdan Interkoneksi

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G.N.SandhyWidyasthana widyasthana@gmail.com 02270702020 081225702020

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