Training Program Outline

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FIN-116E

LRIC IN TELECOMMUNICATIONS

Description

A 5-day Training Program to provide participants with an understanding of Long Run Incremental Costs (LRIC) and of the LRIC methodology and how is can be applied to determine costs in the telecommunications environment.

Objectives

• Present the fundamental concepts of costs
• Provide participants with a solid understanding of cost allocation by performing a comparative analysis of Fully Allocated Costs (FAC) and LRIC
• Analyze the variations of the LRIC methodology, identifying the differences through case studies
• Highlight the challenges that operators and regulators might face in applying the LRIC methodology and help participants find ways to effectively overcome them

Topics

• Liberalization of the telecommunications sector
• The importance of encouraging competition
• Obstacles to equitable competition
• Regulator’s objectives
• Process
• Results
• Costing approach – guiding principles

• Telecommunications network
• Network generalities
• Switching and service platforms
• Access
• Transport
• Addition of data transfer services
• Incumbent operator versus new operators

• Fundamental concepts of cost
• Origin of cost
• Definitions
• Categories of costs
• Activity-Based Cost (ABC) analysis

• Cost allocation
• Definition
• Benefits
• Accounting separation
• Problems

• Cost methodologies
• Review of different economic methodologies
• Cost-based methodologies
• Challenges of cost-based methodologies
• Tools

• Cost modeling
• Review of basic principles
• FAC model
• Top-down LRIC model
• Bottom-up LRIC model
• Hybrid LRIC model
• Shortcomings and pitfalls of LRIC
• Cost modeling for mobile networks
• Practical application of LRIC
• LRIC variations

• Challenges for operators and the regulator
• Transition from historical costs to LRIC
• Collection of data from operators
• Data management
• Communication and relations between operators and the regulator

Target Audience

• Telecommunications managers and personnel responsible for cost analysis, financial analysis, financial modeling, costing and/or pricing
• Managers looking to complement their skill-set by gaining a good understanding of the LRIC methodology in the telecommunications environment

Methodology

Our Training Programs combine expert presentations, workshops, case studies and discussions on real-life situations faced by participants. Complete training material is provided to all participants for future reference and follow-up action plans.

Location

Our Training Programs are held at regular intervals in selected cities around the world. Upon request, our expert trainers can lead Training Programs at the location of your choice. If interested, please contact us at training@neotelis.com.

Expertise

Neotelis provides consulting and training services to telecommunications organizations worldwide. Its team of experts has trained thousands of executives and managers working for operators, regulators, policy-makers and governments in over 100 countries around the world.