Telecommunications network total cost of ownership and return on investment modelling

Building new telecommunications networks and services is an extremely expensive business. Upgrading existing networks can be just as costly. They both require huge amounts of capital expenditure. This is just the beginning; on-going operations and maintenance charges can be just as high over a long period of time. Before taking the plunge, companies have a need to assess how much investment really is required. They also have a keen interest in reducing the amount of investment to the lowest feasible levels compatible with fulfilling the company's needs. A crucial part of any network design and its associated business case is a sound analysis of the financial up- and down-sides and risks. BT exact applies a highly structured financial modelling technique, originally developed for the City of London, to collate the costs and build the return on investment analysis, specifically for telecommunications infrastructure and services. This paper outlines the modelling technique, and presents a number of applications to a variety of network and service developments, that are changing the face of telecommunications.