Investaura is pleased to present its new whitepaper on Activity-Based Costing and Profitability Analysis, which provides a step-by-step roadmap for a successful implementation over a 5 week period.
Service Costing has the reputation to be complicated and time-consuming to implement. It doesn’t have to be so. Using the eTOM business process framework for telcos, as well as a top-down approach and a representative data set for a mobile service provider, this white paper presents the key steps for a rapid implementation undertaken over a five-week period with Prodacapo, the Activity-Based Costing (ABC) software platform. Once the initial model has been set up, it can easily be expanded as required.
Investaura Management Consultants was engaged by a major telecom group to perform a comprehensive valuation on non-current assets in the telecommunications network operations run by the client in four countries.
The revaluation was undertaken in compliance with the IFRS framework, in particular IFRS 13 (Fair Value measurement), IAS 36 (impairment), IAS 16 (tangible non-current assets) and IAS 38 (intangibles).
Whereas writing down non-current assets when their value is impaired is generally standard practice under GAAP, reflecting the concept of prudence, IFRS allows for a re-valuation to both sides, including marking non-current assets up to market. The basis for measurement is either the cost model (historical cost less accumulated depreciation), or the revaluation model (fair market value).
Investaura has released a white paper re-visiting the financial benefits of managed services and infrastructure sharing for telcos. Building on an initial discussion and review of the relevant approaches and options available, a top-down financial simulation model has been developed to analyse and quantify the benefits of alternative options available to communications service providers (CSPs).
The model that Investaura and Implied Logic have developed looks into four transformation levers that can improve the economics of the mobile carrier and potentially create considerable value:
Read our latest White Paper and learn more about the following topics:
- Managed Services / Outsourcing
- Infrastructure Sharing (Passive, Active) / TowerCo business
- Vendor financing, Leasing (Finance lease, Operating lease), Sale & Leaseback
- Financial Simulation, Top-Down Modelling
- Telecom Economics, OPEX reduction, CAPEX reduction, Value creation
Communications service providers (CSPs) in developed markets are facing considerable challenges. While voice markets are saturated in most countries, 3G/4G network rollouts require large investments, which are not always commensurately compensated by increases in revenues; data traffic is exploding but revenue per Mbyte is often decreasing faster than cost per Mbyte. The overall impact is that both EBIDTA and EBIT margins are decreasing.
Investaura is pleased to appear in one of the most recent IBM whitepapers:
Harness the power of data and analytics to maximize the value of each customer
Download “Smarter Communication through Analytics” 04-Smarter-Comms-through-Analytics-WirelessWireline.pdf – Downloaded 851 times – 3 MB
This excellent whitepaper highlights how mobile and fixed line telecoms service providers can leverage the data that they have about their customers to reduce Churn, boost ARPU, reduce Costs, and overall increase the Customer Lifetime Value (CLV) of their subscribers.
We also agree with IBM that four key components are required to make this enterprise a full success: