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Guide for NRAs on International Mobile Roaming Cost analysis – Technical Paper
Chapter 4 – Methodology: The cost model, with its mechanisms and
assumptions
Here we describe the proposed cost model, the measures and arrangements for ensuring that it has
suitable input information.
4.1 Methodology
To construct the cost model, two phases are necessary – firstly design, in outline form, which is
described in this chapter, and then secondly the phase of implementation in detail. The latter is based on
gathering actual data from MNOs (using standard spreadsheets, shown in Annex 4).
For its design, the model will be based on the operational business processes that identify the major cost
elements. A specific approach will be applied for constructing and exercising the cost model employing a
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construct from business process analysis of use cases . The cost model approach has the following steps:
Figure 5 – From business processes to the relevant cost elements
Costing mechanism used in the roaming cost model
Overview (MNO) Identify relevant
level Business Processes
End-user level Identify Use Cases
Operational level Identify operational
processes and systems
SCF Cost level Identify Cost elements
4.1.1 Identify the business processes
MNO operates through specific major functional business areas, which may be approximately defined as
the operating divisions for network operations, including network build, business support systems (BSS)
of all kinds such as billing, with their IT systems, and thirdly sales and marketing including a retail arm
possibly. Strategy, finance, NRA negotiations, procurement and inter-operator agreements may be
carried out through these three functions, usually with specialized units, e.g. for spectrum auction
management.
20 Jacobson, I., Booch, G., Rumbaugh, J. (2010), The Unified Software Development Process, Addison Wesley, USA.
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