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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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