【正文】 s fixedline work) ? No significant market risks involved (units with incremental investments to absorb traffic growth) ? Market based pricing, terms to be negotiated between Network and Wireless * CuC = Customer Care Service dvpt. Operations Sales/ CuC* Syst. Integr. ISP/eBusinesses Wireline Network Retail/ SME Custo mers Corporate/ Data solutions Wireless 5 。L responsibility for both legal entities Degree of disaggregation Wireline Network Business Retail ISP Corporate/ Data Network Business Retail ISP Corporate/ Data Legal structure KPIs ? Network Business and Corporate/ Data as divisions within legal entity Wireline ? Network Business and Corporate/ Data as separate legal entities SWSWP6320201123FRBRS 25 PROPOSED GOVERNANCE RULES FOR DISAGGREGATED INCUMBENTS (1/5) Services SourcingFreedom Riskprotection Pricingmethod ? Voice Services (Traffic, Access, VAS) ? Standard Data Services (Leased lines, WAN/Networking, other work services) ? Purchasing of work services from third parties possible ? Clear definition of service portfolio required as basis for other governance rules (., volume/price agreements) ? Investment decisions taken by asset owner (most investments usually in Network Business) ? Protecting against market risk through: –Longterm price agreements –Longterm volume agreements ? Market based pricing ? Terms to be negotiated between Network Business and Retail/SME * CuC = Customer Care Service dvpt. Operations Sales/ CuC* Syst. Integr. ISP/eBusinesses Wireline Network Retail/ SME Custo mers Corporate/ Data solutions Wireless 1 SWSWP6320201123FRBRS 26 Services SourcingFreedom Riskprotection Pricingmethod PROPOSED GOVERNANCE RULES FOR DISAGGREGATED INCUMBENTS (2/5) ? Network to ISP: –Access –Inter Connectivity ? ISP to Network: –Voice Termination ? Access: Alternative sourcing usually no option (Incumbent with control of last mile) ? Inter Connectivity: Sourcing from third parties possible (., backbone providers) ? Voice Termination: Usually several ISPs terminating Inter traffic with incumbent ? No significant market risks for Network Business since all ISPs have to use incumbent39。 tradeoffs made at legal entity level Pricing method ? Costbased pricing between units Sourcingfreedom ? Sourcing from third parties allowed Risk protection ? Each unit fully accountable for own investments ? Longterm contracts to allocate market risk (., volume agreements) Pricing method ? Market based pricing, mercial negotiation ? Pamp。ssen auch Kostenunterdeckungsziel NWS decken A1 Quelle: KLWorkshop 25./ SWSWP6320201123FRBRS 17 Both costs to serve and potential revenue generation are a function of a customer?s usage pattern. For cost allocation purposes, a number of different models exist, mostly applied for circuit switched works* APPROACHES TO ALLOCATE COSTS BETWEEN DIFFERENT USERS Model description Costing models based on technical data Allocation based on usage time Allocation based on installed capacity ? Cost allocation proportioned to total usage over the whole day ? Cost allocation proportional to usage in defined peakperiods ? Determine perminute cost of different “workslices” as cost of capacityslice divided by actually used time. Then, determine costs per time slot as average from all used “capacity slices” Constant perminute rate Peakperiod models SLICEmodel Strict peakload model SCG (“Shareconsolidationgain”) models Model type Basis of cost allocation ? Cost allocation based only on relative usage at absolute peak time ? Costing for each user based on his standalone costs. Then, consolidation gains are distributed as a ?rebate? to different users, . in proportion to the difference between individual standalone and incremental cost REPRESENTATIVE EXAMPLES * Note that at the core, most backbones are already packet switched works and so capacity costing partially reflects cost dynamics of a data work Source: McKinsey analysis SWSWP6320201123FRBRS 18 COST ALLOCATION MODELS BASED ON USAGE TIME Source: McKinsey Constantperminuterate Peakperiod model SLICEmodel Network load Network load (day) time (day) time (day) time Model description ? Cost allocation proportional to total usage (=usage time x actual work load) ? Cost allocation proportional to usage in defined peakperiods ? Determine perminute cost of different “worksslices” as cost of capacityslice divided by actually used time ? Determine cost per time slot as average from all used “capacityslices” Network load Model characteristics ? Constant perminuteprice over whole day and for all users ? Two different perminuteprices, where one of them may be estimated at zero ? Model results may vary significantly with specific definition of peakperiods ? Perminutecosts vary continuously over (day) time according to actual work load (at higher loads, more work bottlenecks