nanog mailing list archives
Re: A stat on billing costs for LD...
From: scope () cais cais com (Jeff Studds)
Date: Wed, 27 Nov 1996 10:58:38 -0500
At 11:59 AM 11/26/96 -0800, Vadim Antonov wrote:
Scott Huddle <huddle () mci net> wrote:Bell Atlantic...In model, Binford said that against long distance revenue it estimated charges of 28% for access, 20% marketing and sales, 19% transport, 6% billing services, 8% administration, customer care and fund for uncollectables. He said that left 19% in pretax margins.Anyone thinking that billing costs are 50%+ of charges are encouraged to short BA, as they are about to lose a bundle.It's an RBOC model. The 50% figure was floated in relation to LDCs which have entirely different econmical model.
Not only that, part of the cost of the LDC model is to have the RBOCs bill most of their consumer long distance. BA probably sees billing as an incremental add on to their domestic billing structure as it stands today. I would bet that we will see a greater difference when the RBOCs try to go national. jd
BTW, the usage accounting costs are also hidden in "transport" and "administration". And don't forget capital sunk into the machinery required to support that. Meaningless figures again... I'd love to see some real statistics.
--vadim
Jeff Studds Internet Stuff scope () cais com phone +1 301 699 1840 The internet: It's not just an adventure... it's a job:-) - - - - - - - - - - - - - - - - -
Current thread:
- A stat on billing costs for LD... Scott Huddle (Nov 26)
- <Possible follow-ups>
- Re: A stat on billing costs for LD... Vadim Antonov (Nov 26)
- Re: A stat on billing costs for LD... Jeff Studds (Nov 27)