Aurich Consulting GmbH

The process of restructuring in the telecommunications sector has greatly increased in significance since the opening of the telecommunications market. Since this opening, profound changes have occurred in the hitherto monopolistic structures of this sector. We are experiencing the transformation of an established market towards liberalised, global industrial structures. The speed of this transformation is accelerated by worldwide deregulation, and above all by the rapid advance of technology, which brings with it equally rapidly developing customer demands: the merging of landlines with mobile networks and the great diversity of (data) services provides further challenges for costing.
The basis for the network tariffs are the costs authorised by the Federal Network Agency. The tariffs are influenced by the following factors:

• Costs for network installation
• Costs for network maintenance
• Costs for network operation
• Customer and traffic  structures in the network
• Costs of originating networks
• Costs of termination

We are proud to be the only consulting firm to have integrated the three components of a regulatory model in an implementation model:

1. Regulatory accounting models, cost calculation based on e.g. CCA, LRIC, HCA or FDC.
2. Activity-based Management for developing process-based cost calculation models.
3. Mathematical optimisation (combinatory optimisation, linear programmes) for network planning.

Thanks to this, we can offer an integrated regulatory model as a tool for planning, reporting and simulations, which covers all statistical functions required for approval by the regulatory authorities. This conclusive functionality in our integrated model renders previously necessary interim calculations superfluous, and allows for significant improvements in both precision and efficiency over earlier solutions. We apply our methodology - tried and trusted in over a decade of practical application - to the parametrization and introduction of an appropriate software solution.
The results:

• Cost savings through process optimisation.
• Merger and unbundling on the basis of process models.
• Transparent and origin-aware cost calculations to determine transmission fees by the regulatory authorities.
• Cost transparency for both processes and production.
• Enhanced competitiveness through appropriate pricing.
• Profit maximisation through the selection of a profitable product portfolio.

During our years of experience in this area, our continuing analysis of all aspects of the introduction of cost calculation models has enabled us to develop a unique tool: we have passed on this knowledge over the course of numerous projects to our clients, who have been able to derive significant benefits from it.