HIPSSA Cost model training workshop:
Sessions 17-18: Using the ITU training model as a basis to develop cost estimates for member states in the HIPSSA region
EXPERT LEVEL TRAINING ON
TELECOM NETWORK COST
MODELLING
FOR THE HIPSSA REGIONS
Arusha
15-19 July, 2013
David Rogerson, ITU Expert
1
HIPSSA Cost model training workshop:
Sessions 17-18: Using the ITU training model as a basis to develop cost estimates for member states in the HIPSSA region
Sessions 17/18:
Using the ITU training model as a
basis to develop cost estimates
for member states in the HIPSSA
region.
2
HIPSSA Cost model training workshop:
Sessions 17-18: Using the ITU training model as a basis to develop cost estimates for member states in the HIPSSA region
Agenda
Aims and objectives for these sessions
Describe
the task
Explain
what is
required
Session 17
Work in
groups
Present and
discuss
findings
Session 18
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HIPSSA Cost model training workshop:
Sessions 17-18: Using the ITU training model as a basis to develop cost estimates for member states in the HIPSSA region
Background to the exercise
 The other exercises have been purely hypothetical;
this one is closely linked with reality.
 The aim is to start trying to adapt the ITU training
model to fit the situation in your country.
 To do this you might like to:
 Form a working group with others from your country, or
 Learn the principles involved by working with another group
on a different country
Please be aware that this is a training exercise only
– the model should not be used for commercial
purposes (see the worksheet entitled “Notice”)
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HIPSSA Cost model training workshop:
Sessions 17-18: Using the ITU training model as a basis to develop cost estimates for member states in the HIPSSA region
The ITU Mobile Telco LRIC training model
A. Model Design
1.Coverage
4. CAPEX
and Direct
OPEX
5. Indirect
OPEX
10. Markups
7. Network
costing
9. LRIC
11. LRIC+
B. Control Panel
C. Reference
Lists
2. Traffic
6. Network
design
D. Reconciliation
E. Graphs
3. Network
design
parameters
Key
8. Routing
factors
Cells
Summary Sheets
Input Sheets
Calculation sheets
Direct input into the model
Inputs copied from other worksheets
Calculation cells
Output cells copied to other worksheets
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HIPSSA Cost model training workshop:
Sessions 17-18: Using the ITU training model as a basis to develop cost estimates for member states in the HIPSSA region
Approach to editing the model
Only change
the yellow
cells
If in doubt,
don’t change
Save new
versions as
you go along
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HIPSSA Cost model training workshop:
Sessions 17-18: Using the ITU training model as a basis to develop cost estimates for member states in the HIPSSA region
The areas you may wish to review - 1
 B. Control Panel:
 sensitivity values in B2
 C. Reference Lists:
The red text highlights the
areas that must be changed
 provinces, years, currency
 1. Subscribers and coverage:
 Coverage in 1.01
 Subscribers and market share in 1.02
 2. Traffic:
 Traffic volumes of specific operator in 2.01
 Average non-billed traffic factors (2.02) and split by geotype (2.06)
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HIPSSA Cost model training workshop:
Sessions 17-18: Using the ITU training model as a basis to develop cost estimates for member states in the HIPSSA region
The areas you may wish to review - 2
 3. Network design parameters:
 3.01 radio network parameters
 3.02 BTS cell radii
 3.04 -3.07 BTS parameters; Network design capacity;
Transmission parameters; Routing factors
 4. Capex and Direct Opex:
 4.01 network equipment capex and opex
 4.02 and 4.03 transmission costs
 4.04 Licence fees
 5. Indirect opex
The red text highlights the
areas that must be changed
 5.01 Telco actuals
 5.04 Interconnection charges
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HIPSSA Cost model training workshop:
Sessions 17-18: Using the ITU training model as a basis to develop cost estimates for member states in the HIPSSA region
Suggested approach
1. Change anything you can based on your local
knowledge or information

Highlight the changed data (different colour) and save the
model
2. Search for online data sources (e.g. regions,
population, subscriber numbers) and input data

Again highlight the changed data and save the model
3. Estimate other input data as best you can (e.g.
coverage based on landmass; change traffic data in
proportion to subscribers)


Again highlight the changes
Use a different colour to identify data that needs to be
confirmed later
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HIPSSA Cost model training workshop:
Sessions 17-18: Using the ITU training model as a basis to develop cost estimates for member states in the HIPSSA region
Proposed outputs
 When you have completed the model to your
satisfaction, prepare a short presentation for the
group
 Include the following:
 The changes you have made to the ITU training model
 The draft model results – compare the cost-based outcome
with current mobile termination rates for each mobile
operator.
 How confident are you in the cost model results – test the
sensitivity of your assumptions
 Which input data you would like to verify with operators.
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HIPSSA Cost model training workshop:
Sessions 17-18: Using the ITU training model as a basis to develop cost estimates for member states in the HIPSSA region
Group work and presentations
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