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Quality of Service in Cost Models

Author

Listed:
  • Juan RENDON SCHNEIR

    (Pompeu Fabra University)

Abstract

Several network operators have been deploying Quality of Service (QoS) techniques that help improve customer satisfaction and can have an impact on the cost of telecommunications services. As Long-Run Incremental Cost (LRIC) models are used in various jurisdictions to derive the cost of regulated services, a question that needs to be addressed is how QoS concepts can be included in an LRIC model. This article pursues two goals. First, it describes the main QoS techniques and strategies that could be taken into account in a cost model. Second, it discusses the impact of QoS concepts on an LRIC model. The article shows that the introduction of QoS concepts into a cost model involves a critical review of the following parameters: cost drivers, cost of network elements, traffic supported by network elements, and usage factors.

Suggested Citation

  • Juan RENDON SCHNEIR, 2012. "Quality of Service in Cost Models," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(87), pages 135-153, 3rd quart.
    • Handle: RePEc:idt:journl:cs8707
    as

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    File URL: http://repec.idate.org/RePEc/idt/journl/CS8707/CS87_RENDON_SCHNEIR.pdf
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    References listed on IDEAS

    as
    1. Rendon, Juan & Plückebaum, Thomas & Jay, Stephan, 2009. "LRIC cost approaches for differentiated QoS in broadband networks," WIK Discussion Papers 325, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    2. Friedman, Eric & Moulin, Herve, 1999. "Three Methods to Share Joint Costs or Surplus," Journal of Economic Theory, Elsevier, vol. 87(2), pages 275-312, August.
    3. Günter Knieps, 2011. "Network neutrality and the evolution of the internet," International Journal of Management and Network Economics, Inderscience Enterprises Ltd, vol. 2(1), pages 24-38.
    4. Paul Noumba Um & Laurent Gille & Lucile Simon & Christophe Rudelle, 2004. "A Model for Calculating Interconnection Costs in Telecommunications," World Bank Publications - Books, The World Bank Group, number 15040.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    QoS; cost model; LRIC; NGN.;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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