1. OPEX FOR NETWORK OPERATORS Questionnaire Sofie Verbrugge Didier Colle Ilse Lievens

2. 2Outline Objectives OpEx model: matrix description First questionnaire results Future work

3. 3Outline Objectives OpEx model: matrix description First questionnaire results Future work

4. 4Goal Examine OpEx cost for network operator Distinguish several OpEx subparts Identify relative importance Compare CapEx - OpEx

5. 5Scope Backbone networks Incumbent European operator

6. 6Outline Objectives OpEx model: matrix description First questionnaire results Future work

7. 7 OpEx partitioning OPEX condition bound reparation and installation administration supply management and planning provisioning maintenance salesgeneral charging and billing periodic preventive network planning general Comments: - Important parts: administration (customer care), provisioning (NOC?) - Maintenance subparts: periodic maintenance includes upgrades, preventive maintenance not too common - Additional subpart: marketing?

8. 8 Actual expenses Personnel Energy Rental and licenses (including material) Problem: distinguishing between CapEx and OpEx Our proposal: Real estate: CapEx Network equipment: bought -> CapEx, leased -> OpEx Comments Is it that simple? Intermediate solutions?

9. 9 Matrix description

10. 10 Cost drivers = OpEx influencing network characteristics –network dimension –average link length –number of users –number of connections –number of boxes –availability –used network technology

11. 11Outline Objectives OpEx model: matrix description First questionnaire results Future work

12. 12 Importance of OpEx subparts Relative importance of subparts in total OpEx cost 0 10 20 30 40 50 maintenancereparationadministrationsupplymanagement and planning provisioning No consensus concerning importance of subparts of maintenance, administration, …

13. 13 Importance of actual expenses Relative importance of actual expenses in total OpEx cost 0 10 20 30 40 50 60 70 personnelenergyrental and licences material actual expenses relative importance in total OpEx (%) Improvement to the model: take rental & licenses and material together

14. 14 OpEx subparts vs actual expenses maintenance reparation and installation administration supplies management and planning provisioning material rental and licences energy personnel Strong dependencies

15. 15 OpEx subparts vs cost drivers

16. 16 OpEx / CapEx ratio 0 2 4 6 8 10 12 opex capex OpEx/Capex = 1.66 OpEx/Capex = 4 Belgacom opex 69% capex 9% rest 22% France Telecom opex 65% capex 14% rest 21% year report (website) OpEx/Capex = 7.71 OpEx/Capex = 4.82

17. 17Outline Objectives OpEx model: matrix description First questionnaire results Future work

18. 18 Future work Collect more answers on questionnaire Try to come up with formulae: OpEx subparts = f (cost driver) All suggestions welcome! First results to be presented on NOC workshop

19. Questions??