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Re: A stat on billing costs for LD...
At 11:59 AM 11/26/96 -0800, Vadim Antonov wrote: >Scott Huddle <[email protected]> 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 [email protected] phone +1 301 699 1840 The internet: It's not just an adventure... it's a job:-) - - - - - - - - - - - - - - - - -