Determination of tariffs for telecommunication services on the basis of cost simulation modelling

Economic Annals-ХХI: Volume 147, Issue 1-2(1), Pages: 52-56

Citation information:
Granaturov, V., Kaptur, V., & Politova, I. (2015). Determination of tariffs for telecommunication services on the basis of cost simulation modelling. Economic Annals-XXI, 1-2(1), 52-56. https://ea21journal.world/index.php/ea-v147-13/

Volodymyr Granaturov
D.Sc. (Economics),
Professor,
O. S. Popov Odesa National Academy of Telecommunications
1 Kovalska Str., Оdesа, 65029, Ukraine
vmgrant@ya.ru

Vadym Kaptur
PhD (Technology/Engineering),
Senior Researcher, Vice Rector,
O. S. Popov Odesa National Academy of Telecommunications
1 Kovalska Str., Оdesа, 65029, Ukraine
vadim.kaptur@onat.edu.ua

Iryna Politova
PhD (Economics),
Senior Researcher,
O. S. Popov Odesa National Academy of Telecommunications
1 Kovalska Str., Оdesа, 65029, Ukraine
i.politova@onat.edu.ua

Determination of tariffs for telecommunication services on the basis of cost simulation modelling

Abstract. The proposed approach to determination of tariffs for telecommunication services allows taking into account nature and specific characteristics of each services and conditions of providing, in contrast to existing. The core of the proposed approach is the model of services providing process (conceptual model) that takes into account only elements of the existing network, involved in realization of provided services, and simulation model which determines operational costs through modeling work of a similar scale hypothetical subsystem using the original data corresponding to the current state of the market and the current legislation, and taking into account particular qualities of the operator (provider).

It becomes possible to refuse of using the separate accounting system, as well as to eliminate the disadvantages of the «historical» costs method and Long-Run Average Cost method, which can significantly reduce the complexity of the tariffs determination procedure and increase their validity. Its usage gives the greatest effect in the case of tariffs determination for telecommunication services, in conditions when the operator provides a wide range of services, as well as in calculation of tariffs for new services. The proposed approach of determination of tariffs for telecommunication services is successfully implemented in practice activities of some telecommunications operators.

Keywords: Telecommunication Services; Tariffs; Costs; Method; Simulation Modeling

JEL Classification: L96; C53; M21

Reference

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Received 10.12.2014