The Study On The Application Of Activity-Based Budgeting In Fix-line Telecom Operators

The fix-line telecom operator is standing in a vulnerable competitive situation during the key moment when the telecom industry has gone through great development, transformation and reformation. Under the more restrict supervision and more rigid business limitation by the SASAC and the concentration of the value-creation capability by the investors, the fix-line telecom operators have to optimize its internal value chain management system to realize the maximum usage of the resource. Budget management is the valid method and tool for the enterprise to manage strategically, allocate resource efficiently and control the business effectively. However, the inherent deficiency of the classical budget-management method of the fix-line operator can not work effectively. With its natural advantages, Activity-Based Budgeting can resolve the issues happened in the classical budget-management method. By introducing the ABB theory, this paper has demonstrated the necessary and possibility that Chinese fix-line telecom operators carry out ABB. Also in this paper, it has designed the basic process and pointed out several advices on how ABB can be really adopted in Chinese fix-line telecom operators.