The Research Of TCO Application On Investment Projects Of Telecom Operators

In the face of the intensive competition in the telecom industry, the decrease of ARPU is inevitable. The telecom operators therefore increasingly focus on the cost per user in addition to considering the new business growth. In this context, lowering the TCO (Total cost of operation?) is one of important measures to effectively enhance the competitiveness of telecom operators. This thesis emphasizes the approach to make the investment decisions in project development and control the cost through the analysis of TCO. It thus displays some value on promoting the investment efficiency and effectiveness of the telecom operators.The thesis consists of 6 chapters. In the first chapter, the research background is introduced. Based on the analysis of the impact of investment cost on operators' profits and of the current problems related to the cost control on investment projects, the significance of developing a TCO-based project cost control system is highlighted. The second chapter defines the concept of the TCO, discusses the development of the investment projects management theories internationally and the application of TCO in the telecom operators. The focus of the third chapter is placed on describing the definition and meaning of a TCO-based investment project cost control system. In Chapter 4, on the basis of the identification and analysis of major factors of the investment project cost management system, the cost management systems in different life stages are designed and from the holistic enterprise operation angle, the different systems are combined and constructed as the cost control management system. The Chapter 5 discusses the advantages and disadvantages in analyzing investment project cost management through the use of TCO-based concept, following the analysis of the case studies and application effects of TCO cost management system. The conclusions and prospects of the research process are exhibited in the Chapter 6.This thesis proposes a new research approach to manage the investment project cost in the telecom operators. It is helpful in terms of managing the project cost from the companies' operation efficiency. Companies in other industries also find it valuable in project cost management.