Try To Build Fixed-line Cost Estimation Model

At present China's telecommunication industry develops very fast, even at condition of big sluggish of international telecommunication industries during the period of the years of 2001-2002,the output growth rate of china's telecom. Industry came to 16.1% and 14.4%, moreover it came to 13/ in 2003. The rate is not only far higher than the international average level, but also far higher than the growth level of China's gross domestic product. It's so justified that china's telecom, market is very, very big .the prospects of the telecom industry are generally good .Subject to this hind of reason and the inertia action of planned economy system, china's telecom enterprises' management has bear inefficient. Almost all telecom business companies don't pay any attention to the scientific calculation of the cost of the service and products,. So far, no firm has constructed a scientific cost examining and testing model. They aren't able to know unit-telephone cost and every single business transaction cost, their pricing strategy is blindness.As the domestic competition becomes increasing cense and as foreign telecom. companies is going to be entering into china gradually, the situation will inevitably lend to low operating efficiency even perhaps the similar depression in international market can take place in china The scientific calculation of the whole telecom industrial business cost is very urgent. This article concentrates on "how to build the fixed telephone cost calculating model" under this hack ground .The find aim of this composition is to search a rather scientific and feasible method of fixed telephone cost calculating so as to provide some bases and convenience to the cost calculation of fired telephone operating enterprisesThe significance of this work is that a fixed telephone firm can accurately determine its market policy. pricing policy and investment strategy by using the model so that its decision maker can clearly aware one price reduction policy can bring how much income .how much profits and lose how much money during a certain period .The scientification and orientation of the decision making process is strengthened . To some extent it can solve the problem of blindness in decision makingAs to method of calculation, this text fully consider about the features of telecom industry and avoid using the product method, batch method and step by step method which many tangible products making enterprises adopt. However , the unit average method of new added total amount is adopted .The unit of telecom products are defined as a terminating line cone telephone termination ,but not according to the requirements of relevant theory to regard it as unit conversation time .On the foundation of this model. here we calculated the cost of unit fixed telephone of Huatong telecom. company .In the meantime ,we analyzed the relation among the quantity the cost and the interest so as to provide scientific reference base for future 's operating activities .It also makes proposals about cost reduction in view of the two aspects of technology and management for telecom enterprises...