TCO Cost elements & sub elements in telecommunications projects

1. DEFINED TCO COMPONENTS
Cost Elements Grouped into Five Life-Cycle Domains and Nine Cost Elements
Each Cost Element Has Sub-Elements
Domains
Procurement and
Implementation
Operations and Maintenance
Upgrades and Enhancements
Replacement/Closure
Other
For First Three Domains; Nine
Common Cost Elements:-
Software Licenses
Hardware
Implementation Resources
Training
Development
Physical Costs
Documentation
Marketing/
Communications
Legal
Replacement/Closure
Dismantling
Disposal
Environmental Restoration
Taxes
Replacement
Other costs
Risks
Capital
Procurement
Contract Management
Service Management

2. COST ELEMENTS SUB-ELEMENTS IN TELECOMMUNICATIONS PROJECTS
Four phases have been identified for the telecommunications projects:
1. Procurement and Implementations
2. Operations and Maintenance
3. Upgrades and Enhancement
4. Replacement and Closure
5. Others
(Risks, Capital, Procurement, Contract Management and Project/Service Management Costs)
Each phase has been analyzed for the identification of all cost elements and sub-elements in telecom
projects.
1. PROCUREMENT AND IMPLEMENTATION PHASE
Hardware Cost of Hardware being Purchased
CPUs
Memory
Storage
Routers
Other Equipment
Development, Test and End to End Hardware
Hardware: Other
Software Licences Cost of Software being Purchased
Cost of Dependent Software Required
Operating System Licences
Database Licence
Other Software
Development Licence
Software: Other
Marketing/Communications Cost of Products, Content and Services being Purchased
Fix phone, Mobile, Data cards
Cost of Mobile Content Purchased
Sim and Scratch cards
Music, Games, Movies, TV Broadcasting
POS Material
Brochures
Radio
TV
Design
Production
Printing
MarCom: Other

3. Development Interface Development
UI Development
Development: Other
Documentation Technical
User Manuals
Procedures
Documentation: Other
Physical Costs Data Centre
Land Costs/Rental
Electricity
Physical: Other
Implementation
Resources
Internal Implementation Resources
External Implementation Resources
Travel and Expenses
Resources: Other
Training End-User Training
Technical Support Training
Customer Support Training
Employee Training
Agent Training
Training: Other

4. 2. OPERATIONS AND MAINTENANCE PHASE
Hardware Core Hardware Support and Maintenance
Other Hardware Support and Maintenance
Development, Test and End to End Hardware SM
Hardware: Other
Software Licences Core Software Support and Maintenance
Other Software Support and Maintenance
Support Software Support and Maintenance
Software: Other
Support Resources Preventative Maintenance
Monitoring
Guard Duty (7*24)
Trouble Shooting
Configuration
Resources: Other
Back-Ups Hardware
Software
Consumables
Back-Ups: Other
Training End-User Continuation Training
Technical Support Continuation Training
Customer Support Continuation Training
Employee Continuation Training
Agent Continuation Training
Training: Other
3. UPGRADES AND ENHANCEMENT PHASE
Software Software Product Upgrade Fees
Other Software Upgrade Fees
Supporting Software Upgrade Fees
Software: Other
Hardware CPU Upgrade
Memory Upgrade
Storage Expansion
Additional Routers
Additional Other Equipment
Development, Test and End to End Upgrade
Hardware: Other

5. Upgrade Project Resources Internal Resources
External Resources
Travel and Expenses
Resources: Other
Training End-User Upgrade Training
Technical Support Upgrade Training
Customer Support Upgrade Training
Employee Upgrade Training
Agent Upgrade Training
Training: Other
Development Interface Upgrades
GUI Upgrades
Development: Other
Physical Costs Additional Data Centre Space
Additional Land Costs/Rental
Additional Other Physical Costs
Physical: Other
Documentation Technical Document Update
User Material Update
Procedure Update
Documentation: Other
Marketing/Communications Content Updates
POS Material Update / Brochure Update
Radio
TV
Design
Production
Printing
MarCom: Other
4. REPLACEMENT AND CLOSURE PHASE
Dismantling
Disposal
Environmental Restoration
Taxes
Replacement

6. 5. OTHERS
Risks
Disposal
Environmental Restoration
Taxes
Replacement
COST ELEMENTS SUB-ELEMENTS IN MATERIAL SOURCING
Materials
Specification Design
Specification
Requisition
Price Purchase price (invoiced price)
Associated
Purchasing/
Contracting
Sourcing
Purchasing Process
Materials Management
Contract Management
Inspection Testing
Storage
Installation/
Mobilization
- Installation
- Commissioning
- Site acceptance
- Training
Operation - Maintenance
- availability/reliability
- Spares inventory
- Operational consumables
- Downtime
Disposal/
Close Out
- Decommissioning
- Disposal
- Environmental restoration

7. UNDERSTANDING COST ELEMENTS FOR MOBILE TERMINALS MANUFACTURING
GENERAL PRODUCT INFORMATION – MOBILE TERMINALS
Product break down
Fixed Cost for Device Development
Items Value Comment
Tooling Cost
Hardware Development cost
Software development cost
Design cost
Other costs
PRODUCT BOM (ASSEMBLY, COMPONENTS AND MATERIAL)
(key components, each category as a percentage of total cost and total PRODUCT BOM
(ASSEMBLY, COMPONENTS AND MATERIAL))
Items As a percentage Comment
Main board
Memory
Main screen
Secondary screen
Main Camera
Secondary Camera
Covers and key pad
Battery
Charger
Antenna, speakers
Packaging and user manual
Others