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Telecom Economic
Cost Model


Telecom Economic Cost Model


Ben Johnson Associates, Inc.’s Telecom Economic Cost Model estimates the forward-looking economic costs of telecommunications services and network elements. Version 5.0 is built around a sophisticated geographic information system (GIS) approach to data handling, achieving a precision limited only by the quality of the input data. The Telecom Model has been developed for multiple uses and can help accurately identify high cost conditions for a universal service fund, analyze rate rebalancing proposals, price unbundled network elements, design retail tariffs, check cost-related barriers to competitive entry, and even evaluate special contract pricing arrangements by precisely estimating the costs of serving a specific customer. Read more...


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The User Guide
The User Guide for the Telecom Economic Cost Model provides explanations of the model’s concepts, definitions, and assumptions. It will show you what the model can do, what information you must enter, and what choices you can make. It will also take you step by step through the procedures for calculating and reporting the results of model runs.

Terminology and Concepts
The Terminology and Concepts section presents a glossary of terms commonly used in cost modeling, along with brief explanations of key concepts.

Also, consult the following exerpt of direct testimony filed in Idaho regulatory proceeding No. GNR-T-97-22. The testimony first describes the general properties of telecommunications cost models and sketches the differences between the Telecom Economic Cost Model and its two primary competitors. It goes on to explain some specific advantages of our model, presents and explains the results of some preliminary model runs, and offers Dr. Johnson’s recommendations on the criteria that should inform the process of choosing among varying cost models.


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