In model, Binford said that against long distance revenue it
estimated charges of 28% for access, 20% marketing and sales, 19%
transport, 6% billing services, 8% administration, customer care
and fund for uncollectables. He said that left 19% in pretax
Anyone thinking that billing costs are 50%+ of charges are
encouraged to short BA, as they are about to lose a bundle.
It's an RBOC model. The 50% figure was floated in relation
to LDCs which have entirely different econmical model.
Not only that, part of the cost of the LDC model is to have the RBOCs bill
most of their consumer long distance. BA probably sees billing as an
incremental add on to their domestic billing structure as it stands today.
I would bet that we will see a greater difference when the RBOCs try to go
BTW, the usage accounting costs are also hidden in "transport" and
"administration". And don't forget capital sunk into the machinery
required to support that.
Meaningless figures again... I'd love to see some real statistics.
Jeff Studds Internet Stuff
firstname.lastname@example.org phone +1 301 699 1840
The internet: It's not just an adventure... it's a job:-)