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

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

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

2. OPERATIONS AND MAINTENANCE PHASE

Hardware Core Hardware Support and Maintenance

Other Hardware Support and Maintenance

Development, Test and End to End Hardware S&M

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

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

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

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