a) Adaptation of the activity-based costing (ABC model), to the characteristics of the new NGN networks and services:
In the ABC (activity-based costing) model the costs are assigned and distributed according to the cost causality principle. The traditional network pricing model is based on the identification of access, switching, and transport elements/equipment, and the percentage distribution of traffic per type of activity. The difference in NGN is that the traffic is not discreetly separated and dedicated, and there is broadband usage and assignment by capacity demand. However, it is still possible to identify and distribute, in percentage terms, the associated cost to each network element.
For voice calls, the occupation of time-division multiplexing (TDM) trunks and Erlang traffic is used, and for the case of packet data, a percentage of the traffic in megabytes per second by each service or the proportional use of a 2 megabyte trunk, is used.
In the case of soft switches, for investment levels and O&M costs, the cost constitutive elements are identified (hardware capacity, software, features/functionality/services, use licenses, etc.), in order to identify each subject of cost and associated capacity and type of service.