Scott Huddle <huddle@mci.net> wrote:
Bell Atlantic...
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 margins.
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. 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. --vadim