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Published by Aihay Yaz

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Published by: Aihay Yaz on Mar 28, 2013
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Republic of Lithuania Communications Regulatory Authority
Reference paper for creating bottom up long run average incremental costsmodel (BU-LRAIC)
Version 430 June, 2008
The terminology used in this document is defined in legal acts of Lithuania of Republic. List of other terminology and abbreviations is placed in following table.
 A function that returns the highest integer less than or equal to X.2.
 A function that returns the smallest integer not less than X.3.AA interfaceLink between theBSSand MSC/MGW. 4.BSCBase StationController The BSC is the functional entity within theGSMarchitecture that is responsible for radio resource allocation to a mobile station, frequency administration andhandover between BTS controlled by the BSC. 5.BTSBase Transceiver StationIn cellular system the Base Transceiver Station terminates the radio interface. EachBTS may consist of a number of  TRX, typically between 1 and 16. 6.BHCABusy hour callattemptsNumber of call attempts in a busy hour.7.BHEBusy Hour ErlangsMeasurement of traffic in telecommunications network during a busy hour expressed in Erlangs.8.BHTBusy Hour TrafficAmount of traffic in a busy hour.9.CallConnection established by means of a publicly available telephone service allowingtwo-way communication in real time.10.CAPEXCAPEXCapital expenditure costs. CAPEX costs comprise depreciation and ROI.11.ChannelLogical unit in a circuit used for transmitting electric signals.12.CircuitTelecommunications line which ensures transmission of electric signals.13.CSDCircuit Switched DataCSD is the original form of data transmission developed for the time divisionmultiple accesses (TDMA)-based mobile phone systems like Global System for Mobile Communications.14.CJCCommon and jointcostsCost that need to be allocated to several services.15.CCSCommon-ChannelSignallingCCS is the transmission of  signalling information (control information) on a separate channel to the data.16.Cost driverA factor that influences the existence and amount of costs.17.CVRCost volumerelationshipRelationship between total value of cost and cost driver.18.CostsDecrease in economic value for a company due to usage of fixed assets, sale of assets, loss of assets, decrease in asset value or increase in liabilities over aperiod, which results in decrease in equity capital.19.CCACurrent costaccounting Accounting of costs in terms of current costs and prices of products and services.20.CDCurrent depreciationDepreciation cost expressed in current cost accounting terms.21.DDFDigital distributionframeDDF is the distribution equipment used between digital multiplexers, betweendigital multiplexer and exchange equipment or non voice service equipment,carrying out such functions as cables connection, cable patching and test of loopsthat transmitting digital signals.22.EIREquipment identityregister EIR is a database employed within mobile networks. It stores information aboutuser equipment state (stolen, non-conforming and other).23.ErlangMeasurement of traffic indicating number of call minutes on a network during oneminute time.
24.FCFixed costsCosts that are fixed and not influenced by change in volume of service.25.Forward looking costaccounting Accounting of costs in terms of forward looking costs and prices of products andservices.26.GGSNGateway GPRSSupport NodeGGSN supports the edge routing function of the GPRSnetwork. 27.GbGb interfaceLink between the SGSN and PCU.28.GSMGlobal System for MobilecommunicationGSM is a cellular network, which means thatmobile phonesconnect to it by searching for cells in the immediate vicinity.29.GBVGross book valueAcquisition cost of an asset.30.GRCGross replacementcostCost incurred for replacing object of similar type and characteristics not taking intoaccount accumulated depreciation.31.HSCSDHigh Speed CircuitSwitched DataHSCSD is an enhancement to Circuit Switched Data.32.HSDPAHigh Speed DownlinkPacket AccessHSDPA improves system capacity and increases user data rates in the downlinkdirection, that is, transmission from the Radio Access Network to the mobileterminal.33.HCAHistoric costaccounting Accounting of costs in terms of historic (actual) costs and priced of products andservices.34.HGHolding gainIncome that results due to increase in asset value.35.HLRHome LocationRegister The Home Location Register is a database, which provides routing information for mobile terminated calls andSMS.36.HCCHomogenous costcategory A set of costs, which have the same driver, the same cost volume relationshippattern and the same rate of technology change.37.Incremental costIncrease in costs due to increase in volume of service.38.Indirect costsCosts that are indirectly related to a specific product and service and that need tobe allocated to different using economically justifiable drivers.39.IubIub InterfaceLink between theRNCand the Node B. 40.LRAICLong run averageincremental costingThe principle of long run average incremental costing – estimating change in costsas a result of change in cost driver volume and dividing them over a unit of service.The costs are measured in the long run, which means that the company based onthe level of demand can change the amount of resources involved in providing aservice i.e. all costs become variable.41.Max ()MaximumIt is a function, which returns the biggest number in a set of values defined inbrackets.42.MGWMedia GatewayA gateway that supports both bearer traffic and signalling traffic43.Min ()MinimumMin (minimum) is a function, which returns the smallest number in a set of valuesdefined in brackets.44.MSCMobile SwitchingCentre A Mobile Switching Centre is a telecommunication switch or exchange within acellular network architecture which is capable of inter working with locationdatabases.45.MSSMSC ServeMSC Server handles call control for circuit-based services including bearer services, tele services, supplementary services, charging and security, besidescontrolling resources related to circuit-based services.46.MMSCMultimediaMessaging ServiceCentreThe Multimedia Messaging Service Centre provides a store and forward facility for multimedia messages sent across a mobile network.47.NBVNet book valueRemaining value of an asset calculated as a difference between gross book valueand accumulated depreciation plus changes in asset revaluation over time.48.NRCNet replacement costCost incurred for replacing object of similar type and characteristics taking intoaccount accumulated depreciation.49.NCNetwork ComponentNetwork Components represent logical elements that are functionally integratedand in combining those elements any services may be modelled.

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