In the Telecommunications industry, balancing assets and profitability is especially important in the survival of a given company. This is due to the fact that consumers are becoming more knowledgeable and understand the technical aspects much better now than in the past. Customers are always looking for new technological solutions and more bandwidth as their applications are becoming more sophisticated. Small Telecommunications companies, in an attempt to keep up with the technological changes, are moving too fast and often do not properly track their costs. In addition to the technical challenges, new regulatory changes are making hard for CLECs (Competitive Local Exchange Carriers) to compete against the ILECs (Incumbent Local Exchange Carriers). These changes are ILEC friendly and are triggering higher imposed costs for the CLECs. This paper will discuss how these changes impact a CLEC to the point where costs and revenues are no longer tracked properly.
This paper will also discuss a project created to identify where changes can be made to realign costs and revenues in order to improve margins as well as determine asset usefulness, utilization, and values as part of the cost to do business. Part of the discussion will revolve around project planning, forecasting, and risk assessment.
Project Plan Overview
Project description: Due to proprietary information, the specifics about this project and the company it relates to will be modified. The aforementioned changes and impacting factors have forced the CLECs to face an increase in costs and a slight decrease in revenue caused by customer churn. ABC Telecom, the subject of this paper, has created a project that will target a detailed review of each point of presence an each network element in order to determine whether maintaining a network in certain markets is profitable. This project will also examine the profitability of its edge network.
Problem Statement: A... [continues]
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