Technical and business valuation of services and service enablers

Abstract

The future of the telecommunication is characterized by complexity and uncertainty. In this context using traditional means of valuation can be a problem. More detailed information when making investment decisions will thus be a valuable aid in correctly assessing the profitability of projects. This thesis deals with valuation of services and service enablers. A scenario based methodology has been developed for this purpose. The methodology includes details from technical modelling as an input for investment decisions. Involving technical knowledge in the process is thus easier. When combining the input from technical modelling with economic calculations, the investment proposal can be supplied with additional useful information This work started with the relevant theory on the telecommunication industry and its economical characteristics. Afterwards behaviour modelling has been discussed as a mean to capture technical aspects. Theory on business modelling and economical valuation of projects is also explained. A model for valuation of services and service enablers has been developed. This model has been implemented using input from behaviour models in the form of sequence diagrams. Information from these sequence diagrams is extracted for calculations on use of enabling technology. The process of extracting the information has also been automated. Projections of cash flows and calculations of net present value are performed based on calculated resource usage and modelled development of the business. Results produced by the implementation include technical aspects as variations of service usage and service usage patterns for different user groups. These results provide a potential investor with additional information when faced with an investment decision. Furthermore, economical quantities as cash flows and net present value estimates have been produced to arrive at a valuation of services and enabling services.