The telecommunications sector constitutes the nervous system of modern societies. This is a sector where the economies of scale linked to integration are high and where service managers are often also owners of networks.

The present work focuses on the subjects that offer telecommunications services to end users, renting the lines from the owners of the networks or arranging their own networks. In particular, our analysis focuses on the characterizing element of the sector, namely the network. The process of convergence between telecommunications, information technology and media, with the possibility of transmitting any audio, video and multimedia products via ether, cable, satellite, mobile phone and internet, has modified the requests to network managers who, thanks above all to the availability of broadband networks, must ensure the transport of huge amounts of data and images in motion.

Among the various cognitive purposes of costing systems designed for telecommunications companies, we favored the determination of the cost of commercial services, using a modular cost structure based on the gradual aggregation of variously constituted modules, from the sum of which it is possible to obtain cost configurations that can support multiple calculations of economic convenience. In fact, the modular cost makes it possible to calculate the total costs per customer, strategic business area, geographical area, ie for the dimensions of analysis that usually explain the formation of indirect costs.

Luigi Fici is an associate professor of Business Economics at the Faculty of Economics of the University of Tuscia and a professor of programming and control.

Index

Luigi Fici, Preface 
The telecommunications sector: characteristics and evolutionary scenario 
(Telecommunications in modern society; Companies in the sector; The management characteristics of telecommunications companies; Deregulation and liberalization; The role of universal service; The development prospects of the sector) 
Evolution of costing systems in telecommunications companies 
(The cognitive purposes of cost analysis, econometric and engineering cost models, accounting cost models, Full Costing or Fully Allocated Cost, Direct Costing, Long Incremental Cost; Costing systems based on business activities and processes; Cost Management and strategic purposes of costing models)
Costing model: from network elements to commercial services 
(The assumptions of the costing model; The logical scheme of the costing model for the network; The production levels of indirect costs; The definition of commercial services; The functionality of the network; interconnection, the mobile network, elements of network and functional blocks, the allocation of functional blocks to network services, the transition from services to commercial services) 
costs and process performance in telecommunications companies
(Business activities and processes; The types of processes in telecommunications companies; The mapping of processes; Primary activities and support activities; From the chain to the value network; The method of calculating costs by activity; Costing system for activities and reengineering A summary of the proposed cost methodologies: the cost of the commercial service, intermediate cost aggregates and responsibility centers) 
Conclusions