T-Mobile Austria better analyzes and manages cost and profitability

Mobile telephony continues to be increasingly competitive, and service providers must differentiate themselves by providing the most up-to-date services that their customers demand. Like all mobile operators, T-Mobile Austria faced the challenge of understanding the costs and profitability per customer for its services, and managing this on a continuous basis. T-Mobile Austria needed to manage network costs more effectively, and to find a way to accurately calculate the cost of delivering new products and services. It could then price them more competitively and profitably, delivering them to customers more quickly.

T-Mobile Austria engaged IBM Global Business Services, with its deep expertise in the telecom field, to help it develop a costing model for pricing new services and features. This unique, industry-leading solution-Tele-Com-Pass 4.0-features both Activity Based Costing (ABC) and Network Building Block Costing to calculate the cost of delivering services to T-Mobile Austria's customers. IBM implemented Tele-Com-Pass 4.0 and provided interfaces from the solution to the company's existing reporting infrastructure.

With strong capabilities, Tele-Com-Pass enables T-Mobile Austria the ability to run simple and fast simulations of new and existing product costs. Benefits of the solution include:

· Pricing of new products and services is now based on actual cost calculations

· Greater visibility into the actual network costs, enabling T-Mobile Austria to manage its network costs more effectively

“With Tele-Com-Pass, T-Mobile Austria now has a tool that provides transparency and visibility into the process of network costing at any time” Christof Stelzer, Vice President, Technology Controlling & Financial Processes, T-Mobile Austria.