Telecom Investment Benefit Assessment Method

Nowadays,with the more intensive competition rising on telecom market,the risk of the telecom investment becomes greater and greater.The profit mode of "high repayment of high investment " is hard to carry on. On the other hand, the investment of the telecommunication project is very enormous,and their assets mostly have special-purpose, once the investment faults appears, it is unable to use for other purposes and the loss is very enonmous.The telecommunication operator should fully realize the change of the market, regard market and benefit as the core in the course of investing and market exploring, put the limited fund into the effective market, promote enterprise's key competitiveness. So the importance of previous feasibility research of the project is shown especially day by day, the telecommunication company requires higher and higher to the science of the evaluation. But the current evaluation method still exists some problem, especially on income and cost allocation, so the result is difficult to use for the investment decision of the project.So it is very important to investigate the telecommunication project investment benefit evaluation system current situation, and find out the key problem, combine and propose a set of assessment methods which is suitable for the current situation. It has very great realistic meaning to the long-term sustainable development of telecommunication enterprises.The paper studies of the effectiveness of current telecommunications investment system status and assessment methods, Capex, Opex and the total cost estimation methods, the evaluation of the financial value of the benchmarks, and has now initially formed an Telecom investment returns sets in line with the requirements of assessment methods and have been put into trial.The innovation and research results briefly described as follows:1,In "Telecommunications networks in each of the normal use of network resources for the completion of a business are equally important" and "per unit of investment opportunities cost the same" assumptions, we breakdown the structure of network and use the "operational capacity units matching network resources investment prorated" to determine the proportion of income redistribution. This method can solve the current investment decisions in the "revenue-sharing" no basis to go problems, put forward new ideas for the project decision-making2,In the investment estimates, the stock is presented in this paper to consider the idea of investing: First, determine the stock sank cost resources or the opportunity cost. If sunk costs are not included in investment if the opportunity costs of the building while the actual value or market value credited to the investment3,We use direct drivers of cost estimates, based on cost driver with the operating cost estimate of indirect costs of methods to improve the accuracy of the cost estimates4,We use the wacc to replace the former Ministry of Posts and Telecommunications "benchmark yield" concept, to make investment decisions more in line with the company's rate of return on investment requirementsThe paper include two parts of contents: investment returns assessment methods and case analysis.