For some applications, it may be that the operator does not own some – or indeed any – of the Resources that are required for the provision of a Service.
Connection Cost
The one-off non-capitalised cost of connecting one unit of a Resource. It can be used to model a non-capital cost incurred when equipment is installed in the network. A typical example is the connection cost for a leased line. The overall Connection Cost for a Resource is the unit connection cost multiplied by the number of Incremental Units.
Like other running costs, Connection Cost has a Cost Trend but does not have an Age Factor, as the cost only occurs in the year when the Resource is installed. It is not included in the Written-Down Value and does not contribute to depreciation.
Rental Cost
The cost of renting equipment such as leased lines per period (as defined by the Cost Period input). The overall Rental Cost for a Resource is the unit rental cost multiplied by the number of Installed Units. Like Maintenance Cost, it is charged on the basis of Installed Units, but is provided as a separate item to allow you to distinguish between the two sorts of cost.
Usage Cost
The cost of using equipment (e.g., PSTN charges) per period (as defined by the Cost Period input). Usage Cost is charged pro-rata on the basis of Used Capacity, so that the overall Usage Cost for a Resource is the unit usage cost, multiplied by the Used Capacity divided by the Capacity.