STEM help / Calculation framework

10.3.28 Services

Each Service has its own separate input data for Demand, Tariffs and Resource Requirements and corresponding results for costs allocated back from Resources. The need to separate demands into two or more Services is therefore driven by the need either to specify different Tariffs or Resource Requirements for the Services, or to identify separately the costs of supplying those Services.

For example, business and residential telephony customers may be charged different tariffs; the proportion of calls they make that are international may also differ, affecting the amount of international transmission required per unit demand. It may also be desirable to identify the costs of supplying business customers separately from those of supplying residential customers.


For each Service you can specify the number of Connections in use and the Traffic and Busy Hour Traffic generated. These different measures of demand affect the revenues generated and the Resources required to meet the demand – see 10.3.8 Demand.


The tariffs charged for access and use of the service can be specified, and the resulting Service revenues calculated – see 10.3.31 Tariffs and revenues.


The Functions and Resources necessary to meet the specified demand are described by the Requirements for the Service – see 10.3.27 Resource requirements.


The costs of providing these Resources are allocated back to the Services which use them, and can be used to calculate cost-dependent tariffs, as well as providing a useful breakdown of the cost of a network – see 10.3.4 Cost Allocation.


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