STEM help / Calculation framework

10.3.31 Tariffs and revenues

The three main tariffs associated with a Service are the Connection, Rental and Usage Tariffs, which are billed on the basis of new connections, total connections and annual traffic respectively. These tariffs can be defined directly as time series in the Tariffs dialog for a Service. More generally, you can define a cost-based tariff policy in the Cost Dependent Tariffs dialog – see 10.3.5 Cost Dependent tariffs.

If a particular Service has any churn, you can also define a Churn Tariff, in order to recover the costs arising from churned Resources – see 10.3.2 Churn.

The total revenue for a Service in year n, Rn, is calculated as:


Tconn = Connection Tariff in year n

Trental = Rental Tariff in year n

Tusage = Usage Tariff in year n

Tchurn = Churn Tariff in year n

cn = total Connections in year n

an = Annual Traffic in year n

mn = Churn Proportion in year n.

Note: Rental and Usage Revenues are calculated from the average number of Connections over a year if the input Use Average Connections = Yes (the default). Otherwise they are calculated from year-end Connections, cn.


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