The number of installed units no longer required to satisfy demand, or any maximum-utilisation or deployment constraints.

Installed Units minus Required Units.

Include: Standard

Resource

See Resource deployment.

The Annual Traffic per Connection forecast on the basis of given reference tariffs.

The Annual Traffic per Connection input.

Include: Advanced

Service

See Demand.

The Penetration forecast on the basis of given reference tariffs.

The Penetration input.

Include: Advanced

Service

See Demand.

The current year of the model run relative to the start date, where Y1 is relative year one.

Include: Advanced

Network

The margin applied to a Service’s cost per connection, fed back from the previous year, in order to calculate the cost-dependent rental tariff for the current year.

The Charge Multiplier input.

Include: Advanced

Service

The cost of leasing a Resource in a period.

For a Resource: the product of the Calibration Period per-unit Rental Cost input, the normalised global and Resource Rental Cost Trends, the Rental Age Factor and the number of Installed Units.

Include: Standard

Network, Service, Function, Resource, Market Segment, Service/Transformation

See Resource costs.

The cost-dependent part of the composite Rental Tariff.

The Rental Feedback Cost multiplied by the Charge Multiplier input.

Include: Advanced

Service

The cost-independent part of the composite Rental Tariff.

The Cost Independent Tariff input.

Include: Advanced

Service

The cost per connection, fed back from the previous year, in order to calculate the cost-dependent rental tariff for the current year.

The proportion of costs allocated to a Service, earmarked for the rental tariff, divided by the number of Connections (both in the previous year).

Include: Advanced

Service

The factor used to weight the cost-independent part against the cost-dependent part when calculating the composite Rental Tariff.

The Independence Weighting input.

Include: Advanced

Service

The maximum proportional change in the Rental Tariff permitted between one year and the next. The factor 1 allows 100% change.

The Max Change input.

Include: Advanced

Service

The annual revenue collected for connections to a Service.

The number of Connections multiplied by the Rental Tariff.

Note: This result is calculated from the average number of Connections over a year if the input Use Average Connections = Yes (the default).

Include: Standard

Service, Market Segment

See Tariffs and revenues.

The tariff charged per period per connection to a Service.

The weighted average of the cost-independent and cost-dependent rental tariffs, calculated according to the Independence Weighting. If the weighting is 1 (the default) the result is just the cost-independent Rental Tariff input.

Include: Standard

Service

The amount of borrowing required from a given Debt Facility in the *N*th iteration of the current period. This may exceed the available credit (which is why several iterations may be required).

Network Debt Required N multiplied by Debt Facility Mapping N as a proportion of Debt Facility Mapping N summed over all Debt Facilities.

Include: Advanced

Debt Facility

The number of units of a Resource required to satisfy demand and any maximum-utilisation, deployment or planning constraints.

The sum of Used Units, Utilisation Units, Deployment Units and Planned Units.

Include: Standard

Resource

See Resource deployment.

Accumulated profits of the business which have not been paid out as interest, tax or dividends.

The Initial Retained Earnings input, plus the cumulative sum of Retained Profit.

Include: Standard

Network

See Financial statements.

The annual profit of the network after payment of interest, tax and dividends.

Net Profit minus Dividends Declared.

Include: Essential

Network

See Financial statements.

A measure of the efficiency with which the business generates profit from its total operating assets.

The ratio of Operating Profit to Total Assets less Cash Deposits and Investments.

Include: Standard

Network

See Financial ratios.

A measure of the efficiency with which the business generates profit from its net operating assets, also known as Return on Investment.

The ratio of Operating Profit to Capital Employed.

Note: The definition of Capital Employed for Services is simpler than that for the network, as financing, tax and dividends are only modelled for the network as a whole.

Include: Standard

Network, Service, Market Segment

See Financial ratios.

A measure of the efficiency with which the business generates profit, from the perspective of the shareholder.

The ratio of Net Profit to Equity.

Include: Standard

Network

See Financial ratios.

The turnover of a Service or the network in the current period.

For a Service: the sum of Connection, Rental, Usage and Churn Revenues.

Include: Essential

Network, Service, Market Segment

Revenue divided by the number of Average Connections.

Consolidation: Quotient.

Include: Standard

Service

See Tariffs and revenues.

Revenue divided by the number of Connections.

Consolidation: Quotient.

Include: Standard

Service

See Tariffs and revenues.

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