A proxy cost model for tramway services

In this paper, we build a proxy cost model for tramway services. we estimate separately: (i) transport services production costs; (ii) infrastructure costs; (iii) maintenance costs; (iv) administrative and general costs and (v) the cost of capital. we apply the proposed methodology to estimate the standard cost of italian tramway services. detailed data about costs, technical and environmental characteristics were collected by means of questionnaires sent to italian companies providing 100% of tramway services in 2012. we perform a simulation study in order to highlight the marginal impact of efficiency gains obtained by manipulating cost-driving variables both under the control of the operators (trains and drivers productivity) and of the local authority who assigns the service (number of train revenue kilometers (trK) assigned within the service contract, average fleet age). the simulations show how the local authority should allocate extra resources if it wants to increase the quality-quantity mix of tramway services. our results might help the decision-maker to define the maximum economic compensation (auction base) in competitive tendering procedures or a benchmark for the bargaining with the local monopolist

Insights in the cost of continuous broadband Internet on trains for multi-service deployments by multiple actors with resource sharing

The economic viability of broadband Internet services on trains has always been proved difficult, mainly due to a high investment cost and low willingness to pay by train passengers, but also due to unused opportunities such as non-passenger services (e.g. train performance monitoring, crew services) and optimization of the resources consumed to offer Internet services. Evaluating opportunities to improve the return on investment is therefore essential towards profitability of the business case. By efficiently sharing resources amongst services, costs can be pooled over several services in order to reduce the investment cost per service. Current techno-economic evaluation models are hard to apply to cost allocation in a multi-service deployment with multiple actors and resource sharing. We therefore propose a new evaluation model and apply it to a deployment of Internet services on trains. We start with a detailed analysis of the technical architecture required to provide Internet access on trains. For each component, we investigate the impact by the different services on resource consumption. The proposed techno-economic evaluation model is then applied in order to calculate the total cost and allocate the used and unused resources to the appropriate services. In a final step, we calculate the business case for each stakeholder involved in the offering of these services. This paper details the proposed model and reports on our findings for a multi-service deployment by multiple actors. Results show important benefits for the case that considers the application of resource sharing in a multi-service, multi-actor scenario and the proposed model produces insights in the contributors to the cost per service and the unused amount of a resource. In addition, ex-ante insights in the cost flows per involved actor are obtained and the model can easily be extended to include revenue flows to evaluate the profitability per actor. As a consequence, the proposed model should be considered to support and stimulate upcoming multi-actor investment decisions for Internet-based multi-service offerings on-board trains with resource sharing

A Minimum-Cost Flow Model for Workload Optimization on Cloud Infrastructure

Recent technology advancements in the areas of compute, storage and networking, along with the increased demand for organizations to cut costs while remaining responsive to increasing service demands have led to the growth in the adoption of cloud computing services. Cloud services provide the promise of improved agility, resiliency, scalability and a lowered Total Cost of Ownership (TCO). This research introduces a framework for minimizing cost and maximizing resource utilization by using an Integer Linear Programming (ILP) approach to optimize the assignment of workloads to servers on Amazon Web Services (AWS) cloud infrastructure. The model is based on the classical minimum-cost flow model, known as the assignment model.Comment: 2017 IEEE 10th International Conference on Cloud Computin

The Strategy of the Commons: Modelling the Annual Cost of Successful ICT Services for European Research

The provision of ICT services for research is increasingly using Cloud services to complement the traditional federation of computing centres. Due to the complex funding structure and differences in the basic business model, comparing the cost-effectiveness of these options requires a new approach to cost assessment. This paper presents a cost assessment method addressing the limitations of the standard methods and some of the initial results of the study. This acts as an illustration of the kind of cost assessment issues high-utilisation rate ICT services should consider when choosing between different infrastructure options. The research is co-funded by the European Commission Seventh Framework Programme through the e-FISCAL project (contract number RI-283449)

Economies of scale and scope in Australian telecommunications

This paper employs a composite cost function to examine the cost structure of Australian telephone services. The composite cost model combines the log-quadratic input price structure of the translog model with a quadratic structure for multiple outputs. Quadratic output structures permit the measurement of economies of scale, economies of scope, and subadditivity without prejudging their presence. Model estimates, on Telstra system data from 1926 to 1991, show that the production of Australian telephone services exhibits economies of scope but no ray economies of scale.Telecommunications; production; scale; scope; Australia

"Air services on thin routes: Regional versus low-cost airlines"

An examination of the impact in the US and EU markets of two major innovations in the provision of air services on thin routes - regional jet technology and the low-cost business model - reveals significant differences. In the US, regional airlines monopolize a high proportion of thin routes, whereas low-cost carriers are dominant on these routes in Europe. Our results have different implications for business and leisure travelers, given that regional services provide a higher frequency of flights (at the expense of higher fares), while low-cost services offer lower fares (at the expense of lower flight frequencies).air transportation; regional jet technology; low-cost business model; thin markets JEL classification:L13; L2; L93

Hedonic pricing models for metropolitan bus services

Conventional studies on the pricing of bus services use the cost structure to explain bus fares. In this paper, a hedonic pricing model for bus services in Hong Kong is estimated. The contributions of cost and market factors are uncovered. It is found that the cost factors dominate the determination of bus fares. In contrast to our expectation, bus fares do not react to competition faced by bus companies. Moreover, except the three cross-harbour tunnels, the bus fare has no direct relationship with the tolls of other tunnels. Our model serves well as a reference tool for bus companies to set market-acceptable bus fares.Hedonic Pricing Model, Bus Fares, Kowloon Motor Bus.

Fault management and service provisioning process model of next generation access networks

Network operators are nowadays upgrading their access networks to cope with the increasing number of users and the increasing bandwidth required by services. However, cost plays a crucial factor. In order to decide which next generation access network will be implemented, an accurate cost evaluation should be performed. This evaluation requires a total cost of ownership model including a detailed model of the most costly operational processes: fault management and customer provisioning. These models help identifying the most costly sub-processes, where network providers should improve their cost efficiency. This paper presents detailed models for these operational processes and gives an approach to use them for estimating future operational costs

Transaction services, inflation, and welfare

This paper is motivated by empirical observations on the comovements of currency velocity, inflation, and the relative size of the credit services sector. We document these comovements and incorporate into a monetary growth model a credit services sector that provides services that help people economize on money. Our model makes two new contributions. First, we show that direct evidence on the appropriately defined credit service sector for the United States is consistent with the welfare cost measured using an estimated money demand schedule. Second, we provide welfare cost of inflation estimates that have some new features.Inflation (Finance) ; Welfare