TECHNICAL One of the activities of the business plan is, invariably, a financial and operational model. Financial Modelling 15 Effective business planning requires a structured quantitative approach. A central part of such an approach is the financial model used to explore the potentials and sensitivities of the business case. In many cases considerable effort is expended building the financial model from scratch and often insufficient testing results in errors that may go undetected. Operational Modelling Whilst the financial model should help with “sensitivity analysis” of a business plan, an integral part of the model is the operational component i.e. what are the costs associated with launching the business and subsequently supporting during launch and ongoing costs? The sample business plan identified above can be used to build a timeline covering launch and ongoing support costs, but it is likely that a more detailed model to illustrate operational requirements (and costs) is needed and hence an integral input component into any business plan. One such model, the FAB model is that promoted by the TM Forum 17 and is illustrated in Figure 4.2. opposite. Note that the model is not the latest version of the TM Forum FAB model, but it is the version used by the author. As Figure 4.2 illustrates, the model is easily understood and ignoring the Operations Support and Readiness functionality (for a later discussion, maybe) is the Fulfillment, Assurance, and Billing functions. It is likely (and from the author’s experience of working with service providers across the globe) that the altnets have a support function that maps very closely to the FAB model. Figure 4.2 is introduced as an aid to illustrate opinion later within this paper. Comments The modelling of an altnet has been introduced with three main objectives, viz: 1. To introduce the capability for “testing” the financial rigour of a business plan 2. As an aid within any discussion on the concept the concept of shared infrastructure across multiple altnets (and BT/VMO2)
Figure 4.1: An Example of a Financial Model
3. Earlier comments identifying competitive pressures suggest the “bit pipe” into the customer premises is a challenge for multiple service providers. The Neutral Access Network – “It didn’t come from nowhere 18 ” If, and as the author aludes to, there is some value in sharing infrastructure into customer premises (the bit pipe) then what would this approach consist of?
Figure 4.2: TM Forum FAB Model
Back in (2010), my company First Mile Networks (FMN won a UK Technology
Figure 5.1: Lightpaths on Demand
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Volume 46 No.4 DECEMBER 2024
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