Equipment cost Annualized capital cost Marketing & sales Interconnect Figure 16.18 Example of cost elements for a network operator Understanding Changing Telecommunications - Building a Successful Telecom Business Fault Management Multiple networks Traditional Many faults Multiple elements vertical Many spares Multiple technologies network Complex fixes Multiple management Multiple O&M costs savings Common network Fewer faults Fewer elements Fewer spares Single technology network Simple fixes Common management Single O&M costs Figure 16.19 Fault management comparisons The introduction of the new network architecture has an impact on cost as also dis- cussed in Chapter 4. Cost reductions are achieved due to the sharing of common activ- ities (surveillance to mention just a simple one). Let us here exemplify by means of fault management. Fault management cost element savings are depicted in Figure 16.19, as a contribution to a better ROCE. There are reasons, however, to include an increased fault management cost at the point in time when the new network is taken into operation and until other technologies have been phased out. The capital employed term is a little more complex to explain. Let us use the tele- com management activity traffic management as a tool. In a given network situation an improved traffic management allows higher traffic handling, enabling a postponing of network expansions. Telecom management may be considered then as reducing the tied capital or network assets. Telecom management spare handling is another possible means to reduce capital employed through better administration, for example sharing store holding with suppliers. 16.7 CUSTOMER CARE AND DATA WAREHOUSING 16.7.1 BILLING AND CUSTOMER CARE Customer care is important in winning and keeping customers, as it can be the differentia- tor in the marketplace. As more services are added to the operator portfolio the demands on customer care become more complex, involving more systems, more interfaces and more procedures. This complexity can 