ee also Figure 4.41. MAE-East Wineasy Tele2 Telia Dalnet : Server Access Transit Peering Transit Hosting charge charge no charge charge charge Membership Figure 4.41 Small ISPs pay large ISPs Telecom Business End-user services Service X Market share Z Roles Figure 4.42 Revenue elements from end-user services 4.6.5 IMPACT OF MARKET SHARE The revenue for a specific actor depends on the role(s), the service offerings, the charging and the market share per service. Both the income per service and the distribution of the revenue between the actors are unstable. Figure 4.42 illustrates the unstable revenue elements from the end users. In the 'good old monopoly days' things were more stable but slower. The market share for a particular service has a clear relationship to the agility in launching new services, and charging for them. A common business-oriented approach is to develop business cases for the potential services. See Sections 4.6, 4.7 and 5.2. 4.6.6 IMPACT OF MANAGEMENT Let us illustrate the importance of a good telecom management with a small 'classi- cal telephony' example. From an operator perspective, the quality depends on anything that affects the number of successful calls, which is the same as the income base. It is easy to make a small business case and see how the answer ratio affects the operator's income. Example: A city with 100 000 telephone subscribers An average of 12 calls per subscriber and day An average income of 1 Swedish crown (SEK) per call How much will the annual income be affected by an increase of 1 % in the answer ratio? Answer: 100,000x12x1/100x365 = 4 380 000. The income increases by more than 4 MSEK per year. 4.7 COST EFFICIENCY Cost efficiency paired with service quality is a key area of interest for operators to improve competitiveness both in the eyes of customers and financial markets. Understanding Changing Telecommunications - Building a Successful Telecom Business Administration Network management Short-term procurements/ Billing Equipment cost Annualized capital cost Mark