 it spends on maintaining the network in order to meet daily operation and normal growth expectations. If next generation solutions drive down baseline (OPEX) costs, they will be successful. Figure 4.44 illustrates the concepts: select the new generation network (NGN) to be one of the options in the box 'Strategy and evaluation of options'. Compare NGN with other options in a business case. Choose the best alternative. Implement the best alternative. Telecom Business Business case development Operating expense Financial Revenue modelling Capital expenditure Available capital Operator situation analysis Market assessment Strategy and Business Operator evaluation Discretionary Baseline Prioritization assessment positioning of options Competitive assessment Continue to grow and Implement operate new network existing concept network Infrastucture planning Figure 4.44 The difference between baseline and discretionary costs Let us start with some baseline costs, illustrated by Figure 4.45 from an expanding cellular operator that continues with a specific technology (GSM). Obviously marketing and customer care are labour intensive parts of the operator processes. Network or telecom management represents main baseline expenditure, with customer care as an important part. See Figure 4.46. The Issue of Changing Technology: Uncertainties When changing technology, or modernizing the network, we consider discretionary costs. To evaluate the outcome of a possible change there is a need for some kind of tools. Administration & management Finance & accounting Marketing & customer service Technical department system operation & maintenance Figure 4.45 Example of staff development for cellular operator with a growing business (GSM technology is used throughout the period) Understanding Changing Telecommunications - Building a Successful Telecom Business Management system Traffic system Customer network management Customer management IT & system management Network operation Service warehousing provisioning Transmission Internet ATM