erver B2C/B2B Mail order, support Solutions Positioning MP3 support migrating to MMS support Today architecture support = Bit pipe provision Cooperation application provider-actor = Added value Supporting framework Figure 4.2 Business convergence between the three worlds Explain ROCE. Give examples of roles/positions in the value chain. Explain how business cases can be used as a tool to evaluate investments. Explain access unbundling and peering. Explain OPEX and CAPEX and their relationship to the main operator process. Explain ROI, payback period, NPV and IRR (see Appendix 2) Much of the changes in telecom business are related to new techniques, especially the convergence, the IP paradigm and a new layered structure. The development leads to new roles, such as portals, content providers and applica- tion service providers. Are the roles profitable or not? Or will they be? What about the ARPU (average revenue per user) development? How can we measure if investments are profitable, using means such as ROCE or ROI? With the telecom market turbulence in mind let us immediately state that the area is affected by much uncertainty. This makes it impossible to answer many of the questions raised above, but this does not reduce their importance to a telecom area actor. The chapter is fairly generic. The main topics covered are roles and business cases for investments. Figures 4.2 repeats Figures 3.24 and Figure 4.3 is composed by Figures 3.25 and 3.41, forming a bridge to the previous chapter. Telecom Business User data FAB = User User segments Content interface, with Charges provision fulfillment, Life stage dimension or content assurance and Roles (Billing) Value/attitude dimension reception billing (Peer) Services, QoS, Security perception SM = Service Service and application management resources (API) NM = Network ROCE etc management Stable economic Fundamental technical plans Investments Figure 4.3 Telecom business, users, content provision, service and application provision and network 4.2 THE TELEMANAGEMENT FORU