/FR PLMN/PSTN/ISDN Figure 4.46 Telecom management is a main baseline cost with expenditure for staff, IT and O&M infrastructure One is the business case, described before. We must in this context also look at the impact of a change on the process chain. Can the processes be performed faster after the change? Or cheaper? There is a fundamental difference between the introduction of broader accesses, such as EDGE, UMTS and ADSL, and the horizontalization of the network core. The first case is an extension or an upgrade, and the second case is more of a modernization. Extensions have to be paid for by means of the new traffic they are supposed to carry, whereas implementation of a modernized core network design can be compared with a traditional (vertical) way of building and operating a network core for voice, data and multimedia. Of course, it is also possible to use the new 3G accesses as a modernization tool by using them for voice. In the following, network modernization is mainly considered. Modernization has a limited dependence on new services and regulations. Upgrades/extensions to access are also briefly dealt with. For extensions like 3G accesses there is a well-known debate going on. Among the uncertainties are regula- tory issues, such as operator cooperation rules and coverage requirements of sparsely populated areas, and the length of the end-user 'maturity process' for the new services. Cost efficiency then becomes more difficult to measure. 4.7.1 MODERNIZATION ASPECTS When modernizing a network it is highly desirable to cut the baseline OPEX costs and increase the funding for discretionary costs. However, in an uncertain world we should carefully select the 'right' cost-cutting technologies, with a high degree of flexibility. Telecom Business The potential of the next generation solutions contributes with many types of savings: savings resulting from a new organization, new business processes, reduction in network complexity, elimination of network elements, and reduced operational requirements. Let