https://urgentcomm.com/wp-content/themes/ucm_child/assets/images/logo/footer-new-logo.png
  • Home
  • News
  • Multimedia
    • Back
    • Multimedia
    • Video
    • Podcasts
    • Galleries
  • Commentary
    • Back
    • Commentary
    • Urgent Matters
    • View From The Top
    • All Things IWCE
    • Legal Matters
  • Resources
    • Back
    • Resources
    • Webinars
    • White Papers
    • Reprints & Reuse
  • IWCE
    • Back
    • IWCE
    • Conference
    • Special Events
    • Exhibitor Listings
    • Premier Partners
    • Floor Plan
    • Exhibiting Information
    • Register for IWCE
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Terms of Service
    • Privacy Statement
    • Cookies Policy
  • Related Sites
    • Back
    • American City & County
    • IWCE
    • Light Reading
    • IOT World Today
    • Mission Critical Technologies
    • Microwave/RF
    • T&D World
    • TU-Auto
  • In the field
    • Back
    • In the field
    • Broadband Push-to-X
    • Internet of Things
    • Project 25
    • Public-Safety Broadband/FirstNet
    • Virtual/Augmented Reality
    • Land Mobile Radio
    • Long Term Evolution (LTE)
    • Applications
    • Drones/Robots
    • IoT/Smart X
    • Software
    • Subscriber Devices
    • Video
  • Call Center/Command
    • Back
    • Call Center/Command
    • Artificial Intelligence
    • NG911
    • Alerting Systems
    • Analytics
    • Dispatch/Call-taking
    • Incident Command/Situational Awareness
    • Tracking, Monitoring & Control
  • Network Tech
    • Back
    • Network Tech
    • Interoperability
    • LMR 100
    • LMR 200
    • Backhaul
    • Deployables
    • Power
    • Tower & Site
    • Wireless Networks
    • Coverage/Interference
    • Security
    • System Design
    • System Installation
    • System Operation
    • Test & Measurement
  • Operations
    • Back
    • Operations
    • Critical Infrastructure
    • Enterprise
    • Federal Government/Military
    • Public Safety
    • State & Local Government
    • Training
  • Regulations
    • Back
    • Regulations
    • Narrowbanding
    • T-Band
    • Rebanding
    • TV White Spaces
    • None
    • Funding
    • Policy
    • Regional Coordination
    • Standards
  • Organizations
    • Back
    • Organizations
    • AASHTO
    • APCO
    • DHS
    • DMR Association
    • ETA
    • EWA
    • FCC
    • IWCE
    • NASEMSO
    • NATE
    • NXDN Forum
    • NENA
    • NIST/PSCR
    • NPSTC
    • NTIA/FirstNet
    • P25 TIG
    • TETRA + CCA
    • UTC
Urgent Communications
  • NEWSLETTER
  • Home
  • News
  • Multimedia
    • Back
    • Video
    • Podcasts
    • Omdia Crit Comms Circle Podcast
    • Galleries
    • IWCE’s Video Showcase
  • Commentary
    • Back
    • All Things IWCE
    • Urgent Matters
    • View From The Top
    • Legal Matters
  • Resources
    • Back
    • Webinars
    • White Papers
    • Reprints & Reuse
    • UC eZines
    • Sponsored content
  • IWCE
    • Back
    • Conference
    • Why Attend
    • Exhibitor Listing
    • Floor Plan
    • Exhibiting Information
    • Join the Event Mailing List
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Terms of Service
    • Privacy Statement
    • Cookies Policy
  • Related Sites
    • Back
    • American City & County
    • IWCE
    • Light Reading
    • IOT World Today
    • TU-Auto
  • newsletter
  • In the field
    • Back
    • Internet of Things
    • Broadband Push-to-X
    • Project 25
    • Public-Safety Broadband/FirstNet
    • Virtual/Augmented Reality
    • Land Mobile Radio
    • Long Term Evolution (LTE)
    • Applications
    • Drones/Robots
    • IoT/Smart X
    • Software
    • Subscriber Devices
    • Video
  • Call Center/Command
    • Back
    • Artificial Intelligence
    • NG911
    • Alerting Systems
    • Analytics
    • Dispatch/Call-taking
    • Incident Command/Situational Awareness
    • Tracking, Monitoring & Control
  • Network Tech
    • Back
    • Cybersecurity
    • Interoperability
    • LMR 100
    • LMR 200
    • Backhaul
    • Deployables
    • Power
    • Tower & Site
    • Wireless Networks
    • Coverage/Interference
    • Security
    • System Design
    • System Installation
    • System Operation
    • Test & Measurement
  • Operations
    • Back
    • Critical Infrastructure
    • Enterprise
    • Federal Government/Military
    • Public Safety
    • State & Local Government
    • Training
  • Regulations
    • Back
    • Narrowbanding
    • T-Band
    • Rebanding
    • TV White Spaces
    • None
    • Funding
    • Policy
    • Regional Coordination
    • Standards
  • Organizations
    • Back
    • AASHTO
    • APCO
    • DHS
    • DMR Association
    • ETA
    • EWA
    • FCC
    • IWCE
    • NASEMSO
    • NATE
    • NXDN Forum
    • NENA
    • NIST/PSCR
    • NPSTC
    • NTIA/FirstNet
    • P25 TIG
    • TETRA + CCA
    • UTC
acc.com

content


Network costs that hurt the bottom line

Network costs that hurt the bottom line

Many land mobile radio network operators take great pride in sharing how well their networks are functioning from a financial perspective. They discuss
  • Written by Urgent Communications Administrator
  • 1st June 2006

Many land mobile radio network operators take great pride in sharing how well their networks are functioning from a financial perspective. They discuss the accuracy of how they account for all the network costs incurred. After taking this all in, I ask them about opportunity costs. “Never heard of it,” they say.

Opportunity costs are most easily defined as additional costs resulting from inefficient or sub-optimal practices involved in managing the wireless network. Opportunity costs have no boundaries, attacking a range of networks from single site to statewide.

Among the most prominent drivers of opportunity costs are inadequate equipment maintenance, a lack of strategic planning and poor training. The costs are manifested in equipment breaking down quicker than expected, users contacting the help desk on a more frequent basis or inappropriate network design decisions. Opportunity costs vary across networks.

Consider a large statewide network that charges users a monthly access fee for voice services. In this case study, the network management team has been so successful in recruiting users that they have been unable to load them onto the network in a timely fashion. This drives the user agency to consider using an alternative system; therefore, spending their money elsewhere. For those agencies that eventually join, the network manager loses monthly revenue streams for an extended period of time. This lost revenue is an opportunity cost of having poorly designed loading and programming functions.

A regional network I was recently working with had built out its network very quickly but did not develop policies and procedures commensurate with the speed of its buildout. This created a host of problems for the network management team, including:

  • static and non-integrated asset management systems.
  • site documentation that is not updated in a timely manner.
  • frequency ownership and leasing data that is difficult to confirm.
  • new users not being integrated into the system in a timely manner.

The overall lack of adequate documentation and delayed responses resulted in network personnel spending additional time on non-value-added tasks. These tasks involved spending too much time looking for information or providing inaccurate information, which created additional problems.

In this specific instance, the opportunity costs added an additional 10% to the network’s annual costs.

Local networks are not immune from opportunity costs, either. In one situation, opportunity costs were driven by the lack of network interoperability with neighboring communities and even within the community.

The overall additional costs incurred by the local agency equaled 20% of its overall network cost, an astounding amount for a small network, created by the inability to secure interoperability.

And these are not the only categories of opportunity costs.

Opportunity costs appear to be a systemic problem. Educating network managers about their existence and how to calculate them is a critical first step. Beyond the education process, network managers must be able to identify areas for improvement. There are several ways to do this, including:

  • collect industry benchmarks.

  • perform a rigorous total cost-of-ownership analysis.

  • share best practices.

  • identify outsourcing or out-tasking options.

  • seek processes that can be automated.

Opportunity costs are a very curable problem. However, the first step in conquering the problem is understanding and identifying them.


Spencer Stern is a partner at Market Strategy Group. He has previously worked at Motorola and has extensive experience conducting interoperability and financial analyses involving land mobile radio networks.

Tags: content Policy

Most Recent


  • Coalition expresses urgent need to NG911 funding, wants more than proposed $10 billion
    ANAHEIM—Public Safety NG911 Coalition representatives expressed support for legislation that calls for as much as $10 billion in spectrum-auctions proceeds to be used to fund the transition to next-generation 911 technology, but they want the money to be available soon and believe more than $10 billion is necessary. These statements were made yesterday during a […]
  • APCO releases NG911 guide, quickly clarifies stance on NENA's i3 standard
    ANAHEIM—At its annual trade show, the Association of Public-Safety Communications Officials (APCO) yesterday announced the release of its “Definitive Guide to Next-Generation 911” and, hours later, issued a press release to clarify its position on the i3 standard developed by the National Emergency Number Association (NENA). APCO International Executive Director and CEO Derek Poarch announced […]
  • Motorola Solutions logo
    Motorola Solutions seeks contempt finding, global injunction against Hytera for not paying royalty
    Motorola Solutions asked a federal judge to find Hytera Communications in contempt of court for refusing to make ordered royalty payment and to prohibit the China-based manufacturer from selling land-mobile-radio (LMR) equipment globally, according to a legal filing posted Wednesday. Hytera Communications did not make its first royalty payment as scheduled on July 31 to […]
  • How IT teams can use 'harm reduction' for better cybersecurity outcomes
    It’s a well-known fact that humans are — and will continue to remain — one of the weakest links in any company’s cyber defenses. Security admins have tried to help the situation through random phishing tests and training, ultimatums, eliminating local control over a given device, and even naming and shaming those unlucky souls who […]

Leave a comment Cancel reply

To leave a comment login with your Urgent Comms account:

Log in with your Urgent Comms account

Or alternatively provide your name, email address below:

Your email address will not be published. Required fields are marked *

Related Content

  • Network costs that hurt the bottom line
    Newscan: Feds recover millions from pipeline ransom hackers, hint at U.S. Internet tactic
  • Cyber is the new Cold War, and AI is the arms race
  • Private wireless networks in the US start going public
  • Microsoft patches 6 zero-day vulnerabilities under active attack

Commentary


LTE and liability: Why the fire service must move forward with digital incident command

  • 2
6th May 2022

Partnership and collaboration must be the foundation for emergency communications

18th April 2022

FirstNet success means no hypothetical ‘shots’ need to be fired, Swenson says

22nd February 2022
view all

Events


UC Ezines


IWCE 2019 Wrap Up

13th May 2019
view all

Twitter


UrgentComm

Coalition expresses urgent need to NG911 funding, wants more than proposed $10 billion dlvr.it/SWL5VW

9th August 2022
UrgentComm

APCO releases NG911 guide, quickly clarifies stance on NENA’s i3 standard dlvr.it/SWKcCY

9th August 2022
UrgentComm

10 malicious code packages slither into PyPI registry dlvr.it/SWKHxl

9th August 2022
UrgentComm

Verizon Frontline deploys 1,000 connectivity services for nationwide wildfire response efforts dlvr.it/SWKGpW

9th August 2022
UrgentComm

Newscan: Verizon counts 5.1 million first-responder subs; AT&T has 3.7 million dlvr.it/SW84Gv

6th August 2022
UrgentComm

Taiwan crisis another blow to the supply chain dlvr.it/SW7GSs

5th August 2022
UrgentComm

Motorola Solutions seeks contempt finding, global injunction against Hytera for not paying royalty dlvr.it/SW6Ldm

5th August 2022
UrgentComm

Humanoid robot explores shipwrecks dlvr.it/SW36fy

4th August 2022

Newsletter

Sign up for UrgentComm’s newsletters to receive regular news and information updates about Communications and Technology.

Expert Commentary

Learn from experts about the latest technology in automation, machine-learning, big data and cybersecurity.

Business Media

Find the latest videos and media from the market leaders.

Media Kit and Advertising

Want to reach our digital and print audiences? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • American City & County
  • IWCE
  • Light Reading
  • IOT World Today
  • Mission Critical Technologies
  • TU-Auto

WORKING WITH US

  • About Us
  • Contact Us
  • Events
  • Careers

FOLLOW Urgent Comms ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookies Policy
  • Terms
Copyright © 2022 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X