ATTACHMENT B

SBCTZON 4
COST STUDY -ATION
COST DEVELOPMENT - RXURRINQ
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SXRVICX PROVIDER NUMBER PORTABILITY
This section defines the recurring cost development for Service Provider
Number Portability.
Rmcurring Cast D.tn1-t
The basic econunic cost development is outlined in Section 2. Network
architecture is determined; the necessary equipaent is identified;
vendor EFhI investments are calculated; factor. and loadings are
applied; and the result is levelized for the'study period. Annual cost
factors are applied to convert the inmetmaat to cost. ACE, an
internally developed modcl is ueed to parform the mathematical
calculations necessary to convert inwstmaata to costs. Since tho
results are linear with respect to the investmaat, a conversion factor
by plant account code and in-plant factor (Telco, Nardwire, or Plug-in)
can be developed. Tab 7 outlinoa tho daMlapaant of tho factor. 'Rm
conversion factor is developed by wing tho ACI model to calculate the
annual coat of a $lO,OOO investment and dividing by 12.
meneioned in Section 2, the SCIS modbl lap the foundation for
developing vandor EPLI imrestmants. The model's outputs reflect vendor
design criteria, BollSouth anghering rules, and mtaner usage
characteristics.
workpapers involved in the davelogawnt of recurring costs for Service
Provider Number Portability wing -to Call Ponmrding (RCF) are as
follows: 20-26 -1- tho hlVU.tU10Ut and mrt ths hlV0at-t t0
monthly coats. 17 -lopa tho Right to Uao Foes (RTU Fees), 28
calculate8 UU tdatian cornu aud axpresses tho moults as a
recurrhg Cost. 'Ipnmkfpg casts am developed an workpapera 41-43.
workpapan imrolvd in the dovelopmat of recurring mats for service
Providor Portability wing D i m Inwud Dialing (DID) are as
follows: 20-24 develop tho invastmeat and coavezz. the investment to
monthly costs.
F23202Z
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