Let's delve into the details of the Cost Per Call Minute (CPCM) KPI within the telecommunications industry.

Cost Per Call Minute (CPCM) KPI in Telecommunications

Data Requirements

To accurately calculate CPCM, we need a combination of call data and cost data. Here's a breakdown:

Call Data

• Call Detail Records (CDRs):

  These are the primary source of call information. Key fields include:

  • Call Start Time:

    Timestamp indicating when the call began.

  • Call End Time:

    Timestamp indicating when the call ended.

  • Call Duration:

    Calculated as the difference between end and start time, usually in seconds.

  • Call Type:

    (e.g., local, long-distance, international, mobile, landline).

  • Caller ID:

    The originating phone number.

  • Callee ID:

    The destination phone number.

• Data Aggregation:

  We need to aggregate call durations to get the total minutes for a specific period (e.g., daily, weekly, monthly).

Cost Data

• Network Operating Costs:

  These are the costs associated with running the telecommunications network. Examples include:

  • Infrastructure Costs:

    Costs of maintaining towers, switches, cables, etc.

  • Bandwidth Costs:

    Costs of leasing or owning network capacity.

  • Energy Costs:

    Electricity consumption for network equipment.

  • Maintenance Costs:

    Costs of repairs and upkeep.

• Personnel Costs:

  Salaries and benefits for staff involved in network operations.

• Other Operational Costs:

  Any other costs directly related to providing call services.

• Cost Allocation:

  Costs need to be allocated to the call service. This might involve complex allocation models based on usage or other factors.

Data Sources

• Billing Systems:

  These systems generate CDRs and often store some cost information.

• Network Management Systems:

  These systems provide data on network performance and resource utilization, which can be used to estimate costs.

• Financial Systems:

  These systems hold detailed financial data, including operating expenses.

• Data Warehouses/Data Lakes:

  These centralized repositories store and integrate data from various sources.

Calculation Methodology

Here's the step-by-step calculation of CPCM:

1. Calculate Total Call Minutes:

   • For each call, calculate the duration in minutes:

     .

   • Sum the call durations for all calls within the specified period.

2. Calculate Total Costs:

   • Sum all relevant network operating costs, personnel costs, and other operational costs for the same period.

3. Calculate CPCM:

   • Divide the total costs by the total call minutes:

Example:

Let's say for a month:

• Total Call Minutes = 1,000,000 minutes

• Total Costs = $500,000

• CPCM = $500,000 / 1,000,000 minutes = $0.50 per minute

Application of Analytics Model

An AI-powered analytics platform like 'Analytics Model' can significantly enhance the calculation and analysis of CPCM:

• Real-Time Querying:

  • Users can query data from various sources in real-time using free text queries (e.g., "Show me the CPCM for international calls last week").

  • The platform can automatically translate these queries into the necessary SQL or other data retrieval commands.

• Automated Data Integration:

  • The platform can automatically connect to billing systems, network management systems, and financial systems to pull the required data.

  • It can handle data transformations and aggregations automatically.

• Automated Insights:

  • The platform can identify trends and anomalies in CPCM data (e.g., spikes in costs, changes in call patterns).

  • It can provide explanations for these trends using AI algorithms.

• Visualization Capabilities:

  • The platform can generate interactive dashboards and visualizations to display CPCM data.

  • Users can drill down into the data to explore specific areas of interest.

• Predictive Analytics:

  • The platform can use historical data to predict future CPCM and identify potential cost-saving opportunities.

Business Value

CPCM is a crucial KPI for telecommunications companies because:

• Cost Management:

  • It helps identify areas where costs are high and need to be reduced.

  • It allows for better resource allocation and cost optimization.

• Pricing Strategy:

  • It informs pricing decisions by providing insights into the actual cost of providing call services.

  • It helps ensure that pricing is competitive and profitable.

• Network Efficiency:

  • It can highlight inefficiencies in the network that are driving up costs.

  • It helps identify areas where network performance can be improved.

• Profitability Analysis:

  • It provides a clear picture of the profitability of different call types and services.

  • It helps identify which services are most profitable and which need to be re-evaluated.

• Decision Making:

  • It provides data-driven insights that support strategic decision-making.

  • It enables informed decisions about investments, pricing, and network operations.

By leveraging CPCM and an analytics platform like 'Analytics Model', telecommunications companies can gain a competitive edge, optimize their operations, and improve their bottom line.