Methodology and Process to Price Benchmark Bundled Telecommunications Products and Services

摘要

This invention relates generally to a system and method to provide price benchmark for a bundled product consisting of two or more components, with particular application in telecommunications products/services. Benchmarking bundled services usually revolves around choosing a price distribution quantile of (near) identical bundled transactions. Historical transaction data lacks sufficient volume to extract reliable statistical information to price benchmark bundled telecommunications services of “similar” nature (typically includes triplets of access, port/plug and CustomerPremisesEquipment). An alternative, Component Based Model (CBM), approach sums the price quantile of each component in the bundle. The advantage of CBM is that price data by network element is more abundant providing acceptable statistical reliability. The drawback is that the sum of quantile values usually underestimates the quantile of the sum. This invention presents a method and procedure to modify CBM to provide an accurate quantile value representing a Full Cost bundled product.