BCD Forum Introduces New Business Modeling Tool

The BCD Forum is offering a Flash-based modeling tool aimed at helping network service providers and content providers evaluate basic financials in deploying new broadband-based IP services. The tool, developed and contributed by BCD Forum member company Juniper Networks, provides estimates of key financial metrics including the incremental revenue, costs, margin and cash flow.



The financial tool allows service providers to perform basic ROI assessments for individual services such as online gaming, video and voice services in an incremental manner for different scenarios. Providers can input per subscriber revenues; variable demand profiles; estimated per subscriber partnership and capital costs; sales, general and administration rates and discount rates. A financial summary encompassing incremental revenue, operational and partner expenses, capital investment, operating margin, free cash flow and Net Present Value are projected over a 5-year interval.



The model also offers content providers and network service providers the ability to assess prospective cooperative business models, set objectives for negotiating win-win partnerships, and enables a framework for making sound business decisions.



"The BCD Forum is committed to accelerating the deployment of profitable broadband services and fostering viable collaborative partnerships across the content delivery value chain," stated Derek Kuhn, Chairman of the BCD Forum. http://www.bcdforum.org.