Telecommunications

Operation profile

The telecommunications industry includes both service providers and equipment manufacturers, with equipment manufacturers producing both transmitting and receiving equipment for traditional wired networks and modern optical and wireless networks.

The representative operation modeled is a manufacturer of specialized telecom equipment in either a wired or a wireless environment. As detailed in the following table, this operation is characterized by:

  • Moderate land, building, and equipment requirements
  • A workforce heavily weighted toward highly skilled professional/technical staff and skilled operators
  • Modest energy requirements
  • Relatively high costs for materials, reflecting the significant use of components and sub-assemblies
  • Modest in-house R&D activities.

The business is assumed to operate as a stand-alone profit center.
 

Summary of operating parameters

Industry: Telecommunications

Operation: Telecom equipment manufacturing

Facilities requirements
   Leased industrial site - acres (16,187 m2)
4
   Size of factory - ft2 (5,574 m2)
60,000

Other initial investment requirements
   Machinery and equipment - US $'000
$17,000
   Office equipment - US $'000
$400
   R&D equipment - US $'000
$500
   Inventory - US $'000
$5,000
   Equity financing - % of project costs
50%

Workforce
   Management
7
   Sales and administration
20
   Production/non-dedicated product development
      - Professional, technical
45
      - Operators
30
      - Unskilled laborers
14
   Other
4
 
Total employees
120

Energy requirements
   Electricity: monthly consumption demand - kWh
200,000
   Gas: monthly consumption - CCF (15,864 m3)
5,600

Other annual operating characteristics
   Sales at full production - US $'000
$43,000
   Materials and other direct costs - % of sales
45%
   Other operating costs - % of sales
8%
   Investment in tax-eligible R&D - % of sales
5.1%

International results

International results are illustrated in the following chart. These results reflect the combined impact of 26 location-sensitive cost components applied to the modeled operation. Detailed results for these countries, by individual cost component, are available as a separate table.

City results

The following table profiles results for selected cities, by country, from among the 111 cities featured in this report. Results for all other cities included in the study can be found in the Results lookup section of this website.

Results for selected cities
Industry: Telecommunications
Operation: Telecom equipment
North America – lowest cost cities
Country and CityIndex & Rank1
CAMoncton, NB88.63
 Fredericton, NB88.64
 St. John's, NL88.85
 Charlottetown, PE89.36
 Winnipeg, MB89.47
MXMonterrey, NL84.31
 Mexico City, DF85.02
USShreveport, LA95.234
 Baton Rouge, LA95.837
 Omaha, NE95.938
 Savannah, GA96.039
 Lexington, KY96.040
 Little Rock, AR96.141
 Montgomery, AL96.142
 Youngstown, OH96.143
 Gulfport-Biloxi, MS96.444
 Fargo, ND96.545
1  Rank among 111 featured cities.
 
 
 
International locations – all cities
Country and CityIndex & Rank1
AUAdelaide92.524
 Brisbane93.529
 Melbourne92.626
 Sydney93.428
FRMarseille93.227
 Paris93.930
GEBerlin95.132
 Frankfurt95.636
ITMilan92.423
 Rome92.525
JPOsaka95.335
 Tokyo95.233
NLAmsterdam91.922
 Rotterdam91.821
UKLondon94.931
 Manchester90.211
1  Rank among 111 featured cities.

 
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