The extent to which the economy's finite resources are deployed in a fashion so as to derive maximum benefit. An important condition is that prices reflect underlying costs. Broadband Switched Mass Market Services Services aimed at a mass market delivered over broadband switched telecoms networks. Common Costs Costs that are incurred in the supply of all or a group of services provided by the firm and cannot be directly attributed to any one service.
Common costs arise from the existence of economies of scope .
An accounting methodology, where assets are valued and depreciated according to their current replacement cost. The value of discounts from the standard tariff BT was offering at 31 July 1993, which BT must maintain in accordance with Condition 24C of its licence, or offer equivalent reductions in standard prices. Economic Rate of Return See Internal Rate of Return. Economies of Scale These are present where the unit cost falls as the level of output rises. Equal Proportionate Markups A method of recovering the common costs of interconnection, where the markup on the incremental cost of a network service is equal across all services.