Posted by & filed under Accounting Principles, Managerial Accounting.

Description:  In Canada right now there are about 33,000 cellphone towers. That may seem like a lot, but with telecommunications providers moving towards 5G networks, estimates have it that Canada will need over 270,000 so-called small cells in the next few years. These devices, about the size of a briefcase, are intended for placement in Canadian towns and cities. With municipalities and the federal government both having some say in what goes where, it will be interesting to see how the costs for 5G will add up.

Date:  October 19, 2018

Source:  financial post.com

Link: https://business.financialpost.com/telecom/network-challenges-loom-large-for-telecoms-4g-on-steroids

 

Discussion points:

1) Have you ever seen one of these 5G small cells? Have you ever been on the campus of UBC, for instance?

2) How would a managerial accountant go about costing the implementation of a new 5G network? Based on the article, what would be some costs that would have to be included?

3) Take a look at Chapter 9 in Wiley’s Financial Accounting: Tools for Business Decision-Making. What might you see as the way to determine the useful life to be used in calculating depreciation of a 5G network?

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