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BCRI's Telecommunications
2008 Depreciation Tables

This year a new classification was added to specifically address CATV converters and set-top boxes; and several discontinued wireless classifications were reactivated.

BCRI updated its obsolescence models for wireless communication equipment (i.e., Cellular/PCS eq.). This update was necessary to reflect the impacts of emerging G4  technology, observed experience, and to reflect changes in how the wireless industry classifies its equipment – specifically, the reclassification of some G3 equipment to G2.5.

For example: when initially introduced, GSM technology was touted as the latest technology and classified as G3. It was anticipated the GSM technology would rapidly displace G2.5 and prior technologies. Recently, however, the industry changed its classification of GSM from G3 to G2.5. Because BCRI’s wireless depreciation tables are segmented by generation (Gs), this classification change shifts obsolescence between the generations. BCRI’s models were revised to reflect the industry’s current generation classification.

This reclassification results in significant differences between the obsolescence levels associated with G2.0 and G2.5 technology. As a result, separate depreciation tables are again provided for G2.0 and G2.5 generations. Previously, these generations were combined into one, G2.x, because the obsolescence levels were very similar. A depreciation table is still provided for G2.x for those instances where it is not practical or possible to separate the equipment.

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