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Green Connectivity, Power Management
April 2013 1
Cybercom’s mission, vision and values
Mission Why we exist
Vision What we want to be
Values Our guiding principles
“Boosting your
performance in the
connected world.”
“We are our clients’ most
trusted business partner in
the connected world.”
Innovation
Passion
Trust
April 2013 2
Cybercom is your partner in the Connectivity ecosystem
April 2013 3
Application & Service Developers
Content Providers
Infrastructure
Device Manufacturers
Operators
Platform Developers
3
Cybercom Business Domains in the connected world
April 2013
Connected Engineering Connectivity Management Digital Solutions
Designing and adding needed
intelligence to customer
products/devices
Assuring the connectivity,
making networks efficient
and manageable
Providing the future
connected world solutions, for
people and devices
Secure Connectivity
Assuring the end-to-end security,
reducing business risk when everything
gets connected.
4
Cybercom Footprint
April 2013
Cybercom
Sweden Cybercom
Finland Cybercom
Denmark
Cybercom
Poland
Cybercom
MEA JV Cybercom
Datamatics
Cybercom
Singapore Cybercom
Brazil
5
Connectivity Management – Innovation Areas
April 2013
The investment-heavy Connectivity
management domain faces a
number of unsolved dilemmas that
needs innovation and solutions.
User
experience a
differentiator
Business
model, role in
value chain
Vendor
outsourcing vs.
inhouse
Continuous
investments in
networks
Security
assurance
Go Green for
environment
and cost
savings
New
applications
behaviour
6
Connectivity Management - Value Proposal
April 2013
The key to success and high impact results is our technical edge –
but with focus on the operators financial benefits and improved customer experience
Identify issues of untapped revenue
(e.g. dropped calls, service availability)
Coverage improvements to support
voice and data revenues
Network Quality improvements at
different levels of the network
“Quick Wins” and long term impact
Revenue improvements Cost reductions Customer experience
FOCUS ON FINANCIAL IMPACT
CUSTOMER FOCUS
Delays or avoidance of CAPEX
investments
Efficient usage of the network –
reduction of OPEX
Less customer care costs and more
efficient internal processes
“Quick Wins” and long term reductions
Focus on real customer experience,
Quality of Service/Experience (QoS/QoE)
Voice and data services customer experience
Improvement
Increased customer satisfaction, more loyal
customers, more usage of network
Reduction of customer complaints
7 7
Connectivity Management - Practices
April 2013
Mobile Network Quality
Addressing the needs to provide excellent
quality of experience
Operational Excellence
Best practice services to improve
operational efficiency
Green Connectivity
Be environmental friendly and save
significant cost
8
Connectivity Management - Practices
April 2013
Mobile Network Quality
Addressing the needs to provide excellent
quality of experience
Customer experience management is the best competitive
strategy for operators to meet and exceed customers’
expectations. With proven expertise in performance
management, we enable our clients to maximise revenue
generation and customer loyalty.
OFFERINGS :
Customer experience management
Benchmarking
Audit
Performance improvement
9
Best practice services to improve operational
efficiency
Connectivity Management - Practices
April 2013
Operational Excellence
Our operationally oriented service scope is aiming to
recommend and implement ways of improving efficiency in
terms of cost and time to market.
As an independent third party, our sole interest is to maximise
the operational and business KPIs for the client.
OFFERINGS :
Vendor management
Managed functions
Connectivity Business Excellence
Procurement support
Project management
10
Be environmental friendly and save significant
cost
Connectivity Management - Practices
April 2013 10
Green Connectivity
A significant trend in the mobile industry is to become more
environmental friendly. In particular for markets with less
reliable grid power or fully off-grid, power cost can also be
substantial.
The Green Connectivity practice provides consulting services
for optimising power consumption and cost through the most
appropriate combination of battery, solar and wind power.
Savings in the range of 3MUSD/year can be achieved for as
little as 100 replaced sites.
OFFERINGS :
Power management & optimisation
Site RoI management (combining network and power KPI’s)
Swap management
11
12
Typical Client situation
Many operators of today acts in markets with less reliable grid power or fully
off-grid, with high power cost as a result.
Cybercom proposes to undertake a 3-year power management & optimisation service to improve cost efficiency for Clients from an Power consumption point of view resulting in significantly lower Opex. Cybercom aims at a long-term partnerships with its Clients, based on a savings-sharing concept, with a minimal fixed amount to be paid initially. The agreement covers a period of 3 years and after the initial savings-sharing period all savings remains with the Client. During the agreement period, Cybercom will support its Clients in optimising the power consumption. After an initial assessment, we will support Clients continuously with monitoring and reporting, implementation of proposed changes as well as coordinate sourcing and implementation of potential equipment needed.
April 2013 12
Objectives
•Provide an Inside-out view of the Energy part of the network
•Design
•Configuration
•Capacity
•Performances
•Efficiency
•Processes
•Costs
•Identify and implement improvements.
•Monitor and optimise continuously.
Methodology
•Input Questionnaires
•Interviews
•Field Activities
•Site Visits
•Site Layouts
•Performance reviews
•Benchmarks
•Analysis and strategy
•Verification of impact
•Full implementation
SOW
•Power Consumption
•Site installation
•Settings
•Equipment
•Cooling requirements
•Transmission needs
•Costs
Deliverables
•High impact results will come out of each step in the process:
•Assessment
•Define strategy
•Verification
•Implementation & Management
Cybercom differentiator:
We provide the client with an understanding of the current dynamics of their energy consumption, what they can do
to improve efficiency and we quantify the savings that can be achieved.
Optimising power consumption and cost through the most appropriate
combination of parameter tuning and green solutions.
Cybercom approach
April 2013 13 13
Situation
– High pressure to lower Opex especially for the rural part of the network.
– The general trend is that operational costs increases and ARPU remains the same or is
lowered, are high especially for off-grid sites.
– The client has identified energy costs as one of the areas to improve cost efficiencies.
– Green Connectivity technology and methodologies to be promoted.
Challenges
– What are the root causes for high energy costs?
– What are the options available to improve the situation ?
– If Capex is involved in resolving the problem, is there a credible business case to justify the
Capex?
– How can the client reduce energy costs by changing the mix of energy sources at its sites,
reducing load by eliminating unnecessary site infrastructure and changing O&M behavior?
Key issues
14
Our service focus on understanding of the situation and addressing key
challenges and issues.
Power Management & Optimisation
April 2013 14
Step 1
15
Assessment
Define Strategy
Verification
Implementation
Assessment
Understand the business and market environment. Assess the power
management approach in place, current power consumption and KPI:s.
This will support our analysis and determination of the right programme to meet
the business needs.
Define strategy
Identify the right power efficiency strategy for the business and define the overall
efficiency improvement programme. Recommend actions to improve energy
management.
We provide a supporting business case analysis on the annual savings that can
be achieved.
Verification
Proving the benefits of recommended strategy and actions by implementing
recommendations in part of the network.
Measure and evaluate the business impact.
Implementation
Network wide implementation of recommendations.
We provide the client with implementation of power management principles and
processes to improve efficiency and we quantify the savings that are achieved.
Step 2
Step 3
Our methodology is structured to reach and measure business impact.
Business impact methodology
Step 4
April 2013 15
16
Green Power Recommendations
Site Visits
Utility Bill analyses
KPI Analysis/benchmarks
Grid/Off grid analysis
Configurations/Equipment analyses
• Configurations
• Parameters
• Features
• Climate settigs
• Cooling
Assessment methodology
April 2013 16
17
• Understand management team main challenges like EBITDA changes, ARPU changes, O&M increasing.
• Get a hands-on perspective on problems at each region, types of sites
• Collect all data each type - sample selected sites
• Classified based on sites characteristic
• Get the total power Consumption
Objectives
• Mobilize team of energy efficiency experts.
• Identify set of model site for the team to visit. (optional)
• Document current energy matrix, total energy bill, sites conditions.
• Interview O&M personnel to understand O&M behavior.
• Prepare a template to collect site data
• Collect site mix of On grid/Off grid/poor grid, easy vs difficult access sites, current loads, mix of energy resources, etc
Approach
• Understand main problems and root cause for these problems
• Detail information of sample sites.
• Recommended actions that will improve cost efficiency.
Deliverables
Analyse current situation of power consumption and KPI:s.
Step 1 - Assessment of current situation
April 2013 17
18
• Evaluate impact of changing energy sources matrix.
• Evaluate possibilities of reducing the overall load.
• Analyze possible changes in O&M behavior.
Objectives
• Analyse financial impact of changes matrix of energy sources
• Evaluate applicability of renewable resources for poor and off grid sites
• Feasibility for a modern site energy controller to manage mix of energy resources
• Evaluate how to reduce load through various options like cooling, shelter, battery, etc
• Analyze potential improvement in O&M behavior
• Build business case based on identified actions to deliver best financial results.
Approach
• Define strategy for how to implement defined actions.
• Identify clusters for verification phase.
• Business case showing savings with planned actions.
Deliverables
Identify the actions to be taken to reduce energy costs.
Step 2 - Define Strategy
April 2013 18
19
Implement actions at reviewed part of network and measure
results.
Step 3 - Verification
• Implement energy efficiency improvement actions for each verification cluster.
• Measure result against Business case and KPI:s.
Objectives
• On approval of management team start implement initiatives.
• Procure necessary hardware if needed.
• Manage logistic and deploying the energy efficiency improvement initiatives.
• Put in place process to measure energy improvements.
• Present expected vs. actual results to management team.
Approach
• Lower energy cost at sample sites.
• Analysis of expected vs. measured result and reason for variances.
• Fine tuned actions and implementation plan
Deliverables
April 2013 19
20
Implement actions network wide and secure business impact.
Step 4 - Implementation & Monitoring
• Define KPI:s and performance statistics template for monitoring.
• Setup KPI reporting processes between client and Cybercom.
• Provide monthly report on performance to client management.
• Continuous optimisation of power cost.
• BoQ updates to generate further Opex savings.
• Monitor client implementation progress.
Objectives
• Collect the sites characteristic of sites good grid/pr grid/off grid, mix of energy sources, product used,
• Categorize sites in data base based on key characteristic which are based on model sites visited earlier
• Regular collection of site performance statistics.
• Processing and analysis to generate Monthly report on performance.
• Continuous optimisation of power cost.
Approach
• Monthly power management report
• Power KPIs
• Savings generated
• Analysis of status
• Updated optimisation plan
• Procurement needs
Deliverables
April 2013 20
21
Project setup and price
• Resources:
– Power Experts and analytical Experts.
– Remote consultants for network engineering and dimensioning and monitoring.
• Work to be performed partly on site with Client, partly off site. On site for information collection as well as final presentation and discussions. Off site for analysis and reporting.
• Pricing Model:
– An initial fixed level with lower sharing alternatively a lower fixed level with higher sharing. (see next slide)
– Cost of travel, accommodation, local transport and per diems / expenses are in addition to the above and will be invoiced 2 times per year at fixed and agreed level.
– Typical Estimated Expenses; Year 1= 20KUSD. Year 2=10KUSD. Year 3=10KUSD
The proposed scope is a 3 year management service starting with an initial 7
weeks assessment, as part of the scope.
The price model is based on an initial fixed cost and a recurring sharing principle.
April 2013 21
22
Financing Models
For a standard project, we offer sharing models with low initial fee’s,
depending on network size. Different percentage of savings sharing applies
for each option and segment as indicated below. (typical setup)
Segment 1 – No investment
Operator Cybercom
% %
70% 30%
Segment 2 – Minor investment
Operator Cybercom
% %
95% 5%
Segment 3 – Green upgrade Operator Cybercom
% %
97% 3%
Cybercom has defined 3 main segments of savings, each with
different sharing levels.
• Segment 1
– Non Capex related savings.
– Based on the total number of sites in the network.
• Segment 2
– Minor investment per site, ie replacement of existing equipment,
2-10KUSD.
– Based on various activities on 25% of the sites.
• Segment 3
– Green Upgrade investment per site, ie complete solar or
windsolutions, 30-40KUSD.
– Based on average of 5-10% of the sites, upgrades.
April 2013 22
Power Management Examples of possible savings (case study)
23
Without additional Capex, grid connected sites: 3-5% Opex reduction:
Annual savings 100-180KUSD (whole network)
With additional Capex, grid connected sites: 20-30% Opex reduction:
Savings 180-250KUSD annually for 25% of network
Typical payback 12-18 months
With additional Capex, off-grid sites: 50-90% reduction of Opex depending on the current situation.
Savings 1,2-2,4MUSD annually for 10% of network)
Typical payback 12-18 months
Total potential savings over 3 years 2.3-4.5MUSD*
Number of current sites 600 (example)
Number of off-grid sites (example) :10%
Number of Unstable Sites (example): 30%
Average telecom power consumption (example): 2kW
Average Total site power consumption (Telecom + AC+ etc. ) (example): 3kW
Cost per kWh (to be confirmed): 0,23USD/ kWh
Diesel Cost (to be confirmed): 1.34 USD per litre
Possible Results Initial Analysis/facts
Approach/Methodology Client/Situation/Assignment
Client situation
Client wants to know what potential Opex can be reduced
Client wants to know what solutions/methodes to implement for various parts of the network
Cybercom Power Assessment will result in
Non Capex related recommendations for Opex savings for each segment of the network
Unbiased Capex related recommendations for each network segment
*Savings after total investment of 2-4MUSD
April 2013 23
Client question
Wat is the typical cost of lost revenue due to sites not working as a result of no Power
Will Cybercom Power Management boost revenue and can this be used to improve business-cases.
Cybercom traffic and data analyses results in
Downtime breakdown and classification
Value of lost revenue
Number of current sites: 620 (reference network)
Hours of outages due to power per month: 680
Percentage of down time for affected sites: 9%
Average downtime whole network : 4%
Assumed non effect due to overlapping coverage: 50%
Aassumed share Mobile to Mobile traffic :50%
Assumed factor for outages during low traffic hours : 80%
Cybercom Power Management will address and reduce more or less all of the power related outages
Power Management Examples of possible revenue increase
April 2013 24
Typical Results Facts/assumptions
Approach/Methodology Client/Situation issue
Study of power related outages over time
Classification of reasons for sites not being operational
Convert downtime to lost revenue.
Lost revenue equivalent to 250KUSD per year.
25% of cost for 100 completely green sites if financed over 4 years
24