Synchronizing Market Optimization with Network ... Market... · Synchronizing Market Optimization with Network Optimization ... Put the Telco on war footing ... ROIC < WACC –low

Synchronizing Market Optimization with Network Optimization – An

Offensive War Strategy

Mobile Network Optimization Asia Pacific 2011

Bangkok

22nd-23rd March 2011

9/8/2012 1 confidential - Mothilal

Mothilal De Silva www.telcovisionnlife.net

Key Issues

• Low utilization of existing capacity

• Lack of effective ROI focus for market and networking planning

• Lack of focus in regional campaigns to increase revenue in underutilized sites

• Synchronization issues between commercial and technical functions


Synchronizing – Network/Market Planning/Optimization

9/8/2012 confidential - Mothilal 3


Market Planning and Network Planning Synchronization

Key :

• ROI and Pay Back Period Calculation for each Base Station – For decision making in the BP cycle and budgetary planning -

prioritizing Base station investments

– Planning • Procurement Planning

• Site Acquisition Planning

• Facilities Planning – Power, Access Roads

• Network Planning – Transport, Backhaul, Core and Access

• HR Planning

• Marketing Planning – Subscriber Acquisition , Promotions, Advertising


ROI Calculation • Study the adjacent sites to find number of potential

subscribers, mErl/sub in BH, Revenue/Erlang and other multiplication factors

• Add a weightage to the potential of the area

• Estimate the monthly traffic in Erlangs and total estimated Revenue of the targeted site

• Estimate CAPEX and annual OPEX

• ROI =(Annual Rev- Annual OPEX)*100/ Investment

• Prioritized the sites depending on the availability of funds



WAR – an Offensive , not Defensive

Put the Telco on war footing

There is no chance of survival

( except through fighting )


How the presentation is organized ?

• Part 1 – Selecting the battleground and targeting the enemy . (

presenting two Action Models ) • GSM Voice – Developing an Action Model based on BTS wise

Utilization Vs Chargeable MoU or ARPU to enhance revenue / optimize resources

• Positioning data technologies to suit different user requirements and geography to optimize resources – Quad play Co using multiple wireless Broadband Technologies

• PART 2 – Restructuring the organization to facilitate WAR effort

Part 1



Targeting the Enemy

No Carpet Bombing

• No “Bloodbaths” Out come of an open fight are

– Revenue loss

– low RPM , ARPU

– Prolong ROI , ROIC < WACC

– low yield

– No value addition for Shareholders


Instead Fight discretely by Choosing the

Battleground


Graph for randomly selected sites

-

50

100

150

200

250

-

200

400

600

800

1,000

1,200

1,400

Uti

lizati

on

%

AR

PU

(R

s.)

Site Name

ARPU Vs. Utilization (Randomly Selected Sites)

ARPU (Rs.)

Identify battlegrounds – Analyze using BI tools UAVs of Telecom


Introduce data packages –HSPA

VAS Promotion

Half Rate Calls / add more sub

Entrapped Ground – Can

not exit but

Upgrade capacity , QoS , Coverage

Introduce Data / HSPA & VAS

Loyalty Campaigns / Advertising

Acquisition - target high end

Key Ground - defend at all

cost .

Acquisition campaigns – Groupon

type of campaigns

Switch off or adjust power and TRXs

during off peak

Relocation of TRXs

Site Sharing

Indifferent Ground –

Profitable retreat . Strike back when

the situation is good

Conduct site wise aggressive

campaigns for acquisition

Dynamic Discounting

Improve QoS

Well coordinated program

Frontier Ground -

probably a shallow penetration into

enemy territory . Equally

advantageous to enemy . A high

prospect enemy target

High

Low

Utilization

Low

High Total Site Revenue / Number of users in BTS area (Chargeable MoU per user)

- 50 100 150 200 250

- 200 400 600 800

1,000 1,200 1,400

Uti

lizati

on

%

AR

PU

(R

s.)

Site Name

ARPU Vs. Utilization (Randomly Selected Sites)

ARPU (Rs.)

Model for Site Wise Targeted Strategies


Targeting the Enemy

• Areas that have distinct advantage

• Area ignored by enemy

15

4 Quadrant Model – layering on a Google Map

High

Low

UTILIZATION

Low

High

REVENUE

Introduce new packages

VAS Promotion

Half Rate Calls / add more sub

Entrapped Ground

Can not exit but


Introduce Data / HSPA & VAS

Loyalty Campaigns / Advertising

Retention

Key Ground

Defend at all cost

Conduct site wise aggressive campaigns

for acquisition

Improve Capacity , Coverage , QoS


Frontier Ground

Probably a shallow penetration into


advantageous to enemy . A high prospect enemy target

Acquisition campaigns

Switch off during off peak

Relocation of TRXs

Site Sharing

Indifferent Ground



9/8/2012 confidential - Mothilal

Market and Network Optimization


High

Low

UTILIZATION

Low

High

REVENUE

Introduce new packages

VAS PromotionHalf Rate Calls / add more sub

Entrapped Ground

Can not exit but


Introduce Data / HSPA & VAS Loyalty Campaigns / Advertising

Retention

Key Ground

Defend at all cost

Conduct site wise aggressive campaigns

for acquisition Improve Capacity , Coverage , QoS


Frontier Ground

Probably a shallow penetration into


advantageous to enemy . A high

prospect enemy target

Acquisition campaigns

Switch off during off peakRelocation of TRXs

Site Sharing

Indifferent Ground



4Quadrant Model for Optimization Layering of Information

17

Quadrant Model Outcome Real Example

Overall view of areas of 4-Quadrants


18

Quadrant Model Outcome Comparison between Two Regions


19

Quadrant Model Outcome Comparison between Two Regions



Logistics for Deep Penetration Unit

• Design 4 types of campaigns for Entrapped , Key , Frontier and Indifferent grounds .

• Change and adjust the campaigns /offers dynamically , quickly , moving from impact calculations to system readiness and media communication from 3-10 days . Use BI ( UAV ) heavily to stimulate impact and supported by a lean decision making process regarding offers , sales commission , channels to be used and type of communication .

• Varied and segmented channel offers ( lower price – direct to the retailer / lower commission by passing the main Ds )

• Use regional , grass root level communication channels.

Dynamic , Distributed , Deceptive .

Catch the enemy off guard . Subdue the enemy without a direct battle .

Campaigns for different grounds

• Campaigns for underutilized areas - YM

• Dynamic Discounting to increase usage


Yield management

A concept of utilizing under-utilized network resources

Can be used as a revenue increasing method as well as a loyalty building tool

Discount offers based on cell utilization and under-utilized time bands


CYM - Architecture


Operational Flow Identify the possible list of cells and time band

Select a group of cells representing a geographical area

Select an offer from a set of developed offers and configure the offer, time band and cells in application

Cell broadcast accordingly using CB Home Zone channel . Ex: “ out going 60% discount in Zone A from 9AM to 11AM – Dial #677#”

Customers can request the offer and end eligible customers are registered for a defined time period and notified via SMS

The offer is removed after the defined time period


Some Points To Note

• Initially this can be offered to prepaid and later extend to postpaid

• Need to educate the customers on the offer at regional level

• Language barriers

• CB display, some phones it is not prominent.


Case Study 2

• An Quadruple Play operator in Asia • Offering multiple Broadband solutions on

WiMax, HSPA, 3G , CDMA 450 . • Compete with xDSL broadband solution offered

by another Quadruple play Tier 1 operator



Single Broadband Strategy for a convergent operator

Invade DSL profitably

Make HSPA , WiMax ( and EDGE , CDMA ) an alternative . Avoid product Conflict and Confusion .

• Analogy - STF for the East and Commandos for the North

• WiMAX is positioned as a “ Fixed , SME / SOHO with strict SLAs , robust product “ , HSPA as a “ retail , individual , household , mobility , Best Effort , youth “ product .

• WiMax is put up in business areas such as major cities , EPZs , Industrial Parks , Export Processing Parks where data usage and user density is high .

• Bundle WiMax with solutions and VoIP .

• Restructure and establish one command structure for WiMax and HSPA ( and EDGE and CDMA )


Selecting the Battleground and the Platoon

• Avoid Bloodbath

• For existing investments - Do a combine BTS wise data usage , revenue study for WiMax , HSPA , EDGE , CDMA 450 based on current usage figures .

• For planned and existing investments – use a positioning model to position different data technologies

• Relocate HSPA , WiMax and other base stations profitably and change the “ machine gun “ approach .

• Target the enemy . Do the maximum damage .


Different platoons to different geographies to suit different purpose .

• In Planning , use the Technology Positioning model , illustrated in slide 30 . This is based on the variation of user density and data requirements . This model will help to position the technology in order to find the optimum solution .

• Different access technologies can be positioned in a multi dimensional grid to suit different users ( on capacity , fixed , mobility ) and different geographies .

• There is no “ one fits all “ . As shown in the grids , different data Packages can be introduced for different segments and geographies .


Different platoons for different terrains Positioning the Technology


Part 2 Organize the battalions

•Create a lean organization to target the enemy

• Need a lean organization structure to make war decisions fast , arrange logistics and implement programs swiftly


Existing Mechanism Mobile SBU DBN

Technical Finance

Sales

Marketing

Cx Service

Finance & CP

Marketing & Sales

CS

SBU CEO

Strategy

Product Management

GRP Mktg GRP Tech GRP SD Finance

MarCom Media

Promos &

Publications

Group Loyalty

Access NW

Core NW

IT

SSU Tech SSU Mktng SSU SD SSU Finance

Strategy

SSU HR

Strategy

TRP

Access NW Channels FLCS

Billing & Rev svs

Knowledge & PM

Product Mgt

Access CS

IN PS

VAS

DTI SBU

Technical

Finance Accnt Mgt

Corp Planning

SBU CEO

Infra

Tx Power

S A

Global

Technical

Commercial Finance

Roaming

SBU CEO

Int NW Plng

In NW ops

SBU CEO

Technical NW ops & NOC

CPS ISP

Access

Core NW

GFSS

IP Core

National ops & maintain

Distributions Franchise mgt ECM

Recruitments

Learning & Dev

Emp relations Operations

GCTO GCMO

SSU Legal

Legal Services

GRP Legal

Corp Services

Enforcement & Litigation

Regulatory & Compliance

CFO

Operations Strategy

IS & BI

QS

CP & PM

Chief Strategy Officer

GRP HR & Facilities

Strategy & Dev

OPS

Facilities Mgt Chief Corp

Officer GSVP HR &

Facilities

Advisory & Policy

Chief Cx

Officer

CRM

Integration & Compliance

Resource Mgt New

Tech

R&D


Key Problems in silo organization

• SBUs with large/ many divisions with narrow scope

• Functional overlaps

• Difficult to establish accountability for certain end-to-end processes

• Complicated process landscape


Customer

Products

Group Technology Mgt Team

Group Customer

Operations Mgt Team

SBU Product Development & Mgt Team

Customer Operations

Network

Group Corporate Strategy Team

Group Support

Functions

HR & Facilities

Legal

SCM

Finance

EPMO

Customer Driven Model & Synchronized Mechanism Revenue

NW & Business Intelligence System

SBU - Customer

Operations Mgt Team


Enhancement of Business Intelligence Role

Present Business Intelligence role played by Group Corporate Strategy Team to be extended

towards Network & Business Intelligence.

Geo- Mapped View of Network & Business Intelligence System


Mothilal De Silva [email protected] Mobile: +94777331122 www.telcovisionnlife.net

Thank You !

mailto:[email protected]

Documents

Synchronizing Market Optimization with Network ... Market... · Synchronizing Market Optimization with Network Optimization ... Put the Telco on war footing ... ROIC < WACC –low