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

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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.

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Cybercom Footprint

April 2013

Cybercom

Sweden Cybercom

Finland Cybercom

Denmark

Cybercom

Poland

Cybercom

MEA JV Cybercom

Datamatics

Cybercom

Singapore Cybercom

Brazil

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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

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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

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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

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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

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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

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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

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Our service focus on understanding of the situation and addressing key

challenges and issues.

Power Management & Optimisation

April 2013 14

Step 1

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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

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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

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• 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

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• 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

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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

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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

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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

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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)

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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

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