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
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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
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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
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WAR – an Offensive , not Defensive
Put the Telco on war footing
There is no chance of survival
( except through fighting )
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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
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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
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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
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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
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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
Upgrade capacity , QoS , Coverage
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
Well coordinated program
Frontier Ground
Probably a shallow penetration into
enemy territory . Equally
advantageous to enemy . A high prospect enemy target
Acquisition campaigns
Switch off during off peak
Relocation of TRXs
Site Sharing
Indifferent Ground
Profitable retreat . Strike back when
the situation is good
9/8/2012 confidential - Mothilal
Market and Network Optimization
9/8/2012 confidential - Mothilal 16
High
Low
UTILIZATION
Low
High
REVENUE
Introduce new packages
VAS PromotionHalf Rate Calls / add more sub
Entrapped Ground
Can not exit but
Upgrade capacity , QoS , Coverage
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
Well coordinated program
Frontier Ground
Probably a shallow penetration into
enemy territory . Equally
advantageous to enemy . A high
prospect enemy target
Acquisition campaigns
Switch off during off peakRelocation of TRXs
Site Sharing
Indifferent Ground
Profitable retreat . Strike back when
the situation is good
4Quadrant Model for Optimization Layering of Information
17
Quadrant Model Outcome Real Example
Overall view of areas of 4-Quadrants
9/8/2012 confidential - Mothilal
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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
9/8/2012 21 confidential - Mothilal
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
9/8/2012 22 confidential - Mothilal
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
9/8/2012 24 confidential - Mothilal
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.
9/8/2012 25 confidential - Mothilal
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
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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 )
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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 .
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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 .
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Different platoons for different terrains Positioning the Technology
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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
9/8/2012 confidential - Mothilal 32
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
9/8/2012 confidential - Mothilal 33
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
9/8/2012 confidential - Mothilal 34
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
9/8/2012 confidential - Mothilal 35
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
9/8/2012 confidential - Mothilal 36
Mothilal De Silva [email protected] Mobile: +94777331122 www.telcovisionnlife.net
Thank You !