Revenue Impact of Optimized Networks
- 1. REVENUE IMPACT OF OPTIMIZED NETWORKS Egbert Clarke Vice President International Business
- 2. INVESTING IN LATIN AMERICA’S FUTURE The telecom industry is one of the significant contributors of the world economy with an estimated 3% of the global GDP • Demand for real-time voice, data and video • Revenue shift from fixed to mobile, and from voice to data • Next-generation super-fast 4G technologies • Convergence of services will expand market reach to low-income groups 2
- 3. NETWORK GROWTH IN LATIN AMERICA • Total mobile handset shipments expected to increase from 20% to 50% by 2012 • Brazil national broadband plan to bring basic broadband to approximately 40 million households by 2014 • Government subsidies to propel market to more than $80 Billion in 2015 • Mobile banking with 65% annual growth until 2015 3
- 4. INVESTING IN YOUR NETWORK’S FUTURE • Increased competition • Shorter product life-cycle • Shorter upgrade-cycle 4
- 5. INVESTING IN YOUR NETWORK’S FUTURE Did you know… 55-65% of annual revenue is spent on CAPEX and OPEX for your network? 5
- 6. OPTIMIZATION: THE KEY TO GROWTH An optimized network is reliable and cost efficient • Assurance of network performance and quality of service • Development of new services through network evolution • Increased use of high-value data applications Higher Customer Satisfaction = Increased Revenue 6
- 7. OPTIMIZATION: THE KEY TO GROWTH An optimized network is reliable and cost efficient • Improved efficiency through optimal use of network resources • Reduced number of network elements • Service quality assured through repair of network equipment • Effective inventory management of assets network wide Total cost reductions average 40% 7
- 8. HOW TO OPTIMIZE YOUR NETWORK AND REVENUE STREAM 8
- 9. OPTIMIZATION OF YOUR NETWORK • Multi-vendor repair of wireline, optical and data equipment • Inventory management through spare parts management programs • Turning surplus assets into cash to reinvest into your networks 9
- 10. MULTI-VENDOR NETWORK EQUIPMENT REPAIR Did you know… 5-10% of total assets will need to be repaired? 10
- 11. MULTI-VENDOR NETWORK EQUIPMENT REPAIR • Extend the life of your network • Extend your product life-cycle • Manage out-of-warranty repairs 11
- 12. MULTI-VENDOR SPARE PARTS MANAGEMENT In-House Operations Outsourced Spare Parts Management Total Cost of Ownership Total Cost of Ownership OPEX OPEX CAPEX 1Y 1Y 12
- 13. MULTI-VENDOR SPARE PARTS MANAGEMENT • OPEX reduction by low-cost hardware support • OPEX reduction by cost-effective management of embedded legacy equipment • CAPEX minimization by inventory control and sell-off 13
- 14. MULTI-VENDOR SPARE PARTS MANAGEMENT International Surplus Service Provider Outsourced Market Contract Manager Account Manager Periodic Shipments Field Staff Screening & Tested Good Repair & Testing Testing Inventory Service Provider Outsourced No Central Warehouse Warehouse Yes Enough Yes Defective No Tested Periodic Shipments Req. Action Defective Good Quarantined Equipment Inventory No Faulty Units Defective Tested Good Units Recycling 14
- 15. ASSET DISPOSITION: FREE UP WORKING CAPITAL Did you know… In 2010, over 10,000 tons of e-waste was generated? 15
- 16. ASSET DISPOSITION: FREE UP WORKING CAPITAL • End-of-life platforms have been retired • Need to maintain and spare assets has been postponed • Reduce inventory management costs • Invest in new technology even during the global downturn Turn excess assets into working capital! 16
- 17. EXCESS ASSET VALUATION MODEL NO Resale Value > Scrap Value? Equipment Recycling YES NO Revenue Share / Direct Buy Resale Value > (Recycling Revenue) Decommissioning Cost? YES Equipment Equipment Equipment Remarketing Refurbishment Decommissioning Revenue Share / Direct Buy (Sales Revenue) 17
- 18. REVENUE IMPACT OF OPTIMIZED NETWORKS • An optimized network is reliable and cost efficient • Higher Customer Satisfaction = Increased Revenue • Repair Total cost reductions average 40% • OPEX reduction by low-cost hardware support • OPEX reduction by cost-effective management of embedded legacy equipment • CAPEX minimization by inventory control and sell-off • Turn excess assets into working capital 18
- 19. Are there any QUESTIONS? 19
- 20. THANK YOU Egbert Clarke egbert.clark@telmarnt.com 972 836 0421 www.TEL-NT.com.br 20