revenue impact of optimized networks egbert clarke vice president international business

REVENUE IMPACT OF OPTIMIZED NETWORKS

Egbert ClarkeVice President International Business

2

INVESTING IN THE CARIBBEAN’S FUTURE

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

The telecom industry is one of the significant contributors of the world economy with an estimated 3% of the global GDP

3

NETWORK GROWTH IN THE CARIBBEAN

Mobile penetration is approaching 70% in the Caribbean

Pre-paid users dominate the market

Intense competition between operators

Always on data plans requiring investments in infrastructure

4

INVESTING IN YOUR NETWORK’S FUTURE

Increased competition

Shorter product life-cycle

Shorter upgrade-cycle

5

INVESTING IN YOUR NETWORK’S FUTURE

Did you know…

27-32% of annual revenue is spent on CAPEX and OPEX for your network?

6

OPTIMIZATION: THE KEY TO GROWTH

Assurance of network performance and quality of service

Development of new services through network evolution

Increased use of high-value data applications

An optimized network is reliable and cost efficient

Higher Customer Satisfaction = Increased Revenue

7

OPTIMIZATION: THE KEY TO GROWTH

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

An optimized network is reliable and cost efficient

Total cost reductions average 40%

YOUR NETWORK AND REVENUE STREAM

HOW TO

OPTIMIZE

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

10

MULTI-VENDOR NETWORK EQUIPMENT REPAIR

Did you know…

5-10% of total assetswill need to be repaired?

11

MULTI-VENDOR NETWORK EQUIPMENT REPAIR

Extend the life of your network

Extend your product life-cycle

Manage out-of-warranty repairs

12

MULTI-VENDOR SPARE PARTS MANAGEMENT

In-House Operations Outsourced Spare Parts Management

SAVINGS

OPEX

OPEX

CAPEX

1Y 1Y

Total Cost of Ownership Total Cost of Ownership

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

14

MULTI-VENDOR SPARE PARTS MANAGEMENT

Service Provider Central Warehouse

Outsourced Warehouse

Faulty UnitsTested Good Units

Service ProviderContract Manager

OutsourcedAccount Manager

Field Staff

Periodic Shipments

Periodic Shipments

Screening & Testing

International Surplus Market

Defective Recycling

Defective Req.

Tested Good Inventory

Repair & Testing

Defective Quarantined

Inventory

No Actio

n

Enough Tested Good

Equipment

Yes Yes

No

No

15

ASSET DISPOSITION: FREE UP WORKING CAPITAL

Did you know…

Cumulative e-waste worldwide is estimated to be over 50,000 tons

…from 2010 until 2019??

16

ASSET DISPOSITION: FREE UP WORKING CAPITAL

End-of-life platforms have been retired

Reduce inventory management costs

Invest in new technology even during the global downturn

Turn excess assets into working capital!

17

EXCESS ASSET VALUATION MODEL

Resale Value > Scrap Value?

Resale Value > Decommissioning Cost?

Equipment Recycling

Equipment Decommissioning

Equipment Refurbishment

Equipment Remarketing

Revenue Share / Direct Buy (Sales Revenue)

Revenue Share / Direct Buy (Recycling Revenue)

YES

YES

NO

NO

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

QUESTIONS?Are there any

19

THANK YOU

20

info@telmarnt.com