REVENUE IMPACT OF OPTIMIZED NETWORKS

INVESTING IN LATIN AMERICA’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

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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

INVESTING IN YOUR NETWORK’S FUTURE

• Increased competition

• Shorter product life-cycle

• Shorter upgrade-cycle

4

INVESTING IN YOUR NETWORK’S FUTURE

Did you know…

55-65% of annual revenue

is spent on CAPEX and OPEX for your network?

5

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

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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%

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YOUR NETWORK AND REVENUE STREAM

HOW TO

OPTIMIZE

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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

MULTI-VENDOR NETWORK EQUIPMENT REPAIR

Did you know…

5-10% of total assets

will need to be repaired?

10

MULTI-VENDOR NETWORK EQUIPMENT REPAIR

• Extend the life of your network

• Extend your product life-cycle

• Manage out-of-warranty repairs

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MULTI-VENDOR SPARE PARTS MANAGEMENT

In-House Operations Outsourced Spare Parts Management

Total Cost of Ownership

OPEX

OPEX

CAPEX

1Y 1Y

Total Cost of Ownership

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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

MULTI-VENDOR SPARE PARTS MANAGEMENT

14

Service Provider Central Warehouse

Outsourced Warehouse

Faulty Units

Tested Good Units

Service Provider Contract Manager

Outsourced Account 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 Action

Enough Tested Good

Equipment

Yes Yes

No

No

ASSET DISPOSITION: FREE UP WORKING CAPITAL

Did you know…

In 2010, over 10,000 tons of e-waste was generated?

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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!

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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

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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

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