Presentation on theme: "REVENUE IMPACT OF OPTIMIZED NETWORKS Egbert Clarke Vice President International Business."— Presentation transcript:
REVENUE IMPACT OF OPTIMIZED NETWORKS Egbert Clarke Vice President International Business
INVESTING IN THE CARIBBEANS 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 2 The telecom industry is one of the significant contributors of the world economy with an estimated 3% of the global GDP
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 3
INVESTING IN YOUR NETWORKS FUTURE Increased competition Shorter product life-cycle Shorter upgrade-cycle 4
INVESTING IN YOUR NETWORKS FUTURE Did you know… 5 27-32% of annual revenue is spent on CAPEX and OPEX for your network?
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 6 An optimized network is reliable and cost efficient Higher Customer Satisfaction = Increased Revenue
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 7 An optimized network is reliable and cost efficient Total cost reductions average 40%
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… 10 5-10% of total assets will need to be repaired?
MULTI-VENDOR NETWORK EQUIPMENT REPAIR Extend the life of your network Extend your product life-cycle Manage out-of-warranty repairs 11
MULTI-VENDOR SPARE PARTS MANAGEMENT In-House OperationsOutsourced Spare Parts Management 12 SAVINGS OPEX CAPEX 1Y Total Cost of Ownership
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 Screening & Testing International Surplus Market Defective Recycling Defective Req. Tested Good Inventory Repair & Testing Defective Quarantined Inventory No Action Enough Tested Good Equipment Yes No
ASSET DISPOSITION: FREE UP WORKING CAPITAL Did you know… 15 Cumulative e-waste worldwide is estimated to be over 50,000 tons …from 2010 until 2019??
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 16 Turn excess assets into working capital!
EXCESS ASSET VALUATION MODEL 17 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 NO
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