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Building and managing a value-centric network

2015

Telecom operators are under pressure. Every penny being invested into a telecom operator's network counts to maintaining returns on invested capital (ROIC). This is because of rising costs – and falling margins – to serve an ever demanding consumer in the era of mobile data. Thus, telecom operators need to step up their game and be sure that they maximize their ROIC through smarter investment decisions. This 'pressure' phase will also generate new set of winners in the telecom industry, who will find new ways to invest and maintain a network with the highest ROIC.

Having said that, it's far from easy to create a value-optimizing investment plan as it requires answering complex questions that dives deep into a telecom operator's network data sets: Where does my network underperform? In profitable areas, how do we fare against our direct competitors? Where is the external market potential? Where and who are my Core Value Customers? What do they desire from a network?

While it wasn't possible to answer many of these before, our proven approach – driven by Big Data – can now provide exhaustive solutions to these questions. Our approach brings to life Big Data applications with strategic impact to finely balancing capital expenditure (CAPEX) tradeoffs to achieve revenue growth, subscriber acquisition and traffic growth, whilst maintaining Quality of Experience (QoE)!

Our approach not only saves 10-15% CAPEX spend per year for telecom operators, but also aligns marketing, sales and the network on action items in each territory. This study by Roland Berger examines how operators can accurately allocate their CAPEX investments to maximize returns.

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