Green Connectivity, Power Management

April 2013

Cybercoms mission, vision and values

Mission
Why we exist

Vision
What we want to be

Values
Our guiding principles

Boosting your performance in the connected world.

We are our clients most trusted business partner in the connected world.

Innovation Passion Trust

April 2013

Cybercom is your partner in the Connectivity ecosystem

Platform Developers Infrastructure

Operators

Content Providers

Device Manufacturers

Application & Service Developers

April 2013

Cybercom Business Domains in the connected world

Connected Engineering

Connectivity Management

Digital Solutions

Designing and adding needed intelligence to customer products/devices

Assuring the connectivity, making networks efficient and manageable

Providing the future connected world solutions, for people and devices

Secure Connectivity

Assuring the end-to-end security, reducing business risk when everything gets connected.

April 2013

Cybercom Footprint
Cybercom Sweden Cybercom Denmark Cybercom Poland

Cybercom Finland

Cybercom Brazil

Cybercom MEA

Cybercom Singapore JV Cybercom Datamatics

April 2013

Connectivity Management Innovation Areas

User experience a differentiator Business model, role in value chain

New applications behaviour

Vendor outsourcing vs. inhouse

The investment-heavy Connectivity management domain faces a number of unsolved dilemmas that needs innovation and solutions.

Go Green for environment and cost savings

Continuous investments in networks Security assurance

April 2013

Connectivity Management - Value Proposal

The key to success and high impact results is our technical edge but with focus on the operators financial benefits and improved customer experience

Revenue improvements

Cost reductions

Customer experience

Identify issues of untapped revenue (e.g. dropped calls, service availability) Coverage improvements to support voice and data revenues Network Quality improvements at different levels of the network Quick Wins and long term impact

Delays or avoidance of CAPEX investments Efficient usage of the network reduction of OPEX Less customer care costs and more efficient internal processes Quick Wins and long term reductions

Focus on real customer experience, Quality of Service/Experience (QoS/QoE) Voice and data services customer experience Improvement Increased customer satisfaction, more loyal customers, more usage of network Reduction of customer complaints

FOCUS ON FINANCIAL IMPACT

CUSTOMER FOCUS 7

April 2013

Connectivity Management - Practices

Mobile Network Quality
Addressing the needs to provide excellent quality of experience

Operational Excellence
Best practice services to improve operational efficiency

Green Connectivity
Be environmental friendly and save significant cost

April 2013

Connectivity Management - Practices

Mobile Network Quality
Addressing the needs to provide excellent quality of experience
Customer experience management is the best competitive strategy for operators to meet and exceed customers expectations. With proven expertise in performance management, we enable our clients to maximise revenue generation and customer loyalty. OFFERINGS : Customer experience management Benchmarking Audit

Performance improvement

April 2013

Connectivity Management - Practices

Operational Excellence
Best practice services to improve operational efficiency
Our operationally oriented service scope is aiming to recommend and implement ways of improving efficiency in terms of cost and time to market. As an independent third party, our sole interest is to maximise the operational and business KPIs for the client. OFFERINGS : Vendor management Managed functions Connectivity Business Excellence Procurement support Project management

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Connectivity Management - Practices

Green Connectivity
Be environmental friendly and save significant cost
A significant trend in the mobile industry is to become more environmental friendly. In particular for markets with less reliable grid power or fully off-grid, power cost can also be substantial. The Green Connectivity practice provides consulting services for optimising power consumption and cost through the most appropriate combination of battery, solar and wind power. Savings in the range of 3MUSD/year can be achieved for as little as 100 replaced sites. OFFERINGS :
Power management & optimisation Site RoI management (combining network and power KPIs)

Swap management
April 2013
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Typical Client situation

Many operators of today acts in markets with less reliable grid power or fully off-grid, with high power cost as a result.
Cybercom proposes to undertake a 3-year power management & optimisation service to improve cost efficiency for Clients from an Power consumption point of view resulting in significantly lower Opex. Cybercom aims at a long-term partnerships with its Clients, based on a savingssharing concept, with a minimal fixed amount to be paid initially.

The agreement covers a period of 3 years and after the initial savings-sharing period all savings remains with the Client.
During the agreement period, Cybercom will support its Clients in optimising the power consumption. After an initial assessment, we will support Clients continuously with monitoring and reporting, implementation of proposed changes as well as coordinate sourcing and implementation of potential equipment needed.
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Cybercom approach
Optimising power consumption and cost through the most appropriate combination of parameter tuning and green solutions.
Objectives
Provide an Inside-out view of the Energy part of the network Design Configuration Capacity Performances Efficiency Processes Costs Identify and implement improvements. Monitor and optimise continuously.

Methodology
Input Questionnaires Interviews Field Activities Site Visits Site Layouts Performance reviews Benchmarks Analysis and strategy Verification of impact Full implementation

SOW
Power Consumption Site installation Settings Equipment Cooling requirements Transmission needs Costs

Deliverables
High impact results will come out of each step in the process: Assessment Define strategy Verification Implementation & Management

Cybercom differentiator: We provide the client with an understanding of the current dynamics of their energy consumption, what they can do to improve efficiency and we quantify the savings that can be achieved. April 2013 13

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Power Management & Optimisation

Our service focus on understanding of the situation and addressing key challenges and issues. Situation
High pressure to lower Opex especially for the rural part of the network. The general trend is that operational costs increases and ARPU remains the same or is lowered, are high especially for off-grid sites. The client has identified energy costs as one of the areas to improve cost efficiencies. Green Connectivity technology and methodologies to be promoted. What are the root causes for high energy costs? What are the options available to improve the situation ? If Capex is involved in resolving the problem, is there a credible business case to justify the Capex?

Challenges

Key issues

How can the client reduce energy costs by changing the mix of energy sources at its sites, reducing load by eliminating unnecessary site infrastructure and changing O&M behavior?

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Business impact methodology

Our methodology is structured to reach and measure business impact.
Step 1
Assessment Understand the business and market environment. Assess the power management approach in place, current power consumption and KPI:s. This will support our analysis and determination of the right programme to meet the business needs. Define strategy Identify the right power efficiency strategy for the business and define the overall efficiency improvement programme. Recommend actions to improve energy management. We provide a supporting business case analysis on the annual savings that can be achieved.
Verification Proving the benefits of recommended strategy and actions by implementing recommendations in part of the network. Measure and evaluate the business impact. Implementation Network wide implementation of recommendations. We provide the client with implementation of power management principles and processes to improve efficiency and we quantify the savings that are achieved.

Assessme nt
Step 4 Step 2

Implement ation
Step 3

Define Strategy

Verification

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Assessment methodology
Utility Bill analyses Grid/Off grid analysis

Site Visits

Green Power Recommendations

Configurations Parameters Features Climate settigs Cooling

KPI Analysis/benchmarks 16

Configurations/Equipment analyses April 2013

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Step 1 - Assessment of current situation

Analyse current situation of power consumption and KPI:s.
Objectives
Understand management team main challenges like EBITDA changes, ARPU changes, O&M increasing. Get a hands-on perspective on problems at each region, types of sites Collect all data each type - sample selected sites Classified based on sites characteristic Get the total power Consumption

Approach
Mobilize team of energy efficiency experts. Identify set of model site for the team to visit. (optional) Document current energy matrix, total energy bill, sites conditions. Interview O&M personnel to understand O&M behavior. Prepare a template to collect site data Collect site mix of On grid/Off grid/poor grid, easy vs difficult access sites, current loads, mix of energy resources, etc

Deliverables
Understand main problems and root cause for these problems Detail information of sample sites. Recommended actions that will improve cost efficiency.

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Step 2 - Define Strategy

Identify the actions to be taken to reduce energy costs.
Objectives
Evaluate impact of changing energy sources matrix. Evaluate possibilities of reducing the overall load. Analyze possible changes in O&M behavior.

Approach
Analyse financial impact of changes matrix of energy sources Evaluate applicability of renewable resources for poor and off grid sites Feasibility for a modern site energy controller to manage mix of energy resources Evaluate how to reduce load through various options like cooling, shelter, battery, etc Analyze potential improvement in O&M behavior Build business case based on identified actions to deliver best financial results.

Deliverables
Define strategy for how to implement defined actions. Identify clusters for verification phase. Business case showing savings with planned actions.

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Step 3 - Verification
Implement actions at reviewed part of network and measure results.
Objectives
Implement energy efficiency improvement actions for each verification cluster. Measure result against Business case and KPI:s.

Approach
On approval of management team start implement initiatives. Procure necessary hardware if needed. Manage logistic and deploying the energy efficiency improvement initiatives. Put in place process to measure energy improvements. Present expected vs. actual results to management team.

Deliverables
Lower energy cost at sample sites. Analysis of expected vs. measured result and reason for variances. Fine tuned actions and implementation plan

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Step 4 - Implementation & Monitoring

Implement actions network wide and secure business impact.
Objectives
Define KPI:s and performance statistics template for monitoring. Setup KPI reporting processes between client and Cybercom. Provide monthly report on performance to client management. Continuous optimisation of power cost. BoQ updates to generate further Opex savings. Monitor client implementation progress.

Approach
Collect the sites characteristic of sites good grid/pr grid/off grid, mix of energy sources, product used, Categorize sites in data base based on key characteristic which are based on model sites visited earlier Regular collection of site performance statistics. Processing and analysis to generate Monthly report on performance. Continuous optimisation of power cost.

Deliverables
Monthly power management report Power KPIs Savings generated Analysis of status Updated optimisation plan Procurement needs

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Project setup and price

The proposed scope is a 3 year management service starting with an initial 7 weeks assessment, as part of the scope.
The price model is based on an initial fixed cost and a recurring sharing principle.
Resources: Power Experts and analytical Experts. Remote consultants for network engineering and dimensioning and monitoring. Work to be performed partly on site with Client, partly off site. On site for information collection as well as final presentation and discussions. Off site for analysis and reporting. Pricing Model: An initial fixed level with lower sharing alternatively a lower fixed level with higher sharing. (see next slide) Cost of travel, accommodation, local transport and per diems / expenses are in addition to the above and will be invoiced 2 times per year at fixed and agreed level. Typical Estimated Expenses; Year 1= 20KUSD. Year 2=10KUSD. Year 3=10KUSD
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Financing Models
For a standard project, we offer sharing models with low initial fees, depending on network size. Different percentage of savings sharing applies for each option and segment as indicated below. (typical setup)
Segment 1 No investment
Operator % 70% Cybercom % 30%

Cybercom has defined 3 main segments of savings, each with different sharing levels.
Segment 1 Non Capex related savings. Based on the total number of sites in the network. Segment 2 Minor investment per site, ie replacement of existing equipment, 2-10KUSD. Based on various activities on 25% of the sites. Segment 3 Green Upgrade investment per site, ie complete solar or windsolutions, 30-40KUSD. Based on average of 5-10% of the sites, upgrades. 22

Segment 2 Minor investment

Operator % 95% Cybercom % 5%

Segment 3 Green upgrade

Operator % 97% Cybercom % 3%

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Power Management Examples of possible savings (case study)

Client/Situation/Assignment
Client situation Client wants to know what potential Opex can be reduced Client wants to know what solutions/methodes to implement for various parts of the network Cybercom Power Assessment will result in Non Capex related recommendations for Opex savings for each segment of the network Unbiased Capex related recommendations for each network segment

Approach/Methodology

Initial Analysis/facts
Number of current sites 600 (example) Number of off-grid sites (example) :10% Number of Unstable Sites (example): 30% Average telecom power consumption (example): 2kW Average Total site power consumption (Telecom + AC+ etc. ) (example): 3kW Cost per kWh (to be confirmed): 0,23USD/ kWh Diesel Cost (to be confirmed): 1.34 USD per litre

Possible Results
Without additional Capex, grid connected sites: 3-5% Opex reduction: Annual savings 100-180KUSD (whole network) With additional Capex, grid connected sites: 20-30% Opex reduction: Savings 180-250KUSD annually for 25% of network Typical payback 12-18 months With additional Capex, off-grid sites: 50-90% reduction of Opex depending on the current situation. Savings 1,2-2,4MUSD annually for 10% of network) Typical payback 12-18 months Total potential savings over 3 years 2.3-4.5MUSD*
*Savings after total investment of 2-4MUSD

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Power Management Examples of possible revenue increase

Client/Situation issue
Client question Wat is the typical cost of lost revenue due to sites not working as a result of no Power Will Cybercom Power Management boost revenue and can this be used to improve business-cases. Cybercom traffic and data analyses results in Downtime breakdown and classification Value of lost revenue

Approach/Methodology
Study of power related outages over time Classification of reasons for sites not being operational Convert downtime to lost revenue.

Facts/assumptions
Number of current sites: 620 (reference network) Hours of outages due to power per month: 680 Percentage of down time for affected sites: 9% Average downtime whole network : 4% Assumed non effect due to overlapping coverage: 50% Aassumed share Mobile to Mobile traffic :50% Assumed factor for outages during low traffic hours : 80% Cybercom Power Management will address and reduce more or less all of the power related outages

Typical Results
Lost revenue equivalent to 250KUSD per year. 25% of cost for 100 completely green sites if financed over 4 years

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