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OPEX Reduction in Telecom Industry: Q Arib Raza Kazm I SP-2010/M .M /205 Telecom Business M Anagem Ent
OPEX Reduction in Telecom Industry: Q Arib Raza Kazm I SP-2010/M .M /205 Telecom Business M Anagem Ent
OPEX Reduction in Telecom Industry: Q Arib Raza Kazm I SP-2010/M .M /205 Telecom Business M Anagem Ent
Industry
Q arib Raza Kazm i
SP-2010/M .M /205
Telecom Business M anagem ent
Introduction
FDI Chart
Contribution to Exchequer
Eff
ective and ef f
cient m arketing strategies
i
Focus on productivity/ef f
ciency and policies
i
Eff
ective Asset m anagem ent
M ulti-dim ensionalPlanning
In a recent survey, 4 of 10
executives said that their com panys
product portfolio grew by m ore than
50% in the previous fi
ve years.
Portfolio Management
The dif f
culty stem s
i
from a fear of churn,
lack of incentives to
elim inate products
In addition, they
som etim es launch products w ithout a true understanding
of custom er needs. (U sing m arket research com panies
before product launch can be an area of interest here)
Portfolio Management
The fi
rst task is to understand the
eff
ectiveness and ef f
ciency of
i
m arketing spend across allchannels,
products, geographies, m arketing
objectives.
Profi
t im provem ents of at least 5 % through a com bination of tactics:
squeezing m ore sales out of the sam e overallspend by reallocatin g
sp en d , cu ttin g sp en d , and/or in creasin g sp en d for certain levers.
Focus on
productivity/efficiency and
policies
Any good cost reduction program cannot ignore the tried and true
productivity levers, an d a g ood startin g p oin t is th e d em an d
sid e.
Productivity/Efficiency
M ost successfultelecom s
autom ate calls w here it
m akes sense. The autom ation
m ust m atch the custom er
service dem ands. O therw ise
the com pany risks frustrating
custom ers and in the end
driving up the callvolum e.
If an operator have an
eff
ective asset
m onitoring platform
such as A D aM (A m an zi
D ata M an ag em en t) then it is possible to achieve around
10% savin g s in O P EX .
Site leases are the secon d h ig h est cost for any netw ork
operator next to payroll.
Site lease pre-paym ent can reduce the cost of leasing sites
from 20% to 40 % considering industry standard site lease
escalators.
Multi-dimensional planning
An eff
ective w ay of reducing handset subsidies is to join a
purchasing consortium and savin g u p to 10% .
O utsourcing is one w ay to
achieve variability, though it can
be tricky to execute. M oreover if
it is not m anaged properly,
outsourcing can result in costly
re-w ork that overshadow s
savings.
CAPEX Year 1
OPEX Year 1
Target Configuration
BTS Power
Consumption
The Solution
Economic Payback
The cost estim ate for the fully functionalIFSP designed solar
pow ered system , w hich consists of solar panelm odules,
deep cycle battery
arrays and charger
controller for a fully
loaded 3kW B TS is
$30,550 .
A typicaltelecom operator
w ith about 10,000 BTS w ould
have spent w ellover $1.2
b illion on dieselfueland
generator w ithin a ten year
period.
Identifi
ed tow er sale an d leaseb ack as an
excellent w ay of releasing capitalto invest in core
activities such as custom er acquisition,
m anagem ent and retention as w ellas increasing
the num ber of signifi
cant tow er deals by African
tow er com panies.
Recommendations: Compelling
case for 3G
Pakistan m ust now join the 159 cou n tries that have
already adopted 3G /4G technologies