Welcome to the Network Operations Transformation
model. In this model, we look at a Mobile CSP in a developed country, and run a
number of simulations over a period of 6 years. By default, we assume that the mobile
CSP generates EUR 6bn of revenues annually and has EBITDA and EBIT margins
of 30% and 15%, respectively. We then look at the CSP cost structure, and split
opex between network-related opex (15% by default) and other opex. Also capex are
split between network-related capex (80% by default) and other capex. These assumptions
can be changed in the simulation, to reflect smaller or larger CSPs and different
opex and capex cost structure.
We have simulated five scenarios, as follows:
- The current mode of operation (CMO) where the CSP continues operating its networks
in a ‘business-as-usual’ approach (Base case)
- A future mode of operations (FMO), with maximal scope of Network Operations Outsourcing
- A future mode of operation with Outsourcing and large-scale (RAN) Passive Asset
Sharing (AS)
- A future model of operation with large Vendor Financing
- Finally, a future mode of operations with Sale & LeaseBack (S&LB) of
RAN towers to a Tower Company.
Although we start with total costs, the simulations only act on the network-related
opex and capex.
Enjoy!
The Investaura and Implied Logic teams