Newsletter

Online model

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:

  1. The current mode of operation (CMO) where the CSP continues operating its networks in a ‘business-as-usual’ approach (Base case)
  2. A future mode of operations (FMO), with maximal scope of Network Operations Outsourcing
  3. A future mode of operation with Outsourcing and large-scale (RAN) Passive Asset Sharing (AS)
  4. A future model of operation with large Vendor Financing
  5. 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

Documentation

We have prepared a detailed description of our methodology for you to review offline and share with interested colleagues.

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About the author

Investaura Management Consultants is an independent telecom consulting firm founded by senior telecom professionals. It works with CxOs and senior managers to help them solve their toughest challenges. Beyond strategy, Investaura is execution and delivery oriented. Its consultants are pragmatic, bring no less than 10 years of professional experience in the industry, and have worked in more than 40 countries worldwide.

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