GROUP MEMBERS SHAIKH AZHARUDDINMUHAMMAD NABEEL HAIDER KHAN
WHY CRBT? CRBT (CALLER RING BACK TONE) .It is a VALUE ADDED SERVICE for customers. In the race to capture share of mobile users’ hearts and wallets, operators have deployed mobile music solutions and enjoyed significant success. Among the varied portfolio of mobile music offerings, ring back tones have achieved killer application status with mobile subscribers in many markets worldwide. With ring back tones, subscribers replace the ring tone that callers normally hear with a personal choice of music or audio content - bringing a more enjoyable calling experience to their callers.
INTRODUCTION Mobitunes (Caller Ring Back Tone) A new way to greet your incoming callers – instead of listening to the conventional Tu Tu, with Mobitunes you can now make your callers listen to your chosen Tune. Cost Weekly subscription charges of Rs. 3.75 + Tax Mobitunes IVR surfing charges of Rs. 3.99/Min + Taxes
INVESTMENT APPRAISAL A means of assessing whether an investment project is worthwhile or not Investment project could be the purchase of a new PC for a small firm, a new piece of equipment in a manufacturing plant, a whole new factory, etc Used in both public and private sector
CRBT PROJECT COST COST Fixed Cost Tender Float 40000 Purchase -2120000Order Placement 2120000Custom Clearance 100000 Custom + -118000 Transport 18000 Transportation KESC Laying 50000 Installation -100000 LAN Laying 50000 Installation 100000 KESC & LAN -100000 Upgrade 200000/yr KESC Rent 32000/month Tender Float -40000 Salvage Value 375000 Fixed Cost -1762000 Life 4 Years
Year 0 Year 1 Year 2 Year 3 Revenue 0 4651000 4651000 4651000 Fixed Cost -1762000 - - - Depreciation - -461250 -461250 -461250 Electricity Bill -384000 -384000 -384000 -384000System Upgrade - -200000 -200000 -200000 EBT -2146000 3605750 3605750 3605750 Tax 10% 0 -360575 -360575 -360575 Net Income -2146000 3245175 3245175 3245175 Depreciation (Add Back) - 461250 461250 461250 Cash Flow -2146000 3706425 3706425 3706425
NPV (Net Present Value) NPV is positive therefore the project is financially worth while NPV Purchased - Accumulated Book value 378250 Depreciation Gain Salvage Value -Book Value -3250 Tax @ 10% -325 Salvage Value 375000 Tax @ 10% 325 Cash Flow 3 375325 Net Cash Flow of year 3 4081750 Net Present value PKR 6,712,288.67
PAYBACK PERIOD The length of time taken to repay the initial capital cost Payback PeriodCost of Capital (rate) 14% 3 year project Year 0 1 2 3 Cash Flows -2146000 3706425 3706425 4081750 Discounted Cash -2146000 3251250 2851973.684 2755064.986 flow Cummulative -2146000 1105250 3957223.684 6712288.67 Payback Period 1.941642162 years
SUBSCRIBERS Mobilink has 10 million subscribers for mobitune. According to the charges following revenue would be generated from 10m subscribers: 10 x Rs4 x 4 weeks x 12months = Rs 1.92Billion After deducting the cost the profit would be: Rs 1.91 Billion
OPERATOR BENEFIT Increased ARPU (Average Revenue Per User) A hit across the entire subscriber base, CRBT increases VAS revenues and ARPUs Mass Availability Available for all prepaid and postpaid subscribers, without any limitations Mobile Device Independent All subscriber segments can use the service, regardless of their handset model Wide Availability Network independent – can be deployed on GSM, CDMA and PSTN networks Efficient Marketing Following launch, CRBT uptake and usage has often grown by word-of-mouth, effectively selling itself Flexible Charging Options Subscription-based charging, or differential charging based on the content Improved Loyalty CRBT is a sticky service, building long-term customer loyalty
POSSIBLE ASPECTS OF REVENUE LOSS There few risks company has to take which might encounter revenue loss if anything goes out of planned but that is for the benefit of customer Software upgrade Hardware upgrade or expansion During the activity after the threshold time(12:00 a.m to 6:00 a.m) if services are down everything goes on revenue loss section and action is taken accordingly.
REVENUE LOSS Revenue loss= Number of down hours* total revnue of one hour (off peak or peak hour) OFF PEAK (LESS TRAFFIC) PEAK (MAXIMUM TRAFFIC)
SUBSCRIBER BENEFIT Personalization Subscribers can reflect their personality and emotions by playing different ring back tones for different callers Keep Callers HappySubscribers keep callers entertained whilst they wait to be connected Flexibility Subscribers can change their ring back tone based on user mood and context, or use the varied features to gift or copy a ring back tone