1. GROUP MEMBERS
SHAIKH AZHARUDDIN
MUHAMMAD NABEEL HAIDER KHAN
2.
3. 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.
7. 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
8. 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
9. CRBT PROJECT COST
COST Fixed Cost
Tender Float 40000
Purchase -2120000
Order Placement 2120000
Custom 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
10. 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 -384000
System 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
11. 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
12. PAYBACK PERIOD
The length of time taken to repay the initial capital cost
Payback Period
Cost 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
13. 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
14. 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
15. 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.
16. 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)
17. SUBSCRIBER BENEFIT
Personalization
Subscribers can reflect their personality and emotions by playing
different ring back tones for different callers
Keep Callers Happy
Subscribers 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
