inTouch worked with a large American satellite communications business to deliver a ‘long term contract’ pricing solution. The client’s requirement was to devise a pricing tool which sufficiently discriminated between different customer types, modeled dominant customer / customer segment characteristics, factored in market dynamics of demand and supply at a given ‘point in time’ and marked up / down contract prices based on market and internal attributes. The client shared 20 year dataset that included 5-year historicals and 15-year forward contracts in all.

1. Satellite Bandwidth pricing optimization
case: decision modeling approach used for a large US based satellite company

2.  Some queries –
 Does the existing pricing policy sufficiently
discriminate between different customer types
[segments, new contracts, renewals]?
 Do they factor in market dynamics such as
demand and supply at a given ‘point in time’?
▪ by band (Ku/C)
▪ by protection level
▪ by neighborhood, coverage and orbital location

3. h ot
s
re en
sc
p le
Sam What contracts and for what term
should be priced at premiums and
what needs to be discounted…

4. h ot
s
re en
sc
p le
…What is the effect of
Competitors’ Utilization? Sam

5.  Pricing decision support helped client gain over
$100MM in potential revenue opportunities
 Client’s sales staff able to effectively
discriminate between potential mark-up / mark-
down opportunities and arrive at precise price
points to maximize revenue
 Sales staff to take advantage of supply-demand
dynamics in the marketplace and negotiate
accordingly

6. PLEASE DIRECT QUERIES TO:
Arun Prabhu
inTouch analytics private limited
Email: arun@be-in-touch.com
Phone: +91-96202-71950
22-Feb-2011 © 2011 inTouch analytics or its affiliates. All rights reserved For internal use by RIL only to evaluate inTouch as analytics partner