An optimized telecom network can significantly impact revenue in Latin America. Network optimization leads to higher customer satisfaction, increased revenue from new services, and more efficient use of resources. Total cost reductions from optimization average 40% through improved repair processes, spare parts management, and turning surplus equipment into cash. Optimizing networks is key to growth for telecom companies in the region.

1. REVENUE IMPACT OF OPTIMIZED NETWORKS

2. INVESTING IN LATIN AMERICA’S FUTURE
The telecom industry is one of the significant contributors of the
world economy with an estimated 3% of the global GDP
• Demand for real-time voice, data and video
• Revenue shift from fixed to mobile, and from
voice to data
• Next-generation super-fast 4G technologies
• Convergence of services will expand market
reach to low-income groups
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3. NETWORK GROWTH IN LATIN AMERICA
• Total mobile handset shipments expected to
increase from 20% to 50% by 2012
• Brazil national broadband plan to bring basic
broadband to approximately 40 million households
by 2014
• Government subsidies to propel market to more
than $80 Billion in 2015
• Mobile banking with 65% annual growth until 2015
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4. INVESTING IN YOUR NETWORK’S FUTURE
• Increased competition
• Shorter product life-cycle
• Shorter upgrade-cycle
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5. INVESTING IN YOUR NETWORK’S FUTURE
Did you know…
55-65% of annual revenue
is spent on CAPEX and OPEX for your network?
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6. OPTIMIZATION: THE KEY TO GROWTH
An optimized network is reliable and cost efficient
• Assurance of network performance and
quality of service
• Development of new services through
network evolution
• Increased use of high-value data
applications
Higher Customer Satisfaction = Increased Revenue
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7. OPTIMIZATION: THE KEY TO GROWTH
An optimized network is reliable and cost efficient
• Improved efficiency through optimal use of
network resources
• Reduced number of network elements
• Service quality assured through repair of
network equipment
• Effective inventory management of assets
network wide
Total cost reductions average 40%
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8. HOW TO
OPTIMIZE
YOUR NETWORK AND REVENUE STREAM
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9. OPTIMIZATION OF YOUR NETWORK
• Multi-vendor repair of wireline, optical and data
equipment
• Inventory management through spare parts
management programs
• Turning surplus assets into cash to reinvest into
your networks
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10. MULTI-VENDOR NETWORK EQUIPMENT REPAIR
Did you know…
5-10% of total assets
will need to be repaired?
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11. MULTI-VENDOR NETWORK EQUIPMENT REPAIR
• Extend the life of your network
• Extend your product life-cycle
• Manage out-of-warranty repairs
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12. MULTI-VENDOR SPARE PARTS MANAGEMENT
In-House Operations Outsourced Spare Parts Management
Total Cost of Ownership Total Cost of Ownership
OPEX
OPEX
CAPEX
1Y 1Y
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13. MULTI-VENDOR SPARE PARTS MANAGEMENT
• OPEX reduction by low-cost
hardware support
• OPEX reduction by cost-effective
management of embedded legacy
equipment
• CAPEX minimization by inventory
control and sell-off
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14. MULTI-VENDOR SPARE PARTS MANAGEMENT
International Surplus
Service Provider Outsourced
Market
Contract Manager Account Manager
Periodic Shipments
Field Staff Screening & Tested Good Repair & Testing
Testing Inventory
Service Provider Outsourced
No
Central Warehouse Warehouse
Yes Enough Yes
Defective No
Tested
Periodic Shipments Req. Action
Defective Good
Quarantined Equipment
Inventory
No
Faulty Units
Defective
Tested Good Units Recycling
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15. ASSET DISPOSITION: FREE UP WORKING CAPITAL
Did you know…
In 2010, over 10,000 tons of e-waste
was generated?
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16. ASSET DISPOSITION: FREE UP WORKING CAPITAL
• End-of-life platforms have been retired
• Need to maintain and spare assets has
been postponed
• Reduce inventory management costs
• Invest in new technology even during the
global downturn
Turn excess assets into working capital!
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17. EXCESS ASSET VALUATION MODEL
NO
Resale Value > Scrap Value? Equipment Recycling
YES
NO Revenue Share / Direct Buy
Resale Value > (Recycling Revenue)
Decommissioning Cost?
YES
Equipment Equipment Equipment
Remarketing Refurbishment Decommissioning
Revenue Share / Direct Buy
(Sales Revenue)
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18. REVENUE IMPACT OF OPTIMIZED NETWORKS
• An optimized network is reliable and cost efficient
• Higher Customer Satisfaction = Increased Revenue
• Repair Total cost reductions average 40%
• OPEX reduction by low-cost hardware support
• OPEX reduction by cost-effective management of
embedded legacy equipment
• CAPEX minimization by inventory control and sell-off
• Turn excess assets into working capital
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