Capacity Building in Regulation Regional Workshop Universal Access

1
Capacity Building in RegulationRegional
WorkshopUniversal Access
Choice of most relevantNetwork Solutions -Doc
2.3-
Jean-Marie Blanchard
Banjul, Sept. 19-23, 2005
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Objective of the Session

• Be aware of different possible approaches
  regarding Access Network technology selection
• Be in position to choose the most relevant
  Network solutions
• What does mean the most relevant ?
• What are the key parameters ?
• What are most sensitive criteria for selection?
• Define and Understand main steps of the
  Methodology

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Agenda of the Session

• Challenging Universal Access dilemma
• Criteria for Technology selection
• Technical performance driven
• Economic driven
• Business driven
• Application exercise
• Main steps of methodology
• Needs analysis
• Network architecture
• Business Planning

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Introduction Chat
Affordability and Accessibility How to take up
the challenge?
ARPU
High
The famous dilemma!
Line Cost
Low
Urban
Rural
What could be the succcessful strategy?
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Rural Telecom is not as unprofitable as it is
said !

• Business model is not fair enough
• (regional operator concept)
• Incoming call revenues are not taking into
  consideration though they are usually much higher
  than out coming calls
• Interco could be asymmetrical taking care of
  higher cost of call termination
• Population solvency is much higher than estimated
• Community Access, Prepaid will improve population
  solvency
• Real population income is much higher than GDP
  (--gt PPP)
• Profitability issue must be taken into account
  and reconsidered, taking advantage of potential
  revenues from relevant value added Internet
  services

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Universal Access/Service Definition

• To bring Telephone
• to 100 additional villages each year
• OR
• To offer Communication services
• to potential users according to their needs
  whatever they are located

Universal Access should be seen as an Opportunity
rather than an Obligation
Pay and/or play concept
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Limits of Universal Access Strategies

• Service Offering
• Basic fixed telephone services
• individual and residential services for All
• Equal QoS and tariffs
• Marketing and Operation
• Public Service Obligation
• Nationscale operator
• Technology non-neutral

... Not enough Business oriented, under regulation
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Choosing the right approach
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Which Access Network Technology?
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Other Criteria for selection. The most
relevant Technical Solution

• Cost of Ownership
• investment or capital cost (amortization)
• operational cost
• Business Plan
• Revenues - Costs Profit
• Cash Flow analysis and Return On Investment (ROI)
  time frame
• ... as function of strategic options
• Marketing
• Deployment plan
• Financing terms (debt service)

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Application Exercise

• How Added value services could justify Network
  Infrastruture implementation
• in rural areas ?
• A win.... win-win approach
• Farmers win !
• ICT vendors win!
• Telco and service providers win!
• Economic and social development win!
• ......

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Network development PlanMain steps of Methodology

• Needs Constraints identification
• Typesof requested services
• Targetted users
• Business model
• Network planning
• Deployment plan
• Marketing plan
• Commercial Strategy
• Communication plan
• HR Training
• Support Sales Logistic
• Customer Care

Definition
Planning
Launching
Follow up
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Marketing Business Consulting model
INPUT
OUTPUT
INPUT
OUTPUT
t
Market
data
t
Service
Trends
Definition
n
n
Segments
Positioning
n
n
Growth
Scenarios
n
n
Demography
n
Network
Local
market
t
n
Process
n
t
Operator
data
Dimensioning
n
Strategy
Cost
n
n
Infrastructure
n
t
Business Plan
Systems
n
BUSINESS MODEL
Services
Revenue/
Exp
n
n
Cash
Flows
n
Environment
n
Source Alcatel
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Network plan (Step 1)Application to Universal
Access

• Needs and Constraints analysis
• Terms of national regulation
• Social and Political objectives
• Market segmentation
• User economy (type of activity Income)
• Geographical situation
• density clustering, topography
• Level of e.awareness and Communication usage
• Relevant services to be offered per segment
• Type, delivery mode, QoS, Pricing

1 Geo economic Service Model(s)
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Network plan (Step 2)Application to Universal
Access
1 Geo economic Service Model(s)

• Network features and Capacities
• Traffic dimensioning per service
• Network Technology comparison
• Evaluation of existing assets
• Terms of national regulation
• Availability of Communication services
• Other Operator and Public autorities plans
• Footprint of other Public Utilities

• 2 Network Architecture Model(s)
• Topology Technology
• Cost of Ownership

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Typical Parameters impacting Access Network
Architecture
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Radio Network Planning

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Radio Network Planning Software Tool
Example of radio coverage evaluation
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Network plan (Step 3)Application to Universal
Access
Assessing level of profitability per areas
Revenue
Cost of Ownership

• 3 BUSINESS MODEL
• Cashflow, EBITDA, IRR, NPV
• Social benefits
• Sensitivity to Service Architecture

Feedback
Feedback
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The Best Technology ?

• The most relevant Access Network Solution is the
  combination of Technologies that enables
• the best Business Model compromise
• As well
• Reaching political and social objectives
• Improving sustainability and profitability

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Any questions?
Choice of most relevantSolutions - Session 7 -

• THANKS A LOT FOR YOUR CONTRIBUTION!

Jean-Marie Blanchard ICT for Development Strategic
Consulting and Training Ph 33 6 13 15 36
85 e.mail jmblanchard_at_9online.fr