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Coy C is a successful private telecommunications services company which specialises in traffic aggregation, virtual private network (VPN) and virtual Internet service provider (VISP) services. It wanted to investigate several alternative business models as future pathways, including a possible joint venture with a major telecoms infrastructure (TI) player. Wingarra BMI was engaged to design and construct an integrated model which would allow the company to test the feasibility of several of these business models, as well as various permutations and combinations of certain components of each.

Among the specific variables integrated within this model for testing are the following:

Product and customer parameters:

• %age of new addition customers V customers transferred in from existing business – by wholesale and retail product suite (dial-up, broadband, VPN, VISP)
• Downstream bandwidth speeds
• %age of customers opting in to Internet services
• Starting customer numbers - by wholesale and retail product suite
• Target customer numbers at end of each of five years modelled – by wholesale and retail product suite (Likely, Best and Worst scenarios)
• Average monthly telephone service usage by unbundled local loop (ULL) customers – no of local calls, time on national calls, time on fixed-to-mobile (FTM) calls, time on international calls – separate estimate for each year
• All of the above for the TI player to map possible J/V partner revenue streams
• Average monthly sign-up profiles – applies to all years

Customer churn parameters:

• Churn rates - %age of customers churning (leaving to sign up with other services) each month
• Churn breakdown by in-contract V out-of-contract customers

System usage parameters:

• Contention ratio (ratio of potential maximum demand to actual bandwidth available – effectively, an estimate of the extent to which users will require access to bandwidth at the same time)

Revenue parameters:

• Average monthly project (consulting) revenue
• Monthly project revenue uplift factor
• Pricing – establishment - by wholesale and retail product suite
• Pricing – monthly - by wholesale and retail product suite
• VISP pricing – by user numbers by wholesale and retail product suite
• Pricing – churning customer fee - by in-contract/out-of-contract by wholesale and retail product suite
• Pricing – ULL customers – local calls (flat fee), national calls (fee/min), FTM calls (fee/min), international calls (fee/min)
• Pricing – aggregated virtual circuit (AGVC) (fee/Mb)
• Pricing – Internet (fee/Mb)

Direct cost parameters:

• Direct costs relating to all of the above revenue components – project revenue, establishment, monthly, etc

 

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Note: model run on dummy data for screenshots.

Coy C inputs 1	Coy C inputs 2
Coy C inputs 3	Coy C inputs 4

 

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