Our overall objective

Overall objective is to work with telecom operators to increase their valuation. We do that by pulling two levers: revenue acceleration and smarter use of CAPEX. These two together should deliver more free cash flow on a structural basis, and hence deliver more value. We believe that we can add value, not only because our team is very experienced (former telco Executives and former management consultants from Tier 1 firms such as BCG), but also because we follow a no-nonsense approach in what we do, with focus on results. We focus on the following areas:

  • Revenue Acceleration
  • Service Portfolio Improvement and Innovation
  • Smarter Pricing
  • (Digital) Sales Channel Improvement
  • Smarter Capex usage

Revenue Acceleration programme

Our approach is to agree with you on an overall revenue acceleration target, which is then allocated to key drivers such as targeting segments with the right offers, pricing, (digital) channel, devices. Each responsible functional department in your company needs to define a set of initiatives that will collectively deliver the overall target. The business case needs to be validated by your finance department before launch. Overall tracking of initiative launch and benefits will be done by a central team, that also reports to the board of management. This structural and disciplined approach has been very successful in a number of telcos.

Service Portfolio Improvement and Innovation

We take a customer centric view in analyzing why certain products or services are underperforming. Very often simple adjustments to the product design and customer journey can make a big difference. Regarding service portfolio innovation, there is no standard approach to this. However, the key question should always be: do we address real customer pain? Once the answer is yes, it is critical to take a thorough customer view on designing the product or service, and the whole customer journey around it. It is not about making it complex. It is about being spot on. We are not afraid of making our hands dirty by for instance writing 3rd level product specifications or by specifying a detailed user acceptance test procedure. The Youth segment deserves special attention. After all, the youth of today are Digital Natives, and require offers that align with their specific behaviour. We make use of best practice benchmarks from operators that have been very successful with their youth offer to compare that with your offer. We may be able to give some very useful recommendations.

Smarter Pricing

Pricingis a broad subject, and unfortunately not only a science, but also an art. We have proprietary tools to do competitive analysis of your pricing situation. We recommend strategic changes, not only to your current pricing, but also to your pricing journey. In addition to that, we have a library of approximately 200 tactics to drive revenue. We can work with your team to select the most appropriate ones, test and launch them in the market. We also developed a price elasticity famework: once we know what is the price elasticity in your market, we can recommend how much your prices should change to maximize revenue. And last but not least, we can work with you to optimize our pricing architecture to answer questions like: is your pricing aligned with your strategy? Does it encourage upsell? Is it simple enough?

Sales Channel Improvement

In digital channels, the customer can get overwhelmed with a very complex path-to-purchase with often leads to underperformance of strategic hero offers. Our approach is to analyse that path-to-purchase and we typically recommend drastic simplifications. We do that by collaborating with your team, also on the IT side, as they are the ones that have to make the changes. Regarding the optimization of the overall channel mix, we review channel preferences vs your existing channel. Regarding channel operations, we review your incentive structure vs dealer preferences, and we also assess arbitrage effects, as a flawed channel incentive structure can easily lead to washing machine effects. 



Smarter CAPEX

The need for smarter CAPEX is driven by the observation that many telcos have a Return on Capital Employed (ROCE) which is well below the Weighted Average Cost of Capital, and hence growth means destroying value. Unfortunately, for many telcos, even the long term perspective is not very good in this respect, and therefore not sustainable.Our approach is to assess the as-is ROCE in each area. We then simulate the to-be geographical ROCE based on your current investment plans. We can work together with your team to identify Smart CAPEX opportunities to modify your investment plans in order to achieve better ROCE overall. Another area of Smarter CAPEX is technology lifecycle management. An example is optimizing the mix between FTTH and xDSL investments. Classic example in case of mobile networks is the question how much you should invest in 3G while 4G is available, and even 5G is around the corner. Let alone the question of what to do with 2G? We have extensive experience with such cases, and developed a methodology to analyze large amounts of scenarios where needed.

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