Operator Challenge

The operator was not sure about the actual ROI of their RAN expansions, as the bottom line was dominated by tariffs, marketing, and competition. Growth had saturated, and further RAN investments would have to be qualified by their verified ROI.  The operator wanted to ensure that any further LTE investments would return profitable revenue already within one year.

Omnitele Assignment

Verify how different LTE investments will return short term revenue, and quantify the selected short term expansions that have positive ROI within an one year period.

Solution

Omnitele applied the Value Driven Network analytics models to the operator’s network and customer data, to predict the churn and ARPU impact of alternative LTE investment scenarios.

Input data needed for the analysis

• OSS & passive probe data
• CRM & Billing data
• Capex & Opex items for LTE & 5G

Analysis by Omnitele Value Driven Network

Step1: Link customer quality to Churn-risk and ARPU

Step 2: Quantify quality driven ARPU & Churn in sector level

• Total 2.6% churn from quality gaps
• Total 2.1€ ARPU loss from quality gaps
• Total 12% of potential revenue lost    

Step 3: Quantify ARPU & Churn improvement from different sector-level LTE expansions

Improvement from the expansions can vary a lot in different sectors, as the they have different quality footprint and different customer profiles.  

Step 4: Prioritise sector level investments based on their ROI

Output of the analysis

Sector level LTE expansion plan for maximised ROI

Strategic benefits

• RAN budget justified by verified business case
• Saved Capex freed for other strategic actions

Quality benefits

• -21 % poor user experiences

Revenue enhancement

• +4.4 % Mobile revenue next year

Capex savings

• 20-30 % reduction in RAN Capex for the next year

Profit enhancement

• +11 % Operational profit next year

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