The Family of Business Case Analysis Tools

www.4Gbusinesscase.com

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Contents

• Overview

• Four Main Integrated Analyses

• Market Analysis

• Technical Analysis

• Economic & Financial Analysis

• Scenario & Sensitivity Analysis

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Overview

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• TEA is a family of business case analysis tools that empowers costumers with an effective mean to lay a solid foundation for a successful 4G initiative, analyzing and tracking the business case through an integrated and iterative approach during the entire life cycle of the project.

• It is an unique and integrated application, that takes into account all critical aspects (market, technical, economic and financial) ensuring the best possible alignment between business and technology strategies since the outset. In Addition, The TEA family features comprehensive market and revenue forecast models, network dimensioning modeling tailored to the 4G technologies (WiMAX and LTE).

• The TEA family has been developed leveraging over six years of industry experience with strategic assignments and projects for major operators and equipment vendors.

The TEA Family

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TEA|WiMAX & TEA|LTE

• Perform all key analyses (market, technical, economic and financial) in a integrated manner

• Enable analyzing the influence of boundary condition changes on the profitability of the investment

• Allow carrying out a quick and easy business case evaluation, without building time-consuming and laborious spreadsheets

• Are tailored for the specific needs of players in the 4G ecosystem

• Include a number of standard projects pre-set to specifications of leading WiMAX and LTE solutions

&

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• Operators looking for the best business case and a detailed network planning phase of it to identify the most critical factors for the success of the initiative

• Vendors aiming to present operators with an accurate and compelling positioning of their offerings

• Analysts and consultants supporting their customers in the development of superior business and technology strategies

• Investors evaluating new business plans and requests for further rounds of financing

• Regulators have to properly assess operator’s submissions, in order to perform an objective and forward-looking spectrum management

TEA Family supports almost every player of the 4G ecosystem:

Who could benefit?

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• Analyzing the business case for a WiMAX and LTE initiative with a holistic approach, in an integrated and iterative way, by taking into account all critical aspects

• Supporting a fast and simplified configuration of more than 500 input parms with a number of them pre-set to typical/recommended values in the technical part

• Enabling the user to view results instantly in an animated graphical format through a dashboard-styled and very easy-to-use GUI

• Compliant with:

• IEEE 802.16e/d/m standards and the WiMAX Forum Fixed/Mobile Profiles

(TEA|WiMAX)

• The latest version (Release 10) of the LTE standard (TEA|LTE)

• Easy and fast definition of custom profiles and bands

• Manual setting of the number of users, BS/eNB, Logical Sectors, Radio Links, MME, S-GW, P-GW

Key characteristics

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Four Main Inegrated Analysis

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Four main integrated analysis

Market Analysis

Estimating the potential market and revenues for the 4G services

Technical Analysis

Dimensioning the network

infrastructure to derive the

required bill of quantities

Economic & Financial Analysis

Calculating all the economic & financial projections keys and the indicators

Scenario & Sensitivity Analysis Analyzing the influence of parameter

and boundary condition changes

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• Geographical areas to be served (dense urban, urban, suburban/exurban, and rural)

• Market segments to be addressed (residential, soho, small, middle and large enterprises/institutions)

• Service profiles to be offered

• Market segment penetration per year

• Impact of churn

Estimating the potential market and revenues for the 4G services:

Market analysis

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The 4G network infrastructure is structured on the basis of the capacity and coverage

requirements, to derive the required bill of quantities, taking into account:

• Technology characterization (operating frequency, channelization, duplexing, sensitivity, data rate, etc.)

• Base stations/eNodes B and user terminals/equipments to be deployed in the network

• Path loss model for the link budget analysis (Cost-231, SUI, ECC-33, Log-Normal with/without Shadowing, Free Space)

• Down and up link capacity demand per year

• Existing backbone infrastructures

• Wireless backhaul technology distribution (SDH, PDH, Native Ethernet, Other

Technical analysis

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• CAPEX & OPEX (spectrum license, Internet connectivity, access, backhauling, core network, personnel, marketing, SG&A, etc.)

• Depreciations

• Interest rate on borrowings

• Tax rate

• Discount rate

• Financing

• Equity

• Perpetual growth

All the economic keys & financial projections (TCO, P&L, Cash Flow, Balance Sheet) and

indicators (Gross Margin, EBITDA, EBIT, NPV, IRR, PBP, Shareholder Value, etc.) are

calculated to assess the feasibility of the 4G initiative, considering:

Economic and financial

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• The influence of parameter and boundary condition changes is analyzed to

identify the most critical factors for the success of the initiative. A fast and

iterative fine-tuning of the 4G business case, in real-time and total privacy can be

performed, viewing the results in an animated graphical format instantly from

the different Market, Technical, Economic & Financial perspectives.

Scenario and sensibility analysis

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• At the end of the analyses, a very detailed report is automatically compiled and published in editable formats.

• The report contains a complete summary (with tables, diagrams and charts) of input parameters and assumptions, the results of the market analysis, the outcome of the technical modelling, and the economic and financial statements.

Comprehensive report

WiTech SPA Polo Tecnologico di Navacchio

Via Giuntini 25, int. 39 56023 Cascina (PISA) Tel: +39 050 775 056

Fax: +39 050 75 47 22 E-mail: info@witech.it

www.witech.it

www.wropcloud.com www.4gbusinesscase.com

Thanks for your attention

For more information send us an email or call us at our phone number