CAPEX Efficiency

Challenges:

Telecom is one of the most investment driven industries. The deployment of 5G will increase the need and lead to even greater CAPEX spend.

Lack of coordinated planning between the business/commercial and technology/service delivery teams creates challenges resulting in suboptimal return on investments.

Lack of accountability across the business in measuring investment performance based on ROI and not only on EBITA and cash flow.

Capex process is found to be driven by technology, not business commercial objectives based on the feedback from most of our clients (operators) "To produce credible results we need end to end accountability of CAPEX”.

Therefore, operators must ensure that investments are made at the:

RIGHT TIME – by having an efficient planning/upgrade guidelines & processes that efficiently sweat and unleash the full capability of existing assets.
RIGHT PLACE – invest in the most relevant market opportunity areas based on priorities related to highly profitable clusters to secure fast ROI.
RIGHT WAY – deploy the appropriate technology and solution to avoid un-necessary investment.

Solution:

Our CAPEX Efficiency Assessment service address the above concerns, answering two classic questions:

SHOULD A PARTICULAR INVESTMENT BE MADE – Yes or No?
CAN EXISTING ASSEST BE REUSED, RECYCLED OR RESHUFFLED BEFORE FURTHER INVESTMENT – Yes or No?"

The assessment scope typically covers the following:

Assessment of alignment between Business Plan & technology strategies.
Effectiveness of Capex Planning & Deployment Process including the flow of information from business strategy to implementation through to capitalization.
New investments guidelines (coverage & capacity).
Application and effectiveness of existing guidelines for solutions design and dimensioning.
Appropriateness of business objectives vs planned/deployed solutions.
Future proof-ness and cost effectiveness of deployed solutions.
Accuracy of BoQs for deployed projects and ROI per project.

Our CAPEX efficiency assessment service will be implemented using the following tried and tested methodology fine tuned over numerous client projects. The service is divided into three phases:

Phase 1 - Data collection - Collection of required data and information for detailed analysis based on input questionnaires.
Phase 2 - Details analysis and findings - An in-depth analysis of the collected data and discussions of initial findings with the operator followed by the presentation of the findings and root cause analysis of discovered issues.
Phase 3 - Recommendations and reporting - Preparation of detailed assessment report including practical recommendations which are prioritized based on their impact on CAPEX deployment efficiency.

Results:

Recommendations of corrective actions to achieve optimum Network solutions with the best Capex efficiency whilst ensuring future proof-ness related to:

Forecast calculation and periodic review.
CAPEX process optimization.
Tuning of coverage & capacity guidelines.
Optimize network performance to avoid investment in legacy technology.
Ensure future proof solution is in-line with technology strategy.
Enforcing governance structure for CAPEX control.

In addition to the above, Cyberteq will also provided the status of CAPEX efficiency for a selected number of deployed projects with the following categorization: