Improving profitability and performance

Fixed and mobile markets in developed countries are mature and even in some emerging markets growth has started to slow down. In 2006 many mobile operators in Europe saw virtually flat revenue despite some increases in customer numbers and the positive revenue impact from non-messaging data services. Coupled with the lack of opportunities to grow revenue and EBITDA through acquisitions or new licences the focus is shifting to cost of sales and opex reduction and asset efficiency.

Coleago has helped operators to improve their profitability by looking at their strategic and operational options.

Strategic Measures

A better marketing strategy can result in improving the gross margin through lower direct costs such as customer acquisition and retention. A much overlooked aspect are regulatory measures with the view to reduce interconnect costs and maximise interconnect revenue. In order to increase shareholder value it is not necessary to increase margins in absolute terms. If capital can be released while margins are maintained, the return on capital employed increases. Alternatively, an operator may withdraw from lower margin value chain activities.

Operational Measures

Coleago can help your business to reduce costs by examining opex savings through outsourcing, using new technology, better budgeting and cost control, capex savings e.g. through site sharing, or conducting a network audit with the view to optimise network utilisation.