Expertise and Example Projects

The Australian telecoms regulatory authority had published a consultation on proposed auction formats for the award of spectrum. The consultation covered both SMRA and CCA formats. Coleago prepared a detailed report examining both the academic research on the alternative formats as well as the practical implementation of the formats in other jurisdictions. Coleago provided a recommendation on the preferred auction format and arguments to support the preference.

Grameenphone was facing spectrum renewal of its existing holdings as well as a potential 3G spectrum auction. Coleago provided marketing, technical and financial modelling support to generate a spectrum valuation range to support negotiations with the regulator.

Everything Everywhere are preparing to participate in the UK Ofcom spectrum auction and needed to develop a range of spectrum valuations for 800MHz and 2.6GHz spectrum. Coleago provided full valuation support including developing a sophisticated modelling suite and assumption sets to reflect a range of demand and technology assumptions.

For a Middle Eastern mobile operator, Coleago had previously carried our an operational review which identified a number of areas that required action. Subsequently the client tasked Coleago with an implementation of the recommendations. This operational performance improvement project covered Procurement, Outsourcing (Customer Care, Network, IT), Finance & Reporting. The project also included advice in developing a mobile wholesale / MVNO strategy and business operations. Coleago also addressed regulatory issues that affect the client's ability to compete on a level playing field. This involved the preparation of well researched and carefully argued lobbying papers to tackle deficiencies in telecoms regulation, notably margin squeeze.

The Syrian government issued a tender for the 3rd mobile licence in Syria. The licence award was a hybrid beauty contest followed by an auction. On behalf of the our client, Qtel, Coleago prepared a compliant bid book as specified by the tender of around 250 pages. Coleago also carried out a valuation of the opportunity using Coleago's Mobile Business Planning Planning & Valation Model, under a range of scenarios. This was used to determine the maximum amount Qtel would be prepared to bid for the licence during the auction stage of the application. The valuation was complex due to the need to take account of a compulsory revenue share (partly guaranteed), a partial carried interest, a part financed minority shareholder, and an uncertain regulatory environment, notably with regards to termination rates and IP transit prices.

The Fair Trading Commission of Barbados (regulator of Barbados) required a review of incumbent fixed and mobile operator's enhanced cost allocation model, notably for the purpose of setting fixed and mobile termination rates. Coleago carried out a detailed review of the operator's cost allocation model which identified a number of issues and led to a substantial revision of the cost allocation model.

Coleago in conjunction the TechZones delivered two five day Telecoms Mini-MBA course for STC. The course encompassed strategy, marketing, market forecasting, finance and project appraisal. The course included quizzes at the end of each module to create an enjoyable and competitive learning experience.

OFCOM the Swiss regulator had published its plans for the auction of all current and future mobile spectrum holdings. Coleago provided spectrum valuation, auction advice and input into the response to the regulator. The auction format proposed is a Combinatorial Clock Auction based on a second price rule and Coleago assisited the client in its lobbying efforts towards the regulator. In terms of valuation, Coleago developed a suite of valuation tools and assumptions to examine spectrum valuations under a range of different market demand and technology scenarios.

Coleago in conjunction with MPIRICAL developed and delivered a Telecoms Mini-MBA courses for NSN's client Mada a Wimax operator in Jordan. The course encompassed strategy, marketing, market forecasting, finance and project appraisal. The course included quizzes at the end of each module to create an enjoyable and competitive learning experience.

Belgacom needed to gain a better understanding of how to value spectrum and what is involved in a spectrum auction and Coleago held a half day workshop.

Tata Communications planned to participate in the Indian BWA spectrum auction. Coleago was retained to review their approach to spectrum valuation and their key assumptions in order to provide a second opinion on the reasonableness of their valuations. Coleago also adviced on the development of bid strategy and the formulation of auction support tools. A senior Coleago consultant was also embedded in the auction bid team and advised on bidding protocols and procedures as well as advice during the auction itself.

The board of a Middle Eastern mobile operator was concerned that the management of the operation under a management contract from a major mobile group.

Optus Mobile Pty Ltd had to respond to a request by the Australian regulator for the pricing of the renewal of spectrum licences in certain bands. The favoured approach for setting the renewal prices was Administered Incentive Pricing (AIP). Coleago produced a detailed report on the merits and approaches to AIP and the methodological approach in setting prices. In parallel, Coleago applied this methodology to the spectrum holdings that were coming up for renewal. This three phase project extended over a long period since it formed part of an extended consultation and negotiation process with the Australian regulator.

Axiata Group companies in Asia needed to gain a better understanding of how to value spectrum and what is involved in a spectrum auction. Coleago held a one day workshop attended by all group companies. The workshop consisted of detailed methodological presentations and a mock spectrumm auction with 5 teams bidding for spectrum. The auction was a SMRA auction, including digital dividend and 2.6 GHz spectrum.

The client, a minority shareholder in a non-quoted mobile operator, was concerned with the dilution of the stake as a result issuing further shares at a price that potentially undervalued the business. Coleago prepared an independent report and valuation that helped the client to reduce the effect on dilution by attaching a higher valuation to the existing shares.

Telefonica Group needed to gain a better understanding of how to value spectrum and what is involved in a spectrum auction. Coleago held a one day workshop attended by all group companies. The workshop consisted of detailed methodological presentations and a mock spectrumm auction with 5 teams bidding for spectrum. The auction was a SMRA auction, including digital dividend and 2.6 GHz spectrum.

Coleago in conjunction the African eDevelopment Resource Centre delivered a four day Telecoms Mini-MBA course which was open to the public. The course encompassed strategy, marketing, market forecasting, finance and project appraisal. The course included quizzes at the end of each module to create an enjoyable and competitive learning experience.

Coleago in conjunction with MPIRICAL developed and delivered two Telecoms Mini-MBA courses for Huawei's Vietnamese client VMS in Shenzhen China. The course encompassed strategy, marketing, market forecasting, finance and project appraisal. The course included quizzes at the end of each module to create an enjoyable and competitive learning experience.

The client, a major Middle Eastern telecoms operator was interested in the purchase of a majority interest in Meditel. The shares in the Moroccan mobile operator had been put for sale by Telefonica and Portugal Telecom. Coleago was responsible for the commercial and regulatory due diligence, including detailed business modelling and valuation.

The incumbent fixed and mobile operator in a North African country was confronted with new market entry by a major European brand. Coleago helped to identify key areas where the client needed to make changes, including tariff rebalancing, wholesale tariffs, etc. Coleago also advised the client on negotiating a national roaming and site sharing agreement and the revision of interconnect agreements, including a line by line revision of the reference interconnect offer (RIO). Coleago also provided input to lobbying papers to bring about change in government policy with regards to tariff rebalancing, international gateway pricing, access deficit contribution (ADC), etc.

A GSM operator in Algeria faced a number of challenges resulting in slow growth of market share and EBITDA. Coleago identified a number of strategic initiatives that would yield a quick quantifiable improvement in cash flow. This also included practical initiatives. During its first week, Coleago discovered an omission, the correction of which yielded immediately $1.5 million in additional EBITDA.

A pure 3G mobile operator in Malaysia faced a regulatory review of termination rates. Coleago developed a regulatory cost model and provided economic arguments for negotiation with the regulator, including arguments for asymmetric termination rates. The client had also a highly unfavourable national roaming agreement with one of the 2G/3G operators. Coleago provided benchmarks and economic arguments for a renegotiation of the rates and the inclusion of national roaming rates in regulatory determinations.

The Canadian AWS spectrum auction included 59 regions with 7 licences per region (90 MHz of 2.1 GHz spectrum per region). Coleago provided a review and 10 year forecast with regards to demand for data services, technology migration and the impact competition. This formed the basis for a detailed business planning model (commercial and technical) for the spectrum valuation. Having identified sources of value for potentially 3 spectrum blocks in each of the 59 regions, Coleago valued these blocks. Our valuation was benchmarked against the results from a number of auctions in North America and Europe. Coleago also modelled the competing incumbent operators and potential new entrants in order to ascertain how much they might bid. The project included a review of new market entry strategies and incumbent responses.

ComReg the Irish regulator had initiated a consultation for the auction of new and existing spectrum holdings. Coleago provided spectrum valuation, auction advice and input into the response to the consultation. The auction format initially proposed was a sealed bid combinatorial second price auction and Coleago developed a bid strategy and also arguments against the proposed format. In terms of valuation Coleago developed a suite of valuation tools and assumptions to examine spectrum valuations under a range of different market demand and technology scenarios.

Canada Post was examining ways to generate new revenue streams and wished to explore the possibility of launching an MVNO. Coleago provided full business planning support including strategic positioning, proposition development and financial business modelling. A number of MVNO models were considered and Coleago then supported the network wholesale negotiations.

The client had acquired a 2G operation in India and now faced the prospect of a combined 3G and WiMax spectrum auction in 59 different regions (circles). Coleago undertook a complete business planning process to generate a valuation for the different spectrum blocks. The spectrum blocks differed in their nature 3G, WiMax 2.3 GHz, WiMax 2.5 GHz and clean vs. dirty spectrum blocks. The business's plan included profit & loss accounts, capex forecast and cash flow statements at regional level. This enabled Coleago to value each spectrum block based on discounted cash flow. In addition to a central valuation for each block, Coleago also provided valuation ranges, highlighting how the valuation would change under different assumption sets.

A three phase assignment involving the valuation of the spectrum to a European mobile operator, valuing the spectrum to other incumbent operators and potential new entrants as well as supporting the development of the bid strategy. The project involved an extensive business planning exercise including marketing, financial and technical aspects focusing on the future demand for data services and available spectrum to serve the demand within an evolving technology eco system.

Coleago developed and delivered a bespoke Strategic Business Planning Workshop for Zain in Kuwait. The workshop encompassed strategy, marketing, market forecasting, finance and project appraisal. Coleago developed a range of innovative business simulation tools to support the training as well as interactive case studies. The programme received universally excellent feedback.

The client, a European integrated telco, sought to acquire an integrated GSM mobile and fixed operator in Luxembourg. Coleago carried out the commercial due diligence and modelled the business under different scenarios, including a challenger strategy. On this basis Coleago provided a valuation range for the target company.

The client, an operator in Haiti, wanted to be the first to offer an unlimited prepaid offer to its mobile subscribers. This offer, based on an automatic monthly renewal subscription process was implemented within a Ericsson CS3 prepaid platform. In addition it includes marketing and commercial understanding of the customer benefits to subscribe to this unlimited offer. Coordination was established between suppliers, internal development team, sales, customer service and communication department to implement this offer. Coleago has provided the methodology, project management, services description, communication strategy guidelines, and training to internal staff and managed the launch of this offer within less than 2 months. The new offers cover low and high end customers and are a key differentiator from the competition and guarantee a higher ARPU per subscriber than regular prepaid offers.

The client required a quick review of the market attractiveness in Georgia to make a decision on whether to carry out a full business planning exercise to pursue a licence application.

The client sought to acquire a GSM mobile operator in Austria. Coleago participated in the due diligence (commercial and technical) and modelled the business under different scenarios, including a challenger strategy. On this basis Coleago provided a valuation range for the target company.

The client was bidding for a fixed wireless licence in Saudi Arabia. This involved the preparation of a bid book to quality and to bid different amounts for several spectrum parcels. Coleago conducted the red team bid book review to ensure compliance and was responsible for the auction strategy, i.e.. which spectrum parcels to bid for and how much to bid for each parcel.

The client wanted to make an initial assessment of two mobile operators in Western Europe which were coming up for sale. For these operators Coleago carried out a pre-due diligence and valuation exercise. This included several scenarios for additional value creation. The valuation was based on Discounted Cash Flow (DCF), Comparables Company Valuation (COMPCO), and comparable acquisitions (COMPAQ) using Coleago's Mobile Business Planning and Scenario Model. As part of this project Coleago produced two detailed 95 presentation style page reports, including detailed information on the market, the target and the competitors as well as benchmarks. This enabled the client to make an indicative offer for one operator and consider its option for the second operator.

The government of Cameroon had invited investors to bid for the shares of Camtel as part of its privatisation drive and simultaneously acquire the 3rd GSM licence in the country. The GSM operating company, CMT, would be a subsidiary of the incumbent fixed network operator, Camtel. Coleago attended the investors conference on behalf of the client and prepared an initial assessment of the proposed transaction. Coleago identified key problem areas in the structure of the proposed transaction, assessed the business opportunity and identified and evaluated the risk factors associated with a potential acquisition.

The client, the incumbent fixed network operator in Madagascar, had little visibility over its financial planning, revenues and costs. The company was in urgent need of a budgeting and planning tool that would also allow the company to ascertain the profitability of different products and services. Coleago provided an interactive budgeting and modelling tool based on Excel, the model is menu driven and fully documented. Coleago also populated the model and trained Telma's staff in the use of the model.

The client, Cincinnati Bell Wireless, had to evaluate whether to bid for additional Advanced Wireless Services spectrum in the largest spectrum auction in the US. In the Cincinnati area several licences covering different geographic areas and with different amounts of spectrum were on offer. Coleago conducted a detail analysis of the take-up of 3G services, the impact on the business, valuation benchmark data, and advised on which licences to bid for.

The client, Qtel of Qatar applied together with STT Singapore for the 3rd mobile licence in Egypt. Coleago directed the consulting team that prepared the bid, provided the overall marketing strategy, quality controlled the bid book including compliance, and writing the executive summary. Subsequently Coleago was responsible for the bidding strategy during the auction round.

The client, the incumbent fixed network operator in Madagascar, had steadily lost market share to two mobile operators. The fixed network business had few copper lines, some CDMA and some GSM wireless local loop lines. The client had obtained a GSM licence and sought to launch service as the 3rd GSM operator in Madagascar. Coleago carried out a strategic and business review to develop a strategy that is sustainable and yields the required return on investment. The strategy provided a clear path to upgrade the existing fixed wireless GSM network into a mobile network. Coleago developed a service offering that included fixed services, local mobility and full mobility based on geographic and non-geographic numbering. Coleago wrote a comprehensive business plan, including the marketing strategy, network roll-out, and technical plan and provided a 10 year business planning model. Key outputs from the business planning model were the profit & loss account, balance sheet, cash flow statement and a valuation. Subsequently Coleago wrote the technical request for proposal to invite equipment vendors to bid for a turnkey network construction contract.

Ofcom, the UK telecoms and media regulator, needed to improve the strategic understanding of the telecoms industry among its staff. Coleago conducted interviews with potential delegates within Ofcom to identify the needs of potential attendees for a course on Strategic Thinking in a regulatory context. Coleago then researched and delivered a two day course covering the basics of financial and commercial analysis.

Coleago advised a client pursuing an MVNO strategy across Europe on their potential host operator partners. Coleago provided advice on approach strategy, commercial negotiations and also facilitated initial introductions for the client.

The client, a UK mobile operator, needed to improve their revenue side planning processes. Coleago designed and developed a range of product modelling tools in Excel for Three to assist in their revenue planning and budgeting processes.

Coleago provided business modelling support to examine the strategic options available to an international operator establishing an MVNO in South Africa.

Three, the only UK 3G mobile operator without a 2G network requires a UK operator to take the traffic from its customers outside Three's coverage area. Coleago advised Orange, one of the 4 2G operators bidding to host Three's traffic on auction and bidding strategy. The assignment included strategic analysis and planning as well as facilitating an auction simulation. The client successfully bid for the traffic.

Coleago developed and facilitated a business simulation exercise that allowed the client to explore the strategic challenges facing the business. The client's employees were allocated into teams representing the different operators in the market and the simulation recreated all the major activities of a mobile business.

Coleago provided the Director for Strategy & Marketing and the Technical Director for Wataniya Telecom Algerie, a GSM start-up. The Directors were staff numbers 2 and 3 in the organisation and helped to build the company. Tasks included recruitment as well as running departments until the permanent directors were appointed.

The client intended to set up a pan-Maghreb satellite TV channel. Coleago produced a complete channel design, including detailed programming schedules in order to reach the maximum target audience. The business relies on multiple revenue sources, including a significant interactive component. Coleago leveraged it's cross functional media and telecoms expertise to optimise the business model. Coleago produced a detailed investment proposal, including a sample DVD, demonstrating the look & feel of the channel, as well as a complete set of financials and valuation.

The client was in the process of expanding an advertising business into interactive TV and telecoms premium rates services. Coleago's work focused on shaping the diverse activities into a coherent business and ensuring that the best revenue sharing deals with content providers and mobile operators were negotiated. This included Star Academy (voting and ancillary service proposition for programme), SMS solution for Split Decisions, future service roadmap, establishment of operational team and processes, operator partnerships and contracts, content partners to fulfil all service requirements, establishment of a knowledge management system, and updating the business model.

On behalf of the Gibraltar regulatory Agency Coleago examined Gibtelecoms costing, cost recovery and processes in order to implement Carrier Pre-Selection in Gibraltar.

Coleago provided business modelling support to a project investigating the alternative technology strategies for an operator in South Africa. The assignment evaluated GPRS, EDGE, 3G and WiMax alternatives.

The client, a UK mobile operator, needed to improve the understanding of financial and commercial analysis among its management. Coleago conducted interviews with potential delegates to identify the needs of potential attendees. Coleago then researched and delivered a series of one day courses covering the basics of financial and commercial analysis.

The project consisted of support to the Jersey Competition Regulatory Authority (JCRA) in putting in place price controls on the incumbent operator: Jersey telecom. The scope of the project covered both fixed and mobile prices for both retail and wholesale (interconnection) services. Coleago provided advice on the appropriate type of price control (RPI-X, rate of return or forbearance) for each type of service as well as advice on setting the level of prices under the price control. The analysis of price levels were based on a combination of financial modelling of JT, analysis of the JT management accounts and benchmarking. In addition Coleago provided support to the JCRA during the negotiations to put in place a Reference Interconnection Offer (RIO).

Delivered a three day course in business modelling to the R&D teams of an international mobile operator in Germany and the UK. The course focused on all aspects of business modelling for the mobile industry.

For a UK GSM operator, researched the requirements for a strategic and commercial orientation course through a series of structured interviews with potential course participants. As a result of the research a course specification was developed and the content to prepare the course materials was sourced both internally and externally. The course materials were prepared, a pilot conducted and the course was then made an element of the operator's general training programme.

Use of primary and secondary market research to analyse the demand for voice mobile office services. This included detailed interviews with major mobile operators. Coleago produced a detailed analysis and recommendations with regards to the market fit for the solution proposed by the client.

The project consisted of an analysis of the demand for additional mobile licences in Jersey and recommendation for the appropriate licensing process. The analysis of demand for the licence was based on a valuation model, which looked at the likely valuations for a new entrant or new entrants depending on the synergies they could bring to Jersey. The valuation was followed by a "road show" where a presentation was made to potential bidders (predominantly UK operators) with a view to understanding what demand there would be for licences. Finally recommendations were made as to the appropriate licensing methodology.

Researched the financial strength and strategic rationale for potential bidders for the second GSM licence in Saudi Arabia. Developed a bidding model and assessed potential bidding strategies and bid amounts. Prepared a report for the board on recommended bidding strategy.

Advised on budgeting processes for the products team within a European mobile operator and specified and developed a modelling suite that would support the annual budgeting process and the quarterly reforecasting. The product modelling suite included the capability of modelling SMS and MMS P2P messaging as well as all other mobile non-voice products, including services delivered over GPRS, 3G, WiFi etc. Training was also provided to the product managers in the use of the model as well as on-going support and advice in the use of the model.

The client participated in the bid for the second GSM licence in Oman. Provided a complete marketing forecast model, including revenue and traffic as well as a written marketing forecast report. The documents provided included a detailed methodology and benchmarks.

Coleago conducted a comprehensive scenario planning exercise to explore a range of potential future market developments for the Indonesian market place. Coleago then designed and facilitated a scenario based high level, strategic marketing game to examine strategic alternatives open to Telkom.

The Indian Telecommunications Regulatory Authority had mandated the introduction of Calling Party Pays (CPP) and fixed interconnect rates between fixed, GSM and WLL networks. The client, a GSM operator, had to plan three major changes: a) the change to CPP and its impact on traffic and customer numbers, b) the impact of below cost mobile network termination rates and new fixed network termination rates, c) the arrival of new competition from CDMA WLL local mobility services. Coleago used its Mobile Marketing Planning Model and developed several scenarios to examine the impact on the client's business and assess future investment requirements. The work included a world-wide benchmarking study on the impact of introducing calling party pays and fixed to mobile interconnect agreements.

The project consisted of updating a Fully Allocated Historic Cost model, to allow the calculation of the cost of terminating traffic on the Partner network. The original model had been developed by Martin Duckworth of Coleago Consulting in 2000. The main changes made to the model were the inclusion of SMS traffic in the costing and a number of methodological improvements taking into account both the recent developments in regulatory cost accounting in Europe and the availabilty of cost data with a slightly higher level of granularity. The results of the model are used to inform discussions with the Ministry of Communications over the future level of interconnect pricing with the view to achieving most favourable rates for the mobile operator, which significantly improves profitability.

A consortium intended to submit an application for the second GSM licence in Sudan. The licence award would be made based upon a compliant bid with the following evaluation criteria: licence fee (35%), tariffs (20%), coverage, roll-out and service levels (20%), feasibility of technical plans & business plans (15%), variety of services (5%), efficient use of spectrum (5%). Coleago carried out all necessary technical and marketing studies and prepared a high quality bid document of around 250 pages and two volumes of appendixes. Coleago employed its Mobile Business Planning Toolkit to prepare a 10 year forecast. This includes a phased coverage roll-out plan, a marketing forecast and a full set of financial statements including a valuation. Coleago advised the client on the impact of the licence fee on the valuation. As part of the bid, for the first time in Sudan, the issue of commercial interconnect rates and agreements and their linkage to mobile tariffs had to be addressed. Coleago delivered a comprehensive regulatory piece as part of the bid document.

Coleago prepared a complete business plan, including a network plan and marketing strategy in order to value the 3rd GSM licence in Algeria for Wataniya Telecom, a Kuwait based mobile operator. Using Coleago's Mobile Business Planning model, the client determined the fee amount it would bid in a sealed bid auction. Wataniya won the licence by bidding only 1.8% more than the nearest rival.

Supported the development of a major African GSM operator's expansion strategy by providing business modelling and valuation support for the assessment of new licence opportunities globally and also of existing opportunities within Africa. The process involved the valuation of more than 30 mobile opportunities in the Middle East and Africa. Detailed business planning and licence bid support was then provided for bids in Algeria and Iran. An off the shelf Coleago model was used to support the modelling work and the consulting team presented at board level as well as advising the client on financing issues.

Coleago adapted its mobile marketing model for the specific needs of the client, a South East Asian mobile operator, and trained the marketing staff in the use of the model. The model is a multi-regional model, producing forecasts for each region and consolidating the results in an overall model. The model produces a customer, traffic, revenue and cost of sales forecast.

Provided expert witness advice in a case involving the valuation of a Location Based Services company which formed the basis of a corporate dispute. The project involved researching the location based services market, developing a model for the LBS business and providing a valuation for the business which was at the centre of the dispute.

Coleago conducted an end-to-end network audit for Telkomsel’s dual-band GSM network for two key areas of the Jabotabek (Greater Jakarta) market. The audit covered all technical aspects (e.g. radio, transmission and core networks, IN etc.) but also engineering policies and organisational aspects. The result of the audit led to practical short and medium term recommendations to improve Telkomsel’s network quality. Rather than increasing capital expenditure, the client was able to make better utilisation of its existing network assets to improve quality of service.

The project consisted of recommending the price cap strategy, a profitability and efficiency study of the regulated operator, construction of a financial model and setting of the price control. The price cap strategy work consisted of analysing both the theory underlying price control and also case studies from a number of European countries. The profitability and efficiency study was based on an analysis of the adjusted Return On Capital Employed of the incumbent operator and a cost bench-marking exercise. The financial model estimated the overall profitability of the regulated incumbent under a range of sensitivities for market development and the level of the price control in order to produce a recommended X factor which met the need to balance efficiency, affordability and the development of a competitive market.

Coleago facilitated its Mobile Operator Business Simulation Game. The game is highly creative, dynamic and interactive. It is designed to explore strategic and tactical thinking by “playing out” a future potential scenario for the mobile market. The client's staff take on management roles in their own and all competing mobile operators. The game provided a perfect training and staff development platform as well as proving excellent at team building. The conclusions from the game were examined in a senior management de-brief and also in an in-depth report produced by Coleago which helped to prepare staff for the launch and their roles in a competitive environment.

A UK GSM operator had to plan the transition to 3G. While seeking to increase gross margin for different market segments, the operator also wanted to minimise further GSM investment because payback could not be achieved before the introduction of 3G. Coleago's Mobile Marketing Forecast Model produced a gross margin forecast by segment and a traffic forecast for circuit switched and packet switched traffic. This enabled the client to plan future network capex and adjust its marketing strategy to minimise peak GSM capex. The model included a scenario manager which allowed the operator to test different 3G launch and take-up assumptions.

Coleago built a bespoke budgeting and planning tool in Microsoft Excel which provides budget information in monthly intervals for 2 years and a 10 year long term forecast, including a complete set of financial reports (balance sheet, profit & loss account, cash flow statement). Coleago ensured that all relevant data was taken in from a variety of feeds. Profitability is monitored at several levels including gross margin by segment. Operational expenditure is monitored at department level. This means product and department managers focus on profitability. The tool produces all relevant financial and management reports for internal use and presentation to corporate head office.

A company with assets in broadcast and satellite distribution had acquired a licence of provide broadband Internet access services. The company was in the early stages of business planning. Coleago provided its Business Wireless Business Planning Model and advised on the key aspects of business planning. Coleago covered all aspects of marketing, including the service offering and pricing. The model produces a detailed quarterly 10 year forecast with full profit & loss account, balance sheet, cash flow statement and valuation. This enabled the client to get funding approved and start coverage roll-out. Coleago also trained client staff in the use of the model.

Coleago produced and presented a training course on the marketing and business impact of introducing GPRS in a wireless network in Canada. The course includes an overview of the technology in terms relevant for a non-technical audience. Other aspects covered were services offered by other operators worldwide, tariff comparisons and pricing of mobile bandwidth, demand, services delivered via GPRS. The course also addressed delivery of new services and the linkage between the media interests of the client and a mobile content offering. The audience gained a thorough understanding of GPRS and its implications and was able to carry this forward into their planning and managerial roles.

Coleago carried out a survey with a sample of 1,000 respondents per country in several European countries to ascertain demand for mobile Internet access. The survey produced a quantification of potential demand in terms of numbers of users and monthly spend per user. The results were widely quoted in the telecoms and financial press.

A group of media investors in conjunction with an automobile club intended to launch a Weather and Traffic TV channel on digital cable and satellite multi-channel platforms. Coleago developed the business plan, including an Excel based business planning model. The model provides a ten year forecast, profit & loss account, balance sheet and cash flow statement on a quarterly and for later years annual basis. The model also provided a valuation and return of investment calculation for each partner. Coleago presented results and participated in negotiations. The model included a scenario manager which was used to analyse the impact of changes in key variables. As a result of the dependency of the business case on advertising revenue, Coleago advised that the risk of launching the channel in an environment characterised by a difficult advertising market would be too great. The investors decided to mothball the project and avoided losing money in the downturn of the media market.

A UK mobile operator needed to understand the impact of delays in launching its 3G network. Working closely with the client, Coleago developed several scenarios and employed its Mobile Business Planning Toolkit to examine the impact on market share, customer numbers, traffic, revenue, and gross margin by segment.

A German cable TV operator sought to upgrade its network and offer digital pay-TV bouquets to existing analogue customers. Coleago prepared a detailed business model and business plan. The business plan was based on primary market research in Germany, an understanding of channel costs and channel packaging as well as international benchmarking. Coleago provided all inputs into the revenue and cost of sales calculations. The Excel based business model delivered by Coleago produces a 10 year forecast for subscribers, subscriptions to different thematic packages, revenue and TV channel costs.

Coleago provided some comments on Centrica's draft response to the UK regulator OFTEL's consultative document reviewing competition in the retail (fixed telephony) market. The comments focussed on two areas: the need (or lack of) for protecting low spend users through unbalanced tariffs and a low user scheme; and the need to offer wholesale local calls to complement the wholesale line rental product.

As part of a research programme to maximise mobile operator profitability, Coleago researched market for SMS premium rate services. Interviews were conducted with over 12 GSM operators, leading to a detailed analysis of different business models, pricing margins and conditions for independent content providers. The final report also included profiles of content provider access platforms and the commercial terms applicable.

Coleago provided marketing and financial planning using the Coleago Mobile Business Planning Toolkit. The Coleago Toolkit produced all marketing, traffic and financial forecasts, including a 10 year balance sheet, cash flow statemet, profit and loss account as well as a valuation of the business case. Coleago wrote key sections of the bid text. This included marketing strategy, positioning, services offering and financials. Coleago developed the marketing strategy, pricing and product & services descriptions. Our consultants also managed part of the bid process. O2 Ireland was awarded the licence they applied for.

The client, a cable TV operator, intended to work with TV channels to create a TV channel factory with the view to bringing down digital multi-channel pay TV cost. The channel factory would also enable new TV channels to come to market with a lower initial investment and benefit from lower operation costs. The channel factory would provide the latest facility for digital TV production including a SAN link to signal distribution via fibre and satellite. Coleago research the market and put together a complete business plan and business plan model in Excel. Coleago also participated in investor presentations and partnership negotiations.

Coleago's consultants had previously been involved in the early development of VIP-Net's GSM network and were familiar with the technical context of the operator and with the specificities of the Croatian market. For this assignment Coleago was retained by VIP-Net's technical management for a quick review of the latest development of the network. This included the capacity build aspects and the traffic handling and coverage improvement features that have been implemented to capture seasonal roaming traffic which is of paramount importance from a revenue point of view. Based on Coleago's advice VIP-Net was in a position to implement features that minimise network capex. Coleago also advised on the technical impact of the market entry of a third GSM operator and UMTS design and planning parameters, including setting up the UMTS planning tool.

The client intended to launch a major investment to build a broadband Internet access network in major cities in Japan. The technologies included broadband wireless and fibre. In order to plan the business and funding requirements, the client required a detailed month by month budgeting and longer term quarterly business planning model. Coleago build a bespoke model which included all marketing parameters and departmental opex budgets. The output were profit & loss account, balance sheet, cash flow statement and valuation. The Excel based model also included a detailed executive summary with graphical presentations of key performance indicators.