December 2009, Quarter 0/12

IndustryMasters TelCo

You will run a Telco company that competes against 'BigTel' and 'PeopleTel'. You need to invest heavily to get new subscribers and become market leader.

Simulation Run Time
The simulation will run for 12 Business Quarters (3 years), at a screen-refresh rate of 5 minutes per simulated Quarter. The simulation round therefore lasts 60 minutes - plus some start up time, as you familiarise yourself with the screens.

Topics Covered
Strategy, Market Segmentation, Product Lifecycle, Portfolio Management, Competitive Advantages, Customer retention, Customer acquisition.

Your Starting Position
The initial share capital is 100M€ and your available investment budget is 108M€. Your company has already invested into 4 product lines: Mobile Home, Mobile Small Business, Broadband Home and Broadband Small Business. You are competing against 3 virtual competitors: BigTel Inc., PeopleTel Inc. and TelCo Inc.

Telecom

Accessories Home

Initial Investment: 13.00M€
Capacity: 8,333 / Month
Product Life Cycle: 30 months

Monthly Subscription: 108€
Revenue: 0.90M€ / Month
Staff: 23

Broadband Home

Initial Investment: 24.99M€
Capacity: 104,167 / Month
CPGA: 75€

Monthly Subscription: 21.53€
Revenue: 2.24M€ / Month
Staff: 48

Broadband Small Business

Initial Investment: 24.99M€
Capacity: 104,167 Subscriber / Month
CPGA: 75€

Monthly Subscription: 21.53€ / Subscriber
Revenue: 2.24M€ / Month
Staff: 48

Fixed Line Home

Initial Investment: 55.01M€
Capacity: 138,889 / Month
CPGA: 170€

Monthly Subscription: 32€
Revenue: 4.49M€ / Month
Staff: 96

Fixed Line Small Business

Initial Investment: 55.01M€
Capacity: 138,889 / Month
CPGA: 170€

Monthly Subscription: 32€
Revenue: 4.49M€ / Month
Staff: 96

Mobile Home

Initial Investment: 38.00M€
Capacity: 83,333 / Month
CPGA: 180€

Monthly Subscription: 38€
Revenue: 3.14M€ / Month
Staff: 67

Mobile Small Business

Initial Investment: 38.00M€
Capacity: 83,333 / Month
CPGA: 180€

Monthly Subscription: 38€
Revenue: 3.14M€ / Month
Staff: 67

Differentiation Levers

Customer Service	Network Quality	R&D/Innovation	HR/Training
Staff Expenses +10.00% Cust. Retention +50.00% Return on Marketing +4.00%	Staff Expenses +8.00% Cost of Service +8.00% Cust. Retention +30.00% Return on Marketing +7.00%	Staff Expenses +8.00% Cost of Service +8.00% Return on Marketing +10.00%	Staff Expenses +4.00% Cost of Service +4.00% G&A Expenses -25.00% Capacity +2.00%

Additional Investments
Integrated IT System	Business Process Optimization

Investment: 30.00M€ Construction Time 6 months	Investment: 50.00M€ Construction Time 9 months
Staff Expenses -15.0% Cost of Service +15.0% Receivable Days -25.0% G&A Expenses -15.0%	Return on Marketing +4.0% Staff Expenses -18.0% Cost of Service -14.0% Receivable Days -40.0% G&A Expenses -25.0% Cust. Retention -5.0% Training Efficiency +10.0%

0.0x Interconnection Alliances	Network Upgradation

Investment: 15.00M€ Validity 12 months	Investment: 20.00M€ Construction Time 3 months Validity 18 months
Return on Marketing +5.0% Staff Expenses -5.0% Receivable Days +5.0% Payable Days +5.0% G&A Expenses +5.0% Capacity +5.0%	Return on Marketing +20.0% Staff Expenses +10.0% Cost of Service +10.0% G&A Expenses -8.0% Capacity +20.0%