Sprint Nextel’s 3rd quarter net income fell 77% as high-margin customers flee; Apple jumped into the phone business in a big way, with Google fast on its heels. Cisco and others continue to invest and expand VoIP and Verizon’s FiOS is gaining strength. Global telecom companies are expanding into China, India, and Latin America.
Some of the key performance indicators for the telecom industry include ARPU (Average revenue per unit), customer churn, subscriber levels, uncollectables, QoS (Quality of Service), and customer satisfaction (or as some carriers acknowledge – customer dissatisfaction).
The predominant extended performance management initiatives in telecom include capital improvement (infrastructure) modeling – driven by network capacity scenarios and subscriber demand. With global expansion brings better M&A (and debt) modeling. Product, customer and market profitability, churn analysis and ARPU trends and benchmarking are other important initiatives.
Speaking about wireless acquisitions in India , Randall Stephenson, CEO of AT&T said "I need multibillion-dollar revenue streams to move the needle, and I view this as a multibillion-dollar revenue opportunity. Everything is here for us to do well." (WSJ, 9/28/07)
BROADSHEET SNEAK-PEEK: TELECOM
POTENTIAL INITIATIVES THAT CAN BE STARTED FROM THE DISCOVERY ANALYSIS
PEER BENCHMARKS: TELECOM PERFORMANCE MARKERS
