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An independent, publicly-traded cellular operator asked Marconi Pacific to help develop a strategy and a business plan for offering multiple communication services beyond cellular service.

The plan combined existing customer and market research with new, targeted research to understand demand for bundled services, pricing options, operational requirements and brand strength of the client versus the competition. We built profiles of major competitors and potential entrants and summarized relevant implications of regulatory issues. Working with the client team, industry specialists and vendors, we defined technical options for long distance, local resale and unbundled elements, Internet access, paging and alarm systems. We also explored the changes required in key operational processes (sales and marketing, billing and customer service) for adding the new services.

We integrated the research and analysis to build a detailed business model. The operational aspects of the plan included organizational charts with individual head count additions, direct sales staff quotas for new services, commission structures and timing of payments, product pricing and bundle discount options, switch configurations, T1 connections and timing of line additions. Financial outputs included revenue, COGS, operating cash flow on an overall basis and on a product-by-product basis, key sensitivities and capital expenditure projections and timing.

 

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