Assessment Develop a 5-year Business plan for a telecom operator: - Market size 10 million subscribers growing at 20% a year and growth rate going down to 10% in last year - Market Share at end of year 0=10% - Share of net adds 15% going up to 30% in last year - Chum starting from 30% going down to 15% in last year - Subscriber acquisition cost USS 5.00 going down to USS 2.50 in last year - Marketing cost 10% of revenue going down to 7% of revenue - Interconnect cost is 3 cents per minute - License fee 1% of revenue less interconnect cost - Other OPEX 35% of revenue going down to 25% in last year - Revenue calculations - Pricing - 3 packages - A fixed cost USS 5.00 - Free minutes on net 50 off net - OG on net 5 cents'min Off net 7 centsimin - B fixed cost US\$ 7.50 - Free minutes on net 75 off net - OG on net 3cents/min Off net 5 centsimin - C fixed cost USS 10.00 - Free minutes on net 100 off net 75 - OG on net 2 cents/min Off net 4 cents'min - For all packages, below criteria applies: - Peak hours usage is 70% of usage - Off peak tariffs reduce by 25% from peak tariffs - Subscrber acquastson cost USS 5.00 gonng down to USS 2.50 in last year - Marketing cost 10% of revenue going down to 7% of revenue - Interconnect cost is 3 cents per minute - License fee 1% of revenue less interconnect cost - Other OPEX 35% of revenue going down to 25% in last year - Revenue calculations - Pricing 3 packages - A fixed cost USS 5.00 - Free minutes on net 50 off net 20 - OG on net 5 cents/min Off net 7 cents/min - B fixed cost USS 7.50 - Free minutes. on net 75 off net - OGion net 3 centsimin Off net 5 cents/min - C fixed cost USS 10.00 - Free minutes on net 100 off net 75 - OG on net 2 cents'min Off net 4 cents/min - For all packages, below criteria applies: - Peak hours usage is 70% of usage - Off peak tariffs reduce by 25% from peak tariffs - On net is 65% of the traffic - Subscriber split is 50%,30% and 20% on packages A B and C respectively - Average monthly usage per subscriber is 300 MOUs on Package A, 500 MOUs on Package B and 800 MOUs on Package C - For revenue projection, assume growth in usage of 5% per year with same call mix Outputs Expected: 1. Revenue 2. Gross Profit 3. EBITDA 4. List of additional information 'data points required to forecast Net Income Assessment Develop a 5-year Business plan for a telecom operator: - Market size 10 million subscribers growing at 20% a year and growth rate going down to 10% in last year - Market Share at end of year 0=10% - Share of net adds 15% going up to 30% in last year - Chum starting from 30% going down to 15% in last year - Subscriber acquisition cost USS 5.00 going down to USS 2.50 in last year - Marketing cost 10% of revenue going down to 7% of revenue - Interconnect cost is 3 cents per minute - License fee 1% of revenue less interconnect cost - Other OPEX 35% of revenue going down to 25% in last year - Revenue calculations - Pricing - 3 packages - A fixed cost USS 5.00 - Free minutes on net 50 off net - OG on net 5 cents'min Off net 7 centsimin - B fixed cost US\$ 7.50 - Free minutes on net 75 off net - OG on net 3cents/min Off net 5 centsimin - C fixed cost USS 10.00 - Free minutes on net 100 off net 75 - OG on net 2 cents/min Off net 4 cents'min - For all packages, below criteria applies: - Peak hours usage is 70% of usage - Off peak tariffs reduce by 25% from peak tariffs - Subscrber acquastson cost USS 5.00 gonng down to USS 2.50 in last year - Marketing cost 10% of revenue going down to 7% of revenue - Interconnect cost is 3 cents per minute - License fee 1% of revenue less interconnect cost - Other OPEX 35% of revenue going down to 25% in last year - Revenue calculations - Pricing 3 packages - A fixed cost USS 5.00 - Free minutes on net 50 off net 20 - OG on net 5 cents/min Off net 7 cents/min - B fixed cost USS 7.50 - Free minutes. on net 75 off net - OGion net 3 centsimin Off net 5 cents/min - C fixed cost USS 10.00 - Free minutes on net 100 off net 75 - OG on net 2 cents'min Off net 4 cents/min - For all packages, below criteria applies: - Peak hours usage is 70% of usage - Off peak tariffs reduce by 25% from peak tariffs - On net is 65% of the traffic - Subscriber split is 50%,30% and 20% on packages A B and C respectively - Average monthly usage per subscriber is 300 MOUs on Package A, 500 MOUs on Package B and 800 MOUs on Package C - For revenue projection, assume growth in usage of 5% per year with same call mix Outputs Expected: 1. Revenue 2. Gross Profit 3. EBITDA 4. List of additional information 'data points required to forecast Net Income