TEATM Family of Business Case Analysis Tools

WiTech TEA|LTE

Building a carrier-class LTE network is and will remain a complex undertaking. In particular, the initial planning stage, where the business case is defined and the budget is allocated, is very critical for the success of the initiative. In these uncertain economic times, there is no room for risky and poorly analyzed decisions when facing crucial questions such as:

• What will be the best addressable

market segment with a chosen technology characterization?

• What will be the effect on the P&L when

changing the CIR (Committed Information Rate) in a service bundle?

• How will the characterization of the

technology influence the network dimensioning?

• What will be the best tradeoff between

coverage and capacity requirements in the network deployment?

• How will different types of eNodes B/

user equipments affect the TCO?

WiTech TEA|LTE empowers 4G LTE players with an effective business case analysis tool to set a solid foundation for a successful initiative. This is a unique, integrated application and the latest member in the TEA family of tools, developed leveraging over five years of extensive industry experience with strategic assignments and projects for major operators and equipment suppliers.

Key Characteristics

WiTech TEA|LTE allows analyzing the business case for a 4G LTE initiative with a holistic approach, in an integrated and iterative way.

The tool helps taking into account all critical aspects (market, technical, economic and financial) ensuring the best possible alignment between business and technology strategies since the outset.

WiTech TEA|LTE features comprehensive market and revenue forecast models, well calibrated technical modeling tailored to the 4G LTE technology, calculation of CAPEX and OPEX, and detailed economic and financial projections with close evaluation of key performance indicators.

A fast and simplified configuration of more than five hundred different input variables and assumptions allows a fine-tuned setting of the tool. To help configuring the technical part, a number of relevant parameters are, by default, pre-set to typical/recommended values. These values can be changed at any time during the analysis.

An dashboard-styled and very easy-to-use GUI provides the user with optimum interactivity and ability to carry on even the most intricate business case analyses, viewing the results instantly in an animated graphical format.

Through the same interface, the user can also perform fine-grained scenario & sensitivity analyses to align the business case with the company strategy, analyzing the influence of parameter modifications and the consequence of fundamentally changed boundary conditions in real time.

WiTech TEA|LTE is aligned to the latest available version of the LTE standard (Release 8).

In addition to the 3GPP Standardized Bands for 4G LTE, the tool supports all Custom Bands.

Exploiting TEA|LTE

WiTech TEA|LTE can help almost every player in the 4G LTE ecosystem:

• Operators striving for the healthiest

business case to enter into the detailed network planning phase more confidently and quickly

• Vendors aiming to present operators

with an accurate and compelling positioning of their LTE offerings

• Analysts and consultants supporting

their customers in the development of superior business and technology strategies

• Investors evaluating new business

plans and request for further rounds of financing

• Regulators performing objective and

forward-looking spectrum management

Product Brief

Summary

Your Wireless Future Brought To You

V 1.1 05-09 © Copyright 2009 – WiTech

About WiTech WiTech S.p.A. is a solutions, consulting and engineering company founded in 2003 as a spin-off of the University of Pisa, Italy. The company has gained quickly a foothold in the NGN/NGS scenario focusing on standard 3G and 4G wireless technologies such as HSxPA, WiMAX and LTE. WiTech is the developer of TEA|WiMAX and TEA|LTE, a family of powerful and unique business case analysis tools; as well as the provider of innovative, BPM-enabled OSS/BSS solutions, with a focus on the delivery of turnkey WiMAX CSNs, that leverage the company’s modular and scalable WROP (access & service management) and TelcoGIS (geographic information system) platforms. WiTech provides also the market with selected high-value services such as strategic consulting on technology and investment plans and engineering services for network planning and design. WiTech S.p.A. is a privately held company with its main offices in the Polo Tecnologico di Navacchio tech park, near Pisa.

www.witech.it

info@witech.it

+39 050 77 50 56

Economic & Financial Analysis

Calculating all key economic & financial projections (TCO, P&L, Cash Flow, Balance Sheet) and indicators (Gross Margin, EBITDA, EBIT, NPV, IRR, PBP, Shareholder Value, etc.) to assess the feasibility of the 4G LTE initiative, considering:

• CAPEX & OPEX (spectrum license, Internet

connectivity, access, backhauling, EPC, personnel, marketing, SG&A, etc.)

• Depreciations

• Interest rate on borrowings

• Tax rate

• Discount rate

• Financing

• Equity

• Perpetual growth

Scenario & Sensitivity Analysis

Analyzing the influence of parameter and boundary condition changes, to identify the most critical factors for the success of the initiative. Allowing a fast and iterative fine-tuning of the 4G LTE business case, in real-time and total privacy, viewing the results in an animated graphical format instantly from the different Market, Technical, Economic & Financial perspectives.

Comprehensive Report

At the end of the analyses, a very detailed report is automatically compiled and published in editable and PDF formats. The report contains a complete summary (with tables, diagrams and charts) of input parameters and assumptions, the results of the market analysis, the outcome of the technical modeling, and the economic and financial statements for up to ten years.

Market Analysis

Estimating the potential market and revenues for 4G LTE services, taking into account:

• Extension of the geographical areas (up to 5) to be

served and their specific scenario distribution (dense urban, urban, suburban/exurban, and rural)

• Market segments to be addressed (residential, soho,

small, middle and large enterprises/institutions)

• Service profiles (up to 6) to be offered (technical

features and pricing policies)

• Market segment penetration per year

• Impact of churn

Technical Analysis

Dimensioning the network infrastructures on the basis of the capacity and coverage requirements, to derive the required bill of quantities (number of eNodes B, logical sectors, radio links, MMEs, S-GWs, P-GWs), taking into account:

• Technology characterization (operating frequency,

channelization, duplexing, SNIR, data rate, etc.)

• Type of eNodes B (up to 3) and user equipments (up

to 6) configuring all relevant parameters (antenna gain, transmit power, losses, sector number, MIMO gains, etc.)

• Path loss model for the link budget analysis (Cost-

231, SUI, ECC-33, Log-Normal with/without Shadowing, Free Space)

• Down and up link capacity demand per year

• Existing backbone infrastructures

• Wireless backhaul technology distribution (SDH, PDH,

Native Ethernet, Other)

Your Wireless Future Brought To You