tm forum business benchmarking mobile services q2 2007 non-participant report

Business Benchmarking

Business Performance Report Service Offering: Mobile Services Period: Q2 2007 Q4 2006

Mobile Services Business Performance Report Q2 2007- Q4 2006 2

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Table of Contents \\KONA\Company\TM Forum\Round 3 Report Generation\Mobile\Mobile Example\R3 Mobile Example.doc - _Toc210394969 NOTE TO READER .............................................................................................. 4 SUMMARY RESULTS .......................................................................................... 5

Q2 07 OVERVIEW: ............................................................................................... 7 Q1 07 OVERVIEW: ............................................................................................... 8 Q4 06 OVERVIEW: ............................................................................................... 9

INDIVIDUAL METRIC RESULTS: ...................................................................... 10 REVENUE AND MARGIN: ..................................................................................... 10 CUSTOMER EXPERIENCE: ................................................................................... 31 OPERATIONAL EFFICIENCY: ................................................................................ 37

CORRELATIONS ............................................................................................... 40


Note to Reader Welcome to the non-participant version of the Mobile Services Business Performance Study Report. This report has been specifically created for the use of non-participants; i.e. companies that did not contribute data to this study. To better illustrate what a participant receives this document contains both factual results of the study as well as illustrative service provider scores. These scores were created to be representative of what a participating service provider may receive without disclosing the real scores of any of the participants. To avoid confusion the following portions of the document are factual and have been developed directly from the data provided by the participants:

Correlations The statistics and graphs in the Individual Metric Results

Similarly, these areas of the document are illustrative and represent the service provider specific information that would be provided to our fictional service provider:

Executive Summary Q2 2007 Overview Q1 2007 Overview Q4 2006 Overview "Your Score" portion of the Individual Metrics Results


Summary Results This Mobile Study included data from 12 participants on 11 metrics. There were 10 metrics with sufficient data to share. Your company contributed data to all 10 of those metrics. Data was collected for three quarters. From the quarterly overviews on the following pages, it can be seen that your strongest performance was for:

OOppeerraattiinngg IInnccoommee//RReevveennuuee ((GG--RRMM--11)) OOppEExx//RReevveennuuee ((GG--RRMM--33)) CCuussttoommeerr AAccqquuiissiittiioonn ((GG--RRMM--55aa PPrreeppaayy)) SSeerrvviiccee AAvvaaiillaabbiilliittyy ((AA--CCEE--55))

The weakest performance was for:

CCuussttoommeerr LLoossss ((GG--RRMM--55bb)) CCuussttoommeerr AAccqquuiissiittiioonn ((GG--RRMM--55aa PPoossttppaayy))

Taking each separately, the following observations can be made:

OOppeerraattiinngg IInnccoommee//RReevveennuuee ((GG--RRMM--11)) You have a strong score on this metric in the study. This means that youre a operating more profitably than the majority of the participants. This aligns well with your low OpEx/Revenue.

OOppEExx//CCaappEExx ((GG--RRMM--22)):: You have a higher than average score on this metric. This means that your OpEx/CapEx ration is higher than most of the other participants. Note your OpEx/CapEx increased sharply in Q1 2007 in line with a strong shift in the industry average. A higher than average OpEx/CapEx score can signify either a higher OpEx figure or a lower CapEx figure. Since you have successfully driven OpEx down over the period of the study, your score for this metric appears to derive from a lower CapEx investment in relationship to your OpEx spending.

OOppEExx//RReevveennuuee ((GG--RRMM--33)):: This is a strong score. Since there are participants with stronger positions i.e. a lower OpEx/Revenue, improving this strength might be worth consideration.


The decrease in your OpEx/Revenue over the period of the study is especially important given the increasing OpEx/Revenue in the general industry.

CCuussttoommeerr AAccqquuiissiittiioonn ((GG--RRMM--55aa PPrreeppaayy)) Your strong performance in prepay customer acquisition for Q4 2006 and Q1 2007 has eroded to only an above average position for Q2 2007. This may be worth investigation.

CCuussttoommeerr AAccqquuiissiittiioonn ((GG--RRMM--55aa PPoossttppaayy)) Acquisition of Postpay customers is a below average for this study. Like prepay your performance has declined over the period of the study.

CCuussttoommeerr LLoossss ((GG--RRMM--55bb PPrreeppaayy)) You have a poor position on the percent of Customer Loss for both the Prepay and Postpay segments. This means that you lose a larger % of customers per month than the majority of the other participants in the study.

IInncciiddeenntt RReessoolluuttiioonn TTiimmee ((AA--CCEE--22aa)) You have above average performance on this metric; performance has improved slightly over the period of the study.

SSeerrvviiccee AAvvaaiillaabbiilliittyy ((AA--CCEE--55)) You have a strong position in the study for service availability. The trend information shows that you have maintained this level of Service Availability steadily throughout both this and the earlier study.

SSeerrvviiccee PPrroobblleemm RReessoolluuttiioonn ((AA--OOEE--22aa)) You have an above average position on this metric which means you are able to close your internally identified problems more quickly than average. Please note: there is a large difference between the time to resolve customer problems and the time required to resolve internally identifies problems. Generally, communication service providers with the best performance see closer alignment between the two metrics.


Q2 07 Overview:

Revenue and Margin G-RM-1 Profitability (expressed as Operating Income / Revenue)

G-RM-2 OpEx / CapEx

G-RM-3 OpEx/Revenue

G-RM-5a Customers Acquired - Prepay

Customers Acquired - Postpay

G-RM-5b Customers Lost - Prepay Customers Lost - Postpay Customer Experience A-CE-2a Incident Resolution Time

A-CE-5 Availability

Operational Efficiency A-OE-2a Service Problem Resolution Time


Q1 07 Overview:


G-RM-2 OpEx / CapEx

G-RM-3 OpEx/Revenue




A-CE-5 Availability



Q4 06 Overview:


G-RM-2 OpEx / CapEx

G-RM-3 OpEx/Revenue




A-CE-5 Availability



Individual Metric Results:

Revenue and Margin:

G-RM-1 Q2 07 Profitability (expressed as Operating Income / Revenue) Units : % 2DP Participants: 6

77.00 55.65 45.95 43.21 42.73 Lead Avg. Lead Avg. Lag Lag

G-RM-1 Max Average Min Your Score: 76.00


G-RM-2 Q2 07 OpEx / CapEx Units : % 2DP Participants: 5

1069.16 926.34 897.64 840.57 768.41 High Avg. High Avg. Low Low



G-RM-3 Q2 07 OpEx / Revenue Units : % 2DP Participants: 6


G-RM-3 Min Average Max Your Score: 38.47


G-RM-5a Q2 07 Prepay Customers Acquired - Prepay Units : % 2DP Participants: 6


G-RM-5a Max Average Min Your Score: 2.95


G-RM-5a Q2 07 Postpay Customers Acquired - Postpay Units : % 2DP Participants: 6




G-RM-5b Q2 07 Prepay Customers Lost - Prepay Units : % 2DP Participants: 6


G-RM-5b Min Average Max Your Score: 3.89


G-RM-5b Q2 07 Postpay Customers Lost - Postpay Units : % 2DP Participants: 6




Customer Experience:

A-CE-2a Q2 07 Customer Incident Resolution Time Units : minutes 2DP Participants: 6

218.00 965.28 3338.57 7991 14315.36 Lead Avg. Lead Avg. Lag Lag

A-CE-2a Min Average Max Your Score: 3308.75


A-CE-5 Q2 07 Availability of Service to Customer Units : %3DP Participants: 11


A-CE-5 Max Average Min Your Score: 99.95


A-CE-5 Q1 07 Availability of Service to Customer Units : % 3DP Participants: 11




A-CE-5 Q4 06 Availability of Service to Customer Units : % 3DP Participants: 11




Operational Efficiency:

A-OE-2a Q2 07 Service Problem Resolution Time Units : minutes 2DP Participants: 6


A-OE-2a Min Average Max Your Score: 42905.76


Correlations Visual correlations are used to spot potential interactions or insights from the data. Visual correlations track the leading and lagging positions of all the participants across 2-3 metrics. (Anonymity is preserved) In this case correlations were conducted for a number of metrics. The most interesting are shown below. Additional correlations may be developed as needed on the web-portal. Each column represents the position from the single operator against the metrics in the rows.

This correlation highlights the relationship between low OpEx and good profitability.

SPa SPb SPc SPd SPe

G-RM-3OpEx/Revenue

G-RM-1Profitability


This correlation suggests that operators who are effective at retaining existing customers have similar results between Postpay and Prepay customers. The implication is that the stickiness is more to do with shared service attributes than with special handling due to payment method.

SPa SPb SPc SPd SPe SPf

G-RM-5bCustomers Lost - Postpay

G-RM-5bCustomers Lost - Prepay


This correlation indicates that operators with strong profitability generally lead in either prepay or post pay customer acquisition, but are typically at least average in the other category

SPa SPb SPc SPd SPe SPf

G-RM-5aCustomers Acquired - Postpay

G-RM-5aCustomers Acquired - Prepay

G-RM-3OpEx/Revenue


This correlation shows that once availability reaches 99% there is little relationship between increased service availability and customer retention, implying that customers may not be able to discern the difference and other criteria become more important to the decision to remain with a provider.

SPa SPb SPc SPd SPe

A-CE-5Availability

G-RM-5bCustomers Lost - Postpay

G-RM-5bCustomers Lost - Prepay

Note to ReaderSummary ResultsQ2 07 Overview:Q1 07 Overview:Q4 06 Overview:

Individual Metric Results: Revenue and Margin:Customer Experience:Operational Efficiency:

Correlations

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