Leading Global Telco Operator (confidential)
This global telecommunications company was looking for ways to make smart investments in its infrastructure. Given this scenario, Locatium proposed one of its use cases for telecom operators: Radio Network Roll-out Planning Optimization yielding CAPEX and OPEX savings of 15-20% of the RAN network budget. Learn how we adapted our solution to the specific needs of our client.
CHALLENGE
Network deployment optimization is one of the most important use cases Locatium develops for telco operators. Inside this solution, we take into account smart dynamic CAPEX optimization and scenario planning for the 5G network rollout. The increase in revenue was just one consequence of all the work that went into it.
In this particular study, we had been identifying maximum ROI through:
- Aligning network rollout to UX to identify key areas to invest in 5G, 4G, UBB or FTTH.
- Use spatial analytics on your own traffic information, competitor performance, and market trends to drive your decisions.
- Optimizing CAPEX allocation with Telco-custom algorithms to save 15% of our RAN CAPEX budget while maintaining user network experience.
- Reducing churn and increasing market share to stay ahead of your competition.
For making this possible and adapt Locatium’s Telco Growth Platform to our client, we start with the following:
1. Smart Dynamic Capex Optimization
- Build network rollout to address next year’s traffic demand, anticipate customers trends, and prepare for different alternatives.
– Faster/slower technology migration.
– Impact of different commercial strategies on traffic demand. - Design of optimal network deployment according to chosen criterion.
– e.g., revenue covered, revenue covered/ cost, network throughput, etc.
2. Scenario Planning for Network rollout
- Optimization for multiple commercial scenarios on top of planned rollouts with a longer time horizon (5-10 years).
- Incorporate new 5G use cases beyond historical network and traffic while building on existing customer information to provide a bottom-up analysis.
At this point, we noticed that CAPEX planning was driven by technology rather than business objectives, RAN CAPEX was increasing at a higher pace than revenue (RAN CAPEX is usually 50% of the total CAPEX), and data traffic was increasing at a higher pace than RAN CAPEX,
leading to continuous investment in CAPEX.
Tell us the particularities and needs your project needs to be able to implement a plan specially designed for you.
Project development and the final score
This is why Locatium proposes to its client the following methodology, based on deploying a CAPEX optimization solution.
We were capable of optimizing where and how much our client had to invest in CAPEX in 3G, 4G, and 5G technology.
- Our client obtained significant CAPEX savings in 4 Latin-American countries on a recurring basis.
Version comparison: The objective was to optimize network rollout to achieve CAPEX savings without impacting perceived users’ network experience.
