MEDCOMM

CONSULTING

GROUP

OUR SERVICES

Public Broadband, WiMax  Enterprise Value

 

Not only has MCG developed unparalleled industry knowledge, techniques and data sources over the last 10 years, we have also been involved in several public sector broadband projects all over the region, giving us a definite edge in this area of work.

 

Major players at the forefront of the sector confidently base their strategic decisions on the advice and information that we provide. Our regional client base includes: network operators and media groups; equipment manufacturers; regulators and policy makers; banks, investment and legal institutions; corporate users; regional development organizations and local government bodies.

 

“Due to the current market environment, many operators are experiencing, or facing the prospect of, reduced growth.”

 

Company decision-makers and investors share a common desire to maximize investor returns, through sustained appreciation in share and bond prices and through dividend flow to shareholders.

Due to the current market environment, many operators are experiencing, or facing the prospect of, reduced growth – prices have been falling faster than traffic volume has grown, putting severe pressure on revenues and margins from mature products traditionally viewed as ‘cash cows’. In addition, the rising costs of sales and the difficulty of accessing new capital make the impact of external shocks more acute: operators have become more vulnerable to competitor actions, sudden shifts in supply and demand, regulatory pressures and technological developments.

 

Many fixed and mobile carriers use top-level financial planning measures (such as EVA, CFROI and ROCE), but are now increasingly focusing on the operating value drivers as a means of maximizing enterprise value. So what options are open to key decision-makers to defend and then increase enterprise value in this challenging environment?

 

Scenario Planning

 

The process (of Scenario Planning) helps you to develop the agility required to gain business advantage in the converging telecoms, IT and media world.

 

MCG often uses scenario planning techniques in its consulting work and training courses to gain a clear understanding of the dynamic forces driving change in the industry. This understanding is expressed in a set of scenario scripts, which give compelling narratives of how the future may unfold. The process helps you to develop the agility required to gain business advantage in the converging telecoms, IT and media world. Its benefits include:

 

• Early warning of business risks and opportunities

• Objective decision support which balances the risks and returns of business options

• Innovative business ideas

• Challenge to any assumptions of business-as-usual

• Common language for strategic debate which helps to capture divergent views across the business.

 

MCG goes beyond descriptive scenarios to explore the details of business options. We help our clients by:

 

• Designing an efficient planning process that is tailored to meet each client's needs

• Facilitating workshops to engage, stimulate and challenge the client team

• Analyzing the risks and rewards of options in order to support decisions

• Managing the process to deliver results on time.

 

The aim should be to embed scenario planning in the everyday business management process. We therefore like to work closely with our clients in one integrated team, to encourage skills transfer and total transparency. We encourage the client team to take ownership of the process and the results.

Scenario planning should not be a one-off exercise. It is a continuous process that constantly captures understanding of the evolving market, by tracking the critical factors that govern change.

This understanding is used to review the scenarios and adjust the business plans, for a creative, adaptive response.

 

The plans become a series of options which are explored, developed and exercised through scenarios to manage the balance of business risks and rewards.

 

Process Optimization

 

As carriers grow and mature, key processes and value drivers are often overlooked and, in time, become less than optimal. MCG has developed a proven program to identify which processes have the greatest potential to improve a particular telecoms operator's shareholder value, and to diagnose and rectify issues that are leading to sub optimal performance.

 

Case Study No. 1: Launching an Action Plan to Improve Key Processes

 

MCG recently undertook a review of a major European network operator for its Chairman, who was concerned that the company was not fulfilling its potential. The first phase was diagnostic - we identified key areas where shareholder value could most effectively be improved.

 

We then proposed an action plan to generate short-term cash wins of up to EUR50 million, and annualized savings of around EUR100 million. Finally, we helped the company implement our plan.

 

Telecom Training & Workshops

 

Our Development Solutions enable participants to discuss their clients’ telecommunications businesses with greater confidence.

 

MCG designs and delivers training courses to companies, which provide a clear understanding of the relationship between the many telecommunications services available and the technologies used to deliver them. For companies already in the sector, the implications of the cost, scalability, availability and maturity of technologies for the business cases of various services are explained.

 

 For companies working outside the sector, improving awareness of the technology, who the players are and how they interact will stimulate more innovative thinking on telecoms issues, allowing you to represent your clients more effectively.  Drawing together our deep understanding of telecoms technology, markets and regulation and our long experience of providing bespoke training programs, we work with companies to ensure that the course format, scope and content accurately reflect each client’s priorities.

Strategy Development, Venturing Investment & Business Planning

 

Our dedicated team offers a powerful combination of strategy and marketing guidance, management team mentoring and software support.

 

MCG Ventures has been established to provide start-up and early stage support for outstanding business creation opportunities in the broadband access, mobile Internet and e-commerce sectors.

 

Drawing on our business planning skills, market entry and technology insight, and the resources of the MCG Group, our dedicated team offers a powerful combination of strategy and marketing guidance, management team mentoring and software support, in addition to securing access to physical infrastructure, human resources and capital.

 

Where appropriate, we use our network of industry and financial contacts to make introductions to potential partners and customers. We apply industry best practice to the management of confidential information and the avoidance of conflicts of interest.   Ventures provides a focus within MCG for the specialist skills which are necessary to create and nurture young businesses. Our experience of providing solid advice and valuable mentoring creates an opportunity to develop long-term partnerships for mutual advantage.

 

MCG works with both incumbent operators and alternative carriers to analyze the impact of technology, regulation and competition on business strategy. We have a number of tools and methodologies that can help bring clarity to a fast moving market environment. Our 15 years of experience in the telecom and media sector provide us with a wealth of insight into issues facing telecoms executives. We can facilitate strategy development processes, provide supporting research and quantitative analysis, or provide an independent view of existing plans and strategies.

 

Case Study No. 2: Creating a Robust, Scenario-Based Strategic Plan

 

For a major European carrier, we applied scenario planning techniques to develop a robust strategy in an uncertain market. The project analyzed the key drivers in the European telecoms market and created a set of qualitative and quantitative scenarios for the market in five years’ time. We then developed a set of strategies and tested their robustness against the scenarios. Our work was used to demonstrate to the board the strategies that needed to be adopted. We subsequently worked alongside the client in the acquisition of equity for a project that helped to meet the strategic goals we had recommended.

Business Planning & Investment Appraisal

 

Developing a clear business plan with accurate financials is at the core of the strategic planning process. MCG’s renowned quantitative skills, access to market data and benchmarks, and understanding of future trends have made us the partner of choice for many operators seeking to build, validate or appraise business plans.

 

Recent projects have included working with a major network operator to build its ten year business plan, and examining the opportunity for a utility company with network assets to exploit them more fully by offering telecoms services.

 

Case Study No. 3: Developing an Investment Appraisal Methodology

 

We developed and introduced a methodology for the economic appraisal of telecoms investment programs for major European incumbent operator.

 

The methodology was designed to measure profitability at appropriate levels of aggregation on the basis of explicit linking of budget lines to technology and business strategy objectives.  The project included assistance with the implementation of this methodology, including the production of training aids with extensive documentation, a decision-support model, and evaluation of particular investment.

Networked IT

 

The ubiquity of the Internet and the roll-out of broadband networks is enabling a fundamental change in the deployment of information technology.

 

MCG has considerable experience in assisting with the development of strategies to generate value through developing, hosting, enabling or managing advanced applications.

Recent projects include:

 

• Strategy development for a global telecoms operator to launch an asp business

• Strategy and Business development for a new PCS Operator in the region.

• Assessment of the revenue potential of IP-based services for a major ISP and Data provider operator.

• Development of an application infrastructure provision strategy for a new network operator wishing to move up the value chain.

• Evaluation of the fit of a data center business with the existing activities of an established fiber optic carrier.

• Design and Build the unified communication platform for several regional real estate vendors.

• Design and research the first Telematics Project in the region.

• Design and built the first electronic m-commerce and top up platform in the region.

• from our understanding of market and competitive trends, we helped plan the market introduction of a portfolio of advanced services.

• Due diligence on behalf of a consortium of investors on several business plans of a high-profile Mobile and Data service providers seeking finance.

Business Performance Management

 

MCG Communications Solutions supports current and future business models of traditional wire line, wireless, ISP and broadband operators of every size. This collection of capabilities and products also accelerates the implementation of core functionalities.

 

The current economic environment has challenged all communications service providers to be extremely cost conscious and to aggressively seek all good opportunities to both generate new revenue streams and grow existing services. There is no room for errors or risky investments. So, being an agile innovator or reacting quickly to others’ initial successes can be the winning strategy.

 

Implementing new, successful services with clear returns requires simple, rational, streamlined solutions based on solid, scalable architectures that incorporate best practices. Companies must implement these solutions rapidly in order to dramatically increase competitiveness in the new scenario. Additionally, these solutions must be robust to sustain migration from expensive legacy systems.

 

MCG Communications Solutions helps companies implement a step-change by simplifying and rationalizing process and systems create new business lines or consolidate business lines or even integrate companies post-M&A.

 

MCG Communications Solutions accelerates your business and enables immediate response to change and competition through:

 

• Immediate launch of innovation

• Speedy time-to-market

• Highly competitive price

• Reduced investment risk

• Multiple delivery choice

MCG Service Management Suite

 

We help organizations turn their services businesses into profit centers, by increasing service revenues, and reducing operational costs and capital expenditure.

 

Companies are finding it increasingly difficult to sustain good returns based on traditional revenue streams alone. As their products mature, their gross margins shrink, leaving them looking for new sources of value.

 

MCG believes these companies have a major opportunity to differentiate their offerings and boost their profits. This opportunity can be realized by transforming their services businesses to become leading solutions providers, which enables them to systematically generate revenues from existing service activities and add new revenue streams with new service offerings.

 

Capturing this opportunity, however, requires leading-edge service management capabilities. The MCG Service Management Solution Suite is designed to develop these capabilities by:

 

• Helping companies create the right service strategy—by determining what services to sell, who to target, how to price, and whether to deliver through in-house resources or partners

• Improving preventive and predictive maintenance capabilities to minimize customer events and enable fast and efficient resolution

• Increasing field service technician productivity by providing tools and processes to enable more efficient workforce scheduling and dispatch and through the use of mobility solutions

• Improving spare parts inventory management through the use of benchmarks, leading practices and software tools

 

MCG works with companies to customize these modules into a holistic service management transformation program, or help them implement selective modules to address their particular concerns and priorities.  We also team with companies to create new go-to-market approaches. Through these value-based teaming arrangements we can help companies create and grow new service businesses by sharing many of the responsibilities and risk.

 

IT Strategy & Architecture

 

The IT revolution, now progressing on a global scale with the rapid advancement of computer and communications technologies, is beginning to bring about a historic transformation of society; much like the Industrial Revolution did from the 18th century in the United Kingdom. The Industrial Revolution transformed the world from an agricultural society to an industrial society with the advancement of power technologies starting from the invention of the steam engine, and it revolutionized socio-economic activities of individuals, businesses and governments.

 

Correspondingly, the advancement in information technologies, primarily the Internet, will enhance the quality of information exchanges and revolutionize relationships between individuals, between individuals and organizations, and between individuals and society, by drastically reducing the costs and time for information distribution. It is believed that this will result in the rapid transformation to a knowledge-emergent society, where the interaction of knowledge will evolve to create high added value.

IT Strategy Services focuses on strategic IT issues which translate into initiatives aimed at exploring how to make IT work optimally to support the business function and improve company performance.  It also examines ways of exploiting the full potential of existing information systems and the development of new IT infrastructure and/or products.

 

MCG offers senior IT management all they need to know about benefiting from information technology and information management through case studies and techniques to stream line and performance tune their IT operations. Our consultants look at ways of achieving improved productivity and profitability through the effective use of IT while covering all aspects of the corporate IT strategy while keeping in mind the importance of IT process management and profitability of a business.  In a short, IT Strategy sets out projected hardware and software development. It outlines the current, 'as is' hardware and software platforms (environments), and envisages how that environment will change over time - the future, 'to be' environment.

Telecom Consulting

 

MCG has developed its mobile industry expertise through cutting edge consulting assignments in developed and emerging markets along the entire mobile value chain – including network infrastructure suppliers, operators, content providers, banks and regulators. MCG undertakes projects with both a strong quantitative and qualitative assessment facilities, providing clarity in an increasingly complex and dynamic environment. We can help you to understand the key issues in the mobile business, and to devise strategies that shape the future of the mobile communications industry.

 

Our range of expertise spans:

 

• Strategic perspective on the industry value chain

• Business planning based on a strong understanding of operator economics

• Assessing market opportunity, including an understanding of key technologies driving mobile data services

• Identification and selection of potential partners

• Advice on key regulatory issues.

 

Telecom & ICT Audits

 

Telecommunications is a large portion of any enterprise expense budget.  It is a well-known fact that there is a huge amount of wasted money due to suboptimal telecom cost management, which could easily be prevented through various techniques including telecom bill auditing, inventory management, and usage/rate optimization.

 

At the core of telecom auditing is software used to store contract data, interface with telecom invoicing systems, perform the auditing function, and report the results.

 

Why Have a Telecom Audit?

 

• Telecom services bills can be very complex and it is very easy to miss a billing error.

• The process itself will help the enterprise better understand their own telecom service needs.

• Many outsourced telecom audit companies make the process a “no-brainer”, with nothing to lose on the part of the enterprise.

 

The Telecom Audit Process

 

Prior to utilizing telecom audit software, all contract information must be put into the system.  In addition, leading systems will be able to track equipment owned, leased and used, along with rate plans.

Telecom audit software should be able to handle both EDI inputs as well as manual invoicing from telecom companies to enable efficient processing of invoices.  Once input into the system, the core function of the software is to audit the telecom bills against contracted rates and tariffs.  Exceptions are automatically highlighted in reports, facilitating manual and/or automatic remedy with the billing agency.

Leading telecom audit systems will be able generate a variety of reports including exception reports, inventory reports, status reports, and be able to interface with enterprise ERP systems.

 

Telecom Licensing

 

MCG has helped operators win both fixed and mobile telecoms licenses. We can manage the entire process of preparing the license bid, developing the underlying market model and business plan, and, if necessary, valuing the license in question.

 

We understand what regulators look for in license bid books and have high-quality editorial skills in house. We can back this up with solid market analysis, product planning and financial modeling.

 

Case Study No. 4: Obtaining LMDS Licenses

 

We helped a pan-European wireless local loop specialist become a major winner of LMDS licenses in France.

MCG managed the bid and ensured consistency between marketing, technical, financial and legal contributions. In addition, we helped to develop an entry strategy, developed a revenue model and prepared the marketing and financial aspects of the bid.

Telecom Product Development & Cost Management

 

Developing, positioning and launching new telecom and ICT products requires an understanding of the competitive environment, an appreciation of costs and margins, and insight into the evolving needs of different market segments.  MCG’s traditional skills in these areas allow us to deliver practical assistance on the design, tariffing, positioning and launch of products. We can supply on-site teams to work with product managers and marketing staff to specify and launch attractive products, or provide specific advice on particular market or cost related issues.

Case Study No. 5: Developing, Pricing and Launching Products

 

We developed products for a major service based company entering the UK telecoms market. We produced product descriptions for the client's fixed, mobile and Internet products, based on an analysis of customer needs, and developed this work into the planning of product bundles, discount strategies and billing and customer service requirements.

Business Intelligence & Data Management

 

Business intelligence and data management can be simplistically defined as using information effectively. The outcome of business intelligence is an optimal decision making capacity that improves and streamlines business processes for maximum growth and profitability. Business Intelligence capabilities are Continually innovating to enable organizations to obtain the highest value from their investment in BI-related technologies.

 

Naser Karmi, our Managing Director on MCG’s experience in leading the BI transformations in global markets:

 

 "Can you move resources in advance of a change in the market? Can you realign costs in advance of a change in the market? Can you determine a trend that allows you to drive better customer acquisition?  The ability to intuitively react to market conditions at the strategic, tactical and operational stems from having the answers to these types of questions which businesses should be continually evaluating.  The outcome of this process is an invaluable type of data that allows organizations to understand their current positioning and how they can leverage drivers for capitalizing on explosive opportunities as pioneers in the market.”

Techno-Finance in ICT

 

The MCG team regularly undertakes techno-finance advisory work in association with the technical and operational work in the competency fields of ICT. The team has excellent relationship with various internal, domestic, regional and global Technical Consultants having presence in the region, which it leverages while servicing clients in the infrastructure segment.

 

MCG has carried out the Financial Advisor role to some major projects or proposition in the region in infrastructure segments.   We are in a unique position to identify project risks and guide clients through the complexities of project management. It understands the need to bridge the cultural and informational gaps that might exist between private entrepreneurs and institutional investors. It undertakes strategic reviews to develop financial models for project decision support and project investment evaluation.

 

Financial advisory services in respect of ICT projects offered include Syndication of finance, cash flow modeling, strategic financial planning, assisting in bank negotiations etc. The contributions from the company enhance the ability of the clients to capitalize on the emerging opportunities in the economy.

 

The major service areas include:

 

• Project Financing

• Strategic Corporate Advice

• Business Valuation Services

• Mergers and Acquisitions

• Private Placement

• Initial Public Offers

 

Price-List Development

 

MCG helps a variety of telecoms operators maximize profits from existing and new services by developing optimized and practicable tariff packages.

 

This process involves a detailed understanding of service demand, marketing approaches, and service costing, so that profitability can be calculated and an attractive new offer determined.

 

We bring a number of analytical tools (including Price Manager) to bear on the problem, as well as our understanding of what has worked in other markets, as well as our expertise on both demand and costs.

Case Study No. 6: Optimizing Tariffs to Improve Profitability and Reduce Churn

 

We defined the price list for the fixed services of an incumbent operator in a north African country. Our proposals aimed in particular to reduce churn and mobile substitution.

 

In order to assess the impact of different tariff models we built a revenue and gross margin model based on actual usage data, capable of dealing with any price structure and level (including bundled usage and discounts).

 

We also produced a set of models to assess the impact on the revenues of switching from pulse metering to time metering. The models were transferred to the client and we presented our results to the client's management board and shareholder.

Network Costing & Margin Analysis

 

MCG’s expertise in network costing allows us to examine the margins and profitability of telecoms services and identify ways to improve cash flow and/or profitability.  In addition to our tools and methodologies, our industry knowledge (and business planning expertise) allows us to provide benchmarks and to identify where clients are not optimizing their operations.

Case Study No. 7: Aligning Sales Force Incentives with Product Profitability

 

For a European network operator, we examined the profitability of different products in order to align sales force incentives with profits.

 

We examined the profitability and cash payback for each product, by bandwidth and by route, in order to build a comprehensive understanding of profit - and cash- drivers, and design the subsequent incentive program.

Market Assessment & Forecasting

 

MCG market models are used as the foundation for strategic planning in a number of major network operators. We develop market forecasts – high-level or detailed, and tailored according to the insight that the model needs to generate. For example, our expertise in demand mapping allows us to generate geographic representations of demand to support network planning activities.

 

Our work is supported by our extensive library, benchmark data and research resources.

Case Study No. 8: Anticipating the Evolution of the Global Telecom Market

 

The strategy director of a European incumbent operator hired MCG to validate his company's five year forecast of the telephony and Internet market. We produced an independent view of usage and revenues for fixed and mobile voice services and for Internet access. We examined the key drivers affecting the market and backed up our forecast with trends and experience from other countries.

 

Our insight was appreciated and we were invited to present our findings and recommendations on a number of occasions, including to the Board.

Technology Rollout Optimization

 

Understanding the dynamics between technology supply and market demand is key to decision making in telecoms and at the core of many MCG projects. We have worked for operators, equipment manufacturers and investors on technology issues such as understanding the optimum migration path between one technology and another, determining the most appropriate mix of access technologies.

 

Our specialist modeling tool, STEM, is specifically designed to examine the economic impact of technology deployment.

Case Study No. 9: Identifying the Most Appropriate Access Technology Mix

 

We undertook detailed economic modeling for a major US carrier that wanted to understand the costs and benefits of different broadband access technologies. We applied our knowledge of cost drivers for the differing technologies and developed a model which allowed detailed geographic evaluation of subscriber costs and revenues. The model was designed to form the basis of an on-line technology decision and customer management tool.

Industry Specific Services

 

MCG clients span the full range of industries around the region. Our clients range between governmental organizations, private service provider companies, Industries and Operators.

 

 

Industry Expertise

 

MCG delivers its services and solutions through many focused industry sectors in three operating groups. This industry focus provides MCG’s professionals with a thorough understanding of industry evolution, business issues and applicable technologies, enabling MCG to deliver solutions tailored to each client's industry

 

Financial Services

IT & Telecom

Oil & Gas

Health Care

Education

Conglomerates

Construction

Industrial Manufacturing

Media

Government Services

Creative Solutions

MCG | MEDCOMM Consulting Group

 

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