Effective Network Asset Management
Effective Network Asset Management “Critical First Step in Broadband Deployment”
Osmose Utilities Services ESRI International Users Conference
July 2005
Proprietary and Confidential
Traditional Asset Management Managing asset lifecycles to meet target levels of reliability & safety at acceptable levels of cost & risk by balancing financial and operational performance. performance
Proprietary & Confidential
Broadband Competition Expanding – Telco (FTTP, FTTx, NGN?) – CATV (DOCSIS 3.0, VoIP) – Wireless (2G, 2.5G, 3G, 4G?) – Utilities (BPL, Brand X?)
Proprietary & Confidential
Critical Success Factors – Speed to Market – Cost Containment – Penetration Growth – Maximize Revenue – Reduce Expenses – Customer Satisfaction
Return on Investment
Proprietary & Confidential
New World Asset Management Manage the deployment and service capability of your network assets relative to your customers’ location and service request
Asset Management – A function of all business processes
Proprietary & Confidential
Single Service Business Profile – Single Service Platform – Area Activation – Monopoly – Engineering Culture – Technology Dependent ROI Predictable
Proprietary & Confidential
Multi-Service Business – Single Service Platform – Area Activation – Monopoly – Engineering Culture – Technology Dependent
Ö Multi-Service Network Ö Unit Activation Ö Competitive Ö Market Driven Ö Asset Capability
ROI Variable Reduce risk by matching capital expenditures with customer revenue
Proprietary & Confidential
Common Deployment Problems – Higher Capital Expenditures – Construction Delays – Missed Sales Targets – Long Installation Intervals – Excessive Customer Calls – Revenue Shortfall – High Installation Cost – O&M Exceeds Expectation
Proprietary & Confidential
Supporting Business Processes – Network Planning – Engineering – Construction – Marketing – Customer Request – Sales – Provisioning – Installation – Maintenance
Proprietary & Confidential
Integration of Asset Information – Reduce Capital Costs – Adhere to Capital Budget – Reduce Marketing Costs – Achieve Revenue Forecasts – Schedule Service Activation – Provide Accurate Service Intervals – Improve Customer Satisfaction – Lower Installation and Maintenance Costs – Meet ROI Target
Proprietary & Confidential
Asset Management through GIS – Single Source Asset Repository – Sharing across Multiple Business units – Data Maintained and Accurate – Geospatial – Network Intelligence – Establish Platform for Future Services
Proprietary & Confidential
Electric Utility Experience
Proprietary & Confidential
Under Valued Assets
Homes Passed
"Missed" Homes
100,000 200,000 500,000 1,000,000
5,000 10,000 25,000 50,000
"Lost" Value*
Inventory Cost**
($6,000,000) ($12,000,000) ($30,000,000) ($60,000,000)
$500,000 $1,000,000 $2,500,000 $5,000,000
*Assumes home passed valuation of $1,200 **Assumes asset inventory cost of $5 per home passed
Proprietary & Confidential
Service Revenue Loss
Homes Passed
"Missed" Homes
100,000 200,000 500,000 1,000,000
5,000 10,000 25,000 50,000
First Year Revenue*
5 Year Revenue*
($360,000) ($720,000) ($1,800,000) ($3,600,000)
($1,080,000) ($2,160,000) ($5,400,000) ($10,800,000)
*Assumes average monthly revenue of $60 per subscriber
Proprietary & Confidential
Better Living through Asset Management – Reduce Costs – Increase Revenues – Higher Customer Satisfaction – Lower Risk – Improved ROI
Proprietary & Confidential
Thank-you Randy Frantz [email protected] (602) 595-7623 – Office (602) 214-9160 - Mobile
Proprietary and Confidential
Osmose Utilities Services ESRI International Users Conference
July 2005
Proprietary and Confidential
Traditional Asset Management Managing asset lifecycles to meet target levels of reliability & safety at acceptable levels of cost & risk by balancing financial and operational performance. performance
Proprietary & Confidential
Broadband Competition Expanding – Telco (FTTP, FTTx, NGN?) – CATV (DOCSIS 3.0, VoIP) – Wireless (2G, 2.5G, 3G, 4G?) – Utilities (BPL, Brand X?)
Proprietary & Confidential
Critical Success Factors – Speed to Market – Cost Containment – Penetration Growth – Maximize Revenue – Reduce Expenses – Customer Satisfaction
Return on Investment
Proprietary & Confidential
New World Asset Management Manage the deployment and service capability of your network assets relative to your customers’ location and service request
Asset Management – A function of all business processes
Proprietary & Confidential
Single Service Business Profile – Single Service Platform – Area Activation – Monopoly – Engineering Culture – Technology Dependent ROI Predictable
Proprietary & Confidential
Multi-Service Business – Single Service Platform – Area Activation – Monopoly – Engineering Culture – Technology Dependent
Ö Multi-Service Network Ö Unit Activation Ö Competitive Ö Market Driven Ö Asset Capability
ROI Variable Reduce risk by matching capital expenditures with customer revenue
Proprietary & Confidential
Common Deployment Problems – Higher Capital Expenditures – Construction Delays – Missed Sales Targets – Long Installation Intervals – Excessive Customer Calls – Revenue Shortfall – High Installation Cost – O&M Exceeds Expectation
Proprietary & Confidential
Supporting Business Processes – Network Planning – Engineering – Construction – Marketing – Customer Request – Sales – Provisioning – Installation – Maintenance
Proprietary & Confidential
Integration of Asset Information – Reduce Capital Costs – Adhere to Capital Budget – Reduce Marketing Costs – Achieve Revenue Forecasts – Schedule Service Activation – Provide Accurate Service Intervals – Improve Customer Satisfaction – Lower Installation and Maintenance Costs – Meet ROI Target
Proprietary & Confidential
Asset Management through GIS – Single Source Asset Repository – Sharing across Multiple Business units – Data Maintained and Accurate – Geospatial – Network Intelligence – Establish Platform for Future Services
Proprietary & Confidential
Electric Utility Experience
Proprietary & Confidential
Under Valued Assets
Homes Passed
"Missed" Homes
100,000 200,000 500,000 1,000,000
5,000 10,000 25,000 50,000
"Lost" Value*
Inventory Cost**
($6,000,000) ($12,000,000) ($30,000,000) ($60,000,000)
$500,000 $1,000,000 $2,500,000 $5,000,000
*Assumes home passed valuation of $1,200 **Assumes asset inventory cost of $5 per home passed
Proprietary & Confidential
Service Revenue Loss
Homes Passed
"Missed" Homes
100,000 200,000 500,000 1,000,000
5,000 10,000 25,000 50,000
First Year Revenue*
5 Year Revenue*
($360,000) ($720,000) ($1,800,000) ($3,600,000)
($1,080,000) ($2,160,000) ($5,400,000) ($10,800,000)
*Assumes average monthly revenue of $60 per subscriber
Proprietary & Confidential
Better Living through Asset Management – Reduce Costs – Increase Revenues – Higher Customer Satisfaction – Lower Risk – Improved ROI
Proprietary & Confidential
Thank-you Randy Frantz [email protected] (602) 595-7623 – Office (602) 214-9160 - Mobile
Proprietary and Confidential
