BCG中国网通升级报告.ppt

CONTENT KeystrategicprinciplesRegulatoryoverviewMarketoverviewCompetitionoverviewBusinessmodelsNextsteps AGENDA BusinessModelsDomesticandinternationallong distancevoiceWholesale carrierEnterprisesolutionsIssuesgoingforward Economicmodeling Choiceofbusinessmodelstopursueandtiming RoadmapforpursuingbusinessmodelsandexpectedfinancialperformanceIntegratedapproachtoCNCbusinessplan Majorissues Expectedoutput HowdothemarketsizingandshareassumptionstranslateintooveralltoplinerevenueforCNC Whatcapitalinvestmentswillbenecessarytobuildoutmetroandlonghaulfibernetworks Predictedcashflowprofilebybusinessmodelandselectedscenarios Assessmentofmarketopportunities HowwillChinadatacommarketdevelop Howlargeistheoverallopportunityforanewentrant Overallmarketsizingandrevenueforecastbyproductarea Regulatoryandcompetitiveanalysis WhattypeofregulatoryenvironmentwillevolveinChina Willequalaccessforvoiceanddatabegrantedandwhen WhateffectwillWTOhave RegulatorymappingandCNCsharepredictionsacrossscenarios Strategicimplicationsandcapabilitiesassessment METHODOLOGYBEINGUSEDTODEVELOPBUSINESSMODELSANDOVERALLSTRATEGY Currentareasoffocus CNCATACRITICALSTRATEGICCROSSROADS PreliminaryConclusions Recommendations DecisionstobeMade OffnetVOIPpredictedtogeneratetoprovidebreakeveneconomicsforbuildingbackbone1WholesalerevenueprovidessignificantupsidepotentialMajorityofwholesalerevenuereliesonaccesstomobilecarriersEnterprisesolutionseconomicsveryattractive butsubstantialcomplexityandresourcesinvolvedHigh bandwidthinternationalgatewaycriticaltosuccessinbothwholesaleandenterpriseEconomicpredictionshighlysensitivetoasetofkeyassumptions Acceleratevendorselectionandbackboneconstruction timetomarketcriticalCommitmenttoutilizingIP DWDMinvlolvesrisktomobilecarrierbusinessRFPtovendorsshouldbebasedonproductrequirementsvs technologyStagingofinvestmentsandservicelaunchmustconsidertradeoffbetweenqualityofserviceandcoveragePreliminarytalkswithinternationalcarriersshouldbeginASAPScenariomodelingwillhelpusdecidewheretofocus Overarchingquestion CanCNCsuccessfullypursueallopportunitiesoutlinedintheshort mediumterm 1 Assumingsettlementfeesof10 ofrevenue OverallapproachWhereHow BUSINESSMODELSSUMMARY THREECOREELEMENTS EnterpriseSolutions Capturedatacomgrowthinkeybusinesscenterswithleading edgeproductsandsuperiorcustomerserviceTopbusinessdistrictsinmajorurbanareas onlythemostdenseareasinshorttermFocusedDeploymentLeverageexistingconduitstolayinmajorurbanareasSuperiorserviceandbandwidthTargetCT sweaknessinserviceandbandwidthUtilizeLMDSinintermediatecitiesandareaswheretimetomarketiscritical Wholesale Carrier TargetmobilecarriersandISPswithbackbonetransport considersupplyingfixed lineincumbentsCoverPOPsinallmajorcallingzones developlocalleasedlinesnetworkinkeylocationsAggressivedeploymentofbackboneinfrastructuretoprovideunparalleledbandwidthEstablishhighbandwidthinternationalgatewaytodifferentiateinternetaccessSuperiorservicewithclearpositioning TheclearalternativetoCT Longdistancevoice CaptureearlyrevenuefromtofunddevelopmentofsubsequentbusinessmodelsTop60POPsbyendofyear2000utilizingmixofleasedlinesfromCTandCNCnetworkPositionoffnetvoiceasfirstproductfrom China sfirstdatacomcarrier DonotoverextendresourcesinVOIPasitdoesnotfitCNC slongtermstrategyCreate dial around solutionsforbusinessandinterconnectterms 17930 Enterprisesolutions POTENTIALBUSINESSMODELSCOVERWIDERANGEOFPRODUCT MARKETALTERNATIVES Opportunityforgrowth Currentmarketsize Wholesale carrier ConsumerISP DomesticandInternationalLongDistanceVoice Residential Med largeenterprisecustomers Carriers Potentialtrafficperconsumer Products Emergingdatacom Data Voice Emergingdataniche AGENDA BusinessModelsDomesticandinternationallong distancevoiceWholesale carrierEnterprisesolutionsIssuesgoingforward APPROACHTODOMESTICANDINTERNATIONALVOICEBUSINESSMODEL Objectives HypothesizedApproach CaptureearlyrevenuefromlaunchofprepaidIPcallingcards Cashcow forfundingotherbusinessmodeldevelopmentPursueprefixandequalaccesslongdistanceforbusinesscustomersassoonaspossibletobeginestablishingrelationshipsManagepricingandproductlifecycleeffectivelytomaximizetotalmarginandavoidinvestingindecliningproductsDonotoverextendourselvesnorblurour datacom image FighttheregulatorybattletoensurefavorableapproachestoequalaccessandinterconnectMarketcallingcardstobusinesscustomersintheshorttermfortravellingpersonnelEmphasizequalityimage brandtodistinguishfromCTandUnicom positioncallingcardasfirststepinbecominganextgenerationfullservicesproviderEstablishmechanismstolinkmarketingexpenditureswithrevenueandmargingrowthbyproducttoensureeffectiveinvestmentEmphasizelowcosttargetedmarketingandloyaltyprogramsDonotoverextendAlwaysemphasizeadvancedtechnologyandevolutiontofullservicesprovision DOMESTICANDINTERNATIONALVOICESUMMARY PreliminaryEconomics PhaseICapEx 2000 2001 3 8BRMBFiber construction 2 4BRMBIP DWDMequipment 720MRMBPOP VOIP 530MRMBOSS Networkmanagementsystem 100MRMBOpExexpectedtobe 30 ofrevenueby2002Marketshareandrevenueestimates 2002OffnetDLD 30 OffnetILD 30 2BRMBIPIntl termination 27 5yearNPV Essentiallybreakevenconsideringoffnetvoicealone1 KeyIssuestobeAddressed InterconnectagreementswithlocalPTA s attempttoobtainblanketpolicyfromMIIInternationalgatewaylicenseandconnectivitySettlementchargescommensuratewithVOIPpricingDevelopmentofbusinessoffnetstrategyScalable dial around solutionsinshorttermEqualaccesslongertermQualityofserviceforvoice mustapproachswitchedqualityrapidlyPointofdiminishingreturnsforaddingVOIPgatewaysvs strategicvalueofprovidingcoverage 1 Highlysensitivetosettlementfees LARGEMARKETWITHPOTENTIALTOGAINSHAREQUICKLY Newentrantstypicallygainsharequickly Example IDDandDLDservices Marketsizeable off nettrafficaccountsfor 15 oftotalDLD ILDrevenueby2004 Source ChinaTelecomannualreports CNC steaminputs BCGsurveys analysis benchmarking Yearafterentry Optus DLD Tele2 DLD Mercury DLD HongKong IDD Japan IDD US IDD RMBBN DLDOn Net DLDOff Net ILDOn Net ILDOff Net CAREFULMANAGEMENTOFPRE PAIDCALLINGCARDBUSINESSNECESSARYTOALIGNWITHLONGTERMSTRATEGY PrepaidcallingcardscallfordifferentcapabilitysetandtargetcustomersthanlongertermbusinessmodelsFocusonconsumerswillnotcomplementlongtermvisionofprovidingenterprisesolutionsMassadvertisingandmarketingaroundalow costpositionmaynotfitimagerequiredforfutureneedsThreefactorsimportanttoconsiderinmanagingprepaidcallingcardbusinessAttempttopositioncardsinmarketingmessagesasthefirstproductfromacompanythatisbuildingthemostadvancednetworkinPRCConsidersellingcardstobusinessesfortheirtravelingpersonneltobeginestablishingenterpriserelationshipsCarefullymanageproductlifecycletobeginpullingbackmarketinginvestmentaswholesaleandenterprisebusinessmodelsgrow CNCVOIPREVENUEANDMARKETSHAREEXPECTATIONS Source CNC steaminputs variousbenchmarks BCGanalysis Voicerevenue Shareassumptions CNCRevenue RMBBN Off NetDLD oftotalCNCrevenue 100 76 37 30 23 16 Off NetILD InternationalTermination 19993 80 1 3 80 1 5 80 0 Off NetDLDOff netshareoftotalDLDGeographiccoverageofCNCCNCsharewithincoverageOff NetILDOff netshareoftotalILDGeographiccoverageofCNCCNCsharewithincoverageInternationalTerminationIPshareoftotalGeographiccoverageofCNCCNCsharewithincoverage 200010 60 25 11 60 25 11 60 20 200117 75 29 18 75 29 18 75 25 200223 90 33 26 90 33 24 90 30 200330 100 30 33 100 30 30 100 30 200432 100 28 35 100 28 35 100 31 PRELIMINARYECONOMICSFORLONGDISTANCEVOICEMODEL PHASEIBUILDOUT VOIPRevenueAloneJustifiesBuildingBackbone 5yearPV 1 MRMB CapEX OpEx Revenue 5yearNPV 15 500MRMB 5yearIRR 12 EssentiallybreakeveneconomicsforoperatingbackboneforVOIPonly VOIP 2 Backboneconstruction Backbone InternationalterminationIDDDLD IPPOP AccessplatformOSS Presentvalueofcashflows 1 Assuming15 costofcapital 2 Includingsettlementchargesestimatedat10 ofVOIPrevenue andmarketing salesat10 ofrevenue 3 BackboneOpExchargesallocated1 3eachtoVOIP wholesale andenterprisebusinessmodeleconomicsSource BCGbenchmarkdatabase industryinterviews BCGanalysis AGENDA BusinessModelsDomesticandinternationallong distancevoiceWholesale carrierEnterprisesolutionsIssuesgoingforward APPROACHTOWHOLESALE CARRIERBUSINESSMODEL Objectives HypothesizedApproach DevelopwholesalebusinessastrafficgeneratortoimproveeconomicsofbackbonethroughhigherutilizationBecomethewholesalecarrierofchoicewithtechnologicallysuperiorserviceofferingsincludinghighbandwidthinternationalgatewayconnectivityConsiderwholesalingaccesstoCT Unicom andJitongdependingoncompetitiveimplicationsSuperiorcustomerservicewithclearpositioning TheclearalternativetoCT AggressivedeploymentofbackboneinfrastructureConnectingtop15citiesbyendof2000andexpandingtotop50citiesby2002Seekpartnershipstoestablishhighbandwidthinternationalgatewayconnectivity absolutelyessentialfordifferentiatingCNCofferingDevelopinterconnectioncapabilitiesinallmajorPOPsandmobilebasestationsinkeygeographicallocationsWholesaleaccesstoincumbentproviderswherefeasible butdonotwholesalesourcesofcompetitiveadvantage e g enhanceddataservicessuchasIPVPNs RolloutproductofferinginstagedmannertoensurequalityofserviceInternetconnectivityMobileinterconnectAccessportstobackbone WHOLESALE CARRIERSUMMARY PreliminaryEconomics PhaseICapEx 2000 2001 100MRMBISPaccessplatform 50MRMBOSS Provisioningsystems 50MRMBOpExexpectedtobe 10 ofrevenueby20021Marketshareandrevenueestimates 2002Mobile backbone 15 ISPs 9 1 1BRMBAccessports 100 2Darkfiber 100 25yearNPV 2 1BRMBAssumeslaunchdateof3Q2000forleasedlinesandrelativelyaggressivemobilesharesPotentiallytoooptimistic KeyIssuestobeAddressed Backbonetechnologyplatform QOSforvoicevs lowercostdeployment High bandwidthinternationalgatewayparamounttodifferentiatingISPaccessFavorableregulatorybackingforcourtingregionalCTmobilecarriersEnsuringexistingVOIPgatewayscanservewholesaleneedsRevenueopportunityofwholesalingdarkfibervs enablingcompetitionOrganizationalchallenges 1 IncludingallocationofbackboneOpEx 2 MarketestimatesbasedonrevenuegenerationbyCNCalone POTENTIALWHOLESALECUSTOMERSINCLUDEISPs MOBILEOPERATORS ANDFIXEDLINECARRIERS ISPsoffersignificantpotentialifCNCcanprovidesuperiorbandwidthaccessandtointernationalgatewayCurrentsatisfactionamongregionalISPsverylowInternationalgatewaylicenseinconjunctionwithhighbandwidthtrans oceaniccarrieralliancecouldprovidevastlysuperiorserviceMobilecarrierswillbesearchingforlowercostalternativestocarrylongdistancetrafficduetointensifyingcompetitionCNC snewhighcapacityVoIPnetworkandinternationalgatewaylikelytoyieldlowercostsFixedlinecarrierspotentiallylookingforalternativesExistinglong haultransportinfrastructurelimitedChinaTelecomcouldevenbeapossiblecustomergivencurrentfocusonincreasingresidentialteledensity OVERALLWHOLESALEMARKETSIZEISSUBSTANTIALANDGROWINGATAMODESTRATEAnticipatedPriceDecreaseinLeasedLinesLimitsOverallRevenueGrowth LeasedLines ISP MarketSize RMBB 15 Total LeasedLines Mobile 99 04 CAGR AccessPorts LeasedLines Paging 18 18 20 22 26 28 4 41 1 152 1 9 1 01 04 CAGRSource CNCteaminputs foreignbenchmarks BCGanalysis DarkFiber 68 1 CARRIERSSEEKINGALTERNATIVES ISPsdefinitelyseekingalternativestoCT Mobilecarrierslikelytofollow Weneedatelecomserviceproviderthatisnotourcompetitor Founder Eastnet ChinaTelecom withtheirownnetworkdevelopmentplans tendstostarveusoncapacityortoforceustopayinadvanceforexcesscapacity Manager Infohighway ThefactthatittakesChinaTelecomtwomonthseverytimeweneedanextralinemakesitverydifficulttohaveourowncustomers Wewantanotheroperatorwhocangetusleasedlinesfast Manager Infohighway Mobilecarriersmightconsiderdivertingpartoftheirtraffictoalternativeserviceproviderswith moreattractivepricinghigherqualityservicehigherbandwidthInterviewswithregionalmobilecarriersandUnicomneedtobeconductedtoverifypotential BUTTECHNOLOGICALLIMITATIONSANDCOMPETITIVECHALLENGEAREIMPORTANTFACETSTOMANAGE CompetitiveChallenge TechnologicalLimitations MobilecarriersmaybehesitanttouseVOIPtechnologyforprimaryapplicationsCarrierscurrentlyaddressingsoundqualityasamajorimprovementinitiativeVOIPhasyettodelivertoll qualityvoicetransmission evenonlandlineMobilecarriersmaytakeviewthatVOIPcouldfurtherdegradevoicequality ChinaTelecomlikelytohaveadvantageincompetingshareofCTMobile sbusinessStrongformerintra CTconnectionevenaftersplitExtensivebackbonecoverageandlargeTDMbasedcapacityUnicomMobileServices businessastoughtarget Buildpresencebyofferinglow costtrialsandbackupcapacity LobbyforclearregulationfromMIIonfreedomofchoiceforcarriers PREDICTEDWHOLESALEECONOMICSADDSIGNIFICANTVALUETOVOIPBUSINESSMODELAdditionalCapExandOpExMinimal 5yearPV 1 MRMB CapEX OpEx Revenue 5yearNPV 15 2 1BRMB 5yearIRR 40 Wholesalecriticaltoenhancingprofitabilityofbackbone VOIP Backboneallocation DarkFiberAccessportsISPsMobileoperatorsVOIP VOIPISPaccessOSS 1 Assuming15 costofcapitalSource BCGbenchmarkdatabase industryinterviews BCGanalysis OSS provisioning Presentvalueofcashflows 8 000 7 000 5 000 1 000 6 000 3 000 4 000 AGENDA BusinessModelsDomesticandinternationallong distancevoiceWholesale carrierEnterprisesolutionsIssuesgoingforward APPROACHTOENTERPRISESOLUTIONSBUSINESSMODEL Objectives HypothesizedApproach Capturestrongshareamongmedium largebusinessbyofferingenhanceddatacomsolutionsGoaltoestablishclearpositionasbestservice qualityproviderinmajormarketsUtilizemostcosteffectivedeploymenttechnologiestocovermajormetroareasMinimizehead to headcompetitionbyofferingdifferentiated data centricproducts attempttodrivedatacommarketDevelopimageasfast responsivesolutionsproviderEnablecompetitiveadvantageforbusinesscustomersthroughdatacomForbuildingmanagers maketheirbuildingsmoreattractivetotenants DeploymenttotargetkeybuildingsinmajormetropolitanareasFourcitiesbyyear2000 01Top15citiesby2001Fiberinmostdenseurbanhi riseareasandLMDStocomplementandservelessdenseareasInitialleadproductswillbelowcostvoiceoverIPandhighbandwidthinternetaccessMigrationtofulldatacomsolutionsascustomerbaseandcapabilitiesgrowQualitycustomerservicemoreimportantshorttermthanfullproductofferingEmphasisoneaseofuseandfastprovisioningversuscompetitors exploitCT sweaknessesEducationofcustomersonuseofdatacomproductsascompetitiveweaponsMarketingpartnerwithkeybuildingmanagers ENTERPRISESOLUTIONSSUMMARY PreliminaryEconomics PhaseICapitalInvestment 2000 2001 1 1BRMBFirstfourcities assumingfiber 650MRMBAdditional11cities1 400MRMBOpExexpectedtobe 40 ofrevenueby2002Marketshareandrevenueestimates 2002OffnetVoice2 20 Existingdata 10 1 1BRMBEmergingdata 5 5yearNPV Roughly1 2BRMBAssumeslaunchdateof3Q2000fordataservicesLikelytoooptimistic KeyIssuestobeAddressed RightofwayforexistingductsanddiggingPartnershipstrategyforhighbandwidthIGWRightstoLMDSfrequencyspectrumArethe15citiesdesignatedforPhaseIbuildouttheright15citiesforlocalaccess Tradeoffbetweenpureeconomicsbycityvs strategicvalueofprovidingend to endconnectivityWhatisarealistictimeframeforlaunch Magnitudeoforganizationalandhumanresourcerequirements 1 AssumingLMDScapitalandrevenue2timesFuzhouestimateforcities11 15 3timesFuzhouestimateforcities5 10 2 Assumesnolocalvoicerevenuethrough2004 ENTERPRISESOLUTIONSBUSINESSMODELMOSTCOMPLEXWITHHIGHCAPEXANDOPEXREQUIREMENTS BuildingmetropolitanfiberringstoofferaccesstomediumandlargebusinessesposessignificantchallengeOperatingexpensesrequireddwarfslonghaulnetworkcostsonapercitybasisComplexityinobtainingnight of wayvariesbydistrictswithineachcityDesigningfiberrouteandnetworkconfigurationrequiressignificantexperienceConvertingcustomerstofullCNCservicemaynotbeaseasyasitseemsonsurfaceInitialriskforcompaniesutilizingnewentrantCoverageissuesforofferingservicetoallbusinesslocationsExperiencedsales forcewithestablishedrelationshipsamust BUTCOMPRISESTREMENDOUSUPSIDEPOTENTIAL InternetAccess LeasedLines ILD DLD Local Other Portal BroadbandContent WebHosting Collocation ExistingServices EmergingServices 98 04CAGR 124 40 10 7 11 IPVPN BroadbandNetworkApplications 71 83 186 98 111 286 00 04CAGR Marketsize RMBBN Marketsize RMBBN 78 96 187 Overall 16 Overall 86 3 32 Source CNCteaminputs foreignbenchmarks BCGanalysis CUSTOMERNEEDSEXISTTHRUGHOUTTHEVALUECHAINCT sOfferingYieldsSignificantGaps Learn Buy Get Use support Pay Customervaluechain Needsidentified HowdatacomservicescanhelptheirbusinessAssistancedeployingsolutions Quickerandmoreconvenientapplicationchannels Rapidandreliableprovisioning Faster reliablerepairservices Prompt customizedbilling LackcustomerfocusSolutionsvirtuallynon existentMostlyone wayproductmarketing NocustomerinputforprovisioningCTdeterminesqueuewithoutspecifictimingNopenaltiesformissedappointments NegligentrepairserviceSlowfulfillment technicalsupportresponse PoorresponsetocustomersLimitedbillcustomization CTapproach SignificantopportunityforCNCestablishpositionincustomersolutions easeofuse andresponsiveservice Source Customerinterviews BCGanalysis STAGEDPRODUCTINTRODUCTIONNECESSARYTOMANAGEQUALITYHypothesizedProductIntroductions Voice Data 2000 2001 2002 2003 2004 2008 PhaseI II LeasedLinesMobilecarriersEneterpriseHighbandwidthdedicatedinternetaccessforbusinessesandISPs AccessPortsVPNBasicenterpriseBroadbandapplicationsPlatformstoenableVOD etc WebHostingDarkFiberResidentialISP AdvancedVPNExtranetVoice videoQoSguaranteesIndustryspecificofferingsOtheremergingservices e g e Commerce IP phonevoicePrefix Dial around solutions Equalaccessvoice On netvoice Focusonqualityoverquantity Marketasintegratedproducts StressCNCroleasintegrateddatacomplayer PositioningIssues CNCSHOULDUSECREATIVEWAYSTOGROWTHEMARKET AVOIDHEADTOHEADCOMPETITION CompetitorsallfocusonthesamedemandfromthesamecustomersSavagelycompeteonpriceReactivelywaitforcustomerstoidentifyneed requestproducts Pursuegrowingcustomers dataintensiveenterprisesFreshopportunitiesforsales insteadofcompetingoverexistingbusinessApproachproactivelywithnewproducts insteadofwaitingforcustomerstoinitiatesalesprocessCreativelyidentifynewmarketsI e marketforcompaniesrequiringveryrapidprovisioningorcustomizedproductsBecometheonlychoiceforthesecompaniesLobbythegovernmenttosupportmoree commerceandinformationindustriesgrowth CT CNC Unicom Jitong CTislikelytobeunabletomeetgrowingdemandalone Traditional narrowview Newapproachestogrowingsales TOTALGDPVS GDP CAPITAISAPRELIMINARYINDICATORFORATTRACTIVELOCALACCESSMARKETSExample 15InitialCitieswithPOPsonCNCNetwork Shanghai Beijing Guangzhou Tianjin Hangzhou Wuhan Nanjing Jinan Shijiazhuang Zhenzhou Changsha Xuzhou Xiamen Fuzhou Shenzhen Examplesofadditionalcitiesnotininitial15designatedforCNCPOPs Hypotheticalbreakevencurveforbuildinglocalaccess Suzhou Wuxi TotalGDP kRMB GDP cap kRMB VERYDENSEMARKETSSUCHASSHANGHAIBESTSERVEDBYMETROFIBERRINGS M POP railstation HongQiaoDevelopmentArea People spark HuaiHaiRoad Xujiahui PudongFinancialZone ofmajorbusinessbuildingsaccessed 200 Fibersalong SubwayinconstructionSubwayElevatedringroadRoad digrequired DenseBusinessAreaservedMetrostations M M M SHANGHAIECONOMICSVERYATTRACTIVEDUETOHIGHBUILDINGANDBUSINESSDENSITY 5yearPV 1 MRMB CapEX OpEx Revenue 5yearNPV 15 310MRMB 5yearIRR 70 Shanghaipresentsmostattractiveenterprisesolutionsmarket SG A Allocatedbackbone IDDEmergingdata 3 DLDDataservices SONET switchingequipmentOSSAllocatedbackbone 2 1 Assuming15 costofcapital 2 CostofprovidingF RandATMserviceonbackboneallocatedoverfirst4cities 3 WebhostingIPVPNS etc Source BCGbenchmarkdatabase industryinterviews BCGanalysis realestateagencyinterviews fieldanalysis Powerprovisioning etc Fiberconstruction Rightofway Presentvalueofcashflows MEDIUMSIZEDCITIESWITHHIGHGDP CAPITASUCHASFUZHOUBESTSERVEDWITHLMDSSOLUTION Fiberlength Alongroad LMDSstation 5000M1 LakeFiberalongroadRailwayRailwaystationRoadLMDSstationMajorbuildingsAreaserved S 1 MoredetailedfieldanalysisrequiredtomapbuildingsandmosteffectiveLMDSpositioning assumes3 5kmradiusforLMDSarea 2 Assumehalfofthebuildingsareprimebusinessbuildingsforeconomicmodeling S R PRELIMINARYFUZHOUECONOMICSUTILIZINGLMDSVERYFAVORABLE 5yearPV 1 MRMB CapEX OpEx Revenue 5yearNPV 15 20MRMB 5yearIRR 60 LMDSsolutionsformediumsizedcitieswillplayacriticalroleindevelopingenterprisesolutions SG A Power provisioning etc IDDEmergingdataservicesDLDDataservices BasestationCPE 1 Assuming15 costofcapitalSource BCGbenchmarkdatabase industryinterviews BCGanalys