Question:

(a) A mobile operator wants to weigh and allocate cost towards mobile broadband subscribers with mobile broadband at 80% of the traffic and 15% of the subscribers. He also assumes also that in terms of revenue (SMS 11%, voice 81%, mobile data 8%), in terms of traffic (voice 25%, mobile data 75%).

(i) Calculate the relative load of mobile broadband subscribers versus voice subscribers.

(ii) Calculate the percentage of the cost to be allocated towards mobile broadband subscribers.

(iii) Allocate cost towards subscribers of each respective service type.

(b) Reducing OPEX and CAPEX are never straightforward for mobile broadband operators. From cases learnt on Japan and China,

(i) what would be the win-win cost model in the local context for an operator (incumbent or non-incumbent) and the customer?

(ii) what should be the technologies enhancement to improve cash flow?

(c) Mobilkom in Austria has managed to maintain its EBITDA and operating income levels, while showing strong growth in broadband and a dramatic decrease in contract churn levels.

(i) Explicit the term "EBITDA".

(ii) Why do mobile operators try or need to manage their EBITDA?

(d) Broadband can be defined as "enhanced user experience" with improved voice and data capability. Describe your own user experience with mobile broadband.