Maximise revenue • Optimise costs • Improve controls

Your Challenges

The InfoComm industry is going through ubiquitous changes. In the past decade, technological advancement, regulatory changes and convergence have transformed the industry.

Markets that were formerly distinct, discrete and vertical have coalesced across their old boundaries with a massive investment of capital – much of it in the form of debt.

What we are seeing now are: new entrants, M&A, new business models, new service offerings, decline in fixed-line revenues led by tumbling long-distance prices and flat-rate mobile plans that have lowered per-minute charges. The result is new markets, new players and new challenges.

To remain competitive and deliver value, InfoComm players are now trying to simultaneously maximise their revenues while optimising their costs.

InfoComm Challenges:

  • Robust mobile subscriber growth
  • Evolving markets
  • Cable telephony
  • Innovative new IP-based services like VOIP
  • Fierce competition in the mobile market
  • New business responses
  • Wireless migration
  • Advent of wireless broadband revolutionising both wireline and wireless services

Meeting Your Needs

PwC InfoComm Advisory Services has deep-seated experience in the industry, built from many years of advising our clients across the region on a multitude of issues including operational and control improvements, cost management, revenue maximisation, accounting advisory, strategic planning and M&A transactions. We have a field-proven approach and a proprietary suite of solutions aimed at applying our specialist know-how to each client’s unique issues.

Operational, Processes and Control Improvements

PwC advises InfoComm clients on operational improvements areas such as pricing, interconnection and access costs. We also help clients reduce churn and improve retention through better customer relationship management. Together, we analyse root causes, implement solutions and maximise network value.

With automated processes, millions of transactions and customers, InfoComm companies’ shareholder value is very much intertwined with their ability to maintain a robust yet flexible internal control system. We have helped leading major InfoComm companies in the region improve their processes and controls, and also assisted US listed InfoComm companies in this region implement and assess compliance with the provisions of the Sarbanes-Oxley Act, while they focus their efforts on tackling the business challenges which they face.

Revenue Maximisation

We have assisted InfoComm companies find ways to increase revenue across the entire revenue cycle. This includes:
  • Detecting and preventing revenue leakage
  • Capturing new revenue opportunities
  • Embedding proactive, on-going and self-funding revenue assurance initiatives
Telecom Revenue Maximizer™ (TRM™) is one such tool developed by PwC to help identify and prioritise areas of greatest revenue opportunity, quantify lost revenue, assess root causes, and devise solutions to capture these revenues going forward.

Cost Optimisation

Increasing pressure on revenues due to technological advancement, new markets, players and challenges threaten InfoComm companies’ bottom-line. This has pushed cost optimisation to the top of most InfoComm CEOs’ agenda. PwC’s approach allows you to produce fast results, while helping you to continue the cost management momentum by arming you with the knowledge and solutions to minimise costs on an ongoing basis. We are able to help you:
  • Identify quick wins and long-term cost savings through isolating root causes of cost inefficiencies
  • Quantify potential savings and determine the return on investment for each high opportunity area
  • Translate findings into an actionable strategic and tactical plan
  • Capture cost savings through process and systems improvements, enhanced network efficiencies and implementation of industry best practices
Mergers and Acquisitions
The industry continues to consolidate as companies expand via M&A to gain access to markets and customers. With our industry know-how and specialist skill-sets PwC is ideally placed to assist our clients across the deal continuum through assessing and maximising the return on their transactions. Some of the services we can provide include:
  • Target identification and market studies
  • Due diligence
  • Synergy validation
  • Valuation advisory
  • Post-deal integration
  • M&A accounting
  • Vendor assistance

Our Experience

Large South East Asia-Based Telecom Major
- Support for Client’s Cost Optimisation Initiative

Our client was operating in an extremely competitive market, characterised by high churn and burgeoning Subscriber Acquisition Costs per net add. Coupled with declining Average Revenue Per User, the client was finding it difficult to achieve the budgeted net profit for the year and was looking to improve bottom-line through cost optimisation.

PwC was appointed to identify cost reduction opportunities jointly with the client. We carried out a detailed study of the following core areas and identified substantial cost optimisation opportunities:
  • SIM card procurement and inventory management
  • Distribution channel management – introduction of claw-back and incentive programme
  • Review of commission paid to channel partners
  • Programme for review of cell site rentals
  • Base line cost study for utility/power consumption
  • Review of bill format and potential use of e-bill capabilities