{"id":1143,"date":"2014-11-20T10:45:25","date_gmt":"2014-11-20T05:00:25","guid":{"rendered":"https:\/\/www.subex.com\/blog\/?p=1143"},"modified":"2014-11-20T10:45:25","modified_gmt":"2014-11-20T05:00:25","slug":"capex-snorkel-effect","status":"publish","type":"post","link":"https:\/\/dev.enki.studio\/test\/?p=1143","title":{"rendered":"The Capex Snorkel Effect"},"content":{"rendered":"<p style=\"text-align: justify;\">I just read through an interesting, somewhat validating article from Alex Leslie of Billing Views, talking about operator revenues and margins.\u00a0 In a nutshell, revenue and ARPU are down across virtually every major operator in Europe, according to their own annual reports, and almost all were down by double digits!<\/p>\n<p style=\"text-align: justify;\">I can\u2019t help but believe that this is true in other regions as well, and the problem continues to be growing year on year.\u00a0 Are we surprised?\u00a0 When I moved my family to a new mobile operator, leaving another after 9 years, we leapt into the 4G world with all new handsets, 10x the speed, 10x the data, unlimited everything else, and our price went <strong>down<\/strong>.\u00a0 Only 6 months later they lowered my plan price yet again, as part of a national retention promotion.\u00a0 So why should dropping revenues and shrinking margins surprise anyone?<\/p>\n<p style=\"text-align: justify;\">The fact is they don\u2019t surprise anyone, but they do worry CFOs and Boards, as shrinking (and in some <img loading=\"lazy\" decoding=\"async\" class=\"img-responsive alignleft wp-image-14894 size-full\" src=\"https:\/\/dev.enki.studio\/test\/wp-content\/uploads\/2017\/11\/blog-bottleneck-graph1.png\" alt=\"\" width=\"700\" height=\"395\" srcset=\"https:\/\/dev.enki.studio\/test\/wp-content\/uploads\/2017\/11\/blog-bottleneck-graph1.png 700w, https:\/\/dev.enki.studio\/test\/wp-content\/uploads\/2017\/11\/blog-bottleneck-graph1-300x169.png 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/>cases, negative) margins are the final result of the trend.<\/p>\n<p style=\"text-align: justify;\">The trend has to stop at some point\u2026through mergers, spectrum purchases, policy controls, or even government intervention\u2026it has to stop.\u00a0 But how far will it go beforehand, and how does an operator stay strong in the face of an industry trend that seems (for the moment) unstoppable?<\/p>\n<p style=\"text-align: justify;\">The answer may be more straight-forward then you think:\u00a0 <strong><em>Focus on Capex maximization<\/em><\/strong>.\u00a0 Period.\u00a0 However this doesn\u2019t mean slash budgets \u2013 although that is the current tactic in play across the industry.\u00a0 What it <strong>does <\/strong>mean, however, is sweat the maximum efficiency out of your purchases that you can.\u00a0 Why can programs like Subex Asset Assurance find tens, and now hundreds of millions of dollars in asset recapture opportunities across an operator\u2019s business?\u00a0 While there are many answers to that question, the fact remains that we are finding massive sums of Capex that operators can recycle right back to the top line.<\/p>\n<p style=\"text-align: justify;\">Therefore the formula remains, quite possibly, this simple:\u00a0 Maximizing Capex allows operators to build and transform their networks more completely, quickly, and efficiently, which puts them in a market strength position.\u00a0 Think of it as having a longer snorkel than your competitors as financial crisis waters are rising\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I just read through an interesting, somewhat validating article from Alex Leslie of Billing Views, talking about operator revenues and margins.\u00a0 In a nutshell, revenue and ARPU are down across virtually every major operator in Europe, according to their own annual reports, and almost all were down by double digits! I can\u2019t help but believe [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1161,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5,78],"tags":[124,84,125,126],"class_list":["post-1143","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","category-network-asset-management","tag-alex-leslie","tag-asset-assurance","tag-billing-views","tag-capex-maximization"],"acf":[],"_links":{"self":[{"href":"https:\/\/dev.enki.studio\/test\/index.php?rest_route=\/wp\/v2\/posts\/1143","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dev.enki.studio\/test\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev.enki.studio\/test\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev.enki.studio\/test\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dev.enki.studio\/test\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1143"}],"version-history":[{"count":0,"href":"https:\/\/dev.enki.studio\/test\/index.php?rest_route=\/wp\/v2\/posts\/1143\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dev.enki.studio\/test\/index.php?rest_route=\/wp\/v2\/media\/1161"}],"wp:attachment":[{"href":"https:\/\/dev.enki.studio\/test\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev.enki.studio\/test\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev.enki.studio\/test\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}