Cut Costs, Create Cash

    Times are tough. You’re under pressure to improve your figures. In today’s economic climate, everyone is.

    Cut Costs, Create Cash

    It boils down to getting the most out of capital investments and operating costs, and generating more revenue. It’s not rocket science. It’s telecom.

    When it comes to opex, there are different challenges depending on the market and how well established you are. Early on, it’s all about growth and winning market share. But it can’t be at any cost. Streamlining operations and improving efficiency can make that growth profitable.

    After a while, there are new challenges. It’s not mad expansion any more. Uptake starts leveling off. Traffic increases even as revenues start falling. It is important to keep increasing efficiency, both in the network and in the organization.

    The right level of investment is vital. Overinvest and you end up with insufficient working capital. You might have the best network in the world, but you also have unused capacity. Underinvest, and it is hard to keep your customers happy. They want new services and reliability. Congestion and a lack of capacity mean lost revenue. And grumpy customers have a habit of finding another operator.

    It’s all about finding the right balance.

    It boils down to turning that early wild expansion into profitable growth, and taking control of your costs. Benchmarking – of systems, tools and processes, the organization – can help. Got operations in several countries? This could be a chance to consolidate, and reuse some of the functions across multiple markets.

    Shorter time-to-market for new services not only frees up capital, but also brings in new revenues faster. That requires a more flexible, more efficient network.

    Getting the best out of your network assets? Asset sharing is one way to get more from your invested capital. And is running the network the best thing to spend your energy on? A specialist network operator can find significant economies of scale, while you concentrate on growing your business and taking care of customers.

    There is a lot more to business than the finances. But that’s the thing. It’s a business. A good bottom line ensures you are in control of your own destiny.