Specialist
Relationship Manager at Bouygues Telecom
Agenda
- Outsourcing dynamics for French FTTH deployment
- Pricing trends and recurring revenue dynamics for deployment vs servicing contracts
- Servicing contract stickiness and competitive dynamics between vendors
- Key customer decision-making criteria
Questions
1.
What fibre deployment rate or build activity do you expect in 2021 vs previous years, considering the network deployment disruption in 2020? I’m aware Arcep is good at providing real-time fibre coverage updates.
2.
How much of the expected deployment over the next couple of years is fully outsourced to providers such as Circet and Solutions 30 vs being built internally by networks or network providers?
3.
Will the outsource providers’ deployment activity peak in 2021? Will they deploy more homes in 2021 than 2022?
4.
There’s a distinction to be made between deployment and installation or implementation. Is implementation customer-driven, when the customer subscribes to the FTTH product and needs to be connected to the box?
5.
What are deployment’s typical revenue dynamics? Are telcos paying service providers a certain price per home or is it just a framework?
6.
What’s the typical pricing dynamic for when Circet deploys the network vs customer installation? Is this increasing as more telcos outsource more deployment and compete for technicians?
7.
How much more expensive is deployment and building out to the node vs installation, which costs the telco about EUR 120-150?
8.
Could you estimate the ultimate cost per home when network planning? I understand that different zones will have different average distances and that there will be varying amounts of splicing and required shelters.
9.
Can service providers pass the deployment costs on to the telco or are there certain contract review points where that price can be changed? Is it variable based on the cost to the service provider?
10.
Do you think telco spending on outsourced service providers such as Circet, Sogetrel or Solutions 30 will peak in 2021, given the deployment activity?
11.
How would you assess the service providers’ ability to handle potential revenue declines in 2022-23 if deployment activity ramps down?
12.
Is servicing and maintenance’s outsourcing share as high as deployment’s? Will operators aim to outsource 95% of this work as well, or do you think they will outsource a smaller portion?
13.
How do you decide who to award the servicing and maintenance contracts to once the network is fully deployed? Are they usually awarded at the same time as the deployment?
14.
What is Circet’s deployment market share vs Solutions 30, Sogetrel and other players? Is Circet typically the dominant provider?
15.
How would you assess Circet’s competitive positioning vs Solutions 30? I know Solutions 30 has historically spoken about being a service provider to various telcos. Is there a quality difference between these two providers?
16.
What are the main KPIs or success criteria you consider when choosing a vendor, such as deployment speed or default rate?
17.
Does an operator retain control over outsourced call-out services, maintenance and so on? Does it still have access to the call-out data or is that fully outsourced to the service provider?
18.
Do you think there’s scope for players such as Circet to manage more parts of the active network equipment on behalf of telcos, or will they likely retain that internally?
19.
Is switching between service providers or outsourcers a difficult process, or is it relatively smooth to move interventions or contracts to other vendors?
20.
Why is it so difficult to switch service provider? Is it because it’s hard to get that much capacity from another provider for the expected interventions due to the provider already working somewhere else, or is it because the systems are technically integrated?
