Introduction to Mark Spracklen, Leader/facilitator of the Telecoms Profitability Interest Group.
I have been practising Telecoms Costing, Profitability and Customer Lifetime Value (CLV) for over 25 years. The last 8 years in an operator looking after Price approvals, as well as setting the Finance run Cost model requirements, and doing the internal audits.
After over 25 years of implementing Profitability, I am now focusing on training and developing better solutions and methods. Part of this is leading the IG, where I will try and facilitate communications between different Operators, so they can help each other find better solutions.
You can email me at Mark@Profitability-Analytics.org
Mission Statement of the Telecoms Profitability Interest Group (IG)
To bring together Operators, Consultants and Software providers to realise the potential of Profitability to grow the Revenue through better Pricing.
The IG will allow all interested people to share ideas, get help with existing problems, and hopefully find better ways of doing things, leading to better solutions.
There are four main areas:
1. Costing. While most operators have Regulatory Cost models, these are not always suitable for Profitability, but most can be quickly adapted. The biggest challenge is Retail Costs, which are often just allocated based on Revenue. A better understanding of how these vary by Channel, Tariff and Products is needed.
2. Revenue. Recent changes to the way Bundles are treated using IFRS rules mean that most Revenue in the financial GL Accounts is unsuitable for Profitability and needs to be calculated differently.
3. Profitability, Customer Lifetime Value, and Pricing. There is no one answer to this, and it depends on the Tariffs. For example, for some Pricing, like 5G, it may make sense to exclude Fixed Costs. To gain a fundamental understanding by using advanced analytics, Individual Customer Profitability is needed. The methodology to do this is no different from the traditional views, it just requires much more powerful software tools that can process the Millions of Customers and Billions of Product combinations.
4. Analytics and AI. Profitability on its own adds very little value! “Actionable Information” allows Marketing to design better pric