OSS Telecom Technology

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Telecommunications Products Business Plan

Strategy and Implementation Summary

OSS Telecom Technology developed a marketing strategy to ensure long-term growth and success in the OSS marketplace. This strategy continues to be refined and improved and initially includes:

  • Locating OSS opportunities within the telecom arena.
  • Developing partnerships with telecom operators to provide these solutions.
  • Determining if the solution is universal, resulting in a decision of whether or not this project could evolve into a turnkey product or repeatable consulting service.

The advantage of this strategy was threefold:

  1. As a partner in the project, OSS Telecom Technology gained valuable experience and first hand operator knowledge.
  2. As a partner, the operator would take a keen interest in the project's success and set high expectations.
  3. The solution would be tested in the marketplace, providing important market intelligence.

5.1 Competitive Edge

OSS Telecom Technology will strive to intimately understand the customer in order to provide solutions that match their specific needs.To be successful, OSS Telecom Technology will develop long term relationships and choose customers that share this model.

In the best-selling publication “Discipline of Market Leaders,” customer excellence is defined as “specializing in satisfying unique needs.” These unique needs are recognizable only by a vendor with a close relationship and intimate knowledge of the customer.

For a comprehensive definition of the model for customer excellence, OSS Telecom Technology's plan includes:

  • Develop long-term relationships with our customers.
  • Avoid clients who do not have long-term potential.
  • Avoid pure transactions or one-time deals.
  • Do whatever it takes to please the customer.
  • Educate employees to be adaptable, flexible, and multi-talented.
  • Create an unmatched value proposition of best total solution for our clients.
  • Search for new areas of mutual cooperation.
  • To constantly improve our value model, develop a value proposition around solutions, and aggressively evolve and improve each solution.
  • Develop an operating model dedicated to delivering unmatched value.

5.2 Marketing Strategy

Within OSS Telecom Technology's stated primary and secondary markets, OSS Telecom Technology has developed a “Stepped Target Market Strategy." This strategy is based on two key elements:

  1. Telecom operators have a strong desire to purchase from a vendor with installations similar to their own, and
  2. That larger CCB vendors are moving upscale to larger operators as they gain more experience and as IT resources continue to become scarce. The primary market of this type of CCB vendors is Tier 1 operators.

OSS Telecom Technology's first installation base consists primarily of GSM operators in the range of 25,000 subscribers and under. Through a stepped strategy, OSS Telecom Technology is moving in three directions:

  1. Using this install base to move up to the next band of subscribers within the GSM market
  2. Leveraging GSM wireless experience to penetrate other wireless types in the same subscriber bands
  3. Working with GSM operators to provide convergent services such as cable, Internet, and wireline, and therefore gaining experience in these disciplines.

This strategy currently puts OSS Telecom Technology in the Tier 3 (less than 100,000 subscribers) market, with each step carefully planned to be sure we do not overreach. It is key to this strategy to maintain all customers as long-term partners and referenceable sites. We want to under-commit and over-deliver in each step of this strategy.

5.2.1 Promotion Strategy

One of the key responsibilities of marketing is lead generation. The following methods are used for lead generation:

  • Advertising in Trade Journals
  • Trade Shows and Conferences
  • Telemarketing
  • User Group Direct Mailing

5.2.2 Pricing Strategy

Our pricing strategy for products is to maintain a 30% to 40% advantage below Tier 1 CCB vendors for total installation cost which includes license fees, installation services and custom services. Coupled with our strong product road map, OSS Telecom Technology believes that this forms the core of a very strong value proposition.

Post-Warranty Customer Service Pricing

OSS Telecom Technology offers two customer service packages to meet the needs of various operator requirements:

Extended Customer Service

  • 24x7 Technical Support Desk
  • Problem Solving
  • Maintenance Releases
  • On-site Support 

Business Partner 2000

  • 24x7 Technical Support Desk
  • Problem Solving
  • Maintenance Releases
  • On-Site Support
  • Proactive Operational Visits
  • Software Upgrades
  • New modules within the CARIBOU suite

5.3 Sales Strategy

The OSS Telecom Technology sales model is solution-based and a team sale.This sales team will encompass Field Marketing, Program Management, Support, and Product Management as needed.The five groups which form the team are listed below:

  1. Field Sales will develop and maintain relationships.
  2. Field Marketing will define local requirements, develop PR campaigns, and support the local sales effort.
  3. Program Management will be the portal into OSS Telecom Technology operations and will be the primary contact for sales and the customer concerning project status.
  4. Product Management will define in detail the functional specifications for the product development group.
  5. These specifications will be derived from Field Marketing requirements. Product Management manages all the product release processes to the field, and will be the keeper of the three-year product road map and will offer expertise as needed.
  6. Field and Customer Support will help maintain the relationship throughout the life of the install.

5.3.1 Sales Forecast

Revenues are calculated separately for each product and for maintenance and Consulting Services. In addition, product revenue is broken out between New Sales and Upgrade Sales. New Sales and Upgrade Sales are further broken down into License, Installation, and Customization revenue. The products included in this forecast are Customer Care and Billing (CCB) products, Prepaid IN (PPIN) products, and the Short Messaging (SMSC) product. Each product and service revenue assumption is detailed below.

Pricing assumptions for licenses include a 10% discount from list for direct sales and 30% from list for indirect sales. Sales are forecast at 50% direct and 50% indirect resulting in a weighted average discount of 20%. Pricing for licenses stays constant over the five year period. OSS Telecom Technology does not increase license pricing while significantly increasing feature set to maintain competitive pricing advantage over the five-year period.

Sales Forecast
FY 2001 FY 2002 FY 2003
Sales
CCB (CARIBOU & MEDUSA combined) $13,432,825 $19,857,900 $30,434,900
Pre-Paid IN $3,715,905 $7,136,300 $10,317,800
Total Sales $17,148,730 $26,994,200 $40,752,700
Direct Cost of Sales FY 2001 FY 2002 FY 2003
CCB (CARIBOU & MEDUSA combined) $1,679,105 $2,482,238 $3,804,363
Pre-Paid IN $464,488 $892,038 $1,289,725
Subtotal Direct Cost of Sales $2,143,593 $3,374,276 $5,094,088

5.4 Milestones

One of the benefits of having a large engineering team is the ability to develop solutions for our customers that are comprehensive and extend our target markets stepwise into additional service operators. In this sense, we will engage our customers in user groups and develop a comprehensive product road map. Half of the product road map will contain items directly requested by our customers. The remainder of the product road map will be based on strategic market analysis.

OSS Telecom Technology has initiated the process of ISO 9000 certification for its systems and procedures. The systems will be certified for our Taiwan operations. All OSS Telecom Technology engineering is being performed out of its Taiwan development center, therefore OSS Telecom Technology will initially apply for certification of those operations. OSS Telecom Technology has completed most milestones. It is expected that OSS Telecom Technology's Taiwan operations will achieve ISO 9000 certification by June, 2001.

Milestones
Milestone Start Date End Date Budget Manager Department
CCB (CARIBOU & MEDUSA) - Convergent Billing 4/1/2000 3/31/2001 $875,000 K. Jones Product Development
CCB (CARIBOU & MEDUSA) - Tier 2 Operators 4/1/2001 3/31/2002 $810,000 K. Jones Product Development
CCB (CARIBOU & MEDUSA) - Multi-Service One Number Billing 4/1/2002 3/31/2003 $795,000 K. Jones Product Development
Pre-Paid IN / Calling Card - IN-Node APIs 4/1/2000 3/31/2001 $720,000 K. Jones Product Development
Pre-Paid IN / Calling Card - ISO 9000 4/1/2000 3/31/2001 $1,235,000 K. Jones Product Development
Pre-Paid IN / Calling Card - Convergent Billing 4/1/2001 3/31/2002 $680,000 K. Jones Product Development
Pre-Paid IN / Calling Card - Tier 2 Operators 4/1/2002 3/31/2003 $745,000 K. Jones Product Development
Totals $5,860,000