Geographical Market Analysis and Selected Market Segments for a Cable Operator

Evaluated the cable TV market, pricing elasticity, and selected areas to be cabled using a business model, econometrics and Monte Carlo simulation

A very detailed and in-depth market and pricing analysis supported the CATV business strategy definition and key management decisions. The analysis proved a strict adherence to reality and was key for the fast business growth

  • Project and challenges

    Portugal Telecom faced the risk of competition by potential Cable TV operators and needed to expand offering and capture the cable TV market quickly.

    As a completely new market, non existing in Portugal, it was needed an approach that could correlate other variables to TV services and identify the best pricing point.

    Furthermore it required a gradual fibber deployment where the best penetration rates could be achieved and value could be maximized.

    Also, implementing a new technology, required a precise identification of the cost variables to estimate the investment required.

  • Approach

    The team gathered and correlated multiple variables, from the national perspective to a granularity level to predict demand and prioritize best areas for implementation.

    An advanced business model was created to evaluate a 10 year business plan.

    Monte Carlo simulation techniques where used to evaluate the impact of variables as pricing, demand, exogenous costs, and others.

    Econometric analysis was used to create a model and forecast main long term variables.

    Competitive products and services where analyzed to evaluate customer trade offs.

  • Results and benefits

    The project generated a structured analysis that was the basis for the pricing and technology costs selection, supporting the strategy definition.

    A detailed deployment plan was developed to cover in a gradual approach the main cities and residential areas.

    Product pricing analysis supported interations with marketing teams.

    A 10 year business plan supported and defined the strategy, setting a long term vision.

    A detailed annual budget, for the first year, supported the on-going management.

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