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 January 2006, 9th Edition, quarterly edition |
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A talk with Rui Paiva WeDo Consulting's CEO
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WDC -
How do you see the telecommunications market today? As WeDo is doing business in different parts of the globe,
what are the major differences among the regions?
RP - The
telecommunications market is going through a new phase of having
to redefine its business model.
Technological advances such as VoIP are forcing fixed telecom
operators to review the way they operate in the market and to
find new formulas to maintain their Rate of Returns (RORs).
If
VoIP is a factor which, initially, is affecting fixed telecom
operators, it will also affect mobile operators, it is simply a
question of time.For mobile telecom operators, content is one of the alternative solutions found up
until now as a way of trying to grow in new areas,thus making it
possible to maintain RORs.
If we look back, operators had a profitable voice business; today they have a
business which is heading in the direction of very low rates of return, which
means that the search for alternatives is a must.
The alternatives looming on the horizon include:
1 - Being a simple carrier, like energy companies.
If we look closely at energy companies, we see that they are in a much more
mature phase of a business model that is somewhat similar to that of the
telecommunications industry. There were companies in the past that also sold
equipment such as air conditioners, TV sets or fridges as a way of increasing
the use of energy.
Today, they no longer sell TV sets nor are they in the content market to
promote the purchase of TVs and, in turn, the consumption of energy. This
could be a solution for operators, to be mere carriers, efficient, with low
operating costs, thus making it possible to maintain interesting rates of
return.
2 - Being part of a new business model
Looking for new, alternative formulas to being in the market and operating more
globally. These formulas include such concepts as:
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Convergence of Fixed and Mobile, enabling a synergy of related operations and
costs
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Designing a comprehensive and convergent offering, enabling the design of
global solutions capable of winning customers and maintaining their
loyalty.
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Going from the Telecommunications Operator concept to the concept of Global IT
Services Operator (Telecommunications/IT/IS/Services).
There is no doubt in my mind that the next 2 years will be very important in
defining this business model, a model which is vital and necessary to all those
wishing to stay in the market with RORs of any interest to shareholders.
Regarding regional differences, there are no differences, only different
paces. |
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WDC - How would you classify WeDo's performance in 2005?
RP
- WeDo's performance in 2005 has been extremely good. We have registered
a significant growth at every level: orders, income, EBITDA, free cash flow,
new international telecom accounts, and new geographies.
While achieving these results, WeDo pursued significant activities in the
following areas:
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Developing new versions of its proprietary software products
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Closing deals with international partners for the commercial development of its
products
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Maintaining our ISO 9001 certification for the 4th consecutive year, without
any corrective action
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International expansion marked by our entering the Asian market
In 2005, in addition to expanding our presence in Brazil, Spain and Eastern
Europe, which began the year before, particularly with regards to the Polish
and Russian markets where we were awarded two projects, WeDo also positioned
itself in Northern Europe (with the opening of an office in London), Germany
(Dusseldorf) and France (Paris).
At the same time, this was also a year in which WeDo was chosen by the Yankee
Group, a North-American consulting company active in the telecommunications
market for 30 years, as one of the leading revenue assurance providers
worldwide.
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WDC - What do you consider to be the major challenges for the
telecommunications industry for 2006?
RP
- Being able to find a business model enabling them to survive and grow,
maintaining interesting rates of return.
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WDC -
How do you think WeDo will help Telecom Operators coping with
those challenges?
RP
- WeDo can help as it is focused on positively contributing to
telecommunications business performance. WeDo provides several proven
innovative solutions for Revenue Assurance, Performance Improvement and
Corporate Control, namely:
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RAID - Revenue Assurance
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ICS - Credit & Collections
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CMS - Incentives Managementd
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RMS - Roaming Management
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WDC -
WeDo Consulting is very active in the revenue assurance area.
How do you see the revenue assurance market evolving in 2006?
RP
- The future presents immense challenges for Revenue Assurance. During 2006 and
in the near future, Telecoms Operators will continue the implementation of
their RA framework and tools, while business and technological evolution brings
new challenges to Revenue Assurance operations.
Operators have to make sure that they select a proven, easy-to-use and flexible
solution to automate, manage and grow your end-to-end Revenue Assurance
processes. Revenue Assurance processes will have to deal with:
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Broadband technologies
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New contend revenue streams
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Merging and International Groups
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Convergence between fixed, mobile and ISP
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Regulation
Regarding the RA solutions market it's clear that there is a strong drive for
consolidation and we will assist the merge between players. Fortunately at WeDo
we have achieved considerable success and today we count with strong customer
references. We are sincerely committed towards maintaining RAID - Revenue
Assurance Solution - as the leading solution for Revenue Assurance.
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WDC -
How would you advise Telecom Operators to prepare themselves to face the challenges ahead as far as revenue
assurance is concerned?
RP - The future presents
immense challenges for Revenue Assurance, such as 3G, new revenue streams such
as the content revenue stream, possible mergers and acquisitions or regulation
such as SoX compliance. The Revenue Assurance challenges ahead demand an
envisioned approach from the Telecom Operators to the framework and tools to be
implemented. Operators should make sure that they are setting the right,
flexible technology to grow their end-to-end Revenue Assurance processes and
cope with new services, new systems and new processes. |
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