TMNG Global Assists A Wireless Carrier In Assessing The Viability Of An Account Spending Limit Program

Challenge

TMNG Global was asked to determine the viability of introducing an Account Spending Limit (ASL) service to a wireless carrier’s clients. To conduct an effective analysis, it was necessary to understand the market dynamics, cross-elasticity with current offerings, revenue potential, sensitivity of the spending limit, and the market segment to be addressed.

TMNG Global Solution

The engagement began by defining ASL service at a high level. This definition was used to determine the take rate of the service from the credit-challenged population.

Leveraging our expertise in delineating the operational and network impact of introducing the ASL service, the team then conducted an assessment of the basic functionality resident in the client’s billing system.

With our technology partner, we performed a marketing study, an operational assessment, and developed a business case.

Sensitivity studies were conducted to determine the impact of changing the credit limit on the take rate of the service and the projected revenue. Our team also looked at the impact of the credit limit on the various markets that the client served. In addition, the impact on the existing product and market segments of offering an ASL service was assessed. A high-level launch plan was developed along with various customer acquisition scenarios.

An operational readiness assessment was performed to determine both impact and time required to launch an ASL service.

The critical operational components that needed to be addressed were:

• Product Development,
• Network Operations,
• Activation,
• Fulfillment,
• Mediation,
• Credit and Collections,
• Billing, and
• Customer Care

A business case determined the development and operating costs of the ASL program and helped evaluate the prioritization of the ASL program. Finally a phased-in fast-track launch plan was created along with various customer acquisition scenarios.

Benefits to the Client

Our team and technology partner managed the introduction of ASL through the product development processes prior to the official prioritization of the program. This required intense lobbying and realignment of issues with the business owners, IT, Billing, Sales, Marketing, and Product Development groups. Our understanding of the basic functionality resident in the billing system, allowed us to represent the carrier’s business position in negotiating the requirements/change request processes in order to prioritize its release.

The Business Case provided a market overview, a product definition, a detailed view of the benefits and risks associated with the ASL program, a launch plan, and a financial analysis. The operational impacts and associated costs were outlined. Lastly, the financial model provided various revenue and expense scenarios, including a range of assumptions associated with ARPU (Average Revenue per Unit). The ASL Program was successfully prioritized by the Steering Committee.