The Warwick MBA

Assignment Cover Sheet

Submitted by: 0860962

Date Sent: 04-JUNE 2010
Module Title: Service Management
Module Code: IB9B30
Date/Year of Module: 2010
Submission Deadline: 7th June, 2010
Word Count: 3,536
Number of Pages: 12
Description of Project:
Design and delivery of Service in a Telecom Managed Service Environment

(LM Ericsson- Zain Managed Service as case study)

“This is to certify that the work I am submitting is my own. All external references and
sources are clearly acknowledged and identified within the contents. I am aware of the
University of Warwick regulation concerning plagiarism and collusion.”

1
Table of Contents
Assignment Cover Sheet ......................................................................................................................... 1
1.0 Introduction ................................................................................................................................ 3
1.1 Methodology ............................................................................................................................... 3
1.2 DATA ............................................................................................................................................ 4
1.2.1 Availability ....................................................................................................................... 4
1.2.2 Customer Satisfaction ..................................................................................................... 4
1.2.3 Market Data .................................................................................................................... 4
2.0 The LM Ericsson-Zain Managed Services Relationship ............................................................... 5
2.1 Characteristics of the relationship.............................................................................................. 5
3.1 Managed Service Strategy .......................................................................................................... 5
3.1.1 Corporate Objectives ...................................................................................................... 6
3.1.2 Environment.................................................................................................................... 6
3.1.3 Service Concept............................................................................................................... 7
3.1.4 Performance objective .................................................................................................... 7
3.1.5 Operation ........................................................................................................................ 7
3.2 Service Delivery.......................................................................................................................... 7
3.2.1 Process ............................................................................................................................ 8
3.2.1 Structure ....................................................................................................................... 11
3.2.3 People ........................................................................................................................... 12
3.2.5 Supply Chain .................................................................................................................. 13
3.2.6 Performance Measurement Systems............................................................................ 14
4.0 Conclusion................................................................................................................................ 15
Apendices

References

2
1.0 Introduction
LM Ericsson is particularly renowned as the top equipment provider in the telecom industry. Of
recent, LM Ericsson took a new approach to doing business, laying emphasis on providing solutions
to the clients rather than just selling hardware. This approach is yielding results. Although total sales
fell by 1% in 2009, indications are that were it not for the growth in the services it would have been
poorer, as equipment sales dwindled seriously but roll-out services (7%), professional services (15%)
and managed services (22%) increased the same year. Ericsson claims to be managing the network
of 370million subscribers now worldwide.

Ericsson officially took over the running of Zain network on the 1st of August, 2009

Managed services can be categorized as follows:

Managed Services

Network-led Service-led Consultancy-led

• Network-led services, focus primarily on creating greater efficiency in managing the network, whether in
terms of third-party maintenance e.g. of an already running network or of building and operating the network
on an outsourced basis.

• Service-led functions include content hosting and can cover introduction of new services.

• Consultancy-led services, which are a newer service-led approaches that respond to the need for business
transformation among the telecoms community, and which include a higher degree of strategic involvement on
the part of the service provider. (Wireless Intelligence, Managed Services Report 2009)
Dominant of all three is the network led services.

1.1 Methodology

Business to Business services require a different approach of assessment especially when the ultimate source of
information of success or failure are the end customers, in this case, the subscribers. In analysing the value of
service for the Zain-Ericsson Managed services three sets of data have been analysed
1. The year on year availability of equipment as recorded by the Zain performance team.
2. The expectations and satisfaction of client managers, gathered with a questionnaire submitted amongst
ten managers across the four domains and commercial departments
3. Growth data obtained from wireless intelligence which gives facts and figures.
Data being analysed are also based on comparison between pre-MS and post-MS i.e. Q3, 2009

All data are and sample questionnaire are in the Appendix.

3
1.2 Data
Having established that the essence of the Managed Service is to:

 Improve operational efficiency which in turn should increase the number of connections,
revenue while improving the return on OPEX, performance of the MS is being assessed
based on the following

1.2.1 Availability
Appendix 1 shows the year on year equipment availability with week (22) taken as the
evaluation point. Availability is seen to have reduced marginally between 2009 and 2010

1.2.2 Customer Satisfaction

Using the survey in Appendix 2, the following data was gathered

1. 70% of respondents score Ericsson average in meeting the Zain corporate objectives.
2. 90% of respondents think Ericsson has the competence to meet the objectives.
3. 50% think that processes put in place are capable of meeting the objectives.
4. 70% are not aware of SLAs in the domains.
5. 60% of the 70% above think SLAs are properly implemented.
6. 100% Managers rate the following as being most important-
i. Quality of Service
ii. Availability
iii. Cost
7. In terms of importance, respondents rate the performance objective as-
i. Quality of Service- 4/4
ii. Availability 4/4
iii. Cost 3/4
iv. Speed 3/4
v. Flexibility 2/4
8. For how well MS has met those performance objective:
i. Quality of Service- 2/5
ii. Availability 2/5
iii. Cost 1/5
iv. Speed 1/5
v. Flexibility 1/5

In summary, the indication is that while the respondents expect Ericsson as being capable to help
Zain improve its services, efficiency and market share, Ericsson has not been able to meet that
expectation. Respondents also do not believe in the processes put in place and SLAs are either not
clearly spelt out on the onset or not properly communicated amongst.

1.2.3 Market Data

Connections- A decrease between Q1- Q4 2009.

Connection Growth rates- decrease of -6% and -14.% in Q3 and Q4 respectively

Revenue- decrease in revenue in Q3 2009 and increase but still shy of Q2 level in Q4 2009

4
 OPEX- Significant increase in Q3 2009, but increase in Q4 2009

OPEX/Revenue- increase from 64% in Q3 2009 to 70% in Q4 2009

EBITDA margin- steady significant decrease from Q1-Q4 2009 from 35.88 to 18.93%.

2.0 The LM Ericsson-Zain Managed Services Relationship

2.1 Characteristics of the relationship
1. Multiple Contact Points making up a diamond structure with multiple points of contact as
shown in fig 1.

LM Ericsson Zain
Mgr Core Mgr Core

Mgr Mgr
Network
Technical
Radio Radio Director
Director
Mgr Mgr
IN/VAS IN/VAS

Mgr Mgr
Facilities Facilities

3rd
Party

Line of visibility

Fig 1 showing the structure of interaction between both parties in the MS

2. The relationship is a strategic alliance with a contract period of 5 years.

3. The contract involves the transfer of employees hitherto Zain technical staff into the services
of Ericsson.

3.1 Managed Service Strategy

According to Johnston et al (service operations management 3ed, 2008) service strategy provides the
frameworks and models that allow managers identify opportunities for bringing value and delivering
it, while ensuring profitability. Fig 3 shows an adaptation of the service strategy wheel to the
managed services (MS) concept.

5
 LM Ericsson Corporate Zain Corporate
Objectives Objectives

Corporate Objectives

Parameters for change

Service concept Environment

Opportunities
Operations and threats
Potential and Value
Capability

Performance Objective

Service Design
Operations Tasks

Operations

People Processes Structure Performance

Supply
Measurement
systems
chain

Fig 4-The Managed service elements and their relationship

Service Delivery Module

In setting the service strategy, the following have to be taken into cognisance-

3.1.1 Corporate Objectives- In deriving strategy, LM Ericsson needs to establish its expected
market position in terms of technical expertise and “value add” to its own organisation.
However, because of the nature of this relationship, the corporate objective of the client
organisation is as vital in setting the strategy. Clearly the customer does not think the
MS meets the objectives.
3.1.2 Environment- Understanding the context of the environment, the opportunities and
the threats it presents to the service is also a vital factor in defining what value hence,
the service concept is. The operating environment within the country in study (Nigeria)
is also a factor for strategy for MS. While most professional services similar to the MS
will contend mostly with providing the competence and technology required for such
projects, the operating challenges brought about by the absence of infrastructures and
imply that it may be more difficult to meet the expectations of the clients unless very
realistically catered for from the onset. Despite Ericsson having the required

6
 competences and technologies, these factors may represent threats to the MS
organisation.

3.1.3 Service Concept-Having established the exact nature of the business i.e. operating and
maintaining the network for its clients, the corporate objective and the limitations and
opportunities presented by the environment, the MS leadership has to determine “value
add” to the client and this will encompass what the extent of the service is.

Appendix 5 shows a proposed service concept for the MS

3.1.4 Performance objective- This strategic element would arise from the service concept.
While the service concept defines the nature and extent of the service, the performance
objectives define the priorities for the operation i.e. identifying the match between the
priority needs of the client which are Quality of service, availability and cost and what
forms the organisation’s competence.
Context of the Performance objective for the MS are-:
a. Quality of service to the end users- The subscribers are the ultimate users of the
service and their perceived quality of service should meet the expectation.
b. Availability and Reliability- Money is lost and subscribers could be lost by Zain if the
service is unavailable or unreliable but, Ericsson also loses money through penalties.
c. Cost- The expectation of the MS contract is to derive cost effectiveness for Zain.
d. Speed- Faults being resolved within stipulated time frames, projects and new services
being delivered in timely manner.
e. Flexibility-The MS organisation will have to be able to adapt quickly to changing client
needs.

Identifying these performance objectives helps the MS organisation determine the tasks
required and the priority of such activities. These activities form the operation of the MS
team.

3.1.5 Operation- consists of processes, people, structure, performance measurement

systems and supply chains. The operations forms the part of the wheel in which the
service strategy is implemented or its product delivered to the customer. Operation may
provide the impetus for change through its current or potential capability monitored on
the performance measurement platform.

3.2 Service Delivery

In the figure 4 above, service delivery is the link between strategy and the performance objectives
and begins at the level of the operations where operational tasks are broken down and allocated
with resources (human, technology, financial) with the five elements of:

1. Processes
2. People
3. Structure
4. Performance measurement
5. Supply chain.

7
3.2.1 Process
The overarching element of these five is the process; the process design is the first stage of
managed service delivery. The Process design takes input from the contract which will
include:
i. The Contract Order Actions
ii. Pre-conditions often the expectations of both parties in the agreement
iii. Post-Conditions
iv. Service Level Agreements (SLAs) or the frameworks required to derive them.
v. Set of tasks within the operations.
vi. The service strategy elements of- corporate objectives, service concept (value) and
performance objectives.
(TM Forum GB942, NGOSS Contracts-Concepts and Principles, release 1.0)

The key here is Total Design of the processes within the service. If the ‘design’ process is
identified in full and early on, the service delivery can be more effectively organized and
controlled from the start. Identifying the stages then allows the technical director to allocate
the time and identify the people needed in this cross-functional/multidisciplinary process.
Shortages in people and other resources can be identified and addressed long before they
become serious problems. (Merry, Managed services outlook, informa telecoms, January
2010).

In designing processes, tasks of the managed service operations can be identified as triggers
or orders covered by the following:-
i. Change Requests- usually to fulfil a business objective of the client company, it may
be initiated by customer (Zain) or the service provider (MS).
ii. Inquiry Tickets-these are enquiries raised by the client such as reports, feedback on
change request and from resolved faults.
iii. Incidence and Problem management- which is the process of handling faults or
problems that occur on the network.
The current process design is such that tasks have been identified with structure and
processes aligned across those tasks, with one point of input for the triggers as depicted in
the Figs 4a, 4b and 4c.

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 Front Office
-Evaluates and authorises change
Change
Request
Change
Yes authorisati
on

Do we have solution Change Request

to implement Back Office
From Client
change? -Requests solution if not
Personnel
previously available
-Implements change
No
Customer
Solution
Service
provided
Request

Vendor Support
-Provides solution where Change Implemented
requested

Fig 4a Service Process for change request

Inquiry from client

Front Office
-Receives Inquiry Yes
Do we have the
-Feeds back answer to the
answer?
Answer is provided
client

No

Yes
Back Office
Do we have the -Provides answer to inquiry
answer? -Forwards inquiry to vendor
support if answer is unavailable

Customer No
Service Solution
Request provided

Vendor Support
-Provides solution where
requested

Fig 4b Service Process for client inquiry

9
 Problem/trouble report

Front Office
-Receives trouble report

Sends trouble
ticket

Back Office
-Resolves all TTs within stipulated Yes
Are we able to
time frames
resolve internally
Change Implemented
-Escalates knotty issues to
vendor support
No
Solution
provided Customer
Service
Request

Vendor Support
-Provides solution where
requested

Fig 4c Service Process for trouble/problem management

The following are the shortcomings of these process designs.

a. The creation of silos of information amongst the several functions.

b. The separation of vital information that would have improved response times to triggers
from the users, implementers and the solution providers. Despite processes and forms put
in place, usually either insufficient or incomplete information is transacted along the chain
c. Decision making is also separated from those who have the expertise to make the decisions
an example is where a change control manager sits in the front office and is responsible for
the evaluation and approval of all change requests.

3.2.1.1 Process Improvement

In order to improve attainment of objectives and customer satisfaction, the process needs to take
shape with the following factors-

For the client (Zain)-

 Flow through the service with no disruptions, for example a request coming from the
client personnel should be viewed as without interruptions or referrals. A Service
Provider contacted should be able to give response seamlessly even when further
information has to be gathered, this should not be visible to the customer.

10
For the Service Providers -

 Every staff should take ownership of the part of the process related to them and the
client requester interfacing with them.

For the MS Managers

 Should take a process and not a functional perspective to the entire process.
 Understand the whole process.
 Understand how individuals and teams fit into the entire process.

The new process:

Core Radio IN/VAS Quality Facilities -All customer

requests going
All
through single
lines of contact

Core Radio IN/VAS Quality Facilities

(Would include, planning and optimization teams and network operations teams.)

The new process requires the elimination of Front and back office from the point of view of the
client personnel and the introduction of single points of contacts for the various functions. All
customer requests are passed through the personal contacts who serve as service delivery
managers. This requires the building of systems and technology to aid the process and training to
bring out the right competencies of personnel.

The process should also bring in more flexibility and allow greater discretion on the part of the
employees since they would not have to look up to the “big” back office again for support.

These relationships i.e. inter-functional and Client-Service provider has to be guided primarily by
SLAs based on the contract governing the overall relationship.

3.2.1 Structure
“The usual way of describing the two main clusters of operational tasks are, by decisions
concerned with managing the structure and the infrastructure of the operation” (Johnston et
al).
The essence of the process shown above is to ensure a fluid structure where there is flow of
information and tasks. A structure that will help this process design will make use of technology
and location to harness the potential of physical and virtual networks. Noteworthy is the fact
that the vendor support which is not eliminated in the new process but is only invisible to the

11
 client, is networked virtually to the local teams necessitating the use of technology to connect
all teams.
Encouraging cross-functional and end to end approach to the processes will also require the co-
location of the various functions to encourage flow of information.

3.2.3 People
The greatest challenge in managing a service operation is managing the people; these are
the service providers and the clients. It is possible for a service organisation to invest in
meticulous process design and extensive technology but having failed to invest in its people;
it will not achieve the expected levels of customer satisfaction (Johnston et al).
Issues which affect this factor of service delivery are as follows:
i. The intensity of the service encounter- How involved the customer or its agents are
in the processes of the service. As previously stated the clients are intensely involved
in the processes, this puts the service providers which are the Ericsson employees
under pressure and may also affect adherence to the SLA in the running of the
processes.
ii. The “mood” of the customer- Not forgetting that the Zain organisation directly
interfaces with the subscribers feedbacks as a result of the service being provided to
the end customer may be lash back of aggression or gratitude (as the case may be)
to the Ericsson service providers who are directly responsible for the network that
keeps the subscribers happy or angry.
iii. Also a factor is the competence of the Zain network management team that is
responsible for managing the managed service contract. Incompetent managers on
the side of Zain will slow down decision making and processes as they ask more
questions or could be unnecessarily difficult. On the other hand highly competent
client managers could be assets to the MS team or could become clogs in the wheel
for meeting the objectives of the MS organisation depending on the two earlier
factors of intensity and mood.

In resolving these issues, the following are important:

i. Clarifying roles- To ensure that service providers act within the agreed upon levels of
service to avoid their hands being forced to act by pressuring client agents. It also
removes the risks of role conflicts or over-dimensioning of the process tasks and role
ambiguity which may affect service quality and attainment of set goals.
ii. Allowing a higher degree of discretion on the part of the employee does not only
ensure flow of the process but also motivates them.
iii. Providing good leadership from senior management (technical director) and the
various functional managers or team leads is also vital to improving the operational
efficiency of the organisation. The attributes that would be expected of the leaders
are:
a. They must be approachable
b. Empathetic
c. Supportive
d. Organised
e. Have knowledge of the role of the team and

12
 f. Have knowledge of how the team roles fit into the entire organisational
structure, values and objectives.
iv. The use of Service Level Agreements and Work Level Agreements, determine how
the provider and the system behave with regard to the business service. It will also
enrich the transaction with metrics that are essential for the operational use of the
interface and network elements.
Standard SLA metrics include
a. Overall time to execute an order or respond to a service trigger.
b. The feedback level expected.
c. Time to respond to orders.

SLAs can provide consistency and efficiency in delivering the service it allows the
clients personnel to understand how tasks are done allowing them to contribute at
this stage (if they have the competence), rather than intruding in the processes of
the service providers.

3.2.5 Supply Chain

The Managed Service arrangement involves a number of suppliers and third party partners
which are involved in the network management and maintenance such as-
1. Integrated Site Maintenance(several ISM players)
2. Management and operation of the optic fiber network(Nokia Siemens Networks, NSN)
3. Spares Management( GSM Systems, GSMS)

ISMs C2

NSN S1 C1
14million
subscribers
Ericsson Zain
GSMS

Fig 6- Supply chain of the Zain MS

The success of the service requires that the supply chain be properly managed in terms of elements
such as information and processes. Managers also have to ensure that there is cooperation and
collaboration within the network and 2nd and 3rd party suppliers are given the right information that
is required.

This collaboration, cooperation and information flow are achieved by developing alliances with the
3rd party suppliers, beyond mere contract relationships to ensure that solutions that will improve the
overall service are developed together and both parties owe it to themselves and to the customer to

13
make such solution produce the right result. One area of this collaboration is in helping the ISM
companies develop the processes and routines to ensure that there are no down times.

While this alliance is built under the atmosphere of trust, there is the need to also measure the
relationship this could be done with agreed upon SLAs. These will be agreed upon metrics by both
sides to measure their performances. Suffice to say that the norm in strategic and most relationships
is the purchaser measuring the seller, however in a service environment like this it is important that
both sides be measured to ensure that everyone keeps their side of the bargain.

An example of such metric is shown below

Equipment Metric ISM responsible Purchaser responsible

maintenance
Response to non- 2 working days 
critical faults
Response to critical 2 hours 
faults
First time fix rate 95% 
Schedule adherence 95% in 2 working days 
Spares availability 95% in 48 hours 
100% in 5 working
days
Table 1- Examples of Performance measurement metrics in MS

3.2.6 Performance Measurement Systems

Performance measurements are the metrics with which the effectiveness or success of a service
operation is measured; such measurements and its management are required for the managers of
the MS organisation to understand the effect of their decisions and the effectiveness of the
processes, structures and the people. Performance measurement will require the quantification of
inputs and outputs their comparison thereby guiding the managers on what actions need to be
taken to further improve or sustain the service. Key performance parameters that need to be
measured are:

1. Financial- Total, processing and operating costs.

2. External- Satisfaction of Zain the client organisation, satisfaction of the end users with the
network and the repurchase intentions of Zain presented by its decision making managers.
3. Operational- Equipment and staff availability, mean time to repair of faults (MTTR), mean
time before failures (MTBF) and Quality of Service often measured with quantitative
indicators.

The Operational performance measures are required so as to communicate with the clients on the
performance of the MS. While Financial and External measures are necessary for control and
improvement purposes for the MS and would usually be communicated internally to motivate
employees but not shared with the client.

The essence of performance measurements is defeated if it is not linked with the service strategy.
Earlier on while discussing the service strategy, we established the need to set performance
objectives, these will have to be assigned measurable metrics and compared against such to
determine the overall performance of the MS organisation.

14
4.0 Conclusion
From the analysis of the requirements and delivery in the context of the Managed Services, it is
important when operating services to be guided by processes which take an end-to-end approach
are communicated appropriately to both customer and the service providers with the guiding service
levels and agreements, this is how the expectations of the client can be matched with the operations
of the service provider and customer satisfaction is achieved.

15
 Appendix 1a Wk 22 2009 Equipment availability report

Sum of Downtime in Min Sum of Uptime in Mins WK 22 NA

LAGOS LAGOS 534319.5 19555200 97.27
NORTHEAST ADAMAWA 65455.2 2550240 97.43
BAUCHI 49922.03333 2509920 98.01
BENUE 132.9833334 3165120 100.00
BORNO 75802.15 4021920 98.12
GOMBE 80480.58333 1854720 95.66
JIGAWA 70090.31667 1512000 95.36
KANO 68060.01667 4677120 98.54
PLATEAU 32769.08333 2520000 98.70
TARABA 26048.75 2268000 98.85
YOBE 54307.93333 1512000 96.41
Grand for NE 523069.05 26591040 98.03
NORTH
WEST FCT 148251.3333 4939200 97.00
KADUNA 89500.25 6582240 98.64
KATSINA 44107.93333 1985760 97.78
KEBBI 40689.26667 876960 95.36
KOGI 3108.4 2640960 99.88
NASARAWA 45130.31667 1774080 97.46
NIGER 99926.76667 3124800 96.80
SOKOTO 3825.066667 1249920 99.69
ZAMFARA 10879.38333 1229760 99.12
Grand for NW 485418.7167 24403680 98.01
EAST ABIA 1340.65 4042080 99.97
AKWA IBOM 15433.08333 6955200 99.78
ANAMBRA 2622.416667 4556160 99.94
BAYELSA 2433.216667 1905120 99.87
CROSS RIVER 8150.55 3497760 99.77
DELTA 32630 7247520 99.55
EBONYI 990.7833333 1602720 99.94
ENUGU 288.4666667 3558240 99.99
IMO 14131.11667 5171040 99.73
RIVERS 1101.2 6965280 99.98
Grand for
EAST 79121.48333 45501120 99.83
WEST EDO 77242.3 5433120 98.58
EKITI 25342.11667 1854720 98.63
KWARA 31468.55 2388960 98.68
OGUN 225273 6239520 96.39
ONDO 57769.23333 2872800 97.99
OSUN 32665.83333 2661120 98.77
OYO 223893.15 4243680 94.72
Grand for
WEST 673654.1833 25693920 97.38
NATIONAL 62042.78198 3830944.865 98.38

16
 Appendix 1b- Wk 22 2010 Equipment availability report

REGION STATE Sum of Downtime in Min Sum of Uptime in Mins WK 22 CA

LAGOS LAGOS 613884.5333 19393920 96.83
NORTHEAST ADAMAWA 136889.3333 2721600 94.97
BAUCHI 134599.6 2721600 95.05
BENUE 1151.35 2167200 99.95
BORNO 275099.4667 4304160 93.61
GOMBE 89684.58333 1854720 95.16
JIGAWA 55993.61667 1612800 96.53
KANO 137099.6667 4858560 97.18
PLATEAU 9895.583333 544320 98.18
TARABA 78621.9 2368800 96.68
YOBE 71450.08333 1814400 96.06
Grand for NE 990485.1833 24968160 96.03
NORTH WEST FCT 146238.45 5191200 97.18
KADUNA 681983.7167 6612480 89.69
KATSINA 110522.4667 2016000 94.52
KEBBI 208848.8667 1370880 84.77
KOGI 5147.316667 1965600 99.74
NASARAWA 117490.85 1955520 93.99
NIGER 63714.55 1895040 96.64
SOKOTO 67883.66667 1179360 94.24
ZAMFARA 99842.05 1461600 93.17
Grand for NW 1501671.933 23647680 93.65
EAST ABIA 1804.483333 2540160 99.93
AKWAIBOM 32518.11667 5009760 99.35
ANAMBRA 5422.45 3558240 99.85
BAYELSA 999.1166667 1481760 99.93
CROSSRIVER 11113.88333 2449440 99.55
DELTA 20368.65 5090400 99.60
EBONYI 10614.48333 1310400 99.19
ENUGU 9068.766667 3316320 99.73
IMO 11443.31667 3457440 99.67
RIVERS 6131.816667 4435200 99.86
Grand for EAST 109485.0833 32649120 99.66
WEST EDO 75559.51667 5594400 98.65
EKITI 15279.16667 2036160 99.25
KWARA 57810.36667 2409120 97.60
OGUN 176840.4833 6431040 97.25
ONDO 37029.98333 2923200 98.73
OSUN 28799.43333 2499840 98.85
OYO 40585.91667 4445280 99.09
Grand for WEST 431904.8667 26339040 98.36
NATIONAL 3647431.6 126997920 97.13

17
Appendix 2- customer satisfaction survey questionnaire

QUESTIONNAIRE

1. How well do you think the MS meets the corporate objectives of Zain in a scale of 1-5?
(Where scale is available, 1= very poorly, 2=poorly, 3=average, 4= good, 5=excellent)

2. DO you think Ericsson MS has the competence to meet the corporate objectives of Zain? Y-
Yes, N-No

3. Do you think processes put in place are capable of meeting the corporate objectives of Zain?
Y-Yes, N-No

4. Are you aware of SLAs in relation to your domain? Y-Yes, N-No

5. If Y to question 4 is SLAs being properly implemented?

6. Give performance objectives which are priority for the MS

i.
ii.
iii.
7. How important are the following to the Network operations in a scale of 1-4 ( 1=not
necessary, 2= can be lived without, 3= important but may be overlooked in some instances, 4=very
important)

i. Cost

ii. Speed

iii. Quality of Service

iv. Flexibility

v. Availability

8. How well do you think the MS meets these objectives in a scale of 1-5(Where scale is available, 1=
very poorly, 2=poorly, 3=average, 4= good, 5=excellent)

i. Cost

18
ii. Speed

iii. Quality of Service

iv. Flexibility

v. Availability

19
Appendix 3

Operator Tracking Table - Zain, Nigeria (NGAVM)

U.S Dollars, Spot currency Q1
2010

Operator website
(ng.zain.com)
Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Number of Total 15,106,000 14,646,000 14,936,000 14,777,000 18,291,610
Connections
Contract 93,000 55,000 89,000 102,132 ---
Prepaid 15,013,000 14,591,000 14,847,000 17,037,682 ---
2G 15,106,000 14,646,000 14,936,000 14,777,000 18,291,610
GSM 15,106,000 14,646,000 14,936,000 14,777,000 18,291,610
Net Additions Total -2,090,482 -460,000 290,000 -159,000 3,514,610
Contract 7,000 -38,000 34,000 13,132 ---
Prepaid -2,098,000 -422,000 256,000 2,190,682 ---
2G -2,090,482 -460,000 290,000 -159,000 3,514,610
GSM -2,090,482 -460,000 290,000 -159,000 3,514,610
% of Connections Contract 0.62 % 0.38 % 0.60 % 0.69 % ---
Prepaid 99.38 % 99.62 % 99.40 % 115.30 % ---
2G 100.00 % 100.00 % 100.00 % 100.00 % 100.00 %
GSM 100.00 % 100.00 % 100.00 % 100.00 % 100.00 %
Market Share, Total 23.64 % 22.05 % 21.65 % 18.80 % 21.01 %
Connections
Contract 8.84 % 4.88 % 6.94 % 6.81 % ---
Prepaid 23.89 % 22.35 % 21.92 % 21.44 % ---
2G 26.31 % 24.74 % 24.09 % 22.03 % 24.66 %
GSM 26.31 % 24.74 % 24.09 % 22.03 % 24.66 %
Market Share, Net Total -230.39 % -18.26 % 11.20 % -1.66 % 41.58 %
Additions
Contract 7.38 % -50.37 % 22.11 % 6.05 % ---
Prepaid -258.37 % -17.27 % 10.51 % 18.64 % ---
2G -354.25 % -25.79 % 10.29 % -3.14 % 49.47 %
GSM -354.25 % -25.79 % 10.29 % -3.14 % 49.47 %
Growth Rate, Total -12.16 % -3.05 % 1.98 % -1.06 % 23.78 %
Connections
Contract 8.14 % -40.86 % 61.82 % 14.76 % ---
Prepaid -12.26 % -2.81 % 1.75 % 14.76 % ---
2G -12.16 % -3.05 % 1.98 % -1.06 % 23.78 %
GSM -12.16 % -3.05 % 1.98 % -1.06 % 23.78 %
Growth Rate, Total 19.43 % -1.06 % -6.09 % -14.07 % 21.09 %
Connections -
Year on year Contract 43.08 % -25.68 % 8.54 % 18.76 % ---
Prepaid 19.31 % -0.94 % -6.17 % -0.43 % ---
2G 19.43 % -1.06 % -6.09 % -14.07 % 21.09 %
GSM 19.43 % -1.06 % -6.09 % -14.07 % 21.09 %
Market
10.76 % 10.37 % 10.52 % 10.35 % 12.74 %
Penetration
Current rank by Total
3rd 3rd 3rd 3rd 3rd
Connections (Country)
Total
7th 7th 8th 9th 6th
(Region)
Total
74th 78th 77th 79th 64th
(World)
2G
3rd 3rd 3rd 3rd 3rd
(Country)
2G
7th 7th 7th 8th 6th
(Region)

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 2G (World) 56th 58th 57th 59th 49th
GSM
3rd 3rd 3rd 3rd 3rd
(Country)
GSM
7th 7th 7th 8th 6th
(Region)
GSM
56th 58th 57th 59th 49th
(World)
ARPU Total 7.00 7.00 7.00 7.00 ---
Current rank by Total
2nd 2nd 2nd 2nd ---
ARPU (Country)
Total
43rd 43rd 42nd 41st ---
(Region)
Total
223rd 226th 229th 228th ---
(World)
Revenue Total 356,700,000 323,600,000 305,600,000 320,600,000 ---
Current rank by Total
2nd 2nd 2nd 2nd ---
Revenue (Country)
Total
9th 9th 10th 10th ---
(Region)
Total
101st 113th 124th 121st ---
(World)
OPEX 228,700,000 215,100,000 210,900,000 259,900,000 ---
OPEX / Revenue -
64.45 % 64.51 % 63.87 % 69.73 % ---
Rolling 12 month
CAPEX 170,200,000 87,800,000 98,400,000 --- ---
CAPEX / Revenue
- Rolling 12 53.57 % 48.77 % 46.55 % --- ---
month
Operating Free
-42,200,000 20,700,000 -3,700,000 --- ---
Cash Flow
EBITDA 128,000,000 108,500,000 94,700,000 60,700,000 ---
EBITDA margin 35.88 % 33.53 % 30.99 % 18.93 % ---

Wireless Intelligence 7/6/2010 Reported Calculated Forecast

Data Data Data
(source: www.wirelessintelligence.com)

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 Appendix 5- Service concept for the Managed Service

Organising Idea Providing Network maintenance for Mobile Operators

Provider of reliable and effective mobile network

Service Concept operations, helping the operators reduce OPEX and
grow market share

Subscribers

Service Experience  Always available network and quality network

Mobile Operators
 Reliable Infrastructure
 Early recovery from failures
 Quick implementation of customer request
 Good communication during failures

 No service interruptions
Service Outcome
 Efficient resource utilisation

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References
1. Johnston, R. et al 3ed (2008) Service Operations management :Improving service
delivery London: Prentice Hall.
2. Merry, P 2010 Managed Services Outlook
3. www.wirelessintelligence.com
4. Hollins, B. et al (2002) Managing Service Operations. London. Sage
5. TM Forum GB942, NGOSS Contracts-Concepts and Principles, release 1.0

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