中国网通的商业计划更新(ppt)
CHINA NETCOM BUSINESS PLAN UPDATE
December 14, 1999 - Beijing
TODAY’S OBJECTIVES
Review the overall analysis of regulation, competition, and market development
Discuss the specific implications for CNC strategy

Review the specific draft business models for CNC
How we might attack the business, carrier, and IDD/DLD markets
What key trade-offs we need to make
What are the key success factors and assumptions?

Discuss the initial economics of these business models, and of CNC overall

Discuss the specific next steps in two key areas:
How to finalize and endorse the overall CNC business model
How to move forward with the refined financials, organization design, and the plan for implementation
CONTENT
Key strategic principles

Regulatory overview

Market overview

Competition overview

Business models

Next steps

KEY CNC STRATEGIC PRINCIPLES
The objective of these principles is to provide further clarity in the development and evaluation of the CNC business model

These will be revisited and refined as the project progresses
Our development of business models will seek to be aligned with the principles

Strategic principles and key assumptions will be considered in the following aspects
CNC shareholders
Backbone business
Local access business
International gateway business
Regulatory strategy
Competitive strategy
Marketing strategy
CNC SHAREHOLDERS
Principles:
Leverage shareholders' concerted vision in creating a new generation IP broadband communication infrastructure and a profitable, successful company
Leverage shareholders' existing backbone assets, local access assets, research capabilities and local government relationships to secure time-to-market and create competitive advantage
Set a model of a new type of “SOE”, as efficient as the best of the FIE/private companies; beat shareholders' expectations by delivering high return

Assumptions:
CAS: strong interest in seeing CNC successful and profitable quickly, stands ready for favorable regulatory influence and research support; wants opportunities for networking R&D
MOR and SARFT: extensive backbone and access assets and ROW
main focus on using MOR for right of way, helping them participate in telecom
will not use SARFT local CATV in the near term, but they are a key user of the backbone
Leverage CATV’s city backbone
MOR will continue to favor CNC over Unicom, provided CNC meets the expectation as a profit center for MOR
Shanghai Municipal Gov't: Eager to make Shanghai as China's test ground for building high-tech infrastructure (eg the integration of telecom, CATV, Internet)
in particular, testing HFC to deliver broadband internet
one issue: SPT and ATT JV; how to handle?
BACKBONE BUSINESS
Principles:
Target advanced backbone among 15 key cities in Eastern China; start with 2 cores from shareholders but quickly build own network
Use backbone for a variety of wholesale and retail voice and data services
Maintain the leading edge IP/packet network, both for technological superiority and to fulfill shareholder mission
Maintain the best cost position, using ROWs, purchasing clout, right technology
Build reserve capacity/conduit to deter others


Assumptions:
The costs of construction and ROW will be the majority of new network costs
virtually all of the network will use MOR or SARFT right of way
Network will be IP or packet in nature
Deployment plan will keep costs low, build out quickly, and create good position
lay large number of conduits in one time
later fill, light up, and color fiber strands
lease out conduit/fiber/bandwidth to maximize return (utilization)
LOCAL ACCESS BUSINESS
Principles:
Be very focused in local deployment, targeting priority business areas only
Emphasize broadband to the customer, using FTTB and LMDS where logical
Seek strong local market share, especially in new data services growth areas
Differentiate from China Telecom by superior services, quality, responsiveness
Build strong local team to enable fast service response
Emphasize “end to end” network ownership and management

Assumptions:
SH, BJ, GZ, and SZ business districts as targets for the near term
These account for the vast majority of business telecom demand
Need to set specific estimates for timing and sequence of deployment
Assume that CNC will have access to key city ROW, such as subway systems
Will need specific assumptions about the ease and cost of hooking up buildings
Assume that primary emphasis will be on FTTB, but that LMDS can play an important role, especially in initial deployment and in secondary cities
Will need specific assumptions about timing of adding secondary cities
INTERNATIONAL GATEWAY BUSINESS
Principles:
CNC will be one of few players with a full international license
Vital to enable CNC to provide end-to-end services, global data services, and higher margin IDD service
HK gateway link may be strategically important

Assumptions:
HK as one of the key location for international connection
a major traffic destination
a major relay location
International voice remains highly profitable segment in medium term future
Expect high growth together with steep price drop in international services
Actively plan ahead for joining international sub-oceanic cable consortium

REGULATORY STRATEGY
Principles:
Must actively lobby for favorable regulatory decisions, together with shareholders
provide regulators with international benchmarking for best practices
align CNC objectives with fair competition, and public interests
have effective senior management focus on lobbying issues
Be careful about committing investment if regulatory issues too uncertain
Ensure CNC strategy addresses national economic development priorities
Pay careful attention to managing relations with China Telecom
Expected WTO in 2000 will imply greater opening of the market in the future

Assumptions:
At least a 2-3 year window when CNC can continue to enjoy favorable policy treatment, while also working to straighten out regulatory issues at local level
Many key regulations remain in grey areas, where CNC can play a role in shaping the policy
Will need to make specific assumptions on a number of regulatory issues, and develop several scenarios
Assume that CT and Unicom are the only full service competitors, but several niche players
WTO will introduce FDI into China's telecom market by 2002, but infrastructure play remain tightly controlled (still limited competition) until 2004/5
may be opportunity for some form of partnership with foreign telcos
COMPETITIVE STRATEGY
Principles:
Focus on the best service quality, supply what customers' need, avoid competing on price
Build both “highways” and “tollbooths”
Prepare for rapidly changing industry structure
Be careful in positioning toward China Telecom:
complementary and addressing unmet needs
growing the whole market
The only viable alternative to China Telecom for carriers
The only true “end to end” network across China, with clear central management

Assumptions:
Technology leads to continual change in industry structure
The decentralized nature and business oriented behaviors of China Telecom enables CNC to partner at the local level
High opportunity for CNC to fill China Telecom product/service backlog
Unicom will be a threat to start a “price war”
Various niche players emerge in later years, more threat than (carrier) opportunity for CNC
MARKETING STRATEGY
Principles:
For local access, will target medium and large businesses in targeted buildings
For backbone, provide carrier services
For international, support other businesses and also offer IDD and refiling, etc.
In all areas, emphasize quality, service, end to end, etc.
Get a few key customers early; prove ourselves and then build further


Assumptions:
Carrier and large and medium sized corporations are the key focus
especially those in telecom-intensive industries
Assume a growing demand for business telecom services
will need both high and low growth scenarios
Need to validate the willingness of key customers to switch, and their anticipated areas of future demand growth
IP phone still the source of revenue in the near future
Dial-up ISP (171) may conflict with ISP carrier interests, but could also serve as strategic inroad for future 3G(1)

CONTENT
Key strategic principles

Regulatory overview

Market overview

Competition overview

Business models

Next steps
REGULATORY HIGHLIGHTS
Our key assumptions:
MII regards CNC's IP-based license as Full Service license, but lacks clear regulatory documentation. In case of local interpretation difference, MII is willing to clarify on behalf of CNC
e.g. ambiguity on local fixed line (CNC number)
CNC will be granted International Gateway license by 1Q 2000
CNC IP network protected by the current fixed/mobile interconnect regulation
CNC not required to meet specific coverage targets for the near future (2-3 years)
The market will be opened up gradually, with FDI increasing:
more value added service providers by 2003
more I-Phone providers by 2001
no new Full Service providers till 2004/2005
Account settlement specific for I-Phone will be regulated after the trial stage ends. It will be lower than the RMB0.14/min rate for basic telecom networks on a per call basis
Equal access by prefix/pre-select　in 1 year; number portability may take another 1-2 years at least
CNC will have LMDS spectrum

CNC anticipates a well-intentioned regulator, with varied degrees of control over local incumbent practice

None of these assumptions are “guaranteed;” CNC must fight aggressively for them
KEY REGULATORY ISSUES AND IMPLICATIONS
KEY REGULATORY BODIES AND RESPONSIBILITIES
KEY LICENSE ASPECTS AND IMPLICATION TO CNC
NATURE, SCOPE AND NUMBER OF LICENSES
INTERCONNECTION ISSUES AND IMPLICATION TO CNC
CLEAR GUIDANCE FOR INTERCONNECT ALREADY PUBLISHED, LOCAL PTA OBLIGED TO FOLLOW
Local PTA can be resistant, also its organization not suitable for quick execution
The policy decision requesting local PTAs to corporate with interconnection trickles from top down: the central Þ provincial PTA Þ city PTA
City PTA before implementation will generally ask for lead time for verification with upper levels. Eg in some cases new entrant has to wait for extended time period for this process
Under the Market Department's coordination, there are up to 18 independent departments within each city PTA to cooperate for the execution and resource planning of interconnect
Each of these department can add delay to the process, lead times add up
In case of insufficient resource, the requesting and approval process for expansion / upgrade is even longer
Local PTA can easily use resource constraint as an excuse for delay in interconnection

… But interconnection is feasible
CNC has so far been able to reach interconnect contract at provincial levels
Most PTAs in CNC's target cities displayed timely cooperation

In order to ensure quick execution, CNC should
Understand and incorporate into planning process the status of incumbent network resources
Give lead time in planning and communicating intention to interconnect with the incumbent
Build strong communication channel with all levels of PTAs
Co-ordinate for good timing across all levels; parallel processing to minimize time needed and clear bottleneck
THE PROCESS OF LOCAL INTERCONNECT IS GENERALY SMOOTH But There's Great Difficulty in Some Cities
TERMINATION SETTLEMENT MAY REDUCE CNC MARGIN (I)
TERMINATION SETTLEMENT MAY REDUCE CNC MARGIN (II) Example: National Long Distance
KEY PRICING REGULATION ISSUES AND IMPLICATION TO CNC
LEASED LINE COST HIGHEST AMONG INTERCONNECT COSTS Approximately RMB 134K/month to Link up One City
ROW AND ISSUES RELATED TO BULIDING LOCAL LOOP
FREQUENCY FOR WIRELESS BB NEED TO BE ALLOCATED Currently Only Narrow Band Wireless Spectrum Assigned
OTHER REGULATIONS AND OBLIGATIONS
KEY CNC BUSINESS OBJECTIVES AND CORRESPONDING REGULATORY IMPERATIVES
The Carrier's Carrier, Enterprise Solutions and Offnet Voice business models require CNC to achieve the following business objectives, and hence actively lobby for favorable regulations
OBTAIN FREQUENCY SPECTRUM IN 6 MONTHS TIME FRAME To Ensure LMDS Solution Is Available Before June 2000
OBTAIN REGULATORY SUPPORT FOR UTILITY PREVILEGE Avoid Case-by-case Local Negotiation to Ensure Quick Deployment
OBTAIN STRONG ENFORCEMENT AND FAIR SETTLEMENT RATE To Ensure Optimal Economics, Also Obtain Equal Access Provisions
SUMMARY: KEY REGULATORY RELATED CNC IMPERATIVES
CONTENT
Key strategic principles

Regulatory overview

Market overview

Competition overview

Business models

Next steps
KEY FINDINGS IN MARKET ASSESSMENT (I)
1998 telecom market size estimated at RMB 239 BN, grow at 19% CAGR to RMB 676 BN in 2004
DLD/ILD voice at RMB 67 BN, with 6% CAGR growth to RMB 93 BN in 2004
Total datacom at RMB 24 BN, with 36% CAGR growth to RMB 154 BN in 2004

Offnet voice (IP-phone) represents the major opportunity near-term, market size passing 30% volume by year 2004; but window for CNC closing as competition intensifies and price declines

Datacom growth solid mid-long term, fueled by emerging services (conservatively estimated to be over 20% of total datacom by 2004)

Geographically, demand highly concentrated in top cities
Voice market 199 Bn in year 1998, 64% in top 60 cities
Data market 24 Bn in year 1998, 46% in top 4 cities
KEY FINDINGS IN MARKET ASSESSMENT (II)
Business customer consumes 54% of voice market, 97% of data market
Large, medium enterprises are bulk users in the business sector (55% of Toa voice, >95% of total data)
Financial services, high tech, professional services, int'l trade, and top general manufacturing firms identified as major telecom
Telecom service quality and service levels are the key purchasing criteria among key (large and medium)customers

Carrier market at RMB 15 BN in 1998, grow at 10% CAGR to RMB 27 BN in 2004
ISP and mobile the main carrier segments: over 90% of total carrier market
CONTENT
Key strategic principles

Regulatory overview

Market overview
Demand forecast
Geographic segmentation
Customer segmentation

Competition overview

Business models

Next steps
DEMAND MODELING METHODOLOGY
2004 TELECOM MARKET PROJECTED TO BE RMB 676 BN Data And Internet Services Are The Growth Engine Going Forward
1998 TELECOM MARKET IS RMB 239 BN
MARKET FORECAST
BACKUP: DRIVERS AND ASSUMPTIONS
DATA AND INTERNET SERVICES SHOW SUBSTANTIAL POTENTIAL FOR GROWTH: 37% CAGR 1999-2004
EMERGING DATA SERVICES WILL ACCOUNT FOR MORE THAN 20% OF THE TOTAL DATA SERVICES MARKET BY 2004
THE EMERGING SERVICES MARKET IS EXPERIENCING TREMENDOUS GROWTH
A NUMBER OF EMERGING SERVICES WILL BECOME ATTRACTIVE OPTIONS OF PRODUCT OFFERINGS FOR CNC
CARRIER: EXPECTED SHARES
LARGE / MEDIUM BUSINESSES: EXPECTED SHARES
OFF-NET VOICE: EXPECTED SHARES
SHARE ASSUMPTIONS
CNC REVENUE PROJECTION
RELATIVE ATTRACTIVENESS OF DIFFERENT PRODUCT CATEGORIES CHANGES IN THE NEXT FEW YEARS
CONTENT
CHINA TELECOM MARKET CONCENTRATED IN TOP CITIES Top 60 Cities Account For 64% of the Voice & Data Market
IP / OFF-NET VOICE REPRESENTS SUBSTANTIAL OPPORTUNITY IN NEAR-TO-MEDIUM TERM
FOR VOICE MARKET: IDD/MOBILE CONSUMPTION MAJOR SOURCE OF REVENUE IN TOP CITIES
GEOGRAPHICALLY EVEN MORE CONCENTRATED FOR DATACOM 46% Revenue in Top 4 Cities
GEOGRAPHIC SEGMENTATION
TOP CITIES BOAST HIGHEST TELECOM SPENDING PER CAPITA 1998 Annual Telecom Spending Per Capita
CONTENT
BUSINESS CUSTOMERS REPRESENT 54% OF VOICE MARKET, 97% OF DATA MARKET
4 BUSINESS CUSTOMER TIERS ARE IDENTIFIED ACCORDING TO MONTHLY TELECOM SPENDING
EACH TIER HAS DISTINCT NEEDS AND EXPECTATIONS
INDUSTRY TYPE AND CONSUMER TIER ARE HIGHLY CORRELATED
LARGE AND MEDIUM ENTERPRISES REPRESENT 62% OF TELECOM SPENDING IN BUSINESS SECTOR Over 95% For Data Services
EXAMPLE: KEY INDUSTRIES AND COMPANY PROFILE
A TYPICAL BUSINESS BUILDING GENERATES ~4.5 MM RMB TELECOM REVENUE PER MONTH
INTERVIEWS CONDUCTED TO ASSESS CUSTOMER NEEDS AND TRENDS, TO COMPLEMENT AND VERIFY SECONDARY DATA
Identify key customer needs, ensuring CNC supplies what our customers need
Telecom needs in the coming 1 to 3 years
Expected growth in telecom spending

Verify assumptions on key customer segments
Typical customers' profile (industry type, office size, # of employees, avg. monthly spending, FIE/SOE, etc.)
Typical purchasing decision process/patterns

Test possibility and criteria for customers switching to CNC, hence CNC addressable market and plausible share in a building
Main dissatisfactions toward current telecom service providers
What will make customers be willing to switch? What are their key concerns regarding switching?

Estimate demand for typical business buildings, to enable local access economic modeling
IN DEPTH INTERVIEWS REVEAL SIGNIFICANT OPPORTUNITY FOR NEW ENTRANT TELCOS
Long process for CT to meet customer requirements, which is fast-growing
On average, expecting 5-10%per account yearly growth in the expenditure on data services; key growth driver in data usage penetration in enterprises
Demand for data services driven by the increasing needs for management tools (eg ERP), Internet access, eCommerce capability, etc.

Bandwidth usage for most large companies still relatively low
A few leased lines; mostly 64-128kbps, only a few at 512kbps
Would welcome higher bandwidth at reasonable cost

Major discontent is in response time and service quality
Long lead time to install service, eg more than half a year for an international leased line
Never inform consumers of service down-time, take an 'intolerably long time' to fix
Big users don't feel favorably treated when their inquiries processed with residential and small business users' through a common service number 112

Hence price is not the primary factor for switching to CNC
Quantified service level guarantee and excellent service quality are the key switching factors for big and medium size business users
SERVICE QUALITY & SERVICE LEVEL ARE THE KEY SWITCHING FACTORS Especially for Tier I & 2 Customers
CUSTOMER EXPECTING GROWTH IN DATA SERVICES EXPENDITURE
“We expect 5-10% increase each year in data services spending mainly because of the using of ERP and the pursuit of ecommerce opportunities.”
- Head of Communications, Sinochem

“Many things will drive up our telecom needs rapidly in the near future: the growth of the company size, the increasing traffic between HQ and branches, the increasing needs for product testing and development, and the development of ecommerce capability. I think our company's data services expenditure will continue to grow at 5-10% per year.”
- Head of Communications &Network, Shanghai Hua Teng

“We are seeing our trader group expanding at very fast pace. Our telecom spending, especially data services spending, will definitely go up fast (at least more than 15% per year) if our business continues to grow.”
- Branch Manager, GangAo Securities

“Our current MIS system requires more frequent data transmission between sub-branches, branches and the HQ. We are replacing all dial-up with leased line and adding bandwidth. Telecom spending will thus increase.”
- IT DIV. Mgr., Pudong Development Bank
CUSTOMERS CAN BE WON OVER BY MEETING GROWTH NEED China Telecom's Slow Pace and Long Cycle is Major Area of Discontent
RESPONSE TIME AND MEASURABLE SERVICE QUALITY ARE DIFFERENTIATION FACTORS
TELECOM SERVICE QUALITY AND SERVICE LEVELS ARE THE KEY PURCHASING CRITERIA AMONG KEY CUSTOMERS
ISP AND MOBILE ARE THE MAJOR CARRIER SEGMENTS
BOTH CHALLENGES AND OPPORTUNITIES FOR CNC TO ADDRESS CARRIERS' NEEDS
CONTENT
Key strategic principles

Regulatory overview

Market overview

Competition overview

Business models

Next steps
COMPETITIVE SUMMARY
Regulatory response to WTO development will lead to more open market in general
More emerging (Type II) players in the Value Added Service areas
Emerging players more likely to become CNC customers than competitors

China Telecom's split along service lines will create cooperation opportunities to CNC
Geographical break-up of China Telecom fixed line services uncertain, opportunity of cooperation for CNC
Break-up may not be complete, as former China Telecom constituents still hold commanding share at least till year 2005

Unicom might emerge as CNC's arch-rival if internal conflict ends

Jitong has built quick customer response capability based on VSAT platform, but would largely remain as a minor competitive force due to bandwidth constraint
Not excluding cooperation opportunity

Therefore, Initial assessment asserts CNC to target about 20%+ long term share in the Carrier, Large/Medium Enterprise Solutions markets
COMPETITIVE LANDSCAPE TODAY: 1999 (I)
COMPETITIVE LANDSCAPE TODAY: 1999 (II) Competitors In Telecom Markets
2 SCENARIOS WILL EMERGE IN COMPETITIVE LANDSCAPE Depend on Interaction of Pro-competitive regulation and FDI
MOST LIKELY COMPETITIVE LANDSCAPE IN 2003/4
LIKELY SCENARIO MEANS MORE OPPORTUNITY THAN THREAT
CHINA TELECOM (I)
CHINA TELECOM (II)
CHINA TELECOM (III)
UNICOM
JITONG
HIGH POSSIBILITY FOR COOPERATION AT LOCAL LEVEL
CARRIER: EXPECTED SHARES
LARGE / MEDIUM BUSINESSES: EXPECTED SHARES
OFF-NET VOICE: EXPECTED SHARES
CONTENT
Key strategic principles

Regulatory overview

Market overview

Competition overview

Business models

Next steps

AGENDA
Business Models
Domestic and international long-distance voice
Wholesale/carrier
Enterprise solutions
Issues going forward
METHODOLOGY BEING USED TO DEVELOP BUSINESS MODELS AND OVERALL STRATEGY


POTENTIAL BUSINESS MODELS COVER WIDE RANGE OF PRODUCT/MARKET ALTERNATIVES
AGENDA
Business Models
Domestic and international long-distance voice
Wholesale/carrier
Enterprise solutions
Issues going forward
APPROACH TO DOMESTIC AND INTERNATIONAL VOICE BUSINESS MODEL

LARGE MARKET WITH POTENTIAL TO GAIN SHARE QUICKLY
CAREFUL MANAGEMENT OF PRE-PAID CALLING CARD BUSINESS NECESSARY TO ALIGN WITH LONG TERM STRATEGY
Prepaid calling cards call for different capability set and target customers than longer term business models
Focus on consumers will not complement long term vision of providing enterprise solutions
Mass advertising and marketing around a low-cost position may not fit image required for future needs

Three factors important to consider in managing prepaid calling card business
Attempt to position cards in marketing messages as the first product from a company that is building the most advanced network in PRC
Consider selling cards to businesses for their traveling personnel to begin establishing enterprise relationships
Carefully manage product life cycle to begin pulling back marketing investment as wholesale and enterprise business models grow
CNC VOIP REVENUE AND MARKET SHARE EXPECTATIONS

AGENDA
APPROACH TO WHOLESALE/CARRIER BUSINESS MODEL


OVERALL WHOLESALE MARKET SIZE IS SUBSTANTIAL AND GROWING AT A MODEST RATE Anticipated Price Decrease in Leased Lines Limits Overall Revenue Growth

…BUT TECHNOLOGICAL LIMITATIONS AND COMPETITIVE CHALLENGE ARE IMPORTANT FACETS TO MANAGE

AGENDA
Business Models
Domestic and international long-distance voice
Wholesale/carrier
Enterprise solutions
Issues going forward
APPROACH TO ENTERPRISE SOLUTIONS BUSINESS MODEL
ENTERPRISE SOLUTIONS SUMMARY


CUSTOMER NEEDS EXIST THRUGHOUT THE VALUE CHAIN CT's Offering Yields Significant Gaps
STAGED PRODUCT INTRODUCTION NECESSARY TO MANAGE QUALITY Hypothesized Product Introductions
CNC SHOULD USE CREATIVE WAYS TO GROW THE MARKET, AVOID HEAD TO HEAD COMPETITION
TOTAL GDP VS. GDP/CAPITA IS A PRELIMINARY INDICATOR FOR ATTRACTIVE LOCAL ACCESS MARKETS Example: 15 Initial Cities with POPs on CNC Network
VERY DENSE MARKETS SUCH AS SHANGHAI BEST SERVED BY METRO FIBER RINGS

MEDIUM SIZED CITIES WITH HIGH GDP/CAPITA SUCH AS FUZHOU BEST SERVED WITH LMDS SOLUTION

OTHER CITIES OF SIZEABLE POPULATION BUT RELATIVELY LOW GDP/CAPITA MAY NOT WARRANT INVESTMENT Example: Shijiazhuang


OVERALL ECONOMICS ATTRACTIVE FOR PHASE I BUILDOUT IN TOP FOUR CITIES
GOING FORWARD, CITIES WILL NEED TO BE ANALYZED ON A CASE BY CASE BASIS
RECAP OF OVERALL PHASE I ECONOMICS AND KEY ISSUES
AGENDA
Business Models
Domestic and international long-distance voice
Wholesale/carrier
Enterprise solutions
Issues going forward
EMERGING OPPORTUNITIES EXIST FOR CONSUMER ISP AND ADVANCED DATA SERVICES
Residential ISP
CNC may be in unique position to offer true broadband internet access due to IP network and international gateway
What strategies will capture significant value while minimizing development time and necessity for brand equity?

Web Hosting/Data Centers
Niche competitors such as Exodus in the US aggressively pursuing this business model
Will opportunities develop in the near term for China and could CNC supply resources necessary?

E-commerce solutions
Many telcos in Europe and US offering e-commerce solutions
Will opportunities develop in the near term for China and could CNC supply resources necessary?
ENVIRONMENTAL UNCERTAINTIES LEAD TO THREE BASIC SCENARIOS TO BE ANALYZED
MONTE CARLO SIMULATION WILL ALLOW FOR GAUGING THE EFFECTS OF UNCERTAINTIES IMPLIED IN SCENARIOS Example: Effect of Average Building Size, Tier 1 Business Proportion & Spending on Shanghai Metro Access Economics

CONTENT
Key strategic principles

Regulatory overview

Market overview

Competition overview

Business models

Next steps

NEXT STEPS
Agree on business mix assumptions

Develop organization structure
Agree on key principles and objectives
Timeline, key milestones

Develop implementation action plan
High level plan (by quarters) till Jan 2002
Detailed plan (by month) Jan-Jul 2000
Key milestones, process control

Integrate and refine overall CNC financial
Objectives and assumptions for financial model
Scenarios / sensitivities

ORGANIZATION DESIGN METHODOLOGY
MAJOR OUTPUTS: ORGANIZATION DESIGN
IMPLEMENTATION PLAN DESIGN METHODOLOGY
MAJOR OUTPUTS: IMPLEMENTATION PLAN
WORKPLAN(1)

中国网通的商业计划更新(ppt)