Savings in reducing the MTBR
There are three main sources of savings when you reduce the Mean Time Between Repairs (MTBR) to re-establish Quality of Service (QoS) as soon as possible. These revenue savings come from cutting down the following:
1. Yearly ARPU loss due to performance degradations
The number of cells with performance degradation reported per year is
, which can be calculated by multiplying (B) by 12.
Also, if we divide the number of active subscriptions (C) by the number of cells in the network (A), we'll obtain the average number of subscriptions per cell, which is
... (E).
Considering these results, the number of subscriptions affected yearly by performance issues is
×
=
... (F)
We have measured an average
7%
drop in voice and data usage during performance degradations, such as reduced accessibility, congestion, call drops and low throughput. If you have measured this consumption reduction due to low QoS in your network, you can change this number by clicking
here.
The mean time to detect a performance degradation is
3 days
in most networks. Telko Manager® reduces this period to 0 due to its near real-time processing capabilities. If your average detection time is faster or slower considering your current team and their tools, you can change this number below.
The yearly ARPU loss due to performance degradations, which can be saved with Telko Manager®, is
.
Check the
Formula
for more details.
2. Revenue loss caused by cells without traffic
Due to transmission issues, coverage loss, hardware failures, among other causes, around
cells may lose traffic per month in a commercial network whose size is specified in (A). The amount of traffic loss is usually
70%
, while the remaining 30% is saved by neighboring cells. If you have statistics regarding cells with traffic loss in your network, you can change the suggested values by clicking
here.
The revenue loss caused by cells without traffic, which can be saved with Telko Manager®, is
.
Check the
Formula
for more details.
3. Yearly revenue loss due to cancelled subscriptions
On a monthly basis
10%
of cells with performance issues are detected long after the degradation started. In those cases, we have measured a
1.3%
increase in cancelled subscriptions after 3 or more weeks of poor quality of service. If you have statistics regarding this effect in your network or would like to try different numbers, click
here.
Every time a user cancels their subscription, half their Customer Lifetime Value (CLTV) is lost forever in average. To estimate this figure, we assume a
3%
monthly churn and negligible costs (in other words, we are interested in the lifetime revenue loss). Note, you can input your monthly churn below.
Then, the CLTV will be given by ARPU / monthly churn =
/
% =
... (M).
The yearly revenue loss due to cancelled subscriptions, which can be saved with Telko Manager®, is
.
Check the
Formula
for more details.
If we add up the three main sources of savings analyzed in this section, reducing the MTBR by using Telko Manager® can generate
annually.