Financial and Commercial Awareness in Telecoms (2 days)

Who Should Attend

Course Outline

Section 1: How Companies Create Value (1.5 hours)

This section begins by explaining how companies create value for their shareholders and in so doing, introduces the notion of competitive advantage and differentiation.
It then moves on to discuss how one can identify their role in terms of promoting value growth and in particular, the levers within the telecoms business that can drive value creation.

Section 2: Basic Financial Terms (1.5 hours)

This section sets out to demystify the financial jargon associated with the telecoms industry. Terms explained include: ARPU, Opex, Fixed and Variable Costs, Capex, EBITDA, Margins and Free Cash Flow etc.
The section then explains, using real telecom industry examples, how to read and understand a set of financial statements and how to interpret financial data..

Section 3: The Strategic Business Planning Process (1.5 hours)

The different ways in which companies formulate their strategy is examined in this section along with an explanation of the language of strategic analysis and planning. The section then explains how to use a range of strategic analysis tools and in so doing, identifies different successful strategies that have been adopted by a number of companies within the telecoms sector.

Section 4: The Economics of Telecoms Companies (1.5 hours)

Fixed and variable costs within the telecoms sector have a significant impact on economies of scale. This section is designed to differentiate between these fixed and variable costs, showing how economies of scale impact on the strategic decisions that are made in business.
The section moves on to examine content developers and MVNOs, describing how their business models differ when contrasted with a traditional telecommunications operator.

Section 5: How to Analyze a Company (1.5 hours)

This section will describe how to financially analyze a company by initially defining the 4 simple steps used to calculate financial benchmarks and also Key Performance Indicators. The section will also review a selection of benchmarks for telecoms organizations from around the globe, conveying the typical levels of financial performance in the telecoms sector, in addition to predicting future trends.

Section 6: The Principles of Investment Appraisal (1.5 hours)

In order to allow the course attendee to make a greater contribution in the investment decision making process, this section will identify the main techniques used by companies to evaluate future investments. As such, the key components of the investment appraisal process are highlighted, focusing on the importance of concentrating on incremental cash flows. This section also reviews the techniques of Pay Back and Break Even analysis.

Section 7: Project Appraisal Techniques (1.5 hours)

This section will show how to apply Discounted Cash Flow analysis, highlighting the importance of Net Present Value and its association with the decision making process. In addition, the Internal Rate of Return will be examined, showing what this concept represents and also typical project hurdle rates.
The section will conclude by analyzing the key influences that impact on the success of a future investment project.

Section 8: Case Study (1.5 hours)

This concluding section is designed to put the knowledge gained in the preceding sections to use. This is achieved by conducting a realistic, interactive case study, whereby small teams will compete to win the right to launch a new service. As such, teams will have to identify the appropriate cash flows and evaluate the project, before participating in a sealed bid auction.

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