Telecom

Context

We carried out a project of Supply Chain and Indirect Costs for a Spanish multinational with two European factories and operations in Europe, America and Asia. The scope of action for the business case in question is the Telecommunications of the Spanish headquarters.

The Covid-19 and all sanitary restrictions strongly impacted our client’s turnover. As part of a new strategic plan, the company launched into the development of new products, requiring operational excellence and cost optimization on all fronts to support the financial effort.

The area to be dealt with referred to the IT department and the management of mobile, fixed and data telephony of the headquarters and subsidiaries in Spain. Objective: to detect opportunities, develop actions and implement savings, to success.

Project:

Mobile Telephone Policies

Our client was operating in a Covid-19 scenario in which a large percentage of the services contracted in Mobile Telephone Policies were not being used. In addition, the services were not updated to the current needs and prices in the provider market.

The first thing that was decided to do was to analyze the items with the highest expenditure within the Mobile Telephony category. Among these items, the ones that represented the greatest expense were ‘Non-EU Data’ and the use of EU Data in business phones.

Fixed and Fiber Telephone Policies

We also put the focus on the company’s Fixed and Fiber Telephone Policies. The focus was somewhat different, since the IT structure of the multinational depended on these services. The infrastructure was old, so there was no direct comparison in the provider market. We verified both the current prices of the supplier and the market prices, obtaining relevant insights to achieve the savings.

In addition, we did a discrepancy exercise in the invoicing. The multinational renewed the agreement under the promise of obtaining a 45% reduction in the prices of the service. However, the promised savings were not reflected in the client’s billing.

Data analysis

Mobile Telephone Policies

  1. International Data Service

We first analyzed the use of this service throughout the Covid-19 period. Through analytics we discovered that the service was not consumed due to the mobility restrictions applied throughout Spain and Europe. Therefore, we eliminated the expense in its entirety.

  1. National Internet Rates

Through our data management, we analyze the terminals associated with these services, and there is an increase in consumption of this service. However, we verified that the policy of management and assignment of internet tariffs to the company’s terminals needed to be adapted in a timely manner.

We analyzed each of the terminals, verified the consumption they had and adapted them to their correct quota. We found that the vast majority did not even reach a reasonable consumption so as not to modify the contracted service. Due to internal policies we could not adapt all the terminals.

Fixed and Fiber Telephone Policies

The multinational also had small subsidiaries that provided basic fiber services. Both in the head office and in the subsidiaries, the fiber consisted of ADSL that had been outdated for years. The first thing we did was to analyze the direct ADSL substitutes in the supplier market and the prices that were being sold. However, it was necessary to change the infrastructure from ADSL to Fiber. The purpose was to obtain a more updated service, with higher quality and at a lower price.

By analyzing rate discrepancies, we verified that the savings promised by the current provider were not being delivered. The comparison between the old scenario and the promised scenario did not correspond to reality, since the prices quoted in the agreement renewal presentation were not real.

Results:

In reference to the two main levers of savings in Mobile Telephone Policies, we managed to make the following changes after negotiating with the current supplier:

  • Complete removal of non-EU data service.
  • Readjust the EU internet quotas to their proper uses and consumptions.

In total, 100% savings were achieved in the non-EU service and 80% in the EU data reset lever.

For Fixed and Fiber Telephone Policies, we renegotiated the conditions promised in the renewal of the Fixed Telephony agreement to obtain the real savings. We also negotiated with the current ADSL provider the change of technology in the company’s fiber and its respective price updates. With this strategy we avoid having to change the operator and all its associated costs. We got:

  • Increase savings on the Fixed Telephony bill from 8% to 45% as promised.
  • Reduce spending on ADSL technology by changing technology and saving money by 58%.

Analytics and consulting with concrete results

Let's move forward!

Connect with us