【正文】 rvices ... SWSWP6320201123FRBRS 10 GOVERNANCE RULES AS KEY ELEMENTS OF VALUE FLOW AGREEMENTS Elements of value flow agreements ? General terms and conditions ? Governance rules –Sourcingfreedom –Risk protection –Pricing method ? Service agreements –Service description –Volume –Price GovernanceIssues Sourcingfreedom Riskprotection Pricingmethod ? Is there an obligation for the Receiving Unit to source internally? ? Is there an obligation for the Sending Unit to offer a service? ? How is the investment risk for new services split between Sending and Receiving Unit? ? Who finances exit costs of a service? ? Who carries the market risk of uncertain demand? ? What methodology should be used to set interpany prices? –Market based pricing –Cost based pricing ? How should prices be differentiated (volume discounts, day/night tariffs, fixed/variable cost)? Sending unit Receiving unit SWSWP6320201123FRBRS 11 1. Structure and value flows of disaggregated incumbent telcos 2. Principles for designing value flows in disaggregated telcos 3. Example of Network Cost Allocation Mechanisms CONTENT SWSWP6320201123FRBRS 12 Common infrastructure platform provides multiple services over a shared infrastructure… Note: Voice and data access overlap, narrowband inter (a data service) can be provided over a circuit switched work while voice can be provided through a VPN Source: McKinsey analysis INFRASTRUCTURE AND FUNCTIONS TO PROVIDE SERVICES Regional backbone Core backbone Voice access Data access Voice switch Data switch/ router Broadcast Video access IT/ OSS Business Processes (opex, capitalized opex, overheads, other) Voice Data Video Carrier Business Residential ? ? ? ? ? ? ? ILLUSTRATIVE SWSWP6320201123FRBRS 13 IMPLEMENTATION PROCESS FOR ABC Definition of core processes Division of core processes into subprocesses Allocation of costs to subprocesses Calculation of product costs using cost driver logic Core processes Process hierarchy Core process Cost centers Subprocesses Core process Subprocesses Objects of reference Products Use of cost drivers Preparation phase Calculation phase (recurring data collection and calculation) Source: McKinsey Sales Service Marketing SWSWP6320201123FRBRS 14 Funktionsweise der verwendeten Vollkostenrechnung (vereinfacht) * Auf Basis der Rezeptur wird f252。Interpany value flows in incumbent telcos CONFIDENTIAL This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client anization without prior written approval from McKinsey amp。 Company, Inc. Presentation to China Tele December 7, 2020 SWSWP6320201123FRBRS 1 1. Structure and value flows of disaggregated incumbent telcos 2. Principles for designing value flows in disaggregated telcos 3. Example of Network Value Flow Mechanisms CONTENT SWSWP6320201123FRBRS 2 Wireline VARIOUS DEGREES OF TELCO DISAGGREGATION SD Ops Sales SI ISP/eBusinesses Wireline Network Retail/ SME Corporate/ Data Wireless SD Ops Sales SI SD Ops Sales SI ISP SD Ops Sales SI ISP/eBusinesses Cor po rate/ Data ? Traditional integrated incumbent before deregulation ? Various anizational structures within Telco: –Functional –Geographical –Divisional ? Disaggregation of main business lines along old and new technologies ? Disaggregation along the value chain of Corporate/Data solutions ? Move into Systems Integration business for corporate customers ? Further disaggregation of dedicated entity for the Retail/SME segement ? Wireline Network focusing on Service Development, Operations and Wholesale ? Further development of Systems Integration business Note: SD = Service Development, Ops = Operations, SI = Systems Integration Wireless Telco Corporation Wireline Wireless Increasing Disaggregation / Increasing Importance of Value Flows SWSWP6320201123FRBRS 3 RATIONALE FOR DISAGGREGATION OF INCUMBENTS ? Increased management accountability and transparency for shareholders –Separate Pamp。r jedes Bauelement ein BenutzungsRation pro Netzleistung berech. Dieses BenutzungsRatio wird auf statistischer Grundlage kalkuliert, wie . LRIC, gesch228。cksichtigt (. Kostenunterdeckungen, Kapitalkostenallokation bei WS, WSMarge, etc.) Quelle: Teamh NWS FIBU Kostenarten Kostenstellen Kostentr228。briger Betriebsaufwand Abschreibungen PKST Unproduktive OKST Produktive OKST (. Field Force) Leased Line Narrowband 2Mbit Erl246。ger FIBU Private Line National Erl246。rkosten DB OKST (. Managed Network Services) NWS/WSKosten Personalaufwand 220。ss Verh228。 Umlage von Erneuerungsprojekten direkt auf HKTR NichtProzesskosten: Rapportierung (Ist–Std x Std–Satz) 7 9 Umlage gem228。ss DLV auf einzelne Produkte 12 13 Zuteilung zu BKST bei NichtZuordnungsbarkeit zu Kostentr228。ger bei Zuordnungsbarkeit 15 Rapportierung auf Produktegruppen und Umlage via Umsatzschl252。briger Betriebsaufwand auf prod./unprod. OKST Zuteilung Materia