This is a partial preview of the document found here: https://flevy.com/browse/business-document/Mobile-TV-Poland-Business-Case-24 Description: Document provides business case for creating, launching & operating a mobile television. The case is based on current market knowledge. Market forecasts are based on historical trends and my experience in telecommunication market in Poland. The document consists of Power Point Presentation and dynamic Excel model. I prepared the case for a project which finally was cancelled by the potential Service Operator due to problems with obtaining financing. Currently I am a business consultant but my backround is telecommunication - I used to work for a few telecom operators in Poland. My experience is also international for example - I spend some time with internatonal carrier and prepared a business case for an alternative operator in Kazahstan.

1. Mobile TV Project
Business Case

2. Mobile Telecommunication Market
Trends
• The fast track growth of the market is already over:
– Diminishing margins
– Price war
– New competitors
– MVNOs.
• New services
– Demand for new services is driven by decrease in Mobile Operator profits
as well as growing expectations of the customers.
• Smartphones
– Smartphones are more & more popular in Poland creating a new mass
market platform for innovative services.

3. Smartphones in the network
• Smartphones are the targeted medium in Mobile TV business case.
• Smartphones are more & more popular handsets in Poland: in 2009 almost 1 million of
smartphones was sold in Poland.
• 25% handsets sold in 2009 in Poland were smartphones.
Smartphones Forecast
9 000 000
8 000 000
7 000 000
6 000 000
5 000 000 3 590 147
4 000 000
3 000 000
2 000 000
1 000 000
0
2008 2009 2010 2011 2012 2013 2014 2015

4. Value chain
Content Provider Service Provider GSM / 3G Network
• Connect End Users
• Create & deliver content • Provides services
• Provides Data Service
• Billing services

5. Business Case - Assumptions
• Market Potential for Mobile TV services was assumed as 50% of number of active smartphones users.
• Service Provider will sign agreement with P4 - PLAY.
• Service Provider market share in 2015 will reach 10% of target market.
• Price for services will amount to 5,9 € (net = 25 PLN/gross) monthly subscription fee.
• Direct costs will cover:
– Revenue share for Mobile Operator = 30% of revenues
– Content costs of 2€ per month per user
– Application maintenance – 50.000 € yearly
• G&A costs consist of Salaries & Levies (7 FTE in 2015), Office costs & Others
• Promotion costs for Stalker was assumed at the level of 150.000 € in first year and 100.000€ annually in
further years.
• CAPEX covers Purchase of Application License, Integration costs, Purchase of servers and streaming
serves.
• Technical assumptions: service will be delivered over IP Protocol using streaming servers and Video
storage of Service Provider.

6. Business Case - Results
6 000 000
5 000 000
4 000 000
3 000 000
2 000 000
1 000 000
0
-1 000 000
2010 2011 2012 2013 2014 2015
Revenues (€) 693 335 1 586 732 3 630 231 5 638 846
EBITDA -444 962 18 257 638 447 1 247 633
NCF -737 149 8 882 607 979 1 225 758
Revenues (€) EBITDA NCF
We expect positive EBIDA & Cash Flows in 2013.

7. Business Case – Operator’s
Benefits
Intangible benefits:
• Innovative service not offered by other Mobile Operators in Poland
• Possibility to distinguish from competitors
• Increase in smartphones sales
• Marketing gains.

8. Thank you