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Company case by Telekom Strategy Consulting
Telekom Strategy Consulting Case: Fiber Optic Expansion
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Intermediate
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You recently joined Deutsche Telekom as a strategic project manager for the fiber optic expansion initiative. In this role, you act as an internal consultant, providing strategic guidance to ensure a successful fiber optic rollout in a mid-sized German city known for its vibrant tech industry. Your mission is to advise on delivering high-speed internet to residential and business areas, aligning the city's infrastructure with its rapid growth. This position allows you to influence the digital future of a growing tech hub and contribute to a project of national importance.
The city you are overseeing has a population of 250,000 people with an average household size of 2.5. There are 50,000 businesses in the city. Deutsche Telekom aims to connect 90% of the households and businesses with fiber optic within the next 3 years, which also translates into your responsibility as a new project manager.
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Task 1: Overall framework
How would you generally approach your goal of connecting 90% of the households and businesses with fiber optic within the next 3 years?
Task 2: Material demand calculation
After discussing possible approaches to your task, we would now like to shift our focus to the planning aspect of the fiber rollout. A key component of this phase is determining the amount of fiber optic cable needed.
Estimate the total length of fiber optic cable needed to connect 90% of the households and businesses.
2.1: What input/numbers would you need to estimate the length?
2.2: What is the solution?
Task 3: Cost analysis
After determining the amount of fiber required to connect 90% of the city's homes and businesses, your next step is to understand the costs associated with the fiber rollout to effectively plan your actions.
Pursue a cost analysis for connecting each household and business.
3.1: What costs would you have to consider?
3.2: How much does it cost?
Task 4: Pricing strategy
If time is running out, decide whether to skip and prioritize task 5 (based on what candidate might wants to practice)
Having calculated the costs of rolling out fiber in your city, you are now tasked with crafting an innovative pricing strategy to ensure financial viability and attract a broad customer base.
Develop a pricing strategy for connecting each household and business.
4.1: Which pricing strategies could be applied?
4.2: We want to focus on the cost-based pricing strategy to break even. What additional input do you need for that?
4.3: Calculate the total annual revenue from subscriptions
4.4: Evaluate the project’s financial viability. What measures could be taken to ensure it?
(Optional) Task 5: Marketing strategy
To maximize the appeal of the fiber optic expansion to new customers, you focus on making the product as attractive as possible.
Develop a comprehensive marketing strategy to drive the adoption of the new fiber optic network among households and businesses
5.1: What input would be required?
5.2: What are the steps to solve?
5.3: Solution
4.3k
Times solved
Intermediate
Difficulty
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