The Business Plan
Wireless broadband networks are very different from the traditional voice networks, hence should not be deployed as an extension of those. A greenfield operator should start the conception of a new network by building a business case. An existing network benefits also from a proper business case, even if it is done during its operational life.
A properly designed business plan requires a small investment upfront, but substantiates the investment and can be used to leverage capital. Thus investors are not surprised by unexpected cash flow requirements or by unforeseen technical or operational issues. Figure 1.1 illustrates the main components of a business plan.
A business plan has three main components, described in detail in the next sections:
- the market plan;
- the engineering plan;
- the financial plan.
1.2 Market Plan
Understanding the market is essential to define the product offering and its acceptance by the market. This should be done through market research, which could be exploratory or confirmatory.
- In the exploratory case, options are left wide open and the results from the research will define the outcome.
- In the confirmatory case, a set of assumptions is made and are confirmed or not by the research.
A market research is divided into three areas:
- market information: where information is collected; ...