MARKET SHARE (OPTION 1)

Subscribers (Page 1, 1st paragraph) 500000

Total Subcribers 130000000
Market Share 0.38%

MONTHLY REVENUE FROM OPTION 1

Minutes per customer 200
Charges per minute (Exhibit 10a) 0.15
VAS revenue 12.82
Total Revenue 42.82

INDUSTRYOPTION 1
Monthly cell phone bill 52 42.82
Cost to serve a customer (Page 3, 1st paragraph) 30 19.27
Monthly margin 22 23.55
Churn rate 24% 24%
Retention rate 76% 76%
Interest rate 5% 5%
Acquisition Cost 370 250
LTV 540.34 724.54

Assumptions:
Monthly minutes per customer are 200. The target market uses between 100-300 minutes p
Charges per minute for option 3 is an average of what prepaid customers charge i.e. 35-50
VAS Revenue: From exhibit 3 it can be seen that in 2001 the revenue was 10 billion and in 2
The acquisition cost for Option 1 & 2 have been assumed to be 250 and 200
 MARKET SHARE (OPTION 2) MARKET SHARE (OPTION 3)
Subscribers (Page 1, 1st paragraph) 750000 Subscribers (Page 1, 1st paragraph)
Total Subcribers ### Total Subcribers
Market Share 0.58% Market Share

MONTHLY REVENUE FROM CALLS FOR OPTION 2 MONTHLY REVENUE FROM CALLS FOR OPTION
Minutes per customer 200 Minutes per customer
Charges per minute (Exhibit 10b) 0.1 Charges per minute
VAS revenue 12.82 VAS revenue
Total Revenue 32.82 Total Revenue

OPTION 2 OPTION 3
32.82 97.82
14.77 44.02
18.05 53.80
24% 72%
76% 28%
5% 5%
150 100
596.95 738.46

et uses between 100-300 minutes per month so average is taken.

epaid customers charge i.e. 35-50 cents
the revenue was 10 billion and in 2002 it was 30 billion. So an average of the two is taken as the yearly revenu
d to be 250 and 200
(OPTION 3)
1000000
###
0.77%

CALLS FOR OPTION 3

200
0.43
12.82
97.82

n as the yearly revenue.