Network Asset Consulting Services Overview

Contents

Introduction to GSM Systems ....................................................................................................................... 1

Scope of Asset Management Services .......................................................................................................... 2
Asset Audit Consulting Services .................................................................................................................... 3
Contract and Project Review / Advisory ....................................................................................................... 3
Network Procurement Advisory ............................................................................................................... 3
Asset Re-Use: Equipment Condition Verification and Quality Control ......................................................... 5
Project Governance, Contracting & Advisory ............................................................................................... 6
SPMS (Hardware Support) Consulting .......................................................................................................... 7
Process Consulting ........................................................................................................................................ 7
Outcomes ...................................................................................................................................................... 8

Introduction to GSM Systems

GSM Systems www.gsmsystems.com provides a suite of services to enable operators to

manage the network asset lifecycle. These asset maintenance and supply services include, but
are not limited to, asset disposition, recycling, spare part management, part swap and repair, in
addition to specialist services to optimize network Capex and Opex.

Our goal is to eliminate asset related waste and inefficiency in the Telecoms industry by
ensuring maximum asset availability, quality and affordability to deliver the highest return on
our clients invested capital.

Network Equipment represents one of the most significant investments a service provider can
make, the equipment assets are central to providing service to customers . The network assets
are referenced and managed in the warehouse, the field, Planning, Provisioning and Finance.
Having numerous perspectives on the same part / asset / system / status requires significant
alignment of efforts to ensure that all of the stakeholders’ needs are met, from the point of
delivery and installation to the end of useful life of an asset.

Delivery, maintenance, tracking and management of assets is a major task and, as each
department pursues its own objectives, they may fail to appreciate the needs of others

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understand the inter-dependencies and implications of key decisions and the impact that this
has on the overall asset management.

Numerous teams working independently on the same assets, without being able to effectively
communicate their activities with other interested parties, eventually leads to process
inefficiencies in the life cycle of an asset (a typical example is Finance not being able to track an
asset’s current status). These inefficiencies become quickly reflected in the company’s bottom
line through over spend in CAPEX, OPEX and financial performance in balance sheet value.

Scope of Asset Management Services

GSMS provides services to independently verify that the data infrastructure and project
governance supporting the asset has been completed in a consistent manner at each stage of
the asset life cycle.

The GSMS process begins before the equipment has been delivered to the customer site and
continues through its useful life with the swap/repair process and ends when an asset is retired
where value can be realized through resale or recycling of the material.

Finance can benefit from a standard asset categorization and asset value tracking including use
and technology type. Engineering and Planning needs to understand the asset’s capabilities
and characteristics; the warehouse will know the asset categorization which requires a
consistent method across a spectrum of equipment assets including equipment definition of
interchangeability. GSMS services ensures all departments in projects, planning, finance and
field service can identify equipment assets with a common process and data structure while the
equipment is in service.

The consulting and management services described in this document outline GSMS capabilities
for specialist advisory and consulting which ensure assets are designated and managed
according to their highest and best use while ensuring optimal deployment of network Capex
and Opex budgets.

Consulting Services can be provided on the basis of a minimum one week engagement with a
30-90 day advance engagement.

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Asset Audit Consulting Services

The following services can be performed on the basis of a sampling, where a cross-section of
sites or warehouses or functional areas are reviewed to identify the leading indicators of
potential issues, or a comprehensive audit.

o Physical Site Audit of all equipment on site by part and serial, photo database, labeling
per systems of audited items.
o Warehouse audits by site, bin location, part # and serial # (part level reporting)
o Report on system builds available from inventory (system level reporting)
o Customized valuation and reporting on asset liquidity and value depending on validated
accounting treatment per channel (resale or recycle)
o Reporting on potential idle or unutilized assets in warehouse or at site
o Reports with system type recommendations for equipment re-use or disposal
o Assess asset valuation based on ‘the lower of cost or market’ principle for network
assets being valued in the planning cycle for prospective modernization

Contract and Project Review / Advisory

Vendor independent data can be critical to ascertaining the status of network performance or
vendor performance / KPI in a project or contract. GSMS can provide a ‘Single point of truth’ on
the proposed collaboration with vendors whether operational or project based. This can
encompass OEM control mechanisms, TowerCo control mechanisms, with a view of risk
identification and remedial recommendations and actions;

• For new network build or modernization, consult on optimal process set up and asset
register governance to ensure sustainable asset valuation and tracking operations ongoing.
• For redeployment or frequency re-farming: project based asset tracking to mitigate risk of
asset loss or asset write down during re-farming / redeployment project

Network Procurement Advisory

GSMS provides (consulting) services to code and categorize assets with a continuing property
record that reflects the locally compliant depreciation method and accounting treatment. The
approach can be deployed in ERP implementation

• Compare business case for new network upgrade / Capex to Case for re-use &
redeployment
• Benchmark new equipment costs and support costs against best in class costing,
based on proven methodology

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• Capex reduction on Equipment ordering, based on ‘best value’ market price

benchmarking which considers volume discounting thresholds.
• Equipment classifications, base on database of asset under management
• For accounting applications, integration or validation of asset register data against
online database of asset under management and real time NBV assignment.
• Where part level value tracking is needed, automate cascading of value from system
to part level
• Advise on Fixed Asset Register – structure and design, integration and interface with
additional platforms
• Services relate to all Asset types - Hardwired retirement equipment , Plug-ins
(deferrable and non-deferrable) Capital tools and portable test sets, Minor items,
Expense items

Technical Procurement Advisory

• An independent view of hardware / software compatibility (especially backwards

compatibility is essential to deploy network capex effectively, as OEM vendors push
to shorten the technology lifecycle by
• ‘End of life’ verification and advisory to validate the necessity for procurement of
items which are named to be discontinued.
• Full comparison of new vs. aftermarket pricing at part or system level.
• Advice on strategies to optimally use aftermarket or ‘certified re-use’ parts and
systems, with a transparent view of the benefits and limitations of purchasing
second use material.

ERP Integration Advisory

For ERP projects, GSMS can integrate existing asset records with their

• Integration with network asset database / NOC and data quality verification
• Equipment codification according to international standards
• Their physical, engineering, environmental, and electrical attributes
• Asset-tracking codes (CPRs, ECNs and FRCs )
• Requirements for equipment labeling
• Hardwired equipment assignment codes
• Frame function codes
• Frame identification guidelines

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Asset Re-Use: Equipment Condition Verification and Quality Control

With over 10+ years with global operators and Vendors in repair / test / spare management
and network asset management, GSMS has identified the most common mistakes in asset
treatment and handling and can implement process, strategy and process improvements to
avoid and mitigate these risks. Decommissioned assets are often recorded as having a net book
value but in fact are either not tracked / lost, damaged, or in faulty (not working) condition. The
asset values must be adjusted according to best practices or the asset records can be found
incorrect. GSMS can incorporate these services as part of

• Inventory verification based on quality sampling

• Visual inspection and image recording to ascertain and verify physical condition
• Equipment Clean / Test / Refurbish
• Equipment Repair & Return SLA contracting
• Equipment Packaging and Logistics related Standards

GSMS has not yet provided these services on the basis of advisory for operators to ramp up
testing operations independently, but could consider this kind of engagement on a case by case
basis. These services are designed to deliver optimized re-use of network equipment with a
technical approach that is fully synchronized with the network evolution plan.

These services ultimately allow the operator to expand network coverage and capacity with
minimal Capex. Operators’ focus on new technology evolution can result in a lack of attention
to ‘sweating’ existing network assets. GSMS can recommend re-use strategies which match
available equipment functionality with the customer demand patterns and business case in a
given geographic area.

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Project Governance, Contracting & Advisory

Through our experience in network planning, implementation and project management for
network expansion and rollout GSMS can provide the following services subject to resource
availability:

• Project rollout advisory from survey to commissioning scope with detailed review of
Scope, SLA and Responsibility Matrix and commercial mechanisms
• Where network capacity is purchased on the basis of Erlangs, our specialists have hands-
on operational and commercial experience in network deployment and operations to
optimize the contract structure and avoid potentially costly mistakes.
• Implement contract governance structures to ensure control mechanisms are practical
and that adequate resources are allocated to operate these controls.
• Project acceptance (Pre-launch optimization and KPI acceptance) commercial (budget vs
actual), Base-lining project plan and assess viability and project risk mitigation
• Reporting portfolio of recommended network KPI and proposed thresholds for
exception tracking.
• Advise on structure of hardware support and deployment services agreements to
ensure that typical loopholes and exclusions are avoided which result in potential added
cost through change orders.
• Independent function that reports the single version of the truth to all parties

These and other services are designed to deliver maximum efficiency and cost control in
network deployment and expansion programs.

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SPMS (Hardware Support) Consulting

GSMS specializes in multi-vendor Spares management, representing a high impact on Network

Opex and can assess current spend against global benchmarks. Effective management of spare
parts also impacts customer experience, network uptime and revenue generation. SPMS
Consulting can encompass any or all of the following scope:

• Business Case Build gathering data inputs to validate case for savings
• Review of installed network elements, R&R rates as cost drivers
• Evaluate Current spare dimensioning
• Compatible parts analysis & methodology to reduce inventories
• Review SLAs contracted and actual OEM performance against agreed terms
• Re-use of material from customer idle asset or decommissioned inventory
• Warranty management – tracking item warranty status
• Study of customer hardware support contracts / spares spending / internal process /
inventory data accuracy / inventory levels / fault & return rates / contract conditions
of HW support agreements with OEMs.

The outcome of SPMS Consulting is a study which will normally generate estimated savings of
20-40% on hardware support and related inventory and logistics expense which have been
proven in several cases with other mobile operators.

Technical Operations Process Consulting

GSMS can review & recommend optimal process for technical or operational management of
the active network, which can be carried out at one time, or in the form of periodic reviews to
ensure an updated outlook on best practices and forward looking risk mitigation

• Review and advisory on Managed Services Scope, in the context of the codified process
taxonomy - and risks associated
• Maintenance process review with a focus on maximum efficiency and uptime
• Scenario analysis which benchmarks anticipated outcomes based on prior experience
• Random or targeted sample selection to provide maximum statistical coverage -
selected to cover a range of
• Interview stakeholders to gauge subjective input of the effectiveness of the process -
across a range of interested parties
• Field sampling, data analytics and review of control effectiveness
• Reporting and improvement recommendation

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Outcomes

GSM Systems’ Services are designed to deliver the following outcomes for our clients:

• Independent View: GSMS offers a fresh and unencumbered perspective fully aligned
with the operator’s best interests
• Multi-Vendor Technical Expertise Applied to operations, asset governance, project and
service contracting, delivery and control.
• Opex Reduction: our goal is to model and deliver proven savings on network opex
• Capex Optimization & Reduction: our vision is to “facilitate efficient, sustainable, and
cost effective maintenance and expansion of mobile networks” and we are proven to
deliver on that promise
• Optimal Management of Network Assets: We strive to preserve asset value based on
objective measurements of value and return resulting in ‘highest and best’ asset use.

For more information for quotations and engagements, please contact Dan Knox, Managing
Director, dknox@gsmsystems.com or Pete Mitchell, Head of Sales pmitchell@gsmsystems.com