Aug 2016 Financial News

TSTT transforming into agile broadband company

Aug 02, 2016

TSTT has started its transformation from a traditional legacy telecommunications company into an agile broadband communications organisation.

The board of directors has approved a five-year strategic plan that includes capital expenditure of $3.7 billion to make this plan a reality.

The company will invest in a significant transformation of its IP core, wired and wireless infrastructure, as well as its retail and customer service support systems as part of TSTT’s overarching strategy to become an agile broadband company.

In addition, TSTT undertook a comprehensive reevaluation of all its existing technology.

In line with its tradition of service to T&T dating back to 1960, TSTT intends to fulfill what it sees as its responsibility to promptly respond to changes in customer needs, competitive factors and important industry trends.

CEO Dr Ronald Walcott reiterated that the company’s plans were organised around four main pillars.

1: Evolve and upgrade technology

Develop a mobile network that supports the country’s fastest data speeds with almost ubiquitous indoor and outdoor coverage throughout T&T.

At the same time, TSTT will roll out an augmented Fiber-Centric Residential Solution that will pass over 200,000 homes.

These solutions will be augmented by a new Mega IP-core network which is scalable to ten times its current capacity and international bandwidth with a five-fold increase in capacity. Together, these developments will allow TSTT to deliver virtually any configuration of service to customers.

2: Revenue growth

Enable a greater than 20 per cent revenue growth over five years. While this will be predominantly in broadband, TSTT will also explore new lines of revenue such as mergers, acquisitions and joint ventures. These will complement the drive to support the needs of customers.

3: Customer service

Retail transformation will change how TSTT will serve its customers whether in-store, online, through call centres or other distribution networks. The company is investing in a full-stack converged service support solution in partnership with Ericsson, a leading provider of network and billing solutions.

TSTT is also currently deploying a Net Promoter Score system which will enable the company to get near real-time customer feedback on service quality, allowing it to readily identify service areas that are most importantand improve accordingly.

4: Re-alignment

There will be an ongoing review of TSTT’s business processes, future technological requirements, productivity and efficiency goals and customer needs, so that the company can re-align people and resources in the most efficient and cost effective manner.

Dr Walcott noted that because TSTT will be investing significantly over the next two years, especially in new broadband technology, the existing broadband technology had to be fully reviewed. The results of the interrogation mandated the need to accelerate depreciation on some assets and absorb an impairment on others, since the assets involved faced shortened revenue-generating life spans and/or impending obsolescence.

The impairment charge amounted to $375 million and the accelerated depreciation was $200 million. These $575 million charges eroded the otherwise normal profitable operations, resulting in an after tax loss of $316 million.

Transformation, he said, is already on the way. Phase 1 of the Mobile Long-term Strategy has started and has already registered significant improvements in network capacity and coverage. Phase 2 involves optimising TSTT’s available spectrum for improving data speeds and building coverage.

Fixed network has seen the re-engineering of the Internet infrastructure. Broadband customers in scores of areas with modern GPON (gigabit passive optical network) systems can get up to 25mbps of speed—a precursor to TSTT’s larger fibre roll out programme.

Through its partnership with Ericsson, a suite of applications are being customised which will ultimately allow TSTT to improve its speed to market, the speed and efficiency of its customer interactions, and allow an ‘all-in-one’ bill to customers. At the same time, Ericsson’s global transformational expertise will assist TSTT to expand its capacity to develop and implement sustainable and positive change.

Customers will see services provided on a new, rapidly scalable IP network that seamlessly integrates support for wired and wireless services. In effect, the interconnected nature of the network for resilience will dramatically improve service reliability and minimise interruptions.

Customers will be able to choose the mix and characteristics of services that best suit their business, personal or residential needs as the network will fully support inter alia, Internet of Things (IoT) integration for smart homes and connected living.

Further, customers will enjoy a mobile network with coverage and data speeds that fully support their lifestyle needs.

Walcott said: “Customers will feel justly proud of a national communications provider that is the fuel for economic growth and a better quality of life. TSTT is exclusively committed to the long-term interests of country and citizens alike, and ensures predominantly local repatriation of the profitable proceeds.”

 

Source:
Trinidad Guardian
Tuesday August 2, 2016

http://www.guardian.co.tt/business/2016-08-02/tstt-transforming-agile-broadband-company