COM BUSINESS PLAN UPDATE December 14, 1999 - Beijing TODAY’S OBJECTIVES Review the overall analysis of regulation, competition, and market development Discuss the specific implications C strategy Review the specific draft business models C How we might attack the business, carrier, and IDD/DLD markets What key trade-offs we need to make What are the key ess factors and assumptions? Discuss the initial economics of these business models, and C overall Discuss the specific next steps in two key areas: How to finalize and endorse the C business model How to move forward with the refined financials, organization design, and the plan for implementation CONTENT Key strategic principles Regulatory overview Market overview Competition overview Business models Next steps C STRATEGIC PRINCIPLES The objective of these principles is to provide further clarity in the development and evaluation of C business model These will be revisited and refined as the project progresses Our development of business models will seek to be aligned with the principles Strategic principles and key assumptions will be considered in the following C shareholders Backbone business Local access business International gateway business Regulatory petitive strategy Marketing strategy CNC SHAREHOLDERS Principles: Leverage shareholders’ concerted vision in creating a new generation IP munication infrastructure and a profitable, pany Leverage shareholders’ existing backbone assets, local access assets, research capabilities and local government relationships to secure time-to-market and petitive advantage Set a model of a new type of “SOE”, as efficient as the best of the FIE/panies; beat shareholders’ expectations by delivering high return Assumptions: CAS: strong interest in C essful and profitable quickly, stands ready for favorable regulatory influence and research support; wants opportunities working R&D MOR and SARFT: extensive backbone and access assets and ROW main focus on usin
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