PADM5081 Telecommunications Market Analysis Convenor Dr Andrew Barendse External Examiner Dr Gabriele Celli 20 September

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PADM5081 Telecommunications Market Analysis Convenor Dr Andrew Barendse External Examiner Dr Gabriele Celli 20 September Powered By Docstoc
					        PADM5081

Telecommunications
  Market Analysis

             Convenor:
        Dr. Andrew Barendse


         External Examiner:
          Dr. Gabriele Celli




  20 September – 23 September 2010
                         Table of Contents

1     CONTENT OVERVIEW                       1

2     COURSE OUTCOMES                        1

3     REQUIRED READINGS                      1

4     PREPARATION REQUIREMENTS               2

5     SYNDICATES AND GROUP LEARNING          2

6     COURSE ASSESSMENT                      2

7     GROUP ASSESSMENT 2009                  2

8     ABOUT YOUR LECTURERS                   3

8.1    ANDREW BARENDSE                       3
8.2    THABO MOSALA                          3

9     READING                                3
1 Content overview
This course examines various methodologies to assess the functioning and profitability of the
telecommunications sector.        It covers the evaluation of individual companies, the intra industry
competitiveness, the industry attractiveness as well as the macroeconomic environment.

Date          Session   Topic                                                      Time           Presenter
20th          1         Introduction and Overview Day 1                            9:00–10:00     Andrew Barendse
Sep           2         Changing SA Telecoms Landscape – An Analysts Perspective   10:00-11:00    Brian Nielssen
2010          3         Regulatory Impact Assessments – An Operators Perspective   11:30-12:30    Izaak Coetzee
              4         SA Telecoms Landscape - An Analysts Perspective            13:30 -15:00   Andre Wills
              5         Midterm Review of SA’s policy and regulatory commitments
                                                                                   15:30-17:00    Andrew Barendse
                        2010
    st
21            6         Summary & Overview Day 2                                   9:00–9:30      Andrew Barendse
Sep           7         Mobile Interconnection as an Enabler for Market Entry      9:30-11:00     Izaak Coetzee
2010          8         Analysing Telecom Markets: An Investors Perspective        11:30-13:00    Martin Dullaart
              9
                        Field Trip To JSE                                          13:30 -17:00   Field Trip to JSE
    nd
22            10        Investment Climate and Doing business in SA                11:00–12:30    Andrew Barendse
Sep           11        Assessing the Mobile Regulatory Environment – An
                                                                                   13:30-15:00    Graham de Vries
2010                    Operator’s Perspective
              12        Assessing the Mobile Regulatory Environment – An                          Nkateko “Snakes”
                                                                                   15:30-17:00
                        Operator’s perspective                                                    Nyoka
              13        Theories of Economic Regulation                            17:00-18:30    Pieter Grootes
23rd          14        Strategy Analysis: Part 1                                  9:00–10:30     Thabo Mosala
Sep           15        Strategy Analysis: Part 2                                  11:00-12:30    Thabo Mosola
2010          16        Exercise Strategic Market Analysis                         13:30-15:00    Andrew Barendse
                        Student Preparation & Presentation                         15:30-17:00    Andrew Barendse



2 Course Outcomes
On completion of this course, participants will be able to:

•        Assess the investment climate of a country;
•        Assess the investment climate of a country;
•        Analyse the fundamental drivers of the telecommunications sector and assess its competitiveness compared
         to other sectors;
•        Assess the macro-economic environment of a country;
•        Analyse and interpret financial statements and assess the profitability and operational effectiveness of
         operators;
•        Understand the theoretical framework of business strategy its application to the telecommunication sector
         (licence auction, retail pricing).


3 Required Readings
One or more required readings will be provided for each session. These are printed out and included in your
course pack. You are expected to complete those readings required for each session in advance as the lecture
will assume familiarity with their content. Lecturers / facilitators, who use teaching aids or provide additional
material, will distribute these notes to you as they become available. These notes should be added to your
course file and included as part of your course materials.
               Graduate School of Public & Development Management: Master of Management in the field of ICT Policy and Regulation

4 Preparation Requirements
Your preparation work – mainly reading - should be done individually before you come on the course. Please
note that there may be tasks to prepare for specific sessions. These will assist you to work through the
conceptual and theoretical understandings in each of the readings and begin to apply these to cases and issues.
Read through each session outline carefully to ensure that there are no mishaps. We assume that for every 1
hour that you spend in the classroom, 20 in total, you will need to spend approximately 4 additional hours in
preparation. This includes reading, writing assignments and examinations.


5 Syndicates and Group Learning
An interactive and intensive learning methodology is utilised, which involves a combination of lectures, case
studies, group and individual projects. Given that many participants are active in shaping the
telecommunications sector, the P&DM endorses the “syndicate method” of teaching, which requires that some
of the learning will be done in groups. This approach is designed to enable course participants to contribute to
the course, bringing in their own practical experience, knowledge and expertise together with those of their
peers to create a rich learning environment. Each participant will be assigned to a syndicate group. Syndicates
and group work are a vital component of the learning process and attendance at all syndicate meetings is
required and compulsory. Syndicate meetings will be organised by the group members at a time and place
suitable to them in accordance with the programme’s schedule. Although the P&DM will make syndicate
meeting rooms available, these meetings need not be held on campus. Syndicate meetings and interactions may
also take place virtually, through the course WebCT site and via the mailing lists which will be made available
for this purpose. Problems within syndicate groups are to be reported timeously to the Academic Convenor of
this course, so that steps may be taken to resolve them. Syndicates will only be able to change their syndicate
group composition under exceptional circumstances, and at the sole discretion of the Academic Convenor. For
purpose of this elective, all participants will be placed in teams of two.


6 Course Assessment
There are two components to the assessment for this course: a group assignment, which is done in syndicate
groups during the week, and an examn. The group assignment will be distributed and completed during the
course of the week, and will count 25% towards your final mark for the course. The exam will be held on the
24th September 2010 in the morning. The assignment should not be longer than 20 PowerPoint pages and be
accompanied by a 1 page executive summary. Assistance will be available on request.


7 Group Assessment 2010
Telkom has recently sold its stake in Vodacom and has indicated its intention to enter the South African
telecoms mobile market. 3 teams will analyse the market entry from different perspectives:
• Team A: Telkom Board of Directors
• Team B: An investor holding a large amount of MTN & Vodacom stocks
• Team C: ICASA

Answer the following questions:
   1. How profitable is SA’s mobile telecommunication sector in international comparison?
   2. What are the factors impacting on the competitiveness of SA’s telecom sector?
   3. Which Strategy would you have recommend for Telkom’s market entry?
   4. What has been MTN & Vodacom’s strategy and would it need to change when Telkom enters the
       market?
   5. Will Telkom’s market entry impact on the financial performance of MTN & Vodacom South Africa?
   6. Will the market entry of Telkom in South Africa lead to lower prices for consumers?
   7. What are the macroeconomic risks that Telkom faces?

To answer these questions one needs to:

                                                                                                                                    2
                  Graduate School of Public & Development Management: Master of Management in the field of ICT Policy and Regulation

•     Analyses financial rations of MTN, Telkom and Vodacom.
•     Using literature and Internet research to find financial ratios of other international telecommunication
      operators.
•     Analyse the Telecommunication sector in South Africa using Porters diamond and five force models.


8      About your Lecturers

8.1      Andrew Barendse

         Andrew Barendse (PhD) is Visiting Adjunct Professor in the Graduate School of Public and
         Development Management. Prior to his appointment at Wits he held positions of Assistant Professor and
         Research Fellow at Delft University of Technology in the Netherlands and at the Center for Management
         Studies, European University, The Hague, The Netherlands. He has 20 years experience in the telecom
         sector. His research interests covers the economics and management of ICT in particular the national,
         regional and international governance of the ICT economy. His lectures cover institutional economics,
         industrial organization, leadership and managerial economics. He is currently a Scientific Committee
         Member of the European Communications Policy Research.

8.2      Thabo Mosala

          THABO MOSALA is senior lecturer at Wits Business School and lectures in the areas of Finance,
          Strategy Management, Banking, Information Systems and Leadership. He holds a PhD in Banking and
          Finance (Rushmore University – USA), MPhil in International Management (University of Pretoria,
          RSA), MBL in Finance and Leadership (Unisa – SBL, RSA), MSc in Computer Science (Rhodes
          University), BSc (Honours) – Computer Science (Rhodes University), BSc in Computer Science and
          Maths (National University of Lesotho) and CAIB(SA) – Certified Associate of Institute of Bankers.
          He is the founder of WrenJos Consulting offering management consulting and advisory services
          specializing in Strategy formulation for business development and growth, Business Simulation,
          financial services, Business process improvement, Information Technology, and Research


9 Reading
    Topic                           Reading
    Investment Climate              • Doing Business in 2009, World Bank Report
                                    • The Global Competitiveness Report 2008-2009, World Economic Forum
    Assessing Regulatory            • Towards an African e-Index -Telecommunications Sector Performance in 16 African
    Environment                       countries by Esselaar, S., Gillwald, A. and Stork, C.
    Strategic Analysis              • Strategy and the Internet by Michael Porter
                                    • How competitive forces shape strategy by Michael Porter
                                    • A value chain model for mobile data service providers by Phillip Olla
                                    • Contemporary Strategy Analysis: Concepts, Techniques, Applications (5th Edition) by R.
                                      M. Grant
    Macro Economic                  • Economic Indicators by Philip Mohr
    Assessment & Indicators
    Interpreting Annual             • Analysis for Financial Management, Robert C. Higgins
    Reports
    Estimating Demand for           • The Economic and Social benefits of Access to a Mobile phone in Ethiopia and South
    Mobile Usage                      Africa, Adam, L., O Siochru. And Stork, C.
                                    • Mobile Telephony Access and Usage in Africa, Chabossou, A., Stork, C., Stork, M. and
                                      Zahonogo, P.
    Unpacking key issues in         • Budget Vote Address by Minister of Communications General (Ret) Simphiwe Nyanda.
    the Minister of
    Communication’s
    2009 Budget Vote Speech
    Assignment                      • Telkom SA Limited, Results Presentation for the year ended 31 March 2010.
                                    • Telkom’s 5 Year Financial review.
                                    • Telkom’s 5 Year Operational Review.

                                                                                                                                       3
              Graduate School of Public & Development Management: Master of Management in the field of ICT Policy and Regulation

                                • Telkom’s Credit Rating.
Strategy Analysis               • Porter’s Diamond Model, Michael Porter, World Economic Forum
                                • All of a Sudden, Dell Looking Vulnerable, AP Online, August 20, 2006.
                                • Battery assault; Hybrid cars.(Toyota Motor Corp.), The Economist, September 24, 2005.
                                • Technology's Mr Predictable; Face value. (Michael Dell ). The Economist, September
                                  24, 2005.
                                • The resurrection of Steve Jobs; Face value. (Apple Computer Inc.), The Economist (US).
                                  September 17, 2005.




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