Problem we are trying to solve: Which market is best for a network expansion ?
Possible points to consider:
- build cost vs possible sales
- quote vs service -> what is actually being paid
- MRC -> Monthly Recurring Cost
- NRR -> Non Recurring Revenue
- Fiber is the most important product
- On Network: No build cost and network proximity is 0
- Network class: type 2 means other company's fiber. What do we do about the proximity now ?
##Questions answered by Jen through mail:
I believe we covered these topics in our visit last Thursday, but I'll try to answer your questions below. You can also find a lot of help in the "Key" tab of the Excel document.
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On Zayo Network indicates that there is already fiber leading up to the building (no additional build cost)
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Net classification:
- On-Net: there is active fiber and equipment at the building
- Fiber only: the building is not connected to the Zayo network
- Restricted: limited access to the building (likely not appropriate for new services)
- Stubbed: there is no active fiber at the building (likely not appropriate for new services)
- Type 2: new services would only be available through leasing from a 3rd party
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A CPQ is a quote either requested from a customer through our website, or generated by a sales rep after speaking directly to the customer. It indicates there is genuine interest from the customer, as opposed to and Opportunity, which is usually generated from outside leads.
- X36 MRC - Monthly Recurring Cost, the customer's monthly payment over the 36-month term
- X36 NRR - Non-Recurring Revenue, the cutomer's one-time up-front payment
- X36 NPV - Net Present Value, the total cost of the contract (without adjusting for inflation over the 36-month term)
- You are correct that not all contracts are 36 months, but we limited our data to the 36-month quote amounts for simplicity
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The services sheet is intended to give you information about what these customers are already buying from us, and what they may be more likely to buy at additional locations.
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The structure of the project has changed a bit: the final event will be the time for you to present your findings. This will happen after your class assignment is due, so we will not be giving you any new parameters.
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Yes - we would like to see which of the three markets is best for a network expansion. Let me know if you have any additional questions. Otherwise, we'll see you in class tomorrow!