Telecommunications Market Segmentation Analysis and Forecasting

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Telecommunications Market SegmentationAnalysis
and Forecasting

• Presented by
• Michael Raimondi
• Executive Vice President

A THOMSON Company
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Who is WEFA?

• The original economic forecasting firm started at
  the request of business leaders who wanted
  objective, independent forecasts for business
  planning and analysis.
• Founded in 1963 by Lawrence R. Klein, winner of
  the 1980 Nobel Prize in Economics.
• WEFA stays at the forefront of economic and
  market analysis and forecasting.
• WEFA uses its expertise to help clients
  understand the effects of global, national, and
  local economic conditions on their business by
  product line and market segment.

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Market Planning Applications

• Objective
• WEFA develops and provides detailed marketing
  data and forecasts to support tactical and
  strategic business decision-making for
  telecommunications services businesses.
• Marketing Focus
• By Line of Business -- Products and Services
• By Market Segment -- Business or Consumer Groups
• By Geographic Area -- Standard and Client Defined
  Areas
• By Business Location or Household
• Analyze Segment Size, Growth, and Future
  Potential
• Identify Opportunities and Risks and Target
  Direct Marketing

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Market Planning Needs

• How big is each market segment defined by
  industry, by business size class, by consumer
  group, by geographic location, and by product
  usage?
• What does this indicate about our market share
  for each segment and geographic area?
• What are the underlying growth prospects for each
  segment?
• How can I take advantage of the best market
  opportunities, protect our vested-interest
  segments, and avoid some of the risks in the
  market?
• What do the size and growth estimates imply about
  the best sales prospects for our products?

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WEFAs Analytical Process

• WEFAs Integrated Approach to
• Market Segment Analysis and Forecasting
• The Insight of Market Research.
• The Scope of Database Integration.
• The Precision of Quantitative Analysis.
• The Foresight of Econometric Forecasting.

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A Solid Network of Models
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Database Integration

• The Input-Output tables provide the initial
  distribution across all 4-digit SIC code
  industries.
• The detailed data on employment by occupation and
  information technology spending by industry
  identify usage characteristics by industry by
  service.
• The government and association data provides
  top-line benchmarks and state-level guidelines.
• The statistical relationships and quantitative
  methods lend consistency and rigor to the
  intermediate and final results for all products,
  industries, and states.
• Allocations are made to all counties and ZIP
  codes.

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Numerous Data Sources

• Federal Communications Commission
• US Telephone Association
• Cellular Telecommunications Industry Association
• MultiMedia Telecommunications Association
• Survey of Communications Services
• Input-Output Tables of the US Economy
• Economic Census and County Business Patterns
• Current Population and Consumer Expenditure
  Surveys
• Industry-Occupation Matrix
• Clients Customer and Primary Data for Custom
  Solutions

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Segment Sizing

• The Business Market
• Employment
• Establishments
• Output
• Occupation Distributions
• By 4-digit SIC
• By State, MSA, County, and ZIP Code

• The Residential Market
• Population
• Households
• Income
• Occupation Distributions
• By Age/Income Cohort
• By State, MSA, County, and ZIP Code

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Telecom Coverage

• Services
• Total Spending
• Local Service Spending
• Long Distance Service Spending
• Cellular Service Spending
• Toll Free Spending
• Data Communications
• Voice Communications
• ATM, Frame Relay, DSL, IP

• Products
• Access Lines
• Switched
• High Capacity
• Stations
• Telephone
• Other (e.g. modems, fax machines)

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Voice vs. Data Transmission
Expected Revenue Growth in the U.S. (Compound
Annual Rates, 2000-2005)
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Total Telecom Spending
Top/Bottom 5 States Based on Expected
Growth (Millions of Dollars, Compound Annual
Rates 2000-2005)
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Total Telecom Spending
Top/Bottom 5 Industries Based on Expected
Growth (Millions of Dollars, Compound Annual
Rates 2000-2005)
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Voice Telecom Spending
Top/Bottom 5 States Based on Expected
Growth (Millions of Dollars, Compound Annual
Rates 2000-2005)
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Voice Telecom Spending
Top/Bottom 5 Industries Based on Expected
Growth (Millions of Dollars, Compound Annual
Rates 2000-2005)
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Data Telecom Spending
Top/Bottom 5 States Based on Expected
Growth (Millions of Dollars, Compound Annual
Rates 2000-2005)
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Data Telecom Spending
Top/Bottom 5 Industries Based on Expected
Growth (Millions of Dollars, Compound Annual
Rates 2000-2005)
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Total Telecom Spending
Top/Bottom 5 Countries (Millions of Dollars,
Compound Annual Rates 2000-2005)
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Voice Telecom Spending
Top/Bottom 5 Countries (Millions of Dollars,
Compound Annual Rates 2000-2005)
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Data Telecom Spending
Top/Bottom 5 Countries (Millions of Dollars,
Compound Annual Rates 2000-2005)
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Benefits

• More finely segment markets by industry, consumer
  segment, geographic area, application, and
  location.
• More accurately measure penetration into each
  segment on a total revenue or a revenue per
  employee basis.
• More carefully target key new markets, while
  still protecting vested-interest business segment
  and accounts.
• More effectively allocate sales and marketing
  resources.
• More equitably set sales targets and measure
  performance.
• More precisely forecast sales nationally,
  regionally, and locally by market segment.

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Results
Watch Sales Grow
Detailed Market Segment Data and
Forecasts Better information Better decisions
Better allocations Better performance Even in
a fast-paced market, you can do better.
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Boston ? Chicago ? Los AngelesNew York ?
Philadelphia ? Washington, DC Hong Kong ?
Frankfurt ? London ? Milan ? Paris Mexico City ?
Sao Paulo ? Pretoria ? Ottawa ? Toronto
A THOMSON Company