Simulation model for calculating the revenue potential of an innovative quality feature in mobile communications

A telecommunications company has developed a product that adapts the latency level on the network side to the application in use. Use cases for the application include cloud gaming, virtual and augmented reality, and robotics. The product can be used by B2B and B2C users and should therefore appeal to both customer groups. For a successful market launch, the company needs reliable figures on sales potential for the next five years.

How big is the market and revenue potential in the coming years for a new network application?

Our Solution

At the core of the project was the development of a market model to plausibly extrapolate revenues. The market model was also intended to make it possible to divide revenues between the B2C and B2B markets and the various use cases. In the first step, the model structure and the core questions were agreed upon with the customer. Subsequently, in-depth research was used to aggregate data into six central use case groups, which were used as input into the model. In addition, willingness to pay and penetration rates of B2B and B2C target groups were derived. Subsequently, different scenarios were formed in order to be able to vary the assumptions made. Finally, the market model was set up in MS Excel and the market and revenue potentials were calculated with the respective splits.

  • Market model for B2B and B2C revenues
  • Illustration for six central use case groups
  • Consideration of different scenarios
Customer Results

The market model enabled the customer to assess the potential for the next five years and identify the most relevant use cases. The market model was provided exclusively to the customer. Documentation of all sources and assumptions made were included. In addition, the core results were presented and discussed.

  • Insights into revenue potential and most relevant use cases
  • Market model incl. documentation of sources and assumptions
  • Presentation of the core results