Appendices
Appendix A: Company A network 90
Appendix B: Organogram 91
Appendix C: Company A development over time 92 Appendix D: Company A Revenue per Entity 94
Appendix E: Customer Interview scheme 95
Appendix F: Research and Development 96
Appendix G: Networks of competitors 97
Appendix H: Potential Countries tool 98
Appendix I: Potential Countries analysis 100 Appendix J: Internal developments since March 2006 105
Appendix A Company A network
Appendix B Organogram
Company A BV
Company A Networks Poland Sp.Zo.O.
Company A Estonia OÜ
Company A Latvia SIA
UAB Company A ZAO Company A CIS
Appendix C Company A development over time
2000: Company A B.V., the Netherlands, formed on 10 April 2000.
2000: Development of Business Plan Company A B.V., started on 10 April 2000.
2001: Baltic Sea Ring acquired from receivers of Company B.
2001: Company A Networks Poland Sp.Zo.O.,
Poland (formerly named Mindori 3), 100%, acquired on 16 February 2001.
2001: ZAO Company A CIS, Russia, 100%, incorporated on 7 March 2001.
2001: Company A Latvia SIA, Latvia, 100%, incorporated on 4 April 2001.
2001: Company A Eesti OÜ, Estonia, 100%, incorporated on 12 April 2001.
2001: UAB Company A, Lithuania, 100%, incorporated on 12 May 2001.
2001: Company AInternational Services Sp.Zo.O., Poland (formerly named Mindori 9), 100%
owned by Company A Networks Poland Sp.Zo.O., acquired on 18 July 2001.
2001: Sector X B.V., the Netherlands, 100% owned by Company A Holding B.V., incorporated on 3 August 2001.
2002: Licenses obtained for operations in Russia.
2002: Agreement made with Company B receivers for acquiring of equipment.
2002: Office in Estonia established.
2002: Company A Sweden AB, Sweden, 100%, acquired on 14 May 2002.
2002: Company ANetworks Finland OY, Finland, 100%, incorporated on 31 May 2002.
2003: Data Sector X OÜ, Estonia, 100%, acquired by Company A B.V. on 1 July 2003.
April 2003: Commencement of Operations of Company A B.V..
Early 2003: Office in Latvia established.
End 2003: Office in Russia established.
End 2004: Office in Poland established.
Early 2005: Office in Lithuania established.
2005: Data Sector X (Estonia) renamed as Company A Estonia OÜ.
Early 2006: Commencement of Enterprise Sales Organization.
Mid 2006: Merger Company A Eesti OÜ and Company A Estonia OÜ into Company A Estonia OÜ.
Mid 2006: Company A Germany GmbH, Germany, 100%, incorporated.
End 2006: Planned start-up of Company A Hungary Kft..
Early 2007: Planned start-up of Company A Ukraine UA.
Appendix D Company A Revenue per Entity
Revenue Amount in Euro (€) 2004 2005
Total NL Revenue x x
Total EST Revenue x x
Total FIN Revenue x x
Total SWE Revenue x x
Total LAT Revenue x x
Total POL Revenue x x
Total RUS Revenue x x
Total LIT Revenue - x
Total Revenue x x
Table D1: Company A Revenue 2004 & 2005 per Entity (Company A Annual Report 2005, 2006)
Appendix E Customer Interview scheme
Identification data
Name:
Surname:
Company:
Questions
How have you learned about the existence of Company A?
Why have you chosen to buy Company A services?
• Quality
• Prices
• Network coverage
• Reputation
• Responsiveness
• Flexibility
• Other:
Are there services Company A should add to its service portfolio?
How do you rate Company A concerning these variables?
• Overall
• Quality
• Reputation
• Network coverage
• Prices
• Responsiveness
• Flexibility
• Implementation time
• Technical support and customer service quality
• Quality of sales force
Which advantages does Company A offer compared to others?
Are there areas which Company A should improve?
Have you ever visited the Company A website?
Do you have any other comments?
Appendix F Research and Development
1
6
5 4
Business Development
Service Development Director Sales
& Business Development:
- Revenue - Strategic adv.
Management Board:
Approval/disapproval Network Manager:
- Presence needed - Technical Asset investment
Pricing Manager:
Pricing
Network Manager:
Technical assets needed
Management Board:
Approval/disapproval Product
manager:
Feasibility study:
- Profit/Loss - Strategic fit
Operations Manager:
Technical support needed
1
5 4
2,3
2, 3 2,3
2, 3
2, 3 4
Director Sales &
Business Development:
Sales & Strategic presentation
Product manager:
- CSD
- Profit presentation - Organizational change
6 Product manager:
Feasibility study:
- Profit/Loss - Strategic fit
Director Sales & Business Development
- Revenue - Strategic adv.
Operations Manager:
Technical support needed
Director Sales &
Business Development:
Sales & Strategic presentation
Product manager:
- Profit presentation - Business Description - Organizational change
1
Appendix G Networks of competitors Company E network:
Company F network:
Company G network:
COMPANY D CE network:
Company J network:
Appendix H Potential Countries tool
Points: 2 1 0
Country information:
Political Democracy Other
Member of the EU Yes Not
Member of WTO Yes Not
Population (inhabitants) > 20 million > 10 million, < 20 million < 10 million
Tertiary school enrolment (%) > 40 < 40
GDP-real growth rate (%) > 5 > 3, < 5 < 3
FDI, net inflows (€) > 5,000 million > 1,000 million,
< 5,000 million
< 1,000 million
FDI growth (%) > 100 > 50, < 100 < 50
Trade with Russia, Ukraine and EU (%) > 50 > 25, < 50 < 25
Country market development:
SectorX subscribers > 100 > 50, < 100 < 50
SectorX subscribers’ growth (%) > 1000 > 500, < 1000 < 500
International Sector XB Bandwidth (Bits) > 1000 > 500, < 1000 < 500 International Sector XB Bandwidth growth
(%)
> 400 > 200, < 400 < 200
Sector XB prices (% of GDP p.cap.) < 5, > 10 > 5, < 10
Total Sector X Revenue Growth (%) > 50 > 25, < 50 < 25
Infrastructure investments (€) > 2,000 million > 1,000 million,
< 2,000 million
< 1,000 million Infrastructure investments growth (%) > 100 > 50, < 100 < 50
SectorX Infrastructure Developed Under development Not developed
Price of E1 per kilometer (€) > 10 > 5, < 10 < 5
Competition Low Medium High
Suppliers Medium Many, One
Points: 2 1 0
Entry barriers:
Sector X Market Liberalization Liberalized Partly Liberalized Not Liberalized
Procedures required starting a business > 12 > 6, < 12 < 6
Time required starting a business (days) > 50 > 25, < 50 < 25 Procedures required requesting licenses > 30 > 15, < 30 < 15 Time required requesting licenses (days) > 300 > 200, < 300 < 200
Corruption Index Score > 6 > 3, < 6 < 3
Languages Russian Pl/Est/Lat/Lit/Ukr None
Physical connection > 3 1-2 0
100
Appendix I: Potential Countries analysis Belarus
Country information
• Political: Republic in name, although in fact a dictatorship or Totalitarian state.
• Member of the EU: No.
• Member of WTO: No.
• Population 2006: 10.3 million (estimate), decrease of 0.06% compared to 2005.
• School enrolment, tertiary (% gross): 61% in 2004
• GDP- real growth rate (2005): 8%
• FDI, net inflows: Approximately € 241 million in 2005.
• FDI growth (2005): an increase of 77% compared to 2004.
• Trade with Company A countries, as % of Foreign Trade in 2004:
o Russia: 58.7%
o Ukraine: 3.6%
o European Union: 27.4%
Country market development
• SectorX subscribers per 1000 inhabitants: 50 (Half-way 2006).
• Growth SectorX subscribers per 1000 inhabitants: Increase of almost 2000% compared to the year 2004.
• Sector XB prices (20 hours per month), as % of GNI per capita: 9.3%
• Total Sector X revenue 2004 (% of GDP): 3%, increase of 100% compared to 2000.
• Sector X Infrastructure Investments (with private participation) between 2000 and 2004: € 430 million.
• Growth Sector X Infrastructure Investments (with private participation) between 2000 and 2004: Increase of 2572% compared to 1995-1999.
• International Sector XB Bandwidth 2004 (bits p. person): 36.
• Growth International Sector XB Bandwidth 2004: An increase of 1700% compared to 2000.
• SectorX infrastructure: Under development. The government is creating SectorX Sector XB Access Backbone, as a stage of the governmental Belarusian Informatization Program.
• Price of E1 from Frankfurt to Belarus per kilometer: € 19.49
• Competition: RUE BelSector X (monopolist)
• Supplier: RUE BelSector X, being a monopolist it is the only available supplier until Sector X market liberalization takes place.
Entry barriers
• Sector X market liberalization: Planned for 2007, the market is now a monopoly.
• Procedures required starting a business (number):16
• Time required starting a business (days): 79
• Procedures when requesting licenses (number): 18
• Time needed to acquire licenses (days): 354
• Corruption Index Score (2005): 2.6
• Languages: Belarusian, Russian, other.
• Physical connection with Company A countries: Latvia, Lithuania, Poland, Russia, Ukraine.
Kazakhstan
Country information
• Political: Authoritarian Republic.
• Member of the EU: No.
• Member of WTO: No.
• Population 2006: 15.2 million (estimate), increase of 0.33% compared to 2005.
• School enrolment, tertiary (% gross): 48% in 2004
• GDP- real growth rate (2005): 9.2%
• FDI, net inflows: Approximately € 5,162 million in 2005
• FDI growth (2005): An increase of 56% compared to 2004.
• Trade with Company A countries, as % of Foreign Trade in 2004:
o Russia: 4.2%
o Ukraine: 1.7%
o European Union: 33%
Country market development
SectorX subscribers per 1000 inhabitants: 0.13 (Half-way 2006).
• Growth SectorX subscribers per 1000 inhabitants: Increase of 1200% compared to 2004.
• Sector XB prices (20 hours per month), as % of GNI per capita: 23.3%
• Total Sector X revenue 2004 (% of GDP): 3%, increase of 100% compared to 2000.
• Sector X Infrastructure Investments (with private participation) between 2000 and 2004: € 539 million.
• Growth Sector X Infrastructure Investments (with private participation) between 2000 and 2004: Decrease of 59% compared to 1995-1999.
• International Sector XB Bandwidth 2004 (bits p. person): 3.
• Growth International Sector XB Bandwidth 2004: An increase of 200% compared to 2000.
• SectorX infrastructure: Under development. KazakhSector X is currently developing National Information Super Backbone.
• Price of E1 from Frankfurt to Astana per kilometer: € 6.54
• Competition: KazakhSector X (Incumbent), KazTransCom, TransSector X, Nursat, ARNA, Astel.
• Supplier: KazakhSector X, as the incumbent owns the SectorX backbone.
Entry barriers
• Sector X market liberalization: Partly liberalized since 2004, full liberalization planned for end of 2006.
• Procedures required starting a business (number):7.
• Time required starting a business (days): 24.
• Procedures when requesting licenses (number): 32.
• Time needed to acquire licenses (days): 258.
• Corruption Index Score (2005): 2.6
• Languages: Kazakh, Russian
• Physical connection with Company A countries: Russia.
102
• Population 2006: 16.5 million (estimate), increase of 0.49% compared to 2005
• School enrolment, tertiary (% gross): 59% in 2004
• GDP- real growth rate (2005): 1.1%
• FDI, net inflows: Approximately € 28,644 million in 2005.
• FDI growth (2005): an increase of 9900% compared to 2004.
• Trade with South-East Europe and CIS, as % of Foreign Trade in 2004: 2.7%
Country market development
• SectorX subscribers per 1000 inhabitants: 198 (Half-way 2006).
• Growth SectorX subscribers per 1000 inhabitants: Increase of 4.54 % compared to the year 2004.
• Sector XB prices (20 hours per month), as % of GNI per capita: 1.5%
• Total Sector X revenue 2004 (% of GDP): 3.3%, decrease of 18% compared to 2000.
• Sector X Infrastructure Investments (with private participation) between 2000 and 2004: Not available.
• Growth Sector X Infrastructure Investments (with private participation) between 2000 and 2004: Not available.
• International Sector XB Bandwidth 2004 (bits p. person): 20,849.
• Growth International Sector XB Bandwidth 2004: An increase of 387% compared to 2000.
• SectorX infrastructure: Well-developed, government and providers keep on investing to stay at the top of the European SectorX coverage ranking.
• Price of E1 from Frankfurt to Amsterdam per kilometer: € 0.87
• Competition: All big Sector X companies.
• Suppliers: All big Sector X companies.
Entry barriers
• Sector X market liberalization: Since mid 1997.
• Procedures required starting a business (number): 7
• Time required starting a business (days): 11
• Procedures when requesting licenses (number): 18
• Time needed to acquire licenses (days): 184
• Corruption Index Score (2005): 8.6
• Languages: Dutch, Frisian.
• Physical connection with Company A countries: None
Romania
Country information
• Political: Democratic Republic.
• Member of the EU: No.
• Member of WTO: Yes.
• Population 2006: 22.3 million (estimate), decrease of 0.11% compared to 2005.
• School enrolment, tertiary (% gross): 36% in 2004
• GDP- real growth rate (2005): 4.5%
• FDI, net inflows: Approximately € 6,034 million in 2005.
• FDI growth (2005): an increase of 38% compared to 2004.
• Trade with Company A countries, as % of Foreign Trade in 2004:
o Russia: 4.2%
o Ukraine: 1.7%
o European Union: 68.8%
Country market development
• SectorX subscribers per 1000 inhabitants: 17.66 (Half-way 2006).
• Growth SectorX subscribers per 1000 inhabitants: Increase of 2423% compared to the year 2004.
• Sector XB prices (20 hours per month), as % of GNI per capita: 18.2%
• Total Sector X revenue 2004 (% of GDP): 3.8%, increase of 65% compared to 2000.
• Sector X Infrastructure Investments (with private participation) between 2000 and 2004: € 1,897 million.
• Growth Sector X Infrastructure Investments (with private participation) between 2000 and 2004: Increase of 14% compared to 1995-1999.
• International Sector XB Bandwidth 2004 (bits p. person): 107.
• Growth International Sector XB Bandwidth 2004: An increase of 2575% compared to 2000.
• SectorX infrastructure: After Sector X market liberalization several alternative providers developed their own glass optic cable networks.
• Price of E1 from Frankfurt to Bucharest per kilometer: € 1.04
• Competition: RomSector X (Incumbent), COMPANY D Sector X, RadioCom, others.
• Suppliers:
o COMPANY D Sector X, as it is already a partner of Company A.
Entry barriers
• Sector X market liberalization: As of 1 January 2003.
• Procedures required starting a business (number): 5.
• Time required starting a business (days): 11.
• Procedures when requesting licenses (number): 15.
• Time needed to acquire licenses (days): 291.
• Corruption Index Score (2005): 3.0.
• Languages: Romanian, Hungarian, German.
• Physical connection with Company A countries: Ukraine.
Turkey
Country information
• Political: Democratic Republic.
• Member of the EU: No.
• Member of WTO: Yes.
• Population 2006: 70.4 million, increase of 1.06% compared to 2005.
• School enrolment, tertiary (% gross): 28% in 2004
• GDP- real growth rate (2005): 5.6%
• FDI, net inflows: Approximately € 7,764 million in 2005.
• FDI growth (2005): an increase of 239% compared to 2004.
• Trade with Company A countries, as % of Foreign Trade in 2004:
o Russia: 6.8%
o Ukraine: 1.9%
o European Union: 50.2%
104
• Sector X Infrastructure Investments (with private participation) between 2000 and 2004: € 4,326 million.
• Growth Sector X Infrastructure Investments (with private participation) between 2000 and 2004: Increase of 64% compared to 1995-1999.
• International Sector XB Bandwidth 2004 (bits p. person): 122.5.
• Growth International Sector XB Bandwidth 2004: An increase of 206% compared to 2000.
• SectorX infrastructure: After Sector X market liberalization several alternative providers developed their own glass optic cable networks.
• Price of E1 from Frankfurt to Istanbul per kilometer: € 4.30.
• Competition: TurkSectorX, Koç.net, T-Systems, BT Infonet, MemorexTelex and many others.
• Supplier:
o TurkSectorX: Backbone with 140 PoPs in Turkey.
o Other Entry barriers
• Sector X market liberalization: As of December 31, 2003.
• Procedures required starting a business (number): 8.
• Time required starting a business (days): 9.
• Procedures when requesting licenses (number): 32.
• Time needed to acquire licenses (days): 232.
• Corruption Index Score (2005): 3.5.
• Languages: Turkish, Kurdish, other.
• Physical connection with Company A countries: None.
Sources:
The information needed to execute the potential country analysis and submit scores to the various factors were found via the ITU World Sector Xmunication/ICT Report 2006 and various internet sources.
The used internet sources are:
• En.wikipedia.org
• CIA World Factbook 2006 (www.cia.gov/cia/publications/factbook)
• The 2005 Transparency International Corruption Perceptions Index (www.infoplease.com/ipa)
• World Bank: World Development Indicators (devdata.worldbank.org/data-query)
• Eurostats (epp.eurostat.ec.europa.eu)
• European Commission (ec.europa.eu)
• www.belstat.gov.by: The Ministry of Statistics and Analysis of the Republic of Belarus
• www.stat.kz: The Agency of Statistics of the Republic of Kazakhstan
• www.insse.ro: National Institute of Statistics Romania
• www.die.gov.tr: Turkish Statistical Institute
• www.cbs.nl: Statistics Netherlands
• www.ez.nl: The Ministry of Economic Affairs of the Netherlands
• www.doingbusiness.org
• www.unctad.org: United Nations Conference on Trade and Development
• www.dnb.nl: National Bank of the Netherlands
• www.nbrb.by: National Bank of Republic of Belarus
• www.nationalbank.kz: National Bank of Kazakhstan
• www.bnro.ro: National Bank of Romania
• www.tcmb.gov.tr: Central Bank of the Republic of Turkey
Appendix J Internal developments since March 2006
Since the start of this research in March 2006, the following internal developments within Company A have taken place. These were not taken into account in this research:
• Company A Hungary Kft. has been incorporated.
• Company A Ukraine UA has been incorporated.
• Establishment of a sales office in the Ukraine is planned for the 1st quarter of 2007.
• Establishment of a sales office in St. Petersburg (Russia) is planned for the 1st quarter of 2007.
• ZAO Company A CIS has officially started to serve Enterprise customers in Russia.
• UAB Company A has officially started to serve Enterprise customers in Lithuania.
• Company A Latvia SIA will officially start serving Enterprise customers in the 1st quarter of 2007.
• Company AInternational Services Sp.Zo.O. will officially start serving Enterprise customers in Poland in the 1st quarter of 2007.
• A technical support employee has been recruited for UAB Company A (Lithuania).
• Company A has joined the Poland Sector XB. This horizontal/vertical alliance can be typified as Public Peering.
