1. Service operator
1.1. Needs network technology
1.2. Scared, that customer won´t use network
1.2.1. Gainshare mechanism [X]€ for every customer using the network
1.2.1.1. Forecast XXX users on network
1.3. could also use Nokia technology
1.3.1. Nokia, however is more expensive
1.3.2. But technology is more secure
1.4. Scared about data leakage
1.5. Has a certain technology component, which allows the network supplier to improve production process and saves [X]€
1.6. Could imagine to sell handset devices provided by technology supplier in exchange for cheaper prices
1.7. Also scared about reputational damage -> include agreement on appropriate treatment of data
1.8. Total order volume Germany c. 100k €20k per Antenna - quantify for every country (use table)
1.9. Has access to market and frequencies but can not produce hardware equipment
1.10. Has already contracted 10k antennas with Nokia - but can cancel order for contract penalty of [X]€
1.11. JV to be accepted under no circumstances
2. Optimal solution
2.1. Networtk supplier supplies all antennas´for service operator
2.2. Service operator pushes huawei's handset devices into market
2.3. Penalty to nokia is paid
2.4. No JV
2.5. Clause for data leakages is implemented
2.6. Price is paid in 2 components: fixed per antenna + per customer on network
2.7. Service operator transfers network component to network supplier
3. Network supplier
3.1. wants to sell network technology
3.2. Sees massive chance in new 5G technology
3.3. Is unhappy with handset sales
3.4. Could also sell technology to other service operator, which would delay delivery to our service operator but result in lower sales for the NS (Network supplier, not national socialist!)
3.5. Has trust issues because in past, service operator ordered large amount of 4G antenna which were payed very late and caused much trouble to the negotiator
3.6. Operates on several markets - but in one common market they are unwilling to cooperate due to exclusive agreements with competitors
3.7. Umsatz pro Antenna €20k, production cost €10k, marketing spend 10% of revenue -> EBITDA 8k
3.8. Possible solution could be a Network JV
3.9. Forecast of XXX users on 5G networks
4. General Instructions
4.1. Network supplier
4.1.1. Sells handset but not in europe yet
4.1.2. Sells antenna technology
4.1.3. Financials only partly available in public
4.1.3.1. Only a few press articles disclosing patches
4.1.3.1.1. No of antennas sold
4.1.3.1.2. No of handsets sold
4.1.3.1.3. average prices for both
4.1.3.1.4. COGS margin
4.1.4. Headquarter in Beijing
4.1.5. U
4.2. Service operator
4.2.1. Large pan european telco operator
4.2.2. Financials largely disclosed
4.2.3. Only rare information about network disclosed, but wants to be best in class
4.2.4. No 1 in Handset sales but only as sales push for data tariffs
4.2.5. Wants to build biggest 5G network, eventhough it has concerns about customers willing to pay premium for using 5G
4.2.6. Operates in the following markets: Hungary, Croatia, Austria, Germany, Netherlands, Albania, North Macedonia, Czech Republic, Poland