Erin Networks (GIP) - Business Plan for 5G Network

This business plan aims to provide a road map for Erin 5G Networks to follow in its intentions to offer 5G or fifth generation mobile network. The project describes what entails the 5G network. It explains the unique aspects associated with the new system and why it should be implemented. The business to be established will be headquartered in Brisbane, Australia and will also have offices in major cities and other places within Australia. It is also projected to undertake business operations at international level in countries such as New Zealand, China, Hongkong, United Kingdom, and etcetera. The business will be named Erin Networks (EN), and it might require at least 500 masts in everyplace and location. The plan will provide market analysis, operational analysis, as well as financial analysis of the company to establish its viability. The owners intend to commence business with a capital of $2,000,000

Erin Networks (GIP)
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Executive summary
This business plan aims to provide a road map for Erin 5G Networks to follow in its intentions to
offer 5G or fifth generation mobile network. The project describes what entails the 5G network.
It explains the unique aspects associated with the new system and why it should be implemented.
The business to be established will be headquartered in Brisbane, Australia and will also have
offices in major cities and other places within Australia. It is also projected to undertake business
operations at international level in countries such as New Zealand, China, Hongkong, United
Kingdom, and etcetera. The business will be named Erin Networks (EN), and it might require at
least 500 masts in everyplace and location. The plan will provide market analysis, operational
analysis, as well as financial analysis of the company to establish its viability. The owners intend
to commence business with a capital of $2,000,000

Table of Contents
Business Info..............................................................................................................................................
Business Name...........................................................................................................................................
Business Owners:.......................................................................................................................................
Product/services:.......................................................................................................................................
The different ways how the company may carry out End-to-End Network Slicing for the various
Industries basing on only single physical infrastructure......................................................................
Management and Ownership of the enterprise.....................................................................................
Details for Ownership and control:........................................................................................................
Experience:..............................................................................................................................................
Key Personnel..........................................................................................................................................
Current staff:.......................................................................................................................................
Required staff:.....................................................................................................................................
Recruitment options:...........................................................................................................................
Training Programs:.............................................................................................................................
Skill Retention programs:...................................................................................................................
Products and services..............................................................................................................................
Marketing position:.................................................................................................................................
Unique selling position:...........................................................................................................................
Anticipated demands:.............................................................................................................................
Value to customer:...................................................................................................................................
Potential growth:.....................................................................................................................................
Innovation................................................................................................................................................
Development and Research:...............................................................................................................
Intellectual property strategy.................................................................................................................
Insurance policy.......................................................................................................................................
Risk Management....................................................................................................................................
Investor Risk............................................................................................................................................
Operations................................................................................................................................................
Suppliers...................................................................................................................................................
Trading Hours.........................................................................................................................................
Communication channels........................................................................................................................
Payment type...........................................................................................................................................
Credit policy.............................................................................................................................................
Warranties and refunds:.........................................................................................................................
Quality control.........................................................................................................................................

Membership & Affiliations.....................................................................................................................
Sustainability Plan...................................................................................................................................
Resources/Environmental Impact:.....................................................................................................
Risks or Constraints:...........................................................................................................................
Strategies..................................................................................................................................................
MARKET.................................................................................................................................................
Sales & Advertising.............................................................................................................................
Promotional & Advertising strategy..................................................................................................
Sales & Marketing Objectives............................................................................................................
Unique selling positions.......................................................................................................................
Remote Environment..............................................................................................................................
Economic..............................................................................................................................................
Political.................................................................................................................................................
Technological.......................................................................................................................................
Legal.....................................................................................................................................................
Social/cultural......................................................................................................................................
Geographic...........................................................................................................................................
Industry Analysis.....................................................................................................................................
The threat of new entrants-(moderate)..............................................................................................
Risk of substitutes-(low)......................................................................................................................
Bargaining power of the Buyers-(High).............................................................................................
Bargaining power for suppliers-(medium)........................................................................................
Industry rivalry-(high)........................................................................................................................
Overall industry attractiveness...........................................................................................................
Figure 5: The overview of Porters 5 Forces.......................................................................................
Strategy....................................................................................................................................................
Background:.........................................................................................................................................
Fundamental principles.......................................................................................................................
Vision:...................................................................................................................................................
Mission:................................................................................................................................................
Goals:....................................................................................................................................................
Values:......................................................................................................................................................
Reliability.............................................................................................................................................
Technological.......................................................................................................................................
Sustainability.......................................................................................................................................
Accountability......................................................................................................................................

Performance.........................................................................................................................................
Organizational structure:.......................................................................................................................
Key Products:..........................................................................................................................................
Functional................................................................................................................................................
Purpose and Size:................................................................................................................................
Price and performance............................................................................................................................
Networks in Every community within Australia...................................................................................
Transport and distribution Infrastructure:.......................................................................................
The Information technology Infrastructure:.....................................................................................
Branding and Image:...........................................................................................................................
Employees and Human Resource Management................................................................................
Systems.....................................................................................................................................................
Physical Infrastructure:......................................................................................................................
E-S-C GAP Analysis............................................................................................................................
Future:..................................................................................................................................................
THE BUSINESS
Business Info
Business Name: Erin Networks (EN)
The network company may require at least 500 masts in everyplace and location. The
location of these masts does not burden the company financially because they can be placed
on poles, existing towers, and any other structures such as buildings. Sites, where towers will
be located, will be purchased by the company, and some of the places where the masts will be
located will be rented since they can be shifted, unlike the towers which are very static

(Ericsson 2017a). The constraint to the location of these towers, boosters, and masts may be
difficulty in obtaining places for their location.
Business Owners:
 Jacob Reymonds
 Macreymnonds Travis,
 Luke Bapkas,
 Yarden Rafferty,
 Oscar Rachamimson,
 Jack Williams
 Raymond Olives,
 Richard Johnson,
 Michael Griffiths,
 Jake Cohngenfan.
Product/services:
Erin 5G Networks intends to offer 5G or fifth generation mobile network which is not just
any network. This network will have higher availability and shall be easy to access. They will
also have higher rates of data, better security, and higher efficiency of energy in comparison
to the Fourth Generation (4G). The company is intending to establish this network such that
different technologies are combined, for example, device-to-device communication, satellite
communication, mobile, and data access technologies (Nokia 2016b). The creation of this
technology by this company will help create space for advanced development for better
techniques. The services and products developed by the company will be used in different
areas of the economy, the development of this network by the company will possibly make
the transmission of information among business very easy (GSA 2017). Services provided by

sectors such as e-health, the internet of things, autonomous driving, the multimedia
distribution of content, as well as Machine to machine communication is made accessible
within the country. The company is intending to use 5G as eMBB, which means Enhanced
Mobile Broadband as the advancement to the 4G LTE services having high connections, high
capacity, as well as faster connections. The company is also intending to use the URLLC,
which is the Ultra-Reliable Low-Latency communications which identify the network for
critical mission applications which require a robust and uninterrupted exchange of
information and data (Nash 2016). The company also is intending to apply the mMTC
characteristic of 5G networks which is also known as the Massive Machine-Type
Communications used in the connects low cost, and small power devices within a large
number in the broad area, producing an increased lifetime of battery and scalability. Globally,
mMTC and URLLC are intended to be applied widely within 2021.
Figure 1: The illustration of the mMTC, URLLC, eMBB as they are to be used in the 5G
network by the company.

While establishing the 5G network, the company will be considering several attributes. The
5G networks could apply better than the existing 4G and other network types. Some of these
attributes are; Performance, standards, Deployment, the technology used, as well as how
different individuals are concerned about the technology. The quality of performance
comprises or explains two advancements, which are speed and latency (GSMA 2017). The
services provided by the company would be slight of the higher rate as compared to the 4G
network when similar antennas and spectrum are used, nevertheless few 3GPP 5G networks
are exceptional whereby they would be a bit slower than advanced 4G networks. The air
latency using the 5G would be expected to be ranging from 8-12 milliseconds, which would
be advantageous to the users of the system. The system of 5G would be highly deployed all
over the whole country and the company is intending to employ it mostly to private
companies involving in provision of robotics, tactile internet, as well as massive IoT because
the companies expect networks of high speed of approximately 1 Gbps, networks of low
latency and power (1ms or even less). The reason why the company is focusing on low
latency is to provide ease during real-time interactivity while using services in the cloud. The
low power consumption while using the network would be helpful to connected objects since
they would enable objects which are connected to run for years and months without help or
assistance from humans. The company would design its network in the way that it helps
provide a high-performance level needed for 99% availability, 10Gps data rate transfer,
1000x bandwidth rate for each unit area, 90% reduction in energy usage by the networks, and
10-year of battery life. These attributes as intended to be provided by the web would be
applied in video streaming, Autonomous driving, Tactile internet, Augmented reality,
personal cloud, video streaming, remote controlling, disaster alert, bi-directional control of
the isolated, wireless cloud-based office (Nielsen 2015), and many others. The company is
willing to provide services used by both citizens and industries. The company will also

employ 5G networks to support all settings of fibers from the LAN networks(Local Area
Network) for example the home networks to Wide Area Networks(WAN) through making or
using the right speed and latency settings.
The company looks at connecting over 200 million 5G devices within less than two years
after the launching of the network. The company suggests that reaching the patency rate of
less than 2ms. The company would use optical fibers (Dunn 2017). Through using the
network services, there would be room for the establishment and operation of new mobile
services which would go hand in hand with the network (Department of Communications and
the Arts 2017a). The company also intends to use robust authentication for the system while
the different individuals are using it. Therefore, that means that the network would be safe
and secure for the people using it's as to promote mutual authentication between users with
their connected devices and networks; currently, the system which is used is the USIM
application (Vodafone 2016a). The same methodology would be applied by the company
when it establishes its 5G services. Using the USIM application, embedded UICC chips, or
removable SIM cards could be possibly be used for authentication between the different users
(NGMN 2015). The company may also establish other security features on the top of existing
security frameworks (Deloitte Access Economics 2016). The company, through its services,
it is looking at advancing the Wi-Fi technology, which is slow and limited in operations to
secure mobility, superb speed, and better latency (Nokia 2017a).
The different ways how the company may carry out End-to-End Network Slicing for the
various Industries basing on only single physical infrastructure.
The End-to-end slicing of the network will be carried out by the company. The aim for that is
to give support to the diversified fifth generation services. End to end slicing of systems is
also a key feature to the evolution of 5G network architecture. The company will base its
physical infrastructure on SDN and NFV network architectures which will consist of three-

layer DCs and sites (Hatch 2013). The use of the sites is to give support to multiple modes,
for example, Wi-Fi, 5G, and LTE in the form of Pico, micro, and macro base stations for
implementing RAN real-time function. The functions enable performance in real time,
contain high capability of computing, as well as need inclusion of dedicated hardware (Nokia
2016a). While using the 5G network, the described three-layered cloud DC contain storage
and computing resources. The central office for the DC is the bottom layer, the local DC is
the second layer (Roger 2010), and the upper layer for the system is the regional Dc. Because
there is a demand of production of diversified services when using the network, there is the
generation of corresponding topologies of the network as well as series of network slices
(network function slices or sets) for every service type while using the NFV for unified
physical infrastructure. Every network set is obtained from a merged physical infrastructure
thus reducing consequent costs of constructing the network by the operator. Network sets or
slices within the development of 5G network take on a very logical arrangement as well as
being separated depending on individual structures (Ericcson 2017b). Therefore, that allows
heavily diversified and customized services (Huawei 2015).
Figure 2:The illustration of the end-to end network slicing for the multiple industries basing
on only single physical infrastructure as it going to be established by the company is shown
below;

Figure 3: Illustration of An organization Chart
Management and Ownership of the enterprise
Details for Ownership and management:
Erin Network Team was established in 2015 by Jacob Reymonds and friends after graduation
from college who were roommates in the small apartment. These individuals started it as a
very small team which was dealing in the installation, repairing, and distribution of 4G
network components for example GSMs, switches, and antennas. Each member in the
company played his or her responsibility very well thus leading to the further expansion of
the team into a company. The team grew into a very strong company providing better
services for its customers. Its growth and expansion was based on a strong background of
multi-disciplinary engineers who were honest in their operations. The government registers
the team under a partnership, but Reymonds are having the most significant shares. The
number of employees within the group has been increasing over years. Therefore this means
that different individuals have been taking on various positions within the company. Mr.

Jacob Reymonds is the overall manager of all the operations and projects undertaken by the
company. Meetings are conducted twice in week by the company leaders for enhancing the
structure of the business as well as determining new product designs and skills. General
meetings are also held once in a week for better running of the team as a company.
Experience:
The team has been running for quite an extended period, therefore the group of founders and
at the same time operating as the management team has experience of more than three years
in the field of telecommunications. The team and company have involved in many
international telecommunication seminars which are organized in different parts of the world,
for example, in the United Kingdom and other regions. Therefore, members have attained
diverse, skilled in leadership areas, innovation, project management, communication,
standards compliance, etcetera. The team has a number of individuals or team members.
while some of the these members have adequate knowledge about the concepts of
engineering, others have the same understanding in theories which are not related to
engineering for example marketing, social media advertisement, leadership skills, and others;
these areas will add value to the company so that it develops in all areas.
Key Personnel
Current staff:
Not applicable
Required staff:
All places covered by existing team members.

Recruitment options:
The company, when established, will be using various methods to carry out its recruitment
procedures. Some of the ways which are used by the company to carry out recruitment are
identified below:
 The company uses internal applications
 Social media platforms which include; Facebook, LinkedIn, Gmail, and
WhatsApp.
 The company also uses employee referral, and this ought to be the best
methodology.
 The company also make use of appropriate recruitment agencies, mainly in the
field of engineering.
The company uses only four recruitment options, and the most dominantly used option is the
employee referral. The company will behave in that way such that it becomes beneficial
while carrying out its recruitment selection process as well as reducing on expenditures of
recruitment (Anvari et al. 2005.). The Human resource manager will handle the recruitment
procedures and exercise within the company.
Training Programs:
The company offers both soft and hard training and teaching programs to all its employees.
The company categories skills to both hard and quiet in the following manner, hard skills
refer to those skills which are related to the field which include installation and maintenance
of the masts used in within the communication, manufacturing of the different components,
setting up different hardware systems, and many other skills. These skills are responsible for
the smooth running of the company. These skills are the reasons for the existence of the
company, and one should possess them to qualify as the right member of the company. The

soft skills within the company include; communication skills, leadership skills, marketing
skills, and others. These are also mandatory within the organization for its smooth running.
The above skills help to improve the efficiency of employees within the company
environment. Learning hard skills at times may apply to only engineers although sometimes
individuals from the non-related field are also trained but learning soft skills is paramount
and everyone within the company has to learn them irrespective of the area. Training may
include subjects like presentation skills and conflict resolution.
Skill Retention programs:
The offering of pieces of training to the different individuals is very crucial and is one of the
better ways which promote growth of the organization. The company will benefit abundantly
from its employee programs for training. Therefore, there is a need for the company to be
informed about news and practices of the industry such that the participation of employees in
training is made mandatory for both part time and full time employees. The costs for
participation in the acquisition of skills in any of the position of the company would be
effectively paid in full as one of the employee's benefit scheme by the company. The
company would only make these payments under these conditions:
 All information and standards remain the company's sole property
 There is a successful finish for all training assessments within the needed time
 The minimum rate for attendance to all training events is 95%.
Employees who are associated to these training would be the only eligible to review salaries
above the standard annual wage.

Products and services
Marketing position:
Currently, 5G is a new network within the world, this means there is a need for good
marketing strategies. The company would have an international competition from big and
famous companies. The global news suggest that new 5G components would be on the boom
before 2021; therefore, the company will produce high-quality products which would
compete globally on the market. The different ways through which the company would
globally compete is through proper use of the internet via social media marketing. Social
media marketing is carried out through the use of Facebook ads, YouTube, email marketing,
and others (IHS Economics & IHS Technology 2017). The company, after the production of
the components and establishment the services of 5G; it would also carry out in-store
advertisements as well as hosting different events were different individuals will be involved
or participate. The company to outcompete its rivals, it would produce products that are of
good quality at a cheap price for both high and low-income earners (Ericsson 2013). There
will also be sharing of customer reviews by the company to possible customers via different
channels, one of these channels is internet usage. Various marketing strategies would need to
be cost-effective.
Unique selling position:
Since 5G is a new introductory within the telecommunication field, different
telecommunication companies are expected to offer their services and network components at
a very high cost because of production costs and advertisement costs, Erin Networks is
looking at reducing on the costs of production such that it offers quality products at a
customer-friendly price. While dealing with reduction in costs of production, the company

has to look for cheap minerals, reduce transport costs, and use inexpensive labor for
advertisement.
Anticipated demands:
The team before, in the year of 2016, it was dealing in the production of 3G networks
components and provision of related services since it was a beginner company; the
individuals never made a lot of revenue from its activities since it was just starting. They
planned to make an upgrade to start producing 4G networks in recent years. This plan
consisted of making a thorough research about the network infrastructure. This cost them a
lot of money, they started dealing in installation and maintenance of 4G networks as well as
manufacturing the corresponding networks (Deloitte University Press 2017). The overall
budget for them was 60 million dollars for running the production as well as carrying out its
services. Since they advanced into production to 4G, there was increased demand for services
within that specific year. The main customers for the products offered by the team are from
Institutions which need fast networks, homes which install LANs, as well as other
government offices. The increase in the demand for the services provided by the group within
Australia in the previous years had an overall rate of 40% therefore raising high revenue for
the company.
There is an anticipated demand for the services and products provided by the company. The
anticipated increase in the demand of the products provided by the company is 75%; this is
because this form of network is new within the country and secondly it's efficient for private
institutions, government bodies, and homes. The other reason where is a high anticipated
demand of 5G network provided by the company is because it's a technological revolution
within all globe.

Value to customer:
5G networks are advancements within the existing technology in the world, they are assumed
to be having a high speed, have low latency, they are cost effective, and 5G devices are said
to have little power usage. This makes these devices essential in the modern lives of people
and a necessity for any stable government, state, and council (Estonian Presidency of the
Council of the European Union 2017). They would improve communication within the
country at very low-cost rates, increase productivity through communication, and other
advantages. This makes the services provided to the customers, for example, the government
to be highly desired. The services provided by the company are to be applied in the different
parts of the economy. They are to be used in real internet companies, transport industry,
communication industries, robotics, agriculture, education sector, mining industry, and
etcetera. This means that the product, as provided by the company, is very valuable and will
be highly demanded.
Potential growth:
Since the services provided by the company are highly demanded, there is a possible growth
of the company. The services provided by the company are both required locally and
internationally, local customers include the government and local institutions while
international customers include foreign institutions which are highly demanding the services
provided by 5G networks (Brian 2001). The only factor making 5G network real is its
increased demand within other sectors of the economy, making every company involving in
the production of those services benefit.

Innovation
Development and Research:
It very essential for this company to research the way it provides its services to its customers.
The company should as well invest money and time into development and research
procedures (R&D). Through carrying out research, will enable the company to remain
competitive and thriving in the networking and telecommunication industry. Research and
carrying out development will give advantage to the company because it will be in the
position of finding new and better ways of competing as well as produce better services
(Deloitte Access Economics 2015). Production of better products and provision of advanced
services would attract new customers to the company as well as reduce the construction and
communication expenses (Ericsson 2015a). The company to work on the subsequent
development and research projects so to enhance on its production:
 Research and creation of new network services and components which are
legible of reducing production costs
 Researching on how to construct and build better 5G network components.
 Researching on better ways of installing and maintaining 5G networks.
Intellectual property strategy
The networking company would seek legal advice or counseling with efforts of protecting the
intellectual property (IP) as well as maintaining creative control. In the same manner, the
company would ensure that the registered Intellectual Property is not breached. The company
to protect its intellectual property through the following ways:
 The company designs for different network components should be registered.
 The company should patent its inventions.

 The items and logos which are related to the company brand should be
trademarked.
Within the company, confidential agreements will be observed by all suppliers, employees,
and contractors so as to make sure that trade secrets or/and copyrights which regard to final
products are for the business.
Insurance policy
The company will adhere to two compulsory insurance policies which are subjected to
business running in Australia. One of these insurance policies is Workers' compensation. It
covers all the employees in the business from events that occur unexpectedly. Some of These
events are sickness and accidents (GSMA, 2016). The second insurance policy where the
industry would apply for is the Third party insurance policy, this protects different
individuals from personal injuries which arose from the carrying out company activities, for
example, using the company's vehicle and using various tools of the company.
Worksafe Victoria suggests that Workcover Insurance should only be conducted in cases
where;
 The company contains trainees or apprentices
 The company has an expectation of paying $7500 and more in every financial
year within remuneration.
Because Erin Networks has a desire to operate as a big telecommunication and networking
company within Australia and internationally as well as expand its services into the global
market, there is a need for the Worker's insurance which need to protect the workers from
uncertainties such as accidents. This type of insurance is introduced instantly the worker
starts to operate within the company (Vilches 2010). The details regarding this type of
insurance are well elaborated to the employee as well as the company. There is a difference

in coverage regarding workers operating within the company and those operating in the field.
Workers working in the area will gain much coverage compared to those working within the
offices, this is because those operating outside the tracks are more prone to accidents and
risks as compared to those workers in offices (Zheng et al. 2011). The third-party insurance
will be useful in covering the expensive equipment which is being used by the company.
Some of these equipment's which are covered through the third insurance type of coverage
include vehicles which are very expensive and have a cost of higher than $10,000 (Gartner
2017), tall masts, expensive machines which are used in installation of the different
components. Most of this expensive equipment have compulsory insurance (Diss, 2015).
Since the company is to be a big company and will use a variety of components in promoting
its services, it is not fair for this the company to use only one insurer. For that reason, the
company would combine various insurance policies from different IT insurance companies in
Australia to be in a position of multi-policy discount (Davidson 2010). On the hand, so as to
avoid excessive premiums, the networking company would use other preventative measures,
for example, the use of fire extinguishers, use of security systems, use of smoke alarms, as
well as door deadlocks. The company will seek insurance from top IT insurance companies
which include AIG Australia Limited, Brooklyn Underwriting Pty Ltd, Dual Australia Pty
Ltd, and Chubb Insurance Company. The company would be revaluing and renewing each
policy annually so as to ensure that there is a correct cover of the company.
Risk Management
To effectively make profits, there is a need for the management to understand how to handle
the different risks. Similarly, there different types of risks involved with this type of business.
One of these risks is Investor Risk.

Investor Risk
This is divided into Systematic Risk and Non-systematic risk. The different systematic
uncertainties associated with Erin Networks include; volatility risk which has to do with
changes in prices of raw materials used in the production. Event risks which describe the
existence of natural disasters or wars, political risks which relate the changes in political or
policy decisions which affect energy consumption and sustainability, and lastly inflation risk
which explains fall in the money value. It's tough to overcome these types of risks, but they
can be monitored to overcome their effects (Cisco, 2017).
The Non-systematic risks which may affect the company in the establishment and
development of 5G networks include Demand and supply Risk arising from supplying being
different from demand (Egan, 2008), management risk which arises from poor management,
as well as industry competitor risk which may result from competition from other firms.
There are possibilities of reducing non-systematic dangers to a minimum rate by using
different mitigation and risk management methods (Crozier, 2017). Some of these procedures
include the company coming up with low-manufacturing capacity plans, promoting
relationships between employees by emphasizing team work (Pauli et al., 2010).
Management risks would be overcame through coming up with better management
techniques. Competitive risks would be overcame through increasing innovation and
creativity in production.
Operations
The different services which are produced by the company undergo a channel of different
procedures before they are provided to the final customers. Some of the methods which are
undertaken by the company include event management, incident management, request
fulfilment, problem management, as well as Access management (Commonwealth of
Australia 2010). Event management is the process of monitoring all the events that are

occurring within the IT infrastructure to avoid errors. Incident management consists of
identifying, analyzing, as well as correcting all hazards to prevent their future occurrence
(AMTA & Communications Alliance 2017). Request fulfillment refers to the process for
managing all service request life cycle from the different users. Access management looks at
the capability of users to have access to different services within the system.
Suppliers
Given the fact that the company deals mainly in the provision of network services and
production of network components, it has different suppliers who are responsible for the
supplying of different components (Given 2010). These suppliers are responsible for
providing similar products within the same industry. They are responsible for supplying of
GSM modems, cabling standards, different telecommunication sensors, terminating tools, and
switches (Segan 2018). Therefore the company suggests that the following suppliers would
be eligible for carrying out supply. The companies which will be used for supplying network
sensors are NXP semiconductors N.V. as well as Broadcom Limited (AVAGO).The company
which may responsible for the supply of GSM sensors would be known as Micromedia
International (Amalgamotion 2017).
Trading Hours
The office for the company will always be open for business working days and hours, 8 am to
5pm from Monday to Friday. All employees and teams are expected to work all the hours so
as for the company to be highly effective. The company is expected to be making profits in
all seasons of the year except in winter were there are weather constraints.
Communication channels
Customers of the company would reach the company through social Media platforms, email
address, and phone (landline), all of these can be accessed by visiting the company's website.

Payment type
Payments would be made to the company through bank transfer after receiving the invoice.
The use of credit cards would also be acceptable, especially for clients operating from
different locations. When there is the installation of a given service for the client, the client is
advised to pay for every service carried out so as to help in accomplishing the projects.
Payments for objects purchased from the company are made before delivery.
Credit policy
The credit policy for the company would be stringent because of the nature of the company's
business. Payments in the company would always be carried out after 7 working days before
receiving the invoice.
Warranties and refunds:
The different products and services provided by the company comply with the standards of
Australia for their strength and durability. The services are meant to be reliable, error-free,
and meeting consumer expectations while the different products are intended to be durable.
Therefore, the company offers refunds and warranties incase the provided services do not
meet terms and conditions as agreed between the customers and organization.
Quality control
Quality control within Erin Networks would be stringent. There will be carrying out of
inspections and testing in the different workshops when manufacturing is carried out (Coyne
2016). The services provided should be of high standards and meeting needs of the consumer.
The products will meet consumer expectations.
Membership & Affiliations
The company will be affiliated to the shipping company and a train company for exportation
and importation overseas. The primary shipping organization would be TOLL while for the

train service would be Crane Train. Both companies are safe for transporting packages as
needed.
Sustainability Plan
Resources/Environmental Impact:
The company does not have a significant impact on the environment negatively. The cellular
towers, generators, and other equipment used by the company consume power through
burning fuel. When there is burning of fuel, always the by-product for the whole process is
carbon dioxide, this means that the different services carried out by the company emit carbon
dioxide. On the other side, the impact of these gases on the environment could be minimized
through using environmentally friendly equipment. The overall danger of the
telecommunication industry on the environment is less as compared to other industries.
Risks or Constraints:
The company has a very small chance since it has an impact to the environment through
emitting low percentages of carbondioxide to the atmosphere. The risks which arise from
being a pollutant to the environment could be minimized. This means that the risks for the
company to the environment are controllable (Future Communications Challenge Group
2017). One of the other ways the company is willing to reduce risks to the environment is
through being green wherever the company establishes its infrastructure.
Strategies
Audits of the environment concerning the company would be conducted every year so as to
check the impacts of the company on the environment.
The company always avoid dumping, which will be dangerous to the environment. It mainly
carryout recycling of the different network components. The various network components on
the other side are very durable which means there are not easily dumped or recycled.

THE MARKET
Sales & Advertising
Promotional & Advertising strategy
The company will allocate an approximate amount of 10% of its profits towards the
advertisement. The possible advertisement platforms would be newspapers, social media,
billboard advertisement, and television. The goal of advertisement is to raise popularity of the
company within Australia so as to increase sales. The company would join other
telecommunication organizations such that it is easily known.
Sales & Marketing Objectives
The public relations and marketing team for Erin Networks will look for the possible ways of
involving into different community activities so the various people within the community are
aware of the services provided by the company.
Unique selling positions
The company could possibly out compete its competitors because of the introduction of 5G
networks. The company has emphasized using better research procedures to produce low-cost
products. Producing low-cost goods and providing services cheaply would improve the sales
performance of the company.
Remote Environment
Economic
The telecommunication industry is currently one of the largest industries in Australia. The
industry has been using 4G networks, the LTE telecommunications company introduced 5G
networks within Australia but there services were sub-standard. Therefore, they were ejected
from the country (Alleven 2017). Citizens and the government are spending a lot of money
probably billions of Australian dollars to come up with advanced and excellent quality

telecommunication services for example fast internet (CeBIT Australia 2016), low latency in
communication etcetera. The company would help provide solutions to the needs of these
groups of individuals.
The company should get different ways of handling taxation rates, interest rates, as well as
Gross National Product because they can as well have a very large effect on the financial
performance and profitability of the company.
Political
The different actions which are undertaken by the government, for example, government
changes within its legislation and policies. The works of the company would be monitored by
the Australian communications and Media Authority (ACMA).
Technological
The company has been advancing in its technical setting annually since its establishment. The
major aim, while the company is competing within the industry, is because of its proposal to
introduce 5G network structure (Rumney 2008). As there are improvements in technology
within the whole globe, the company also makes initiatives of advancing its technology to
provide better services to its customers.
Legal
To provide better services within Australia, Erin Networks has to abide with all of the legal
procedures within the country, some of these legal procedures are related to what standards of
telecommunication networks and equipment are needed and legal. The company has to also
run their business while possessing all the necessary permits, licenses, and approvals from the
government (DHL & Cisco 2015). Therefore, it's advisable for the company to abide by all
design and development standards used in the telecommunication sector. The company has to
be docile to all Australian Standards (All relevant standards)

Social/cultural
Over different years, the Australian government together with other bodies, has been
responsible for safeguarding the citizens against fake and unsatisfying communications
within the country (Case Western Reserve University 2015). Communication like transport
and agriculture are very important in the country. Therefore Erin Networks is looking
forward to provide better communication services to the citizens of the country (Department
of Communications and the Arts 2017b).
Geographic
The analysis, as well as surveying of different locations before establishing the different
telecommunications infrastructure, is very important (Michael 2008). There is a need to
consider various geographical factors, for example flood prone (Deloitte 2016), heavy traffic
prone areas, and suburban areas while dealing with the establishment of communication
networks.
Industry Analysis
While analyzing the industry, Porter's five forces were used. The description of the
communication industry were Erin Networks is to participate using Porter's five forces is as
below
The threat of new entrants-(moderate)
These firms very dominate the telecommunication industry in Australia:
Telstra which the oldest and biggest telecommunication company
 Vodafone Hutchison Australia (VHA)
 Singtel, which is Singapore Telecommunication Company.
 Macquarie Telecom Group Limited which was established in the year 1992
and the company is headquartered in Sydney, Australia.

The current supply within Australia is meeting the demand for communication services
within the country (Guowang et al. 2016). This does not give a chance for new firms to join
the industry. New entrants hardly enter into the industry because the conditions are quite
unfavorable for them Rappaport et al. 2013). Currently, there is a chance for new entrants to
join the industry because there is a need for advancement in the generation of mobiles. There
is a shift from the four generations to 5 generations giving chance to new entrants, for
example, Erin networks into the industry.
The threat of substitutes-(low)
There is a limited threat of substitutes, the telecommunication industry in Australia has no
alternative (Barras 2014). The government allocates a substantial amount of money annually
to this industry. The only threat to this industry is competition from firms from other sectors
from different countries (Reynolds 2007). The government can monitor the competition from
firms from other industries. At the same time firms within Australia have to provide quality
products and provide quality services.
Bargaining power of the Buyers-(High)
Since the industry is already established, there are a lot of firms within the industry where
some are large firms, others are moderate, and other firms are small (Rainer & Turban 2009).
The existence of these firms give a chance to buyers to easily bargain for a reduction in the
prices of the products provided (ACMA 2016a). Erin Network will offer better products at
low costs which could possibly attract customers. Customers who are interested in
establishing friendship in terms of business with Erin Networks would probably hold very
low bargaining powers (Teral 2019).

Bargaining power for suppliers-(moderate)
There is an average bargaining power for suppliers of the different materials used within the
communication industry. This is because there are very many suppliers as compared to the
firms purchasing there items(AMTA & Communications Alliance 2016b), this means that
these firms cannot request for high prices due to competition among themselves.
Industry rivalry-(high)
There is a very high competition between the different firms within the telecommunication or
communication industry. The communication is among the big firms, which, in any case,
share the most top market size (Deloitte Access Economics 2017). These firms competing
within the industry are providing 4G network services, the only firms which introduced 5G
network within the country were sent out of Australia. One of those firms was LTE (ACMA,
2017). Therefore, Erin Networks submitting 5G would probably compete favorably with
these firms.
Overall industry attractiveness
The Communication or telecommunication industry is a very highly competitive industry.
The only chance for a new entrant, for example, Erin Networks who has not spent in this
industry a very longtime to favorably compete is to produce an innovated product or simply a
new product (Drucker 2013). That means if the firm is not willing to innovate its products, it
would specifically be out-competed by other firms within the same industry.

Figure 5: The overview of Porters 5 Forces.
Strategy
Background:
Erin Network team is a telecommunication team or company which was founded in 2015
mainly to deal in the production of advanced telecommunication products and services.
The company currently is looking at provision of 5G networks which as the new trending
technology to improve on the communication network within Australia. The company is
looking forward to locate its offices in the different cities of the country.
Fundamental principles
The visions, as well as core values for this company, are well defined so as to outline its
purpose into the communication industry clearly.

Vision:
Our Vision is to come up with better, highly innovative, and high quality
telecommunication services and products meeting the demands of customers at a very low
cost.
Mission:
Provide low-cost products to customers meeting their demand.
Be at the helm of producing of up-to-date technologies which are globally accepted
Produce equipment which are environmental friendly through using recyclable materials.
Goals:
Produce 5G components and services to cover 50% of Australia infrastructure by 2021.
Improve telecommunication infrastructure over years through establishing high quality
telecommunication technologies.
Reduce on the 3G and 4G network infrastructure within Australia by 95% by 2025.
Values:
Reliability
Establishing technologies which are innovative so as to increase on product life span
Meeting all communication standards within the country.
Technological
Use of new technologies when providing services.
Research for advanced technological processes
Sustainability
Use of recyclable and recycled materials

Use environmental friendly products as well as provide services which are friendly to the
environment.
Accountability
Meeting deliveries as well as commitments
Performance
Promoting services which are performing as expected by the clients.
Dominating the telecommunication industry.
Organizational structure:
So as to review the organization structure of the company, the organization chart is
presented in the Business section of the report. Management details, strategic affiliations,
as well as key personnel are found in this part.
Key Products:
The products and services offered by the company are also found within the Business
section of the report
Capabilities
Functional
Purpose and Size:
Erin network is a very innovative communication company which will have offices
located in Brisbane, Australia. Erin Network will be growing company which is aiming at
providing highly innovative 5G network services and products (ACMA 2016c). The

company is aiming at becoming one of the best communication companies within the
country.
Price and performance
The Erin Networks company is aiming at providing high quality products at a customer
friendly cost. The products produced would be cost-effective, long-term, and innovative.
The company has an expectation of paying $7500 and more in every financial year within
remuneration. The cost for every service has a minimum price of $1000 dollars and the
cost for every product has a minimum of $700 depending on what one is buying.
Networks in Every community within Australia
Transport and distribution Infrastructure:
This is very useful to the company since it would be important in the transportation of
resources, different equipment, as well different individuals to operate within the fields.
The company would use better transport means for transportation where railway, water
and road transport would be the mostly used means of transportation.
The Information technology Infrastructure:
The company is aiming at using highly innovative IT infrastructure as well as current
technology when offering services to its customers (AMTA & Communications Alliance
2016a).
Branding and Image:
Erin Networks is a company which identifies innovation, cost reduction, as well as
reliability (Ireland et al 2008). The company has a target of obtaining a better reputation
through minimizing costs on purchase good quality 5G networks at an affordable
consumer price. All contracts would be legally and ethically undertaken by the company
as well as respecting the present values.

Employees and Human Resource Management
So as to have a reduction in the costs of employment, the company would only acquire
personnel who are diversified in skills which means they are multi-skilled so as to reduce
on the size of the workforce as well training costs (Tang 2014). As the company advances
in production and growth, there would be creation of more employment opportunities so
as to meet increased demand of services.
Systems
Physical Infrastructure:
Head office established in Brisbane, Australia. The company would have offices in other
places and major cities within Australia. It have offices in other countries for example
New Zealand, China, Hongkong, Unite kingdom and others. 5G cellular towers located in
each of Australia biggest cities that is Melbourne, Sydney, Brisbane, Perth, Adelaide,
Gold Coast, Newcastle, Canberra, and others. The location of these cellular towers are
predicted to cover a small area of 400 square feet (Nordrum & Clark 2017).
E-S-C GAP Analysis
The current telecommunication industry uses more of 4G networks, which consists of 4G
networking components, for example routers, switches GSMs which are used in the
provision of networking services to the citizens of the country. There few cases of 5G
networks within the country (Shukla 2011). 4G networks are speedy networks but not as
compared to 5G networks (ABS 2016). 4G networks can occupy a larger area compared
to the pre-existing systems which were 3G and the edge. 4G have a moderate-high
latency which possibly makes robotics hard and other services within other industries a
bit hard, for example real-time gaming, real time data sharing possibly hard.

Future:
This network will be having higher availability of access, higher rates of data, better
security, and higher efficiency of energy as compared to the Fourth Generation (4G).
Different technologies are combined for example the device-to-device communication,
satellite communication, and mobile and data access technologies (Hoffman 2019). The
creation of this technology by this company would help create space for advanced
development for better technologies (Denis 2014). Services provided by sectors such as e-
health, the internet of things, autonomous driving, the multimedia distribution of content,
as well as Machine to machine communication is made accessible within the country.
While establishing the 5G network(ACMA 2016b), the company would be considering
several attributes the 5G networks could apply better than the existing 4G and other
network types (Witze 2019). the interface would be involved in video streaming,
Autonomous driving, Tactile internet, Augmented reality, personal cloud, video
streaming, remote controlling, disaster alert, bi-directional control of the remote, wireless
cloud-based office, and many others. The company will also employ 5G networks to
support all settings of networks from the LAN networks(Local Area Network) for
example the home networks to Wide Area Networks(WAN) through making or using the
right speed and latency settings (Anand Lal 2010).
The Finances
The company will be expected to kick start its operations from rented office space at the start
of 2020. All the necessary equipment will be fitted within the office and operational store.
The company will be expected to commence its operations fully within four months of 2020.
The tables, graphs as well as charts below present a forecast for a five-year plan from 2019 to
2023. The estimates present all the costs for starts, the balance sheets, cash flows as well as
income stamens.

Financial objectives
The company focuses on achieving the following fundamental goals
 To attain a maximum capacity for production by the end of the financial year
2020
 To break even by the end of the third year of operations
 To attain the rate of reliability of 95% regarding quality control by the end of
financial year 2020
Financial requirements
To be able to commence business operations, the company will require roughly a total of
$2,000,000. The funds required will be majorly contributed by the business owners.
Assumptions
 All the capital assets have a five years useful life and a straight line rate of
depreciation
 The company is a private entity and is not listed on the ASX
 Goods and services tax was not incorporated in the financial forecasts
 All the products of the company are produced and sold within the same
financial year
 The company will start to grow at a constant rate of 40% after the third year
of operations
 it is assumed that the internal rate of return is 10%
STARTUP COSTS FOR FINANCIAL YEAR 2020

The forecast projects costs of capital of about $1,343,908. The creditors shall be paid
monthly. It is projected that the overall amount for startup will not be required to
exceed the initial capital of $2,000,000.
START-UP COSTS Cost ($)
EQUIPMENT/CAPITAL
COSTS Cost ($)
Operational expenses Business purchase price $0.0
payroll 391,658.000 Franchise fees $0.0
Marketing & advertising 473,712.000 Start-up capital $1,293,908.0
Depreciation 4,992.000 Plant & equipment
repairs& maintenance 6,000.000 Vehicles $0.0
Storage costs 90,000.000 Computer equipment $50,000.0
Rent 42,000.000 Computer software $0.0
Insurance 21,600.000 Phones $0.0
Payroll Taxes 58,749.000 Fax machine $0.0
Systems of inventory control 20,000.000 More… $0.0
Solicitor fees 6,000.000
Stationery & office supplies 2,000.000
Total start-up costs 1,116,711.000 Total equipment/capital costs $1,343,908.0
Balance sheet forecast
All the equity is anticipated to be distributed back to the owners before the end of each
financial year.
PROJECTED
BALANCE
SHEET
YEAR ONE YEAR TWO YEAR
THREE YEAR FOUR YEAR FIVE
Assets
Current Assets
Cash at hand $194,808.00 $198,108.00 $921,684.00 $1,290,357.60 $1,806,500.64
Accounts
Receivables $123,381.00 $329,920.00 $568,195.00 $795,473.00 $1,113,662.20

Inventories $112,462.00 $298,712.00 $516,409.00 $722,972.60 $1,012,161.64
Other short
term Assets $40,000.00 $90,000.00 $190,000.00 $266,000.00 $372,400.00
Gross
CURRENT
ASSETS
$470,651.00 $916,739.00 $2,196,288.00
$3,074,803.20 $4,304,724.48
Non-current
assets
Computer and
equipment $50,000.00 $50,000.00 $50,000.00 $70,000.00 $98,000.00
Depreciation
accumulated $4,992.00 $9,992.00 $14,992.00 $20,988.80 $29,384.32
Total nun
current assets $45,008.00 $40,008.00 $35,008.00 $49,011.20 $68,615.68
TOTAL
ASSETS $515,659.00 $956,747.00 $2,231,296.00 $3,123,814.40 $4,373,340.16
Liabilities and
owners’ equity $2,000.00 $2,001.00 $2,002.00 $2,802.80 $3,923.92
Short term
liabilities
Accounts
Payables $218,167.00 $357,931.00 $596,142.00 $834,598.80 $1,168,438.32
Short term
Borrowings $66,400.00 $32,800.00 $0.00 $0.00 $0.00
CURRENT
LIABILITIES $284,567.00 $390,731.00 $596,142.00 $834,598.80 $1,168,438.32
Noncurrent
Liabilities $1,525,000.00 $1,225,000.00 $725,000.00 $1,015,000.00 $1,421,000.00
Gross total
LIABILITIES $1,809,567.00 $1,615,731.00 $1,321,142.00 $1,849,598.80 $2,589,438.32
Earnings
retained ($1,227,391.00) ($1,293,908.00) ($658,983.00) ($922,576.20) ($1,291,606.68)
Overall
earnings ($66,517.00) $634,925.00 $1,569,138.00 $2,196,793.20 $3,075,510.48
TOTAL equity ($1,293,908.00) ($658,983.00) $910,154.00 $1,274,215.60 $1,783,901.84
TOTAL
LIABILITIES
AND
OWNERS’
EQUITY
$515,659.00 $956,747.00 $2,231,296.00
$3,123,814.40 $4,373,340.16
Cash flow forecast
The projected cash flow includes annually projected cash flow for the next five years
PROJECTED
CASH FLOW
YEAR ONE YEAR TWO YEAR
THREE YEAR FOUR YEAR FIVE
CASH INFLOW
Cash flowing

from Operations
Cash from sales $1,550,940.00 $4,147,200.00 $7,142,400.00 $9,999,360.00 $13,999,104.00
Cash from
accounts
receivables
$658,468.00 $1,406,261.00 $2,539,325.00
$3,555,055.00 $4,977,077.00
CASH FROM
OPERATIONAL
ACTIVITIES
$2,209,408.00 $5,553,461.00 $9,681,725.00
$13,554,415.00 $18,976,181.00
Additional Cash
attained $0.00 $0.00
New Current
Borrowing $100,000.00 $0.00 $0.00 $0.00 $0.00
CASH
RECEIVED $2,309,408.00 $5,553,461.00 $9,681,725.00 $13,554,415.00 $18,976,181.00
Expenditures
from Operations $0.00 $0.00
Cash expenditure $391,658.00 $951,500.00 $1,310,500.00 $1,834,700.00 $2,568,580.00
Bill related
payments $1,702,342.00 $4,215,061.00 $7,014,849.00 $9,820,788.60 $13,749,104.04
TOTAL
EXPENDITURE
ON
OPERATIONS
$2,094,000.00 $5,166,561.00 $8,325,349.00
$11,655,488.60 $16,317,684.04
Additional Cash
Spent $0.00 $0.00
Principal
Repayment
relating to short
term loan
$33,600.00 $33,600.00 $32,800.00
$45,920.00 $64,288.00
Principal
repayment of
Noncurrent
liabilities
$125,000.00 $300,000.00 $500,000.00
$700,000.00 $980,000.00
Purchase made for
other short term
Assets
$37,000.00 $50,000.00 $100,000.00
$140,000.00 $196,000.00
GROSS TOTAL
FOR CASH
SPENT
$2,289,600.00 $5,550,161.00 $8,958,149.00
$12,541,408.60 $17,557,972.04
Net Cash Flows $19,808.00 $3,300.00 $723,576.00 $1,013,006.40 $1,418,208.96
CASH
BALANCES $194,808.00 $198,108.00 $921,684.00 $1,290,357.60 $1,806,500.64

CASH INFLOW
Cash flowing from Operations
Cash from sales
Cash from accounts receivables
CASH FROM OPERATIONAL ACTIVITIES
Additional Cash attained
New Current Borrowing
CASH RECEIVED
Expenditures from Operations
Cash expenditure
Bill related payments
TOTAL EXPENDITURE ON OPERATIONS
Additional Cash Spent
Principal Repayment relating to short term loan
Principal repayment of Noncurrent liabilities
Purchase made for other short term Assets
GROSS TOTAL FOR CASH SPENT
Net Cash Flows
CASH BALANCES
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
20000000
CASH FLOW CHART
PROJECTED CASH FLOW YEAR ONE PROJECTED CASH FLOW YEAR TWO
PROJECTED CASH FLOW YEAR THREE PROJECTED CASH FLOW YEAR FOUR
PROJECTED CASH FLOW YEAR FIVE
Profit and loss forecast
The table below presents a comparison of the overall revenue and operational expense as well
as the anticipated net profit across a period of five years.

PROJECTED
PROFIT AND
LOSS
YEAR ONE YEAR TWO YEAR
THREE YEAR FOUR YEAR FIVE
Sales revenue $2,154,083.00 $5,760,000.00 $9,920,000.00 $13,888,000.00 $19,443,200.00
Cost of sales $917,309.00 $2,436,480.00 $4,212,160.00 $5,897,024.00 $8,255,833.60
Gross Margins $1,236,774.00 $3,323,520.00 $5,707,840.00 $7,990,976.00 $11,187,366.40
Gross Margin
ratio $0.57 $0.58 $0.58 $0.81 $1.13
Expenditures $0.00 $0.00
Payrolls and
wages $391,658.00 $951,500.00 $1,310,500.00 $1,834,700.00 $2,568,580.00
Marketing and
advertising $473,712.00 $917,200.00 $1,476,200.00 $2,066,680.00 $2,893,352.00
Depreciation
expense $4,992.00 $5,000.00 $5,000.00 $7,000.00 $9,800.00
Storage costs $90,000.00 $60,000.00 $90,000.00 $126,000.00 $176,400.00
Maintenance and
repairs $6,000.00 $6,000.00 $6,000.00 $8,400.00 $11,760.00
Utility $22,400.00 $57,600.00 $76,800.00 $107,520.00 $150,528.00
Insurance cover $21,600.00 $50,000.00 $66,000.00 $92,400.00 $129,360.00
Rent and housing $42,000.00 $78,000.00 $134,000.00 $187,600.00 $262,640.00
Payroll related
taxes $58,749.00 $142,725.00 $196,575.00 $275,205.00 $385,287.00
Solicitor fees $6,000.00 $6,000.00 $6,000.00 $8,400.00 $11,760.00
Inventory systems
of control $20,000.00 $0.00 $0.00 $0.00 $0.00
Total Operational
expenses $1,137,111.00 $2,274,025.00 $3,367,075.00 $4,713,905.00 $6,599,467.00
Profits attained
before taxes and
interests
$99,663.00 $1,049,495.00 $2,340,765.00
$3,277,071.00 $4,587,899.40
EBITDA $104,655.00 $1,054,495.00 $2,345,765.00 $3,284,071.00 $4,597,699.40
Interests $166,180.00 $142,460.00 $99,140.00 $138,796.00 $194,314.40
Taxes $0.00 $272,111.00 $672,488.00 $941,483.20 $1,318,076.48
Net Profits ($66,517.00) $634,925.00 $1,569,138.00 $2,196,793.20 $3,075,510.48
Net present value forecasts
Year one Year two Year three Year four Year five
Cash flow 194,808.00 $ 198,108.00 $ 921,684.00 $1,290,357.60 $1,806,500.64
Initial
investment -2,000,000.00
Rate 15%
NPV $487,943.30

The project has a positive net present values and therefore it should be perused.
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