Business consultancy project

Theoretical Framework

The theoretical framework assists in realizing the theory of concern through various vital indicators in practical development. In this project, the theoretical framework enables to conceptualize the relevance of the study for the reinforcing of the horizontal expansion of Azercell Telecom revenue by defining the interconnection between crucial variables. The analyze of specific variables justifies the interrelation between variables and modification of the critical measurements through the period. Besides, the internal correlation, the implication of external factors to the vital revenue determinants was also characterized.
In the application of the theory on Azercell, the communication tools were assessed as independent and revenue defined as the dependent variable. Furthermore, the indirect enforcement of different factors to the substitution of the services and alteration of customer behavior were also conducted.

1. Correlation between Independent and Dependent Variables.

Traditionally the Voice and SMS used to be the leading revenue indicators and acquired the fundamental parts of the revenue proportion. However, in comparing with previous years, Azercell has also experienced the decline of Voice and SMS usage. The average annual decline of SMS usage in the last three years is 22%. Even though voice usage has not experienced a sharp reduction as SMS, but it is also on a steady decline, and it decreased by 6% and 2 % respectively in Y 2017 and 2018. In contrast with the decline of predominant revenue indicators, Data consumption expressed the positive changes in the last three years and the average annual growth rate is 60 %. The revenue as dependent variable directly impacted by the diminishing effect of independent variables. The average decline of SMS revenue in the last three years was 20% and simultaneously, together with traffic decline voice revenue reduced by 2% on average.
Nevertheless, with an increase of Data consumption, the Data revenue displays a substantial increase by 25% of annual average growth rate.

Figure.28. Theoretical Framework

Consequently, the mobile networks` global challenge, the substitution of traditional communication tools consumption inherits in Azercell usage as well. The revenue outlook of core services expresses the downward trend, and the substantial growth is seen in broadband penetration. In order to diminish the impact of service substitution and the influence of alternative communication tools, Azercell started to enlarge the product line through digital transformation. Recently obtained value-added services sustain the upward trend

in the last three years. However, the provision to the new value streams was raised not only by the reduction of crucial revenue generators but also the evolution of the influencing factors. The services` substitution is being caused by factors, which constituted the efficient environment for the development of the value-added

services. In this research, actual factors for the development of the new revenue stream and particularly to the adoption of mobile financial services were evaluated.

2.