solution-design

name	solution-design
version	1.0.0
description	CircleTel product management and solution design. Triggers: 'solution design', 'product design', 'new product', 'unit economics', 'margin analysis', 'technology selection', 'product-market fit', 'PMF', 'which technology', 'pricing model', 'contribution margin', 'LTV', 'CAC', 'wholesale costs'.
dependencies	["promotional-campaigns","pricing-strategy"]

CircleTel Solution Design & Product Management

Strategic product management for CircleTel's telecommunications portfolio. Use this skill to design solutions, validate unit economics, select technologies, and ensure product-market fit.

When This Skill Activates

This skill automatically activates when you:

• Design new products or solutions for customers
• Evaluate unit economics or contribution margins
• Select technology for a customer scenario
• Validate product-market fit
• Analyze wholesale costs and pricing
• Compare product options for a use case
• Plan new product launches

Keywords: solution design, product design, new product, unit economics, margin analysis, technology selection, product-market fit, PMF, which technology, pricing model, contribution margin, LTV, CAC, wholesale costs, Tarana, DFA, DUNE, FWA, fibre

Quick Reference

Need	Section
Choose technology for customer	Technology Selection Matrix
Calculate margins	Unit Economics
Design new product	Solution Design Checklist
Validate PMF	Product-Market Fit Framework
Product specs	See references/product-portfolio.md
Wholesale costs	See references/wholesale-costs.md

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CircleTel Identity

Brand

• Legal Entity: CircleTel SA (Pty) Ltd (Reg: 2008/026404/07)
• Brand Stylisation: circleTEL
• Tagline: "Connecting Today, Creating Tomorrow"
• Parent: New Generation Group (NewGen)

Vision

"To be South Africa's most trusted connectivity partner for underserved communities and growing businesses, delivering affordable, reliable digital services that enable economic participation and growth through AI-powered, digital-first experiences."

Strategic Pillars (v4.0)

1. Digital Inclusion — Bridge the connectivity divide
2. SME Empowerment — Integrated digital services
3. AI & Digital First — AI at the core of operations
4. Operational Excellence — Scalable, efficient operations
5. Sustainable Growth — Diversified revenue, margin discipline

Core Values

1. Ubuntu — Community-first
2. Reliability — Delivering on promises
3. Innovation — AI and technology for real problems
4. Accessibility — Digital services for all South Africans
5. Integrity — Transparent, ethical operations

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Product Portfolio Overview

Product Line	Technology	Status	Price Range	Target Margin
SkyFibre SMB	MTN Tarana G1 FWA	ACTIVE	R1,899–4,899/pm	41–52%
BizFibreConnect	DFA FTTB	ACTIVE	R1,699–4,373/pm	31–41%
ClinicConnect	Hybrid Tarana+LTE	SIGNED	R450/site/pm	33–40%
ParkConnect DUNE	Peraso 60GHz mmWave	Q2 2026	R1,299–4,999/pm	54–75%
AirLink FWA	Reyee 5GHz	ACTIVE	R599–1,699/pm	58–81%
Managed IT	SuperOps.ai	ACTIVE	R2,999–19,999/pm	42–55%
WorkConnect SOHO	Technology-agnostic	Development	R799–1,499/pm	TBC
CloudWiFi WaaS	Managed overlay	Development	Per-venue	TBC
CircleConnect	MTN LTE/5G	ACTIVE	Package-dependent	33–37%
HomeFibreConnect	MTN FTTH	SUNSET	R899–2,299/pm	4–26%

Full product details: See references/product-portfolio.md

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Technology Selection Matrix

Use this to recommend the right technology for each customer scenario.

Scenario	Technology	Product Line	Rationale
SME in MTN Tarana coverage	Tarana G1 FWA	SkyFibre SMB	Best latency (<5ms), best unit economics
Business needs symmetrical + SLA	DFA FTTB	BizFibreConnect	Guaranteed symmetrical, enterprise SLA
Rapid deployment / failover	MTN LTE/5G	CircleConnect	Nationwide, same-day activation
Office park (multi-tenant)	Peraso 60GHz	ParkConnect DUNE	Highest margins, shared backhaul
No MTN coverage, moderate density	Reyee 5GHz	AirLink FWA	Self-deploy, control infrastructure
Township / affordable segment	Tarana or Reyee	UmojaLink	Community-centric, prepaid model
Remote healthcare / clinic	Hybrid Tarana+LTE	ClinicConnect	Reliability-critical, managed service
Home office / freelancer	Best available	WorkConnect SOHO	Technology-agnostic
Venue WiFi (hospitality)	Managed overlay	CloudWiFi WaaS	Single monthly fee

Technology Capabilities

Technology	Download	Upload	Latency	Best For
Tarana G1 FWA	Up to 1Gbps	4:1 ratio	<5ms	SME, business-critical
DFA FTTB	Up to 1Gbps	Symmetrical	<3ms	Enterprise, SLA-required
MTN FTTH	Up to 1Gbps	Variable	<5ms	Residential
Peraso 60GHz	Up to 2Gbps	Symmetrical	<1ms	Office parks, short-range LoS
MTN LTE	10-150Mbps	10-30% of DL	20-50ms	Mobile, backup
MTN 5G	50-500Mbps	10-30% of DL	10-30ms	High-speed mobile
Reyee 5GHz	Up to 500Mbps	Variable	5-15ms	Self-managed FWA

Decision Tree

Customer needs connectivity:
│
├── Is Tarana G1 coverage available?
│   ├── YES → SkyFibre SMB (best unit economics)
│   └── NO → Continue
│
├── Is DFA fibre available at location?
│   ├── YES + needs SLA → BizFibreConnect
│   └── NO → Continue
│
├── Is it an office park / business park?
│   ├── YES → ParkConnect DUNE (if LoS available)
│   └── NO → Continue
│
├── Is rapid deployment needed?
│   ├── YES → CircleConnect LTE/5G
│   └── NO → Continue
│
├── Is it a township / price-sensitive area?
│   ├── YES → AirLink FWA or UmojaLink
│   └── NO → Continue
│
└── Default → WorkConnect SOHO (best available at address)

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Unit Economics

Golden Rule

Minimum 25% gross margin on ALL products — no exceptions without MD written approval.

Cost of Sale (COS) Components

Component	Vendor	Monthly Cost	Notes
BNG Service	Echo SP	R20.20	Tier 4 rate (>1k users)
IP Transit	Echo SP/DFA	R28.00	~4 Mbps avg @ R7/Mbps
DFA Backhaul	DFA Magellan	R86.27	R12,940 ÷ 150 users
Support	Internal	R30.00	L1 support allocation
Billing/Admin	AgilityGIS	R10.96	BSS stack
Total COS Floor		R175.43	Excludes access costs

Echo SP BNG Pricing Tiers

Tier	Subscribers	Per-Sub MRC
1	1–250	R30.30
2	251–500	R26.93
3	501–1,000	R23.57
4	1,001+	R20.20

Portfolio Unit Economics

Product	Blended CAC	LTV	LTV/CAC	Payback
SkyFibre SMB	R2,550	R18,000+	7.1x	4–6 mo
BizFibreConnect	R2,500	R14,280	5.7x	8 mo
ClinicConnect	R1,500	R9,132	6.1x	6 mo
ParkConnect DUNE	R8,167	R22,788	2.8x	5.7 mo
Managed IT	R3,500	R35,988	10.3x	4 mo
AirLink FWA	~R1,500	R10,000+	6.7x	3–4 mo

Margin Calculation

Gross Margin % = (Revenue - COS) / Revenue × 100

Required: ≥25% gross margin

Example:
  SkyFibre SMB 50/25: R1,899/mo
  COS: ~R175
  Gross Margin: (R1,899 - R175) / R1,899 = 90.8% ✓

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Solution Design Checklist

For every new solution or product, validate against these 10 points:

1. Market Demand

• Is there proven, addressable demand in SA?
• Who is the buyer persona (specific, not "SMEs")?
• What's their willingness to pay?

2. Unit Economics

• Does it achieve ≥25% gross margin at scale?
• What is the COS floor?
• Is LTV ≥3× CAC?

3. Technology Fit

• Which access technology best serves the use case?
• Are there coverage constraints?
• What's the deployment complexity?

4. Wholesale Dependency

• What are MTN/DFA/Echo SP costs?
• Are there volume discounts available?
• What are the contract obligations?

5. Deployment Complexity

• Can we deliver within operational capacity?
• What's the order-to-active timeline?
• What CPE/installation is required?

6. Competitive Differentiation

• Why would a customer choose CircleTel?
• What's our technology advantage?
• What's our service advantage?

7. Revenue Model

• MRR vs one-off vs blended?
• Contract term?
• ARPU trajectory over time?

8. Capital Requirement

• What CAPEX is needed?
• Who funds CPE — CircleTel or customer?
• What's the payback period?

9. Scalability

• Does it scale without proportional headcount?
• Are there volume cost improvements?
• What's the ops overhead at 10×, 100×?

10. Portfolio Alignment

• Does it cross-sell or cannibalize?
• How does it fit the product naming convention?
• Is it aligned with v4.0 strategy?

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Product-Market Fit Framework

Stage 1: Problem Validation

Question	How to Validate
Who has the problem?	Specific persona research
How are they solving it today?	Competitor analysis
Willingness to pay?	Customer interviews, not assumptions
Switching cost?	Analyze competitor lock-in

Stage 2: Solution Validation

Question	How to Validate
Does our tech stack support it?	Technical feasibility review
Can we hit target price at ≥25% margin?	Full COS model
What's the MVP scope?	Feature prioritization
Order-to-active timeline?	Process mapping

Stage 3: Market Validation

Metric	How to Calculate
TAM	Total addressable market in ZAR
SAM	Limited by our coverage footprint
SOM	Realistic Year 1 capture
Evidence	LOIs, pilots, competitor analysis

Stage 4: Scale Validation

Question	Answer Required
Unit economics at 10×, 100×, 1000×?	Model at each scale
Wholesale costs decrease?	Echo SP tiering, DFA volume
Ops processes scale?	Without linear headcount
Support model sustainable?	At projected subscriber count

PMF Signals to Measure

Signal	Target
Monthly churn	<2% (target <1.5%)
NPS	>40 (M6), >50 (M12), >60 (M24)
Organic growth	>30% from referrals
Activation speed	<24h (LTE), <3d (FWA), <5d (fibre)
Support load	<2 tickets/customer/month
Revenue expansion	Positive net revenue retention

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Product Prioritization (POV Scoring)

Score each product on four dimensions (1–10):

Dimension	Question
Ease of Deployment	How quickly can we deliver?
GTM Readiness	Are pricing, SLAs, sales tools ready?
Market Demand	Is there proven, addressable demand?
Competition	Can we win and differentiate?

Decision Thresholds

Score	Action
8.0+	LAUNCH IMMEDIATELY
6.5–7.9	SELECTIVE LAUNCH (focus segments)
5.0–6.4	DEPRIORITISE (defer or pilot)
<5.0	DO NOT PURSUE

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Contribution Margin Model Template

Every product proposal must include:

## [Product Name] Contribution Margin Model

### Revenue
- Monthly price (excl. VAT): R[X]
- Contract term: [X] months
- Expected ARPU trajectory: [Flat/Growing/Declining]

### Cost of Sale
| Component | Monthly Cost |
|-----------|--------------|
| Access (MTN/DFA/etc.) | R[X] |
| BNG Service (Echo SP) | R[X] |
| IP Transit | R[X] |
| Support allocation | R[X] |
| Billing/Admin | R[X] |
| **Total COS** | **R[X]** |

### Hardware Amortization (if CircleTel-funded)
- CPE cost: R[X]
- Amortized over: [X] months
- Monthly allocation: R[X]

### Infrastructure Allocation
- Tower/site costs per user: R[X]

### Contribution Margin
- Revenue: R[X]
- Total COS (incl. hardware): R[X]
- **Gross Margin: [X]%** [✓ if ≥25%]

### Customer Economics
- CAC: R[X]
- LTV: R[X]
- LTV/CAC: [X]x [✓ if ≥3x]
- Payback: [X] months [✓ if <12]

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Naming Convention

All products follow established naming patterns:

Pattern	Products
[Descriptor]Connect	HomeFibreConnect, BizFibreConnect, ClinicConnect, ParkConnect, WorkConnect
Brand Names	SkyFibre, AirLink, UmojaLink, CloudWiFi, CircleConnect
Parent Brand	CircleTel (stylised: circleTEL)

Never deviate from established naming without explicit approval.

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Competitive Landscape

Key Competitors

Tier	Competitors	Our Advantage
Premium FWA	WiruLink, Comsol	Tarana G1 latency
Mobile	MTN, Vodacom, Rain, Telkom	Dedicated FWA reliability
Fibre ISP	Afrihost, Cool Ideas, RSAWEB	Multi-tech flexibility

CircleTel Competitive Advantages

1. Technology moat: Tarana G1 = sub-5ms latency (10× better than legacy)
2. Multi-technology: FWA + fibre + LTE/5G + 60GHz
3. AI-first CX: Multilingual chatbot, predictive churn
4. Transparent pricing: Published prices with clear SLAs
5. Digital-first ops: Lower overhead, faster deployment
6. Community focus: Ubuntu values, township inclusion

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Financial Targets (v4.0 Strategy)

Metric	Target
MRR (Month 12)	R11.84M
Annual run rate	R142M
External customers	12,500+
EBITDA margin	22%+
Cash flow positive	Month 6
External revenue	50% of total
Customer concentration	No single >30%

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Key Lessons (2025-2026)

1. Working capital is strategic — 296-day DSO paralysed execution
2. Intercompany dependencies create cash starvation
3. Margin vs Volume: 42% gross margin proves pricing works
4. Strategy without resources is a wish list
5. Concentration risk: No customer >30% of revenue

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Related Skills

Skill	When to Use
promotional-campaigns	Designing promos for products
pricing-strategy	Pricing decisions and packaging
competitor-alternatives	Deep competitive analysis

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Reference Files

• references/product-portfolio.md — Full product specifications
• references/wholesale-costs.md — MTN, DFA, Echo SP pricing
• references/technology-specs.md — Technical capabilities
• products/solution-design.md — Master source document

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Version: 1.0.0 Last Updated: 2026-03-01 Source: products/solution-design.md