As part of the assignment the team at Altman Solon carried out an extensive analysis across the target’s network footprint, taking into consideration its product portfolio, core customer base, levels of competition and competitor offering, and the target’s historical performance.
The core of the work comprised a detailed geo-spatial analysis of competition and fair share across 100s of metro areas covering the target’s footprint with the aim of assessing and identifying targeted areas for revenue growth potential based on competition and concentration of addressable businesses.
Addressable market starting points for the target were based on an independent reports and internal benchmarks, overlaid with a detailed city-by-city geo-spatial analysis. Revenue growth potential was estimated based on the levels of overbuild from competitors, discussions with Management, the target’s current product distribution, and assumptions on enterprise take-up of high bandwidth connectivity products.
Compared to historical data, the near-net analysis can identify specific metro areas where the target achieves bookings below its fair share, and therefore represent clear potential for revenue growth. A qualitative overlay to detailed, bottom-up geo-spatial analysis of the competition helps identify areas where operators can exceed their fair share by capitalising on the network and product constraints faced by competitors.
Altman Solon determined that fair share growth was driven by the expected improvements in target bookings of specific products with the potential size of this growth based on the target’s unique network and product capabilities and a dedicated regional sales force. The lack of competition in some specific cities increased the uniqueness of the target network, with the analysis helping identify specific metros where the target could achieve premium prices to its standard rate card.