Defining the Commercial Setup of a “Fiber Factory”
Altman Solon’s client had undergone a structural separation of their fixed line business into a NetCo and an OpCo. We have helped the NetCo to define its “Fiber Factory” as a dedicated organization to drive a large-scale fiber rollout. Next to the actual construction and operation of the network, the NetCo had to be able to take independent decisions regarding where to build next. In case of an integrated telco, this decision is typically driven by end-customer facing units. A NetCo however does not have end customer relationships, and thus must consider factors like general market and competition analysis, a range of requests from different market participants (e.g. key customers, resellers or local authorities), and its own financial analyses. This skillset is typically not in place in organizations that historically were only focused on building and running a network.
In addition, the NetCo sales team must be transformed into a proactive account management post separation through:
- a proper incentivisation for account managers (e.g. 3rd party OpCos are as important as own OpCo);
- communication with OpCos that goes well beyond what is required by the regulator, letting them know yearly deployment targets and establishing a model to announce new deployment areas ahead of time.