Challenge

Altman Solon engaged with a European fiber operator with a recent strong growth track record, emerging as aknown player on a national level.

The project goal was to review and reinvigorate strategies for network expansion (where to expand the network in the future) and penetration growth (how to ensure the highest possible penetration levels), with a specific focus on the network uniqueness.

Solution

Altman Solon approached the challenge by focusing on the expected fiber penetration levels, assessment of competitor actions, and associated capital expenditures (CAPEX).

The foundation was a structured analysis of the client’s growth potential in the competitive strategic option space. We then initiated a project-by-project analysis of existing fiber rollout areas and the degree to which they have fulfilled the assumed success criteria. T main goal was to discover the root causes behind the success or the failure in specific areas by analysing drivers and area conditions. Altman Solon assessed penetration levels across operators’ footprints to determine the impact of different levels of competitive presence as well as the sustainability of the competitive advantages.

Several alternative business models have been explored in order to develop a Go-to-Market strategy based on the new insights regarding penetration expectations across potential rollout areas as well as CAPEX and IRR implications.

Results

Altman Solon provided the client with a deep understanding of the opportunity and sustainability of rural fiber rollouts. Altman Solon also supported the client with the systematic linkage of the results and experience of years of build-out to the future decision-making by initiating a new valuation method. At the same time, a tailored Go-To-Market strategy was developed to improve yield, resilience, and predictability of the future investment returns.