Situation
A multinational telco company with presence in multiple African countries was interested in including high speed broadband as part of their consumer services. The company was considering options to build their own fiber network or acquire a smaller player with existing assets that could help to expand services or geographies. We were retained to advise the multinational on a build-vs-buy trade-off and identify potential partners for a joint venture or strategic acquisition.
Our Process
OCA supported the telco by:
- Identifying existing fiber networks across 5 countries in Africa
- Estimating potential synergies with existing fiber networks, including overlap with our client’s infrastructure
- Presenting a base case to compare organic growth to acquisition potential
- Evaluating partners to determine which made sense to approach
- Recommending a strategy to expand infrastructure to provide consumer broadband services
As a result, our client decided to invest organically in a fiber network with a different geographic reach than existing companies. They invested in substantial infrastructure and launched new services, seeing significant growth in their markets for both standalone high-speed internet access, as well as traditional bundled packages.
