Situation

A multinational telecom company with presence in 6 countries in Africa was interested in including high-speed broadband in their consumer service. 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 Approach

  1. Identified existing fiber networks across 5 countries in Africa
  2. Estimated potential synergies with existing fiber networks, including overlap with our client’s infrastructure
  3. Presented a base case to compare organic growth to acquisition potential
  4. Evaluated partners to determine which made sense to approach
  5. Recommended a strategy to expand infrastructure to provide consumer broadband services

Outcome

After considering potential acquisition targets and valuation expectations, 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 broadband services in 2014, seeing significant growth in their markets for both standalone high-speed internet access as well as traditional bundled packages including voice and mobile data.