Bringing a World-Class Company to Scale Up the Business
In this article, we explore the case of a telecommunication contractor and independent backbone fiber optic provider seeking to expand its business in the field of telecommunication technology, specifically focused on fiber optics infrastructure. The company appointed our firm as their advisor to find the right partner and secure the necessary funding for their growth ambitions. Through our expertise, we successfully facilitated a partnership with a leading American online social media and networking service, securing a soft loan up to USD 50 million to build the fiber optic infrastructure. This article highlights the challenges in the fiber optic business, the solution we provided, and the benefits of this strategic partnership.
Understanding the Fiber Optic Business:
To comprehend the challenges faced by the company, it is important to understand the fiber optic neutral provider business and its revenue generation model. In this business, telecommunication providers lease the fiber optic core within the infrastructure built by independent providers. Building the fiber optic infrastructure requires significant capital investment ranging from USD 5,000 to USD 6,000 per kilometer, dependent on location and conditions. Additionally, maintaining a strong relationship with telecommunication providers is crucial to ensure neutrality and financial stability.
Recognizing the unique dynamics of the fiber optic business, our firm embarked on a mission to identify a suitable partner that could meet the company's criteria. Through our expertise and industry knowledge, we successfully introduced the company to one of the largest American online social media and networking services. We secured a soft loan up to USD 50 million, which enabled the company to expand its fiber optic infrastructure.
Leveraging Synergies and Broad Network
The strategic partnership between the company and the American social media and networking service was based on a mutually beneficial objective of expanding internet connections in Indonesia. By leveraging the company's extensive fiber optic network, which spans approximately 3,500 kilometers across multiple cities and regions in Indonesia, we created a compelling proposition for the lender. This partnership not only provided the necessary funding but also positioned the company as a key player in expanding internet connectivity, thereby increasing its consumer base.
Through our expertise and deep understanding of the fiber optic industry, we successfully facilitated a partnership between the company and a leading American online social media and networking service. This strategic alliance not only secured a soft loan up to USD 50 million for the company's expansion plans but also leveraged its broad fiber optic network to drive internet connectivity growth in Indonesia. By bringing together the company's infrastructure capabilities and the partner's objectives, we achieved a seamless process that aligned with the company's vision and goals.