Bringing a World-Class Company to Scale Up the Business
Introduction
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.
The Solution
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.
Conclusion
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.