Bringing World Class Company to Scale Up the Business

Background
The Company is a telecommunication contractor and neutral backbone fiber optic provider which engage in not only construction of telecommunication, but also trading services for related technology equipments. The Company plan to expand its business in telecommunication technology related to the infrastructure in particular, Fibre Optics. To meet its ambitious vision, the Company needs to find the right partner and capable source of fund to grow and expand the business, thus also bringing value added. Our Firm was appointed by the Company as their advisor in looking for the right partner as aforementioned to make sure that the Company could find right partner in time and according to the Company interest. We would need to provide the best deal, minimum exposures and at the same time a seamless process. At the end of the day, the Company would be able to synergise with the new partner in accordance with the Company goal.

About the Fiber Optic Business
To understand the issues in the business we need to understand the fiber optic neutral provider business, how its infrastructure builds and how to generate revenue. The fiber optic neutral provider business heavily relies on the telecommunication provider (i.e XL, Indosat, Smart Fren, 3). This telecommunication provider would lease the fiber optic core within the infrastructure build. And to build the fibre optic it would need an investment of USD 5,000 to USD 7000 per km depends on the location and condition. Thus, to build the infrastructure it would need tremendous amount of capital of fund and to have a very good relationship with the telecommunication provider or by at least not deemed as menace by them. Or to summarize it would need to stay neutral and to have a strong capacity of fund.

The Solution
By Considering the issues and dynamics of the business we are looking for a suitable partner that meets the criteria. We managed to utilize all of our expertise and managed to introduce the Company with one of the largest American online social media and social networking service and secure a soft loan amounting to USD 50 Mio to build the fiber optic infrastructure. We utilized out expertise and knowledge in order to explore the areas that are potentially attractive and beneficial to the lender, aiming at their objective of developing internet connections in Indonesia, in order to expand its consumer base. We eventually succeeded by leveraging the Company’s broad fiber optic network which exists in numerous cities and regions across Indonesia, approximately 3,500 km in length, with carefully considered intersections.



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