Case study: Telecoms & ICT

Financial and strategic analysis to support a major network outsourcing contract bid

The Problem: Continual network improvement leading to high capex

Our client was a fixed and mobile operator with a leading position in several markets in the Americas, but facing increasing competition from local challengers.

Its fixed networks were facing rapid traffic growth, and legacy equipment was straining under the load. Its mobile networks were in a constant state of flux due to new technologies and complex billing requirements. This led to high and unpredictable capex requirements.

Our Approach: Support and vendor evaluation for broad scope network outsourcing

Our client had begun to engage with vendors and discuss broad scope outsourcing – covering fixed and mobile networks and customer operations. However the company had limited experience of this type of deal.

We were asked to run the feasibility programme and provide vendors with the information they needed to submit their bids. We worked with teams from Customer Operations, Technology, IT, HR and Finance to prepare the data required.

We also supported vendor evaluation – assessing vendors through customer referencing and the quality and content of their operational and financial proposals

The Result: Selection of a preferred bidder, with significant savings planned

After an intensive 6 month process, a preferred bidder was selected and detailed contractual scoping began.

Cash savings of $1.4bn over five years were identified and committed by the preferred bidder.

M&A activity meant the project was paused. The contracting process may continue at a later date.

Contact

Ian Waters
Ian advises technology business clients with a particular focus on telecoms, software and marketing services. Ian has built a strong reputation advising in challenging markets on restructuring issues and the use of new business models for delivering technology services. Recent themes include: outsourcing networked operations, transactions in the IT industry (buy and sell side), sales management and the effectiveness of agency / client relationships.
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