Investaura has released a white paper re-visiting the financial benefits of managed services and infrastructure sharing for telcos. Building on an initial discussion and review of the relevant approaches and options available, a top-down financial simulation model has been developed to analyse and quantify the benefits of alternative options available to communications service providers (CSPs).

The model that Investaura and Implied Logic have developed looks into four transformation levers that can improve the economics of the mobile carrier and potentially create considerable value:

  • Network Operations Outsourcing
  • Asset Sharing (Passive, Active)
  • Lowering the cost of capital; e.g., through vendor financing
  • Sale and Leaseback of towers to a TowerCo partner.

Download “Revisiting the financial benefits of Managed Services and Infrastructure Sharing for Telcos”

Revisiting-the-financial-benefits-of-Managed-Services-and-Infrastructure-Sharing.pdf – Downloaded 6377 times – 3.15 MB

The model can be used to simulate the impact of these four levers, individually or in combination, and to estimate the financial benefits that they create for the mobile CSP.  Key results are the impact on Profit & Loss (EBITDA and EBIT margin improvements), the Cashflow Statement (savings in Network CAPEX and Network Operations OPEX), and overall value creation for debt- and shareholders (NPV, Return On Invested Capital).

Implied Logic has supported the model building initiative in STEM and is now pleased to host a simplified online view of the model. Investaura and Implied Logic can work with you to customise this methodology to your individual market and current network position in order to fast track a credible financial assessment of your strategic options.