Monetising a network-sharing joint venture

The problem

Two mobile operators in a Western European country had successfully implemented active network sharing using a light operating structure, whereby an administrative joint venture was created but no assets were transferred to it from the mobile operators. The joint venture and the mobile operators wanted to explore ways of moving assets into the joint venture in order to raise finance, and sought Analysys Mason's support on this.

The solution

We developed the business case for moving active (BTS) and passive (towers) assets into the joint venture and potentially monetising them through sales to third parties. Our work covered business planning, valuation and the evaluation of a number of scenarios. We also examined a range of organic and inorganic growth opportunities for the joint venture (including smart meters, rural broadband provision and divestment of minority stakes). Throughout the project we worked alongside an accounting partner, which had responsibility for tax and structuring considerations.

Figure: Illustration of rural broadband proposition [Source: Analysys Mason, 2015]

The result

Our recommendations were signed off by the joint venture management and were presented to the boards of both mobile operators involved in the joint venture.