TMT Infrastructure
Towers, Fiber Networks and Data Centers
TMT Services
Mobile Broadband, Home Broadband, Enterprises
Digital
Media, Internet Applications and Solutions
Coverage
Financial and Strategic Investors
Private equity funds
Our private equity client base includes US based buy-out funds with deal size of $1bn+, and their India offices. In addition, we have worked with PE funds based in Hong Kong, Singapore and Europe in identifying TMT assets with high growth potential and returns.
Infrastructure funds
We serve dedicated infrastructure funds headquartered in Canada, Australia, US and Europe in identifying TMT infrastructure assets with long-term contractual visibility, and opportunities for cash flow improvement. Majority of these engagements have been focused on wireless tower portfolios, metro-fiber and long-haul fiber networks and data centers.
Strategic investors
We have serves corporate development teams at mobile operators, tower companies and other service providers in identifying vertical (such as new tower portfolio for a tower company) and horizontal growth opportunities (such as additional metro fiber rings for a fiber operator).
EXPERTISE
Due Diligence and Investment Advisory
Commercial due diligence of a $1.5bn tower transaction in India, 2017
Commercial due diligence
Capitel conducted the commercial due diligence for a $1.5bn tower transaction in India for a portfolio of 20,000+ cell sites. This included estimation of portfolio and tenant overlaps using proximity analysis and tower Lat-Long database. The due diligence also included MSA and contractual review, benchmarking of operational KPIs, and a view on industry structure and pricing after 2022.
Commercial Due Diligence
Commercial due diligence of a $1.5bn tower transaction in India, 2017
Price plan modeling for a home broadband service provider
Go-to-market planning
Capitel advised a home broadband service provider in technology selection based on required end user throughput (Mbps), monthly pricing and topology. This involved evaluation of multiple technology options such as FTTx, DOCSIS 3.0 and DOCSIS 3.1, xDSL and LTE FWA on the parameters of unit economics, committed and realized throughputs to identify the best technology option for delivery of 10Mbps+ to households in a flatbed topology in Tier 2 markets.
Go-to-market planning
Price plan modeling for a home broadband service provider
Technical due diligence for a mesh WiFi service provider
Technical due diligence
Capitel conducted the technical due diligence for a mesh WiFi service provider using the unlicensed bands of 2.4GHz and 5.8GHz to provide home broadband services in flatbed and MDU areas. The due diligence included on-site speed tests and network modeling to identify the realized speeds using different antenna configurations in various topologies.
Technical due diligence
Technical due diligence for a mesh WiFi service provider
City selection for FTTx network roll-out in India, 2018
Network Planning
Capitel is advising a service provider for selection of cities to deploy its FTTx network in India, with a focus on B2B segments. This includes geo-mapping of entities on fiber route KMz, assessment of on-net, near-net and off-net opportunities and associated Capex. Finally, the mapping and operational plan is converted into a financial plan to achieve the threshold IRR.
Network planning
City selection for FTTx network roll-out in India, 2018
$2bn Capex planning to achieve lowest cost per MB
Technology Strategy
Capitel developed the wireless Capex deployment strategy for a multi-national mobile operator including spectrum planning, network site selection, inter-city and intra-city fiber routes and other Capex components. This included development of technology mix (3G, LTE, WiFi) by spectrum bands (900MHz, 1800MHz, 2100MHz and 2300/2500MHz) to achieve the lowest cost per MB in the network.
Technology strategy
$2bn Capex planning to achieve lowest cost per MB
Auction structuring and reserve price determination for a regulator in Asia
Spectrum auctions
Capitel advised a south Asia based regulatory authority on structuring the 800MHz auction, including estimation of reserve price, structuring of lots and timing of auction for other bands. This included modeling the spectrum requirement for each of the mobile operators in the market, understanding their technology preference, and the need for data coverage and capacity.
Spectrum auctions
Auction structuring and reserve price determination for a regulator in Asia
Current Engagements
Scaling Multi-Market B2B Tower and Fiber Businesses
Non-linear linkage of tenancies with EBITDA in a portfolio optimization situation
We recently advised on a transaction that involved pooling of two tower portfolios with optimization of tenancies – the EBITDA impact of exit of second and third tenant on the unit economics was significant, although the unit and revenue impact was not that pronounced. Estimating and factoring such non-linear impacts into portfolio valuation provides a realistic valuation, and allows for contractual ring-fencing to mitigate exit risks.