TIMe City Carriers


Business idea in 1996 and Execution Strategy until 2000

Idea:

  • Fill the gap of fibre access for business customers/buildings in 2nd tier cities

Local Set-up:

  • City Carrier based on local branding, sales and customer service
  • Flat product portfolio with fibre-based telco services
  • Reselling of value-added-services at the beginning; re-integration in own value chain after successful market entry and operational experience gained
  • Central team of managers and engineers create synergies, set up competence centres and organize resource sharing between local companies (sales, system engineering).
  • Joint operations with local utilities to cut cost/increase profitability (customer acquisition, shared facilities and staff, branding and customer access, product bundling, finance)
  • Cost and financial management to reach break even after 3 years

National Roll-Out:

  • Based on long distance fibre from GasLine, set-up of a long distance carrier as joint venture with regional utilities to link city carriers and get access to international IP gateways

Add Service Business:

  • Build up a service company with Siemens offering specific product development and shared operational services like network management 24x7

Investment Execution:

  • Joint venture with local utility company to set-up city carrier
  • Connecting ventures via holding structure to support central functions, e.g. telco specific know-how, regulation, purchase, financing
  • Risk Management by taking active management role (MD sales and finance)
  • Supporting ventures by entrepreneurial expertise

Successful Exit:

  • After five year investment RoE of 150 times was realized. City Carrier Holding sold to Elisa Kommunikation (now TROPOLYS / Versatel)
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