Fiber strategy development for an European utility company

An European utility company engaged Northstream to assess the local fiber market and develop a fiber rollout strategy and business case. The company had been playing a small role (co-construction) in fiber value chain, but was now considering ramping up its fiber business.

Northstream’s team evaluated the current state and outlook of the local fiber and broadband markets, including the overall value chain, different market players (competitors and potential partners), regulation and the financial incentives the state was providing for fiber rollout. Both primary and secondary research were performed. Based on the market assessment, Northstream identified and described various alternative business and operative model options for the company, from pure dark fiber builder to full-scale internet service provider. All aspects of fiber business were considered, from sales to network rollout and operations. For the prioritized options, a more in-depth business case analysis was performed, including a long-term profitability and cash flow estimates and sensitivity analysis of key variables.

The outputs of the analysis were used to facilitate a discussion regarding the strategic options among the executive team and in the board of directors, and to choose a strategy and decide on next steps.  As a result, and according to Northstream’s recommendation, it was decided that a fiber rollout option will be implemented and large-scale pilots started to validate the assumptions made in the business case.