Sofrecom conducted a strategic mission for a major telecom operator, aiming to transform FTTH Capex (Fiber to the Home) and optimize costs for accessing third-party networks. This mission involved setting up an investment vehicle (SPV) for co-financing third-party Public Initiative Networks (RIPs). Discover how Sofrecom supported its client in this transformation by ensuring group deconsolidation and regulatory compliance.
The methodology implemented by our experts
The methodology adopted by Sofrecom for this mission was rigorous and structured, involving several key steps:
1. Creation of an Investment Vehicle (SPV)
- Definition and implementation of the purchase/resale process: Sofrecom defined and implemented a process for purchasing and reselling PM/PB access via the SPV. This investment vehicle, 100% owned by a bank, was designed to be repurchased by the telecom operator in the future.
- Documentation of SPV setup: The experts carefully documented each step of the SPV creation, facilitating the replication of the operation in the future.
2. Operational project management
- Organization and monitoring of projects: Sofrecom organized, monitored, and animated the Legal, Contract Management, and IT impact projects. This operational project management focused on contract negotiation and contract management expertise.
- Contract negotiations: The team led discussions and negotiations with infrastructure operators (Infracos) to develop their contracts and obtain necessary waivers.
3. Contract drafting and amendment
- SPV/Orange FAI contract: Sofrecom drafted the access contract between the SPV and the commercial operator, Orange.
- Orange FAI/delegated contracts: A specifications document was drafted to negotiate with the delegated entities, including the management of the transfer of assets from OC to the SPV, financial conditions, etc. The team also obtained validations from local authorities and updated the Orange-delegate contract.
- SPV/OWF support contract: Identification of decision-making and sharing instances (commercial, IT, billing, SLA, etc.) to ensure effective support for the SPV.
4. Operational functioning of the SPV
- Definition of operating processes: Sofrecom defined the operating processes of the SPV and prepared Time to Market (TTM) steps for their implementation.
The benefits provided to the client
The support provided by Sofrecom to its telecom operator client brought multiple and significant benefits:
- Cost reduction & Optimization of access costs: The establishment of the SPV reduced the operator's access costs to third-party local loops, thereby meeting financial guidelines (EBITDAal/Capex) and making this investment deconsolidating for the group.
- Regulatory compliance & Assurance of compliance: Sofrecom ensured that all operations complied with current regulations, minimizing legal and financial risks for the client.
- Flexibility and reproducibility & Facilitation of future operations: By meticulously documenting the setup of the SPV, Sofrecom facilitated the replication of this operation in the future, offering a flexible and adaptable solution for other similar projects.
- Operational efficiency & Optimized project management: Through rigorous project management, Sofrecom ensured efficient coordination among various stakeholders, thereby ensuring the successful completion of the mission within the specified timeframe.
- Strengthening of contract capabilities & Negotiation expertise: Sofrecom's support enabled the operator to strengthen its capabilities in contract negotiation, ensuring advantageous and sustainable agreements with delegated entities and infrastructure operators.
The project conducted by Sofrecom for this telecom operator perfectly illustrates our team's expertise and commitment to providing innovative and effective solutions. By transforming FTTH Capex and optimizing costs for accessing third-party networks, we enabled our client to achieve significant savings while ensuring regulatory compliance and facilitating the replication of this operation in the futur
