Campus Maverick _US Telco Ltd

Alok Pandey alokp@iitk.ac.in

Neha Singh nehasgh@iitk.ac.in

Kriti Doneria doneria@iitk.ac.in

EXECUTIVE SUMMARY

POSSIBLE AVENUES FOR TelCo

On-premise solutions

Optical networking solutions

4G LTE carrier integration

Things as a service (TaaS)

Cloud computing

M&A TARGET IDENTIFICATION• Choosing best combination to diversify technological avenues and minimize risks.• Leveraging existing customer base and competencies.• Exploiting synergies-locational, technological & operational.• Future-centric strategies.

• Infra. & services=symbiotic colocation benefits.

• Leveraging strong foothold in the domestic service market.

• High legal protection & positive GDP growth rate.

• Offers a wide variety of services like IoT, high speed internet ,business focused services.

• Existing competencies support future advancements like LTE.,Wi-max.

Nzone Communications Inc.

• Highest revenue growth rate of 116.67% in the segment.

• Broad technological footprint.

• Lowest competition in market-Argentina.

• Presence in wireless as well as wireline markets.

• Operate in tower-renting, which is similar to US Telco.

ASA Towers Inc.

BUSINESS VALUATION & ACQUISITION PRICE

EBITDA MULTIPLE

10.2x TO 12X

CURRENT EBITDA

$104 MILLION

BUYING PRICE

$1.0608 Billion to $1.248 Billion

NPV* MULTIPLE

3.8x TO 5.7X

NPV

$8.33 MILLION

BUYING PRICE

$31.68 Million to $47.52 Million

NZONE COMMUNICATIONS INC. ASA TOWERS INC.

**NPV IS CALCULATED USING REVENUE VALUES FOR 2015-2020.

CONSIDERATIONS AND INTEGRATION RISKS

RECOMMENDATIONS-SHORT TERM• Acquisition and re-branding

announcements.

• Assess and analyze workforce and restructure the organization.

• Define business verticals & delegate workforce accordingly.

• Start bundling infrastructure and IT solutions together.

• Conduct a marketing survey in Argentina & draft a roadmap for fast tracking growth.

RECOMMENDATIONS-LONG TERM• Standardize processes,

operations & service level.

• Cross-train workforce. Identify future leadership.

• Launch integrated end to end solutions in the market.

• Seek out new customers in B2B & B2C.

• Start deploying advanced technologies in the US market.