Telecom Service Sheet
Data Centers & Managed Services, Telecoms and Broadcasting Regulation, Wireless, Wireline
March 18, 2021
The rapid evolution in the telecommunications industry has challenged telecom companies as they navigate through technological, market, regulatory and secular changes. The Telecommunications, Media & Technology team at FTI Consulting has extensive expertise in all telecom sectors, including wireline, wireless, cable, satellite, original equipment manufacturers, data centres and value-added resellers.
Our highly qualified consultants — PhDs, MBAs, CPAs and information technology and technology professionals, as well as former chief executive officers, chief financial officers, chief information officers, industry executives, principal investors, investment bankers, lenders, communications specialists and economists - use financial and operational metrics to assess and address the critical factors that drive telecom company value.
- Profitability Improvement. We use a disciplined approach to creating sustainable, measurable improvements in return on investment, cash flow and enterprise value. To maximise effectiveness, FTI Consulting draws on the perspective gained from work on more than 200 engagements, understanding of industry best practices for key operating metrics, our proprietary company database and the knowledge of how to adapt and adopt those experiences to the specific situation at each individual client company.
In the rapidly changing, competitive newspaper environment, FTI Consulting approaches profitability improvement in two broad categories:
Revenue accelerators including customer segmentation and profitability analysis
Channel development, organisational design (traditional and digital), sales processes and salesforce effectiveness, customer satisfaction scoring and retention, service delivery process efficiency, price optimisation, and new product development.
Cost efficiencies including organisational cost structures (traditional and digital, strategic outsourcing, performance management, financial planning and analysis improvement/key performance indicator dashboards, working capital optimisation, information technology rationalisation/operating model, and change management.
- Merger Integration/Carve-outs. FTI Consulting provides a rare blend of traditional strategy implementation with extensive telecom operations experience in merger integration and carve-outs to identify merger synergies. We develop detailed integration and implementation plans that help management stay focused on running day-to-day operations yet speed integration and valuable cost savings, including (among others) clean room analysis, network operations, salesforce and channel integration, make vs buy vs outsource decisions (manufacturing), spectrum planning and auction strategy, vendor and supply chain management, and optimisation of equipment usage and purchase strategies.
- Valuation. With more than 1,350 transactions completed, our valuation experts understand the complexities of analysing assets and businesses in both dynamic and declining markets. Our professionals bring a unique depth of financial and practical experience to all our valuation engagements. By leveraging our significant industry expertise, we also specialise in assessing the value of intellectual property and intangible assets. Financial opinions and valuation services include transaction-based opinions (fairness, solvency, collateral valuation, intellectual property and intangible asset valuation and going concern opinions), financial reporting opinions (purchase price allocation and goodwill impairment (ASC 805), portfolio valuations for private equity funds, hedge funds, banks and other capital market constituents (ASC 820), incentive compensation, options and “cheap stock” (ASC 718), revenue recognition for multi-element licensing arrangements (ASU 2009-13), and derivative valuation opinions (ASC 815)), and tax planning and reporting opinions (estate and gift tax opinions, enterprise, minority interest and asset valuations, and equity/share-based incentives and compensation for services (IRS Sec. 409A)).
- Valuation — Wireless Spectrum. FTI Consulting has advised buyers in nearly a dozen recent spectrum auctions throughout the world, providing valuations, competitive assessments and regulatory support in advance of the auction. Our spectrum experts closely follow the National Broadband Plan and the anticipated broadcast spectrum auctions to utilise our related international experience in the United States when the Federal Communications Commission initiates wireless spectrum auctions.
- Interim Management. Company challenges may be strategic, operational, financial or market driven, but, inevitably, they will lead to loss of investor confidence if not managed optimally. Investors and management engage FTI Consulting for interim management for assistance through critical periods of transition or to achieve specific critical goals. Our healthy company and our Turnaround and Crisis Management teams provide a broad array of experience within the C-suite. They know how to manage risk, reduce costs, improve liquidity and communicate effectively with stakeholders.
Some engagements are short term, requiring a fully staffed team to execute a business plan quickly or stay the course while a company negotiates a sale or merger. Others are long term, requiring one or two professionals with specific skills to oversee change.
- Litigation Support. FTI Consulting provides law firms and corporations around the globe with a complete suite of litigation support and investigative, consulting and expert witness services. Our team of telecom experts includes certified public accountants, certified fraud examiners, valuation experts and insolvency professionals, among others, with expertise in networked industries, anti-trust and intellectual property.
Utilising our extensive telecom industry experience and our financial and operational know-how, we understand complex situations quickly and articulate critical issues clearly in writing and in the witness box. As a result, we have been directly involved in some of the most historic, high-stakes cases of the last decade.
- Investment Banking. We combine extensive telecom industry experience and company-specific financial/operational knowledge with execution expertise to identify value drivers and risks critical to a transaction outcome.
We have been distinguished among financial advisers for assisting clients in the development of business plans and financial forecasts to consummate merger and acquisitions and financing transactions. And potential buyers, sellers and financing sources count on our analyses and valuation estimates in a way few investment bankers can match.
Through our FINRA-regulated investment banking subsidiary, FTI Capital Advisors, LLC, we leverage knowledge of our clients and their markets. Our professionals provide insight and answers that drive value and overcome obstacles to help complete sale, acquisition and capital raise transactions and to provide valuation and fairness opinions.
- Restructuring. FTI Consulting has a highly respected track record of assessing operations, developing strategic alternatives and contingency plans, stabilising over-leveraged companies, restructuring debt and equity, selling distressed companies and maximising value to constituents. Representing companies, funds, banks and trade creditors, our teams are active worldwide: North America and Mexico, South America, Europe and the Asia Pacific region. Our experts are certified as trustees and examiners in many jurisdictions around the world.
With our in-depth, telecom-specific operational experience and world-class restructuring expertise, FTI Consulting has led the restructuring league tables quarter after quarter. We have represented one of the major constituents in nearly every significant telecom restructuring since the millennium began.
- Strategic Communications. The Telecommunications industry team within our Strategic Communications practice includes sector experts with experience representing a broad range of organisations and companies in telecommunications throughout the world, from start-ups to multinationals. Our clients benefit from the team’s relationships with key media influencers to provide a suite of integrated communications services, including corporate and employee communications, financial communications, public affairs, creative engagement, strategy consulting and research, and crisis communications.