ESAT

Developing a joint proposal for railway telecoms

ESAT had seen how alternative telecoms companies in the United Kingdom had leveraged railway and electricity distribution assets to establish quickly national telecommunication networks. They perceived an opportunity to reduce costs of backhaul from mobile networks and launch new services by leveraging railway assets in Eire. This required an approach to an underfunded railway company in need of funds and technology to upgrade signalling systems and reduce telecoms costs. However ESAT lacked the ‘hands on’ experience of moving from high level idea, through to engaging with partners to agree then roll out a telecommunications network. With extensive experience of start ups, the consulting firm was approached for advice.

David was part of joint client – consultant team, covering technical, marketing and financial aspects. He provided expertise on telecoms networks and experience of establishing ‘altnets’ from his work with Energis and RWE. Working closely with the client, we determined that the first key step would be to shape a ‘win-win’ proposal to make to CIE, the railway company. The chosen strategy was to present single option and avoid discussion of other approaches, rather than a more open discussion with CIE of the options. David assessed CIE’s likely position, identifying it would be likely to overvalue its assets, and recommended approaches to manage overvaluation both in initial proposal and subsequent negotiations. David analysed the value chain required to deliver the benefits from a joint venture, identifying the required inputs from ESAT and CIE, and facilitated workshops to make decisions on the options available on operations and networks, for incorporation in the initial proposal.

The company subsequently agreed a joint venture and has built its national SDH network.