Mapping Value: Showing the Value of FTTH Networks

From a utility and broadband perspective, fiber has changed the deployment of internet connections for homes and businesses across the US. This is the side of the communications industry we tend to focus on, highlighting best practices in engineering, collaboration, deployment, etc. But there’s also a business development side that intersects with the nitty-gritty of deployment: creating defensible, accurate records of assets, customers, and work in progress for the sake of demonstrating company value. 

Fiber optics really began to grow in commonality and popularity in the 2010s, but even then, their full potential and value was, in general, overlooked by the majority of investors and evaluators outside the communications industry. But this mindset has changed over the last few years, and the increase of mergers and acquisitions of small internet service providers is proof. 

Fiber to the home (FTTH) is growing increasingly more relevant and profitable as an investment opportunity. While investment strategies will differ (and we’ll be the first to admit we’re not experts in those strategies), many companies have historically taken a land grab approach. 

If small ISPs and their footprint are valued primarily on the number of customers currently served, whoever has the most customers has the best chance of getting acquired. This means ISPs will want to be able to show: 

• Where their network is 

• How many people they serve 

In theory, it’s not a bad approach, but in actuality, it overlooks two other critical aspects of broadband deployment: planned infrastructure and quality of builds. 

Between the pandemic and economic shifts changing the financial landscape for customers and their providers, the landgrab approach has started to lose popularity in favor of a more strategic approach that focuses not just on numbers but considers:

1. What does exist

2. What will exist 

3. Who will be served 

4. How it will be built 

What Does Exist: Mapping Out Current FTTH Networks

When evaluating what currently exists, ISPs need to be able to demonstrate their current locations in a defensible way. The longer it takes to collect and present that evidence, the longer deals are drawn out, and the more likely it is that agreements will fall through. Long due diligence timelines and lags put M&As in jeopardy. 

To address this, ISPs can start by collecting rapid inventories of their assets, access points, and customers served using photo documentation and GIS maps. This creates a defensible photo set of where things are located and what condition they are in. 

Assets and customers can be represented on maps to demonstrate the current footprint, with geolocations backing up the value estimated by this data. 

What Will Exist: Demonstrating Work in Progress 

Current networks are important. ISPs need to be able to map out where they are both overhead and underground to show the current level of quality and services provided. However, between public and private money and plans, what currently exists is only a glimpse of what is possible. 

In-progress work offers enormous value if it can be shown and presented in a compelling manner. If ISPs can offer potential investors and stakeholders real proof of work in progress, they can demonstrate not only their current value, but future value. This also helps to keep data accurate by constantly updating it as work is completed in the field. 

Who Will Be Served: Projected Returns from FTTH Networks 

When presenting work in progress, those builds and plans can also be represented on a map, and highlight what customers will be acquired and the potential revenue from completed projects. This is a critical piece to represent potential value. Even as investors move away from the landgrab approach towards more strategic investments, the size and growth of a footprint are still serious considerations during M&As. 

How Things Get Done: Showcasing the Value of Good Work 

From submitted to reviewed to approved, permit statuses play a major role in the work progress. When we can show and track this, it keeps internal teams on the same page and helps keep jobs and work from falling between the cracks or getting lost. 

When outlining value for external stakeholders, permitting processes and statuses can feed timelines and dashboards to demonstrate how healthy a program is from start to finish. Not only does this help create metrics for growth, but it also acknowledges teams’ hard work and ability to deliver. Work in progress dashboards validate the hard work and commitment to excellence of staff, and the ongoing value of having good processes and workflows. 

Doing things the right way should yield wins in the long run. It might mean that deals close faster, customers receive better services, attachment timelines get shorter, and people are safer. The companies that can demonstrate their commitment to good processes and good workflows, that can visualize and validate their potential and value, will see greater returns. 

We’re working on a solution that will equip ISPs and their teams to map out both current and planned overhead and underground assets and demonstrate the potential value of their FTTH network.

For more info about future offerings, reach out to our team! 

Get Started