Analysys Mason was engaged by the Welsh Government to assess and value the FibreSpeed network, and consider a range of options for its future
Client project | Strategy
The problem
- The FibreSpeed wholesale fibre network in North Wales (owned by the Welsh Government) is currently operated by a third-party company, under a contract that will come to an end in 2025
- The Welsh Government commissioned Analysys Mason to carry out a valuation and assessment of the network, to set out possible options for the Government to consider regarding the future of FibreSpeed
The solution
- As part of our assessment, we carried out a technical review of the FibreSpeed network, looking in detail at the network architecture, assets, operations and network performance; this analysis helped to provide inputs for our overall evaluation (e.g. potential replacement costs)
- We also carried out an analysis of the broadband market in North Wales, to understand the competitive dynamics and possible opportunities for FibreSpeed in the future
- To complement our desktop analysis, we undertook a series of consultations with key FibreSpeed stakeholders, including customers, public-sector organisations and the network’s operator; these gave us an insight into different views on the future of the FibreSpeed network
- Finally, we carried out our valuation assessment, which considered the potential ‘replacement cost’ of all the assets, as well as a ‘discounted cashflow’ approach to consider current and future revenue; the valuations and consultations helped to frame our recommendations to the Government
Figure: Overview of valuation approach
The result
- Our report highlighted three possible options for the Welsh Government to consider, outlining the benefits of each option and noting the key next steps for the Government to consider. The Government used the report to kick-start its internal planning and market engagement