Analysys Mason conducted commercial due diligence of Project Obelix on behalf of Vauban Infrastructure Partners, leading to the creation of a JV with Bouygues Telecom

Project experience | Transaction support


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The problem

  • In 2021, Bouygues Telecom launched Project Obelix, whose aim is to co-invest in French fibre networks in medium- and low-density areas where infrastructure operators are rolling out open-access monopolistic fibre-to-the-home (FTTH) networks; this project follows Project Asterix, which had the same objectives for another geographical scope
  • Once Obelix co-invests in the FTTH networks, Bouygues Telecom (and potentially other retail operators) will buy rental access from Obelix
  • To realise this co-investment, Bouygues Telecom decided to partner with an investment fund

The solution

  • Analysys Mason was commissioned by Vauban Infrastructure Partners to conduct buy-side commercial due diligence of Project Obelix
  • We reviewed the regulatory context, focusing on French medium- and low-density areas and market trends, as well as the project contract structure
    • in particular, we conducted economic analysis to compare the approaches of co-investment and rental over the FTTH network, to help Vauban Infrastructure Partners optimise its offer
  • We reviewed Bouygues Telecom’s inputs and provided our own revenue, opex and capex forecasts
  • We focused on infrastructure operators’ roll-out plans and Bouygues Telecom take-up curves (migration from standard broadband to fibre), as well as potential commercialisation to retail operators other than Bouygues Telecom

Figure: Project Obelix scope per infrastructure operator

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The result

  • At the end of 2021, Bouygues Telecom informed Vauban Infrastructure Partners that it had been selected to create the JV. We provided additional support to close the deal, including Q&A sessions with Bouygues Telecom, a business plan and report update and a contract review
  • In February 2022, Bouygues Telecom and Vauban Infrastructure Partners announced the creation of a special-purpose vehicle called SDFAST1, which will co-invest in 20 million lines over the next five years

Société de Développement de la Fibre Au Service des Territoires

We were commissioned by our client, Vauban Infrastructure Partners, to conduct buy-side commercial due diligence of Project Obelix, leading to the creation of a JV with Bouygues Telecom called SDFAST, which will co-invest in 20 million lines over the next five years in medium- and low-density areas in France