Accelerate growth and increase market share in a new mobile market

 

Celtel International Holding, a newly started private investment company in the Netherlands, acquired GSM licenses in Sub Saharan Africa in order to quickly establish and grow a new mobile operating business. The objective was to, with a leveraged capital structure, maximise value growth and position the company for a future exit. Our challenge was to grow with a client that we had no previous customer relationship with and in countries with high overall business risk.

 

We started by building trust with the main owner and management of Celtel and created a common goal to grow faster than the overall market but with measured and controlled risks. We created a separate business model for each mobile market tailor-made for the growth scenario, risk profile and financial needs.

 

Revenues grew from 250 million to 5 billion kronor with increased profitability while increasing the market share from 25% to 75% during a five-year period. The customer became one of the 10 largest global accounts within Ericsson.

 

Success factors included; well analysed risk taking agreed by all stakeholders, rapid deployment of resources as well as having structures and processes adapted for high growth in unconventional markets and structured financing if required. In a pioneering environment it was important to set clear guidelines without enforcing micro-management but instead allowing employees who understood the markets and customer requirements to make operational decisions.