Global 
Germany 
Building a competitive, municipal telecommunications platform for fibre operations and services
Increasing competitive pressure from established telecommunications providers and infrastructure investors, combined with limited scaling potential of individual municipal utilities, required a strategic repositioning of telecommunications activities in the municipal context. Against this backdrop, a joint telecommunications company was established.
The objective was to build a competitive, jointly operated entity that bundles operations, sales and service across fibre infrastructure and end-customer products, while preserving municipal ownership of the underlying network assets.
We supported the setup of the company through an integrated framework covering target operating model, business case, governance, contractual structure and migration planning for creating the foundation for a scalable and operationally viable telecommunications platform.
100000
+customers served on the unified platform
From fragmented activities to collective competitiveness
Following significant investments in fibre infrastructure, the involved municipal utilities recognized the limitations of their independently operated telecommunications businesses. While both had built strong network assets, limited scale and fragmented operations constrained their ability to compete effectively with large-scale, integrated market players.
As competitive pressure intensified, a clear strategic decision was made to combine forces. The goal was to achieve the necessary scale by jointly organizing operations, sales and service, thereby unlocking synergies and sustainably improving the economic performance of the telecommunications business.
At the same time, the new structure was designed to increase network utilization, reduce cost levels and ensure long-term economic viability of operations.
The core question
How can a scalable and competitive telecommunications model be established without compromising municipal ownership and control?
Separation of infrastructure and operations as a new model
The new setup introduces a model that sets a benchmark in the municipal telecommunications landscape: multiple municipal entities consolidate their telecommunications activities within a shared platform, creating a central unit for operations and commercialization.
- Network infrastructure remains with the municipal NetCos – safeguarding ownership
- Operations, sales and service are centralized – enabling scale and efficiency
- A single platform replaces parallel structures – increasing market impact
This results in an integrated structure where multiple networks are operated jointly and all partners benefit from the advantages of a larger, consolidated operating model.
The economic logic is straightforward: only by combining commercial and operational activities can the scale required to operate fibre networks sustainably and profitably be achieved.
At the same time, the platform is designed as an open-access model, enabling the integration of third-party service providers alongside own products and thereby increasing network utilization.
Integrated setup for joint venture and transformation
Establishing the platform required a tightly integrated approach across strategy, negotiation and execution. We implemented a comprehensive setup covering all critical dimensions:
- Target operating model and organizational design
- Business case and synergy logic
- Governance and shareholder model, including participation and remuneration structures
- Migration and implementation planning
Both technical and commercial functions were consolidated within a central organization, while the structured transition of existing activities into the new entity was prepared and executed. Including operations, sales and customer service.
Scaling as the key to competitiveness
The platform establishes the foundation for sustainable competitiveness of municipal telecommunications providers. By bundling operations and sales, a critical scale is achieved that enables more efficient commercialization, improved network utilization and consistent product and service offerings.
In addition, the shared platform supports a more efficient allocation of scarce resources and strengthens the competitive position against large-scale telecommunications providers and platform operators.
A blueprint for municipal collaboration in telecommunications
The project demonstrates how municipal utilities can successfully scale in the telecommunications market through consistent cooperation and a clear separation of infrastructure and operations.
By combining municipal ownership with entrepreneurial scale, the resulting model is both economically viable and strategically sustainable and serves as a blueprint for future cooperation and consolidation initiatives in the market.
