The founding of a platform company
The challenge
It is often difficult for mobile network operators to find suitable locations for new 5G antennas as part of expanding the mobile phone network. A lack of transparency and protracted negotiations with private landowners often prevent much-needed sites from being developed.
Energy supply companies, particularly those that also act as grid operators, typically possess a large portfolio of properties. A regulated integration of the two sides would be one way of making it easier for mobile network operators to develop their infrastructure. Lengthy business transactions and opaque communication channels have made this approach difficult so far. The founding of 5G-Synergiewerk GmbH as a platform company for municipal utilities has created an interface for realising synergies and new value pools for energy suppliers.
The solution
First, we tested the business model with various municipal utilities and energy suppliers and developed an approach that benefits both sides. We then worked together to define a suitable value creation model, identified the necessary technology partners, and in doing so further refined the future business model. In addition to access to sites, standardised concepts are also required to facilitate the scalable construction of transmission systems, the design and installation of which will be the responsibility of the future company.
Lastly, we worked with the future shareholders to finalise the steps required to establish the platform company and provided support for the founding of 5G-Synergiewerk GmbH. Early pilot projects are showing that cooperation between mobile network operators and municipal utilities reduces the time required to set up standardised transmitters – for example, street lamps that are converted into small transmission masts – by around two thirds.
The conclusion
The business model we have developed has enabled us to significantly improve cooperation between the parties involved in the search for and selection of locations, as well as in the construction of transmitters. Advancements in technology and the German Federal Government’s requirements for 5G expansion indicate that the demand for suitable locations will continue to rise.
5G-Synergiewerk’s long-term outlook, the growing importance of this field of business and the additional benefits for local authorities as a result of integrated site development in comparison to the commercialization of individual sites are the key factors for success.
