Understand the importance of professionalizing your ISP

Being professional is essential for the expansion and consolidation of an ISP in the market today.
Investors have been looking for more and more professionalized businesses that have good governance practices and comply with Anatel's rules. To take advantage of the opportunities that present themselves, providers need to reinvent themselves, rethink internal processes and, above all, professionalize management.

In panel of Futurecom 2019, the investment director of Banco Santander, Valder Nogueira, pointed out that the window of opportunity for the expansion of regional providers “is not as open as before” due to coverage targets and homes passed [houses that can subscribe to the service in fiber] from Oi. In this way, the new investments that the national concessionaire has made in fixed broadband over optical fiber should have the attention of regional providers.

According to him, the mergers and acquisitions market tends to remain heated for a long time. On the other hand, we will have increasingly discerning investors. In this sense, promoting innovative management and sustainable business development can help ISPs remain competitive in a competitive and dynamic market.

It is important to be aware of how the pieces will move from now on. The awakening of a player that until then was inert and, thus, enabled the growth of many ISPs, should not, however, be viewed with pessimism or fear. Providers continue to be the target of mergers and acquisitions, delivering growth rates above other investments. Investors pay up to 7x the company's recurring EBITDA. And according to Valder Nogueira, there are still growth alternatives for providers in addition to M&A, defending the possibility of, with falling interest rates, resorting to financing in return for having to give up part of the business.

Professionalize your ISP = Smart Management

As pointed out earlier, the concern with the professionalization of the ISP has to be a constant. Fabiano Ferreira, CEO of Vero Internet, warned on the same Futurecom panel that, due to the fact that this market is not professionalized, there are funds taking advantage. “If someone is offering 8x, be careful, maybe you don't really know your EBITDA,” he said.

For this reason, the commitment to service quality, specialized support and customer experience are essential for ISPs seeking to differentiate themselves. The management of providers needs to be concerned with delivering, mainly, quality.

How can network mapping help?

Network mapping is a means to this, but not the end. The real value lies in the ability to accelerate processes (technical and commercial), reduce operating costs, qualify customer service and generate specialized indicators for the expansion of the operation.

Having clarity about the current situation of your network, what are the best actions to take, what the needs of customers in your region are and how to meet them: all this is allied to greater growth of your company, in a planned and professional way .