Strategic asset reconfiguration and separation of a telecom operator
Telecommunications, Information technology, Media & Electronics (TIME)

Arthur D. Little advised a leading telecom operator in Czech Republic on the world’s first voluntary structural separation into a service and a network company


The incumbent integrated telecom operator was considering separating itself into a network company (holding all the infrastructure assets) and a commercial company to:

  1. streamline its business
  2. separate regulatory constraints into one entity
  3. obtain better financing/valuation.

The fixed & mobile network would be carved out into the netco, while the rest of the entity would be a commercial company selling retail and B2B services (comco)


Arthur D. Little first conducted a benchmark study on network carve-outs, based on similar separations performed in various international markets​. Selected carve-out strategies gave the client a good overview of strategic steps and main findings​.

In a second step, Arthur D. Little provided a full refinancing commercial due diligence, giving a full and detailed view of the organization after being divided into two legal entities. All benefits and risks associated with such an operation were developed during the commercial due diligence.


The telecom operator finally separated into a network and service company, which constituted the first voluntary structural separation in the world.

Strategic asset reconfiguration and separation


Separation created value. We increased our profit by 45% and met our targets