IslaLink is an independent and neutral telecom infrastructure provider of submarine fiber. It deploys and operates submarine cables, providing telecom operators with the managed bandwidth services they require for their retail operations. Since inception in 1999, the strategy of the company has been to target routes that have been underserved and where there have been opportunities to challenge a monopoly provider.
Market Trends and Drivers
Being a “carriers’ carrier”, IslaLink’s customers are primarily large, blue-chip telecom operators with whom the company has medium to long term contracts. Data volumes are being driven by increased broadband connectivity and fiber-to-the-home penetration, which in Spain is lower than in comparable European countries. Volumes are also driven by increased video content in internet traffic.
Investment Potential
IslaLink’s base business is stable, with revenues being protected through a combination of strong market position, medium to long term contracts with high quality customers and favorable market dynamics. The company is also pursuing a number of promising organic expansion opportunities, including a high-capacity direct link between Latin America and Europe, a heavily underserved route. In addition, IslaLink serves as a platform for inorganic growth opportunities in a highly dynamic segment of the telecommunications infrastructure space.