With a total value of $1.5 trillion, the global telecommunications market is the world’s second-largest industry and has resumed the highly-favourable growth trends that that were temporarily stalled in 2000-2003.  Whilst telecoms infrastructure and telecoms equipment are volume businesses dominated by industry giants, we see many opportunities to work with companies that supply a range of specialist applications, from handset software and games, through wireless and convergence technologies, to billing systems and network management.

Several features of the telecoms industry make it a great fit with 3i:

• Change is constant.  Innovative and disruptive technologies arrive on the market continually, giving our Venture Capital team opportunities to support early-stage businesses that change the rules of the game.  Meanwhile, established operators regularly re-assess their priorities, spinning out non-core activities that make attractive partners for Growth Capital and Buyouts.
• Companies need good management and patient investors.  In the service industry, good management is vital.  With many of the companies we support we help to put in place a highly-professional management team.  At the same time, we stay with companies through economic cycles until they achieve success.  Unlike many investors, we don’t have a fixed time for exit.
• Global trends require local application.  3i’s blend of local and global expertise really counts in an industry where countries are at different points on the change curve and have strong local characteristics.  We help transfer knowledge and expertise from early-adopters to less-developed markets – but we also understand that rural China may require a completely different solution from high-density Hong Kong.