Successful business model for profitable growth

Netel operates in critical infrastructures; telecom, power, and infraservices. Infraservices consists of district heating, water and sewage. The basis for our success is the model “the Netel Way” with its three parts:

Focus on project management and services

With more than 20 years of experience in leading complex infrastructure projects, we have extensive knowledge and appreciation for various stakeholders’ needs and circumstances. Critical infrastructure projects concern not only the customers but many other stakeholders, such as landowners and residents. Consequently, the projects require a sound appreciation for the environmental impact during execution. This demands expertise in terms of nature and water as well as air and noise levels. Knowledge about work environments and regulations related to working in exposed or hazardous environments is also important.

Our strength in project management is our decen­tralised organisation, whereby we have insights into and knowledge about local conditions and regulations.

Flexible cost structure and less tied-up capital

When it comes to construction and installation work, we typically outsource to subcontractors. This makes it possible to quickly adjust cost structures to changing market conditions, thereby creating more stable profitability and cash flow.

Long-standing relationships with competent subcontractors and suppliers are paramount in guaranteeing that the projects are executed with precision, quality and a high degree of accountability for the natural environment and work environment. Netel’s operations tie up little capital since the company has very low inventory and almost no heavy machinery. Because the company’s investment need is low, its cash conversion capacity is long-term high and stable.

Decentralised organisation

The decentralised organisation ensures local knowledge, quick decisions and a strong entrepreneurial spirit. This puts Netel in an excellent position with considerable competitive advantages when ecosystems surrounding critical infrastructures become increasingly complex in terms of both technology and regulations.