An Example Investment
During 2011 Shore Capital led an investor group which acquired a controlling interest in Deutsche Broadband Dienste GmbH ("DBD"), a German telecoms business, through a newly formed company named Spectrum Investments Limited ("Spectrum").
DBD began business in 2005 using microwave radio spectrum licensed to it by the German telecoms regulator to provide broadband services as an alternative to the broadband and telephone offerings of fixed wire-based telecom operators. To do this, it deployed Wi-Max technology.
DBD holds microwave radio spectrum with coverage across Germany, which it acquired in licence auctions and by acquisition. It has established an extensive network across Germany of towers, transmitters and control equipment. DBD is currently not profitable and the now wide availability of fixed broadband across Germany from other suppliers using telecom wires has made DBD's radio-based offering relatively less attractive.
By exploiting Israeli-developed radio technology from Spectrum, DBD plans to broaden its offering by adding telecom services to business customers, including mobile operators, to assist them in providing 4G data services to their own customers more efficiently and reliably. Spectrum will be working with DBD's management team to implement this plan.
Through its controlling interest in Spectrum, Shore Capital is backing a management team of Israeli entrepreneurs who are co-founding the company. Other investors include additional specialists in telecommunications, together with a number of directors and employees of Shore Capital who have co-invested. These Board Members and associates of Spectrum have exceptional track records in the technology, media and telecoms sectors, and bring critical expertise to the company.