ESIP Sigfox

completed

Sigfox (or the “company”) plans to expand its low power wide area network, which is characterized by ultra-narrow band non-cellular technology that uses very low levels of power to connect a wide range of devices such as sensors, operated on batteries – so they can send and receive data, notably for the purposes of supply chain logistics, security and alarms, asset and facilities management, water and gas metering, and assisted living.   Sigfox’s project involves providing the company’s connectivity service in 60+ countries by 2018, by building out the infrastructure for its network, developing required business connections, and marketing its products and services. In some markets, this will be done by Sigfox itself or through joint ventures. In most markets, it will be done by third party owned licensees.  The network will be installed and operated by Sigfox Operators who have exclusive distribution rights, and who sell connectivity through channel partners (system integrators, telecom service providers, solution providers, device manufacturers, and retail sellers) or end customers.  IFC’s proposed investment in the project is for shareholding equity in Sigfox valued at 15 million Euros. At appraisal in October 2016, more than 10 million objects had been ordered to be connected to Sigfox network, and deployment had been launched across 27 countries. Hundreds of millions objects are planned to be connected under IFC’s proposed investment. At appraisal, the majority of Sigfox’s connected objects were in developed markets, but Sigfox had started to expand to six Part II countries in Latin America and Africa, with three more expected by the end of 2016, to be followed by other markets.   Sigfox expects to commission the manufacture of a large amount of equipment, about 50% of which is planned to be produced by a supplier in China.  Data center capacity is currently located in France.  Offices in leased spaces are located in France, the United States, Singapore, the United Arab Emirates, Germany, and Spain.  If any new offices are developed, they are expected to be in leased spaces.  Operations in new countries will be developed mostly through partners, who will have control over those operations but who will obtain base station equipment and specifications for other equipment from Sigfox. Sigfox plans to sell tens of thousands base stations per year.  Almost all new base stations – as is the case with almost all existing ones – are expected to involve installing a relatively small amount of equipment on existing telecommunications towers or other buildings.  On rare occasions, Sigfox or its partners may need to develop a tower site to host a base station.