the data tsunami - spectrum allocation, infrastructure sharing and industry consolidation. london,...

The Data TsunamiSpectrum Allocation, Infrastructure Sharing and Industry Consolidation

Mobile data traffic is doubling every two years

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TMT Finance & Investment - M&A Forum 2014 - London 1

Source: Ericsson (November 2013)

Smartphones and LTE drive traffic growth

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TMT Finance & Investment - M&A Forum 2014 - London 2

Source: Ericsson (November 2013)

Global subscriptions (m)

61%

Source: Ericsson (November 2013)

87%

Traffic growth varies between regions/markets

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TMT Finance & Investment - M&A Forum 2014 - London 3

Operators need to act now

Increase capacity and bandwidth to respond to demand

Re-farm spectrum

Add small cells

Invest in transmission

More spectrum

Introduce LTE and LTE-A

Increase revenues?

Data tariffs that reflect bandwidth and volume needs

New services

Superior network performance

Better customer segmentation

Better churn management

Revenues will not keep pace with

costs

Engage Managed Service providers,

particularly for cloud

Share network infrastructure

Merge or acquire

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TMT Finance & Investment - M&A Forum 2014 - London 4

$

Time

Costs

Network sharing – 200% growth in 4 years

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TMT Finance & Investment - M&A Forum 2014 - London 5

Source: Coleago

2001-09 deals

2001-14 deals

+200%

2014 – an uptick in MNO in-market M&A?

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TMT Finance & Investment - M&A Forum 2014 - London 6

In-market MNO M&A transactions

Source: Coleago

Regulators have a difficult balancing act

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Clarity

Stability

How Coleago helps operators

Spectrum services

Spectrum strategy, valuation and

auction support

More than 50 projects worldwide, on

every continent

Transaction services

Strategy and business planning

Information Memorandum

Due diligence

Implementation planning/execution

More than 20 projects to date

Network sharing services

TowerCos, active, passive and

spectrum sharing

End-to-end from strategy through to

transformation

Projects completed in 8 markets

We've written the book!

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TMT Finance & Investment - M&A Forum 2014 - London 8

Key messages

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TMT Finance & Investment - M&A Forum 2014 - London 9

Data traffic will increase dramatically

$

Time

Costs

EBITDA will be squeezed and ROI

will fall unless operators act now

Sharing and consolidation will

change the face of the industry

Coleago helps operators respond to these challenges

Thank you

This presentation and our white papers re Spectrum, Network Sharing and

Transaction services will be available to download from TMT shortly after this

conference.

© Copyright Coleago 2014

TMT Finance & Investment - M&A Forum 2014 - London 10

Chris Buist

+43 664 352 1068

chris.buist@coleago.com

www.coleago.com

Director

Coleago Consulting Ltd

Scott McKenzie

+44 7825 294 576

scott.mckenzie@coleago.com

www.coleago.com

Director

Coleago Consulting Ltd