the data tsunami - spectrum allocation, infrastructure sharing and industry consolidation. london,...
DESCRIPTION
Chris Buist's presentation to the TMT M&A Forum in London 2014: Mobile data traffic is doubling every two years, driven by smartphones and LTE. EBITDA will be squeezed and ROI will fall unless operators act now to increase capacity and bandwidth to respond to demand. Network sharing and industry consolidation will change the face of the industry. Coleago helps operators respond to these challenges.TRANSCRIPT
The Data TsunamiSpectrum Allocation, Infrastructure Sharing and Industry Consolidation
Mobile data traffic is doubling every two years
© Copyright Coleago 2014
TMT Finance & Investment - M&A Forum 2014 - London 1
Source: Ericsson (November 2013)
Smartphones and LTE drive traffic growth
© Copyright Coleago 2014
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
© Copyright Coleago 2014
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
© Copyright Coleago 2014
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?
© Copyright Coleago 2014
TMT Finance & Investment - M&A Forum 2014 - London 6
In-market MNO M&A transactions
Source: Coleago
Regulators have a difficult balancing act
© Copyright Coleago 2014
TMT Finance & Investment - M&A Forum 2014 - London 7
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!
© Copyright Coleago 2014
TMT Finance & Investment - M&A Forum 2014 - London 8
Key messages
© Copyright Coleago 2014
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
www.coleago.com
Director
Coleago Consulting Ltd
Scott McKenzie
+44 7825 294 576
www.coleago.com
Director
Coleago Consulting Ltd