telecom strategy review 2015: europe (part 1)
TRANSCRIPT
About
Vodafone
Deutsche Telecom
Telefónica
Contacts
Quick look at telecom strategy from
market leaders by TMTVenture.com
It’s our first market research of global telecom strategy
2015 presentation cycle. We would like to cover all
regions and it would be about 18 companies reviews.
It consist of companies overview with key stats and cover
main topics of companies strategy. We use companies
annual reports, market reports and other internet trusted
sources.
This report start our European market overview.
Vodafone, Deutsche Telecom and Telefónica are our first
reviewed companies.
Best regards,
Ivan Zakharov
Expert at TMTVenture.com
Vodafone Group plc is a
British multinational
telecommunications
company and the second
largest mobile operating
group in the world in terms
of subscriptions.
HQ: London, Great
Britain
Subscribers: 495M
(+5%)
Revenue: $64.6B (+11%)
EBITDA: $18.2B (+8%)
CAPEX: $14.3B (+46%)
Employees: 90 000
Vodafone in 26 countries
Mobile services
(446M sub.)
Landline
(28M sub.)
Broadband
(12M sub.)
PayTV
(9M sub.)
Revenue 2014 split by key markets, %
27%
20%
14%
12%
13%
14% Germany
UK
Italy
Spain
Vodacom (Africa)
India
CAPEX and M&A Geography
Highlights Consumer Enterprise
Services
Become a data company
Deeper and stronger presence in existing markets
Unified Communications – bundle of mobile and fixed line services
Enterprise expansion - M2M and cloud solutions
Continue to leverage group synergies
Active M&A and Infrastructure investments
Deeper and stronger presence in existing markets (Europe, Africa, India)
Best mobile voice and data (coverage and quality) – 4G/HSPA+
Worry-free usage through Vodafone Red - globally branded pricing plan
Focus is on next-generation networks (fibre or cable)
Upgrade retail presence, modern shops focused on service as well as sales
Strategy and investment is focused on three high-growth product areas:
unified communications
cloud and hosting and
machine-to-machine (M2M)
Become world leader in M2M (22m sim)
Develop Connectivity and leadership in “Connected Car” services provider
Development of Vodafone Global Enterprise
Spread across a globe M-pesa service (20m users) which now is growing fast in India and Africa
Development of content services to stimulate 4G data plans
Bundle content packages with 4G plans
True triple play – broadband, TV, telephone
Launch or buy own TV channel (Sky)
Company is going to expand their services on emerging markets:
India,
Ukraine,
Turkey,
Africa
Increase Europe-based assets profitability
Left several markets: Australia, USA
Double new sites(2G/3G/4G) construction (Project Spring)
M&A activity:
Sell “non-core markets” assets
Buy fixed line operators
Buy enterprise operators
Buy M2M and FinTech providers
Deutsche Telekom AG is a
Germany-based company
engaged in the
telecommunications
services and information
technology sectors. Mostly
known by T-mobile brand.
HQ: Bonn, Germany
Subscribers: 202M
(+4%)
Revenue: $70.9B (+4%)
EBITDA: $19.9B (+1%)
CAPEX: $13.3B (+6%)
Employees: 230 000
Deutsche Telekom in 26 countries
Mobile services
(151M sub.)
Landline
(30M sub.)
Broadband
(17M sub.)
PayTV
(6M sub.)
35%
36%
19%
10% Germany
USA
Europe
Other
Revenue 2014 split by key markets, %
CAPEX and M&A Geography
Highlights Consumer Enterprise
Services
Leading European Telco
Integrated IP networks - develop pan-European operator
Best customer experience – coverage and service quality
First truly converged market offer
Partnership with OTT players rather than competing with them
TV across all screens in Europe
M2M and new technologies leader
Best mobile voice and data (coverage and quality) – 4G/HSPA+
Fully converged bundled tariff plans with most popular OTT services
Focus is on fibre and cable networks
Best customer experience via checking 3rd parties ratings
Customer self service capabilities in one App
Un-carrier strategy for US market
One-stop shop for business with bundled tariffs and partner’s services
Integration of OTT services like: Salesforce, SAP, Cisco
Integration of GTS
Best M2M international coverage and leadership in M2M Car connectivity
Cloud VPN solutions
Specialized healthcare and smart metering solutions
Partnership with security, productivity, personal, entertainment OTT services providers
Bundle content packages with 4G plans
Spread across entire market presence of TV services on both IPTV and Mobile TV with multiscreen experience
Launch own TV channels in several regions
My wallet solution based on NFC
Company is going to expand their services on European market:
Germany
Austria,
Netherlands
Company is planning to stabilize Germany assets profitability
Left several markets: USA (possible JV), UK
Double new sites (4G/5G) construction
Migrate entire fixed network to the Internet protocol (IP) for all customers
M&A activity:
Sell US&UK assets
Active M&A in Austria and Netherlands
No major acquisitions outside Company’s footprint
Minor technology M&A
Telefonica, S.A. is an
integrated and diversified
telecommunications group
operating in Europe and
Latin America. Brands:
Telefónica, O2, Vivo,
Movistar.
HQ: Madrid, Spain
Subscribers: 341M
(+6%)
Revenue: $57.0B (-12%)
EBITDA: $65.4B (+10%)
CAPEX: $10.6B (+17%)
Employees: 120 000
Telefónica in 21 countries
Mobile services
(278M sub.)
Landline
(39M sub.)
Broadband
(21M sub.)
PayTV
(7M sub.)
24%
22% 26%
14%
11% 3% Spain
Brazil
HispanoAmerica
UK
Germany
Other
Revenue 2014 split by key markets, %
CAPEX and M&A Geography
Highlights Consumer Enterprise
Services
Become a Digital Telco:
Bundled Mobile services
Away from selling minutes to selling Gigabytes
Cloud services for B2C and B2B
Development of Enterprise BU
Active M&A and Infrastructure investments
Increasing efficiency through simplification and cost-cutting
Provide new more data-related and bundled plans
Develop 3G and 4G coverage, especially advanced MIMO and VoLTE
Growth average revenue per access by B2C connectivity and broadband services
Increase the penetration of smartphones by lowering entry price points and seizing upon the prepaid smartphone opportunity
Move M2M/Cloud/Security to enterprise business unit to strengthen it
Develop M2M Alliance with several operators to provide global M2M coverage using jasper over-the-Air technology
Provide API based enterprise solutions for ecommerce
Partnerships with B2B solutions providers
Further development of Telefonica Digital – new business unit. Now on global level
Development of new services in Digital Health, FinTech, mAds and etc.
Development of content services to stimulate 4G data plans, like Movistar Video
Use of BigData inside of the company to provide more personalized services
Simplification of corporate functions from a regional to global model and adapting the structure to the new operating model
Concentration on 3 key markets (Spain, Brazil and Germany) to keep it share in total revenue at level of 66%
Cooperation on Chinese market
Keep CAPEX expenditures on rate 17% of revenue for next 2 years
M&A consolidation on Brazil and German markets to create a synergy
M&A activity:
Sell UK assets
Buy new European assets
OTT and venture investments in following to Digital strategy
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