NUMBERS GAME in the Near Future
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FEATURING GLOBAL 100 BUSINESS ANALYSIS FOR TELECOMS PROFESSIONALS OCTOBER 2013 TIMELINE TECHNOLOGY BUSINESS GEOGRAPHY EVENTS A round-up of some The New World: Six of the Best: Infamous Five: Dates for your diary and of the major stories The M&A trend in the US We profile the people Europe’s biggest five details of the must-attend reported in our daily is paving the way for a leading some of the key markets are seeing their events in the telecoms news service significant shift in the players in the global share of Global 100 industry over the coming www.totaltele.com global telecoms landscape telecoms industry revenues dwindle months F eatu RE GLObaL 100 The 2013 issue of Total Telecom’s ranking of the world’s biggest operators looks at the impact of US M&A activity on the global tele- coms landscape OPINION safe for now. Exchange rates permitting, we could see its turnover exceed €100 billion NUMBERS GAME in the near future. There is no shortage of The annual Global 100 report provides a definitive M&A activity in Europe guide to the health of the world’s telecoms industry either, but operators in the region’s big five markets are s we enter the last Not much has changed at not finding life easy. Global quarter of another year the top of the Global 100 revenue was flat at €1.28 Ain telecoms it is once 100–AT&T, NTT and trillion this year, with the again time for the publica- Verizon remain the top big three US players–AT&T, tion of the Global 100, Total three–but recent activity in Verizon and Sprint–together Telecom’s annual ranking of the US means that the look contributing 16.4% or €211 the world’s biggest telecoms of the ranking table could billion. Telefonica, Deutsche operators by revenues. We alter considerably next year Telekom, Orange, Telecom have spent a month ordering, and beyond. Having closed Italia and BT only just re-ordering and manipulat- its Sprint acquisition, Japan’s exceeded that figure, ing an Excel spreadsheet to Softbank is making progress generating €215 billion, or produce the definitive guide in its spirited quest for world 23.52% of the total. to the health of the world’s domination, but AT&T’s Mary Lennighan, editor telecoms industry and foray into M&A means its [email protected] analysis of the key trends. number one position looks @TelecomEditor www.totaltele.com CREE GaN TECHNOLOGY Cree 50V GaN HEMT for Telecom ENERGY SAVING POWER Ideal for 1.8-2.7 GHz LTE, 4G Telecom AMPLIFIERS MADE POSSIBLE and BWA amplifier applications Reducing energy use and increasing efficiency starts with Cree. With years Screw-down flange of experience developing innovative solutions for critical communications and solder-down pill applications, Cree is the leader in GaN technology. packages available Learn how you can save energy, expand frequency and reduce system cost for cellular network power amplifiers at cree.com/telecom. Increased power amplifier efficiency could save an estimated 10 TWh per year, the equivalent power output of two nuclear power plants. CRC017 TotalTel 07/13-10/13 Full Page Ad AF.indd 1 6/10/13 4:06 PM A round-up of the major stories in telecoms in the past month, as reported in our daily news service www.totaltele.com IN BRIEF ANALYSIS NO CANADA DOUBLE TROUBLE 15 bidders have submitted Once dominant device makers Nokia and BlackBerry both applications to take part in got new owners last month, selling for significantly less than Canada’s 700-MHz spectrum anyone could have imagined just a few years ago. Microsoft auction in January. The picked up Nokia’s devices business for €5.44 billion, while contest failed to attract BlackBerry passed to private equity firm Fairfax for $4.7 interest from major foreign billion. By comparison, Apple posted a quarterly net profit of telcos; Verizon ruled out $6.9 billion (around €5 billion) in July. such a move last month. The Nokia deal will give Microsoft a closer connection between its Windows Phone operating system and the teLecOM ItaLIA OWNERshIP hardware it runs on, a strategy that has worked well for Telefonica will gradually Apple. Although Nokia has had some limited success with the increase its stake in Telco, Lumia smartphone range, Microsoft will have to work hard Telecom Italia’s largest to create a credible third smartphone ecosystem. BlackBerry, shareholder, over the next meanwhile, finds itself in an even shakier situation. Its couple of years, allowing its market share is in freefall and analysts are not optimistic on Italian shareholders to exit. its ability to turn its fortunes around. The vendor has until 4 November to attract a higher offer, but it is hard to imagine BROADbaND SPEND IN CHINA anyone throwing substantial amounts of cash its way. China will spend 2 trillion yuan ($327 billion) on broadband infrastructure in MICROSOFT WILL HAVE TO WORK a bid to reach nationwide HARD TO BUILD A THIRD ECOSYSTEM coverage by 2020. OS maRket shaRE FORecasts MYANMAR’S TELCO BILL Parliament has passed a new Smartphone OS 2013 market share 2017 market share telecoms bill in Myanmar Android 75.3% 68.3% iOS 16.9% 17.9% that will pave the way for Windows Phone 3.9% 10.2% international operators BlackBerry OS 2.7% 1.7% Telenor andWCA Ooredoo 2013 Banner to 31-128.pdfO thers 1 27/09/2013 14:15 1.2% 1.9% launch services there. Source: IDC, September 2013 C M 3rd December 2013 The Lancaster Y London UK CM MY Visit the website: CY www.worldcommsawards.com CMY or call +44 (0)207 608 7077 K 3 www.totaltele.com IN BRIEF BANGLADESH 3G AUCTION GUY LAURENCE HAS Bangladesh raised $525 AN UNORTHODOX million from the sale of 3G APPROACH TO licences. Grameenphone, MANAGEMENT Robi Axiata, Bangalink and Airtel acquired spectrum; Citycell did not take part. PROFILE NZ PUSHES ON WITH 4G MUSCLE MAN New Zealand will begin its Guy Laurence once beat Bruce Willis in an arm-wrestling auction of 700-MHz spec- match, according to various reputable online sources, which trum on 29 October. The makes him the ideal choice to take charge of Canada’s Rogers nine available 5-MHz lots of Communications in December. He arrives as Rogers and its spectrum have a base price of major rivals Telus and BCE are working hard to stop new NZ$22 million each. competition muscling its way into the country’s mobile market. “The breadth and depth of [Laurence’s] experience in OIL AND MOBILE telecommunications, pay television and media are perfectly Hungary has a new MVNO suited to Rogers and to the challenges and opportunities we in oil company MOL. The see ahead,” said Rogers chairman Alan Horn. firm’s MOL Mobile service Laurence will join Rogers from Vodafone UK, where he runs on Magyar Telekom’s has served as CEO since 2008; he joined Vodafone in 2000 and network. has held a number of senior positions, including CEO of Vodafone Netherlands. He gained a reputation at Vodafone AT&T CLOses SPECTRUM buY for an unorthodox approach to management, that included AT&T has closed a deal strictly enforcing a clean desk policy and ripping up the dress announced in January to code. Although he leaves Vodafone languishing in third place acquire $1.9 billion worth of in the UK mobile market, the experience he gained there will spectrum from Verizon doubtless stand Laurence in good stead to deal with the Wireless in order to boost its intensifying competitive environment in Canada. LTE rollout. MOveRS AND shakeRS NEPAL sateLLIte saLE TeliaSonera agreed to sell its VIMPELCOM’S NEW BOSS NEW CONTRACT FOR HESSE 57% stake in GSM operator Mikhail Slobodin will become the Sprint renewed CEO Dan Hesse’s Nepal Satellite, citing new head of Vimpelcom’s Russia contract, keeping him at the helm regulatory uncertainty. business on 14 October, replacing until at least July 2018. Anton Kudryashov, who has been named chief group business devel- TPSA REPLACES CEO opment and portfolio officer. Bruno Duthoit has taken over as CEO of Poland’s TPSA, replacing 1.2 5 BN BHARTI NAMES AFRICA ceO Maciej Witucki. MOBILE Former MTN Group executive Chris- subscRIbeRS tian de Faria joined India’s Bharti temPORARY measuRE IN AFRIca BY Airtel and will become CEO of its KPN named Steven van Schilf- END-2018 African business on 1 January. gaarde as its interim CFO. (ABI Research) 4 www.totaltele.com IN BRIEF ANALYSIS FRENCH 4G DEAL ROME AND RIO Virgin Mobile will use Telecom Italia is a telco in trouble. It has a €28.8 billion debt Bouygues Telecom’s LTE pile and is under pressure to raise money to avoid seeing its network for its own French credit rating downgraded to junk status. Late last month 4G service starting in the CEO Franco Bernabe indicated that the telco has two options: first half of 2014. the sale of Latin American assets or a capital increase. He noted that the market conditions are right for the latter and LIBYA PLANS MOBILE TENDER financial analysts are also leaning that way. Berenberg Bank Libya revealed it will launch believes “a rights issue is the best outcome for shareholders”. a tender for its first private But Telecom Italia might not have a choice about its future mobile licence in three to six in Brazil. Regulators have expressed concern over a new deal months. that will see Telefonica gradually increase its stake in Telecom Italia’s largest shareholder Telco, thereby indirectly NEW uk 4G SPECTRUM saLE increasing its holding in Telecom Italia.