TELECOM INDUSTRY: BEYOND CONNECTIVITY...2 Microsoft 3 Apple Deutsche Telekom 25 1 Google 2...
Transcript of TELECOM INDUSTRY: BEYOND CONNECTIVITY...2 Microsoft 3 Apple Deutsche Telekom 25 1 Google 2...
©VEON Ltd 2016©VimpelCom LtdAlexey Reznikovich
TELECOM INDUSTRY:
BEYOND CONNECTIVITY
1 Market Cap Weighted Average EBITDA Margin
2 Average Capex/Revenue
3 Market Cap Weighted Average LTM EV/EBITDA
4 Revenue, Capex and EBITDA margin estimates. Multiples are actuals as of end of 2016.
SOURCE: S&P Capital IQ Top 100 Telecommunications companies, McKinsey
1,531
1,819
2,058 2,0292,097
2,294 2,328
2,468
2,255
2,0501,920 1,920
2.000
10
1.500
1.000
500
30
15
5
35
20
25
0
40
014 1513120706 08 111009 2016E42005
Global telecom
revenues (USD bn) Capex/Revenue (%)2
EV/EBITDA (x)3
EBITDA Margin (%)1
2.500
SELECTED METRICS OF THE TELECOMS
INDUSTRY
“No matter how much you
shorten a play, it is never
enough.”
Anton Chekhov
THREE BIGGEST LIES
► The check is in the mail
► Your call is important to us
► I agree to the terms and conditions
THREE BIGGEST LIES OF THE TELECOM INDUSTRY
► Data monetization is coming
► We have billions of customers
► We are a utility with stable, sustainable returns. Exclusive access to spectrum is our safety net
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TELECOM COMPANY “ASSETS”
Asset Telecom Company Digital Company
► People, Talent ► Middle-age corporate execs
► Low appeal among graduates
► Young, innovative, dynamic, driven
► High appeal among graduates
Microsoft2
Apple3
Deutsche Telekom
25
Google1
...
...
Rolls-Royce2
Apple3
BT55
Google1
...
...
Apple2
BMW3
Telefónica25
Google1
NAVER2
Kakao3
SK Group5
Google1
...
Microsoft2
Apple3
SingTel35
Google1
...
...
Most attractive employers for students in IT, Engineer/IT, or Computer Sciences – 2016 ranking
Germany UK
Spain South Korea Singapore
Microsoft2
Apple3
AT&T43
Google1
United States
Verizon51
...
...
...
SOURCE: Universum 2016 (http://universumglobal.com/rankings/)
TELCOS ARE IN VERY TOUGH COMPETITION FOR TALENT
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TELECOM COMPANY “ASSETS”
Asset Telecom Company Digital Company
► People, Talent
► Equipment/software
► Tech expertise
► Customers
► Customer Info
► Middle-age corporate execs
► Low appeal among graduates
► No R&D, reliance on vendors’ proprietary solutions
► Limited to networks
► Disengaged, disintermediated, tolerant
► Info stored, no use
► Young, innovative, dynamic, driven
► High appeal among graduates
► Culture ► Corporate, bureaucratic, rigid (long lead times)
► Entrepreneurial, “free spirit” (constant innovation)
► In-house R&D, open source
► Strong, agile
► Engaged and satisfied
► Info processed and monetized
WE NEED TO SHIFT THE PARADIGM
► We need to embrace new vision for the industry
► Building an enabled gateway to customers
► Moving our business model BEYOND CONNECTIVITY!