Abstract
A detailed analysis of the key factors underpinning the acceleration of investment activity across emerging markets and the ongoing consolidation in the highly-penetrated markets of North America and Europe.
Key issues addressed:
- To what extent has investment across global mobile markets been impacted by economic difficulties?
- Where are the world' s new mobile telecoms investment hotspots given the recent consolidation patterns seen in Europe and North America?
- Who are the world' s largest international investors? Is there an ongoing shake-up in the global mobile investment market?
- How is market saturation impacting the world' s largest operators' business models and investment plans?
- What are the new range of investment opportunities in today' s mobile market around network infrastructure and the provision of content?
Key Coverage
- 2006 represented a bumper year for M&A in the mobile world, as illustrated by AT&T' s purchase of BellSouth for US$67 billion and Telefonica' s acquisition of O2 for US$30.8 billion. Both deals reflected the ongoing pattern of consolidation in North America and Europe. In terms of total value of deal, there was a considerable decline in M&A activity in 2007 from 2006, although the number of deals at 55 remained the same.
- Despite the challenges set by global economic difficulties, the mobile market is showing resilience with financial investors prepared to continue to make significant investments as shown by TPG Capital and GS Capital Partner' s acquisition of Alltel for US$27.5 billion in 2007.
- Vodafone continues to buck the trend set by other European mobile operators in choosing to expand its overseas remit. Whilst the likes of Deutsche Telekom and France Telecom consolidate their operations in Europe and Telefonica continues to focus on Latin America, Vodafone acquired Telsim (Turkey) and a majority stake in Hutchison Essar (India) for US$4.5 billion and US$11.1 billion respectively.
- M&A activity across emerging market continues to be attractive, driven by a high net addition count of subscription numbers in the Indian sub-continent (India, Pakistan and Bangladesh), China, southeast Asia (especially Indonesia and Vietnam), Africa, the Middle East and Latin America. Gulf-based operators STC (Saudi Arabia) and Qtel (Qatar) are testament to this acquiring minority stakes in Malaysia (Maxis) and Indonesia (Indosat) respectively.
- A new breed of international investor has emerged with many of the world' s largest mobile operators apparently unwilling to take risks in certain markets. This has allowed the likes of Abu Dhabi-based Warid Telecom to invest in Pakistan and Bangladesh and parts of Africa, Saudi-based HiTS Telecom to enter Africa and Brazil, and Russian giant Sistema to buy a minority stake in minor Indian operator Shyam Telelink.
- The impact of high-speed internet services cannot be ignored by anyone involved in the telecoms industry. With the rapid growth in deployment of HSDPA, mobile broadband services are helping to ensure that data revenues are making significant revenue contributions. It is therefore likely that deals such as Nokia' s recent US$8 billion acquisition of digital mapping company Navteq will become more common.
Who should read this report:
- Operators
- Vendors
- Financial Institutions
- Consultancies
- Government
- Regulators
Who should read this report:
- Operators
- Vendors
- Financial Institutions
- Consultancies
- Government
- Regulators
Table of Contents
INTRODUCTION
- Emerging markets set to drive M&A
- Figure 1.1: Global net additions by region, 1Q07 vs 1Q08
- Outlook - a new breed of investor
CHAPTER - 1
- WESTERN EUROPE
- Summary
- Figure 1.1: Western Europe, mergers and acquisitions, 1Q06-2Q08
- Figure 1.2: Western Europe, top ten fees for recent license awards, 1Q07-2Q08
- Western European mergers and acquisitions
- Regional players in Western Europe
- Figure 1.3: Western Europe top ten investors by proportionate subscriptions, 1Q08
- Drivers for mergers and acquisitions in Western Europe
- Purchase of MVNOs and SPs
- Intra-market consolidation
- Full control over assets
- Facilities and infrastructure
- Future opportunities in Western Europe
CHAPTER - 2
- CENTRAL AND EASTERN EUROPE
- Summary
- Figure 2.1: Central and Eastern Europe, selected acquisitions, 1Q06-2Q08
- Figure 2.2: Central and Eastern Europe 10 most recent license awards, 2Q07-2Q082
- Central and Eastern European mergers and acquisitions
- Who is investing in the region?
- Figure 2.3: Central and Eastern Europe, top 10 investors by proportionate subscriptions, 1Q08
- Drivers for mergers and acquisitions in Central and Eastern Europe
- Russia - consolidation at home, expansion in CIS
- Developing regional clusters
- Figure 2.4: Central and Eastern Europe, Telekom Austria footprint, 2Q08
- Acquisition for convergence
- Future opportunities in Central and Eastern Europe
- Potential licenses in Central and Eastern Europe
- Figure 2.5: Central and Eastern Europe future license opportunities, 2008-2009
CHAPTER - 3
- NORTH AMERICA
- Summary
- Figure 3.1: North America, mergers and acquisitions, 1Q06-2Q08
- Figure 3.2: North America top 10 fees paid for cellular licenses by date, 2006-2008
- North American mergers and acquisitions
- Regional players in North America
- Figure 3.3: North America top 10 investors by proportionate subscriptions, 1Q08
- Drivers for mergers and acquisitions in North America
- Future opportunities in North America
CHAPTER - 4
- LATIN AMERICA
- Summary
- Figure 4.1: Latin America, mergers and acquisitions, 1Q06-2Q08
- Figure 4.2: Latin America 10 most recent license awards, 4Q07-1Q08
- Latin America mergers and acquisitions
- Regional players in Latin America
- Figure 4.3: Latin America top 10 investors by proportionate subscriptions, 1Q08
- Drivers for mergers and acquisitions in Latin America
- Consolidation in Brazil
- Regional hubs
- Future opportunities in Latin America
CHAPTER - 5
- MIDDLE EAST AND AFRICA
- Summary
- Figure 5.1: Middle East and Africa, mergers and acquisitions, 1Q06-2Q08
- Figure 5.2: Middle East and Africa 10 most recent license awards, 4Q07-1Q08
- Mergers and acquisitions in Middle East and Africa 2006-2008
- Regional players in the Middle East and Africa
- Figure 5.3: MEA top 10 investors by proportionate subscriptions, 1Q08
- Drivers for mergers and acquisitions in MEA
- Future opportunities in MEA
CHAPTER - 6
- INDIAN SUB-CONTINENT
- Summary
- Figure 6.1: Indian sub-continent, mergers and acquisitions, 1Q06-2Q08
- Indian sub-continent mergers and acquisitions overview
- Regional players in the Indian sub-continent
- Figure 6.2: Indian sub-continent, regional operators and investors, 1Q08
- Figure 6.3: Indian sub-continent top 10 overseas investors, 1Q08
- Drivers for mergers and acquisitions in the Indian sub-continent
- Future opportunities in the Indian sub-continent
CHAPTER - 7
- SOUTH EAST ASIA
- Summary
- Figure 7.1: South East Asia, mergers and acquisitions, 1Q06-2Q08
- Figure 7.2: South East Asia most recent license awards, 1Q06-1Q08
- South East Asia mergers and acquisitions
- Regional players in South East Asia
- Figure 7.3: South East Asia top 10 investors by proportionate subscriptions, 1Q08
- Drivers for mergers and acquisitions in South East Asia
- Investment in complementary assets to gain scale
- Opportunities for organic growth and high ROI
- License-motivated M&A
- Future opportunities in South East Asia
APPENDIX I
- Weste Europe: Full list of license awards by date, 2006-2008
- Central and East Europe: Full list of license awards by date, 2006-2008
- North America: Full list of license awards by date, 2006-2008
- Latin America: Full list of license awards by date, 2006-2008
- Middle East and Africa: Full list of license awards by date, 2006-2008
- South East Asia: Full list of license awards by date, 2006-2008
APPENDIX II
- Global: Full list of M&A activity, 2006
- Global: Full list of M&A activity, 2007
- Global: Full list of M&A activity, 1H08
APPENDIX III
- Global: Top 10 M&As (by value), 2006
- Global: Top 10 M&As (by value), 2007
- Global: Top M&As (by value), 1H08
APPENDIX IV
- Global: Top (> 50 million subs) global investors and operators by proportionate equity subscriptions, March 2008
- Africa: Leading investors by proportionate equity subscriptions, March 2008
- Americas: Leading investors by proportionate equity subscriptions, March 2008
- Asia Pacific: Leading investors in proportionate equity subscriptions, March 2008
- Central and East Europe: Leading investors in proportionate equity subscriptions, March 2008
- Weste Europe: Leading investors in proportionate equity subscriptions, March 2008
- Middle East: Leading investors in by proportionate equity subscriptions, March 2008
- USA/Canada: Leading investors in by proportionate equity subscriptions. March 2008
APPENDIX V
- Global: Total number of proportionate subscriptions by investor, March 2008
APPENDIX VI
- Global: Total number of subscriptions by region, 2006-2Q08
- Global: WCIS forecast by subscriptions, by region, 2008-2013
