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J’son and Partners Consulting presents the main results of the research: analysis of the investment deals, typical for the key world players of telecommunication sector in 2010 – 2012

 

In the research process the following works have been accomplished:

 

  1. Analysis of 62 largest mobile operators by geographical regions: Europe, Asia, North America, Latin America, Africa and Middle East, Australia and Pacific Basin;
  2. Study of the deals including the corporate reorganization of companies (mergers, acquisitions, division, and transformation), share purchase, shares of legal entities.

 

As a result, a selection of 125 deals for 2010 – 2012 was considered, taking into account various parameters (geography, participants, industries, value of deals).

 

Despite a decline in activity in the post-crisis years, the statistical analysis of concluded deals shows an increase in the activity of operators on the M&A market.

 

 

On emerging markets such as the Asia-Pacific region and a stable leader - North America, dynamics of increase in the number of deals is clearly seen in the analysis of strategies by geographic region.

 

 

The increase in the median value of deals from 70 mln.USD to 246,9 mln.USD confirms the restoration of M&A market of telecommunication sector.

 

The highest rate of concluded deals is in the sector of providing traditional telecommunication services.

 

 

In a number of considered regions there is a different distribution of investments. Thus, the strategy of Asian operators of developed countries (Japan, South Korea) is aiming to the development of value added services. As a result more than 60% of the deals were signed with developers of applications, cloud and content services etc.

 

 

The same market situation is on the markets of North America, especially on the telecommunication market of USA, where the largest amount of deals concluded in the sector of development and apps integration.

 

On the market of South America around 70% of deals and more than 80% on the territory of Middle East and Africa had been concluded in the sector of providing traditional telecommunication services.

 

 

Basically, this is due to the fact that in these regions is the lowest penetration rate of telecommunication services and there is a potential for further development. But the political situation (the Middle East and Africa) some legislative aspects (South America) are the restraining factors for investing.

 

There are not that many participants in the Australian region. The consolidation process of assets is mostly filled by two companies: SingTel and M2 Telecommunications (around 60% of the concluded deals)

 

Main conclusions of the research

A review of mergers and acquisitions performed by 62 largest telecommunication operators on the developed and emerging markets showed that mostly all investment strategies of the companies divided into the following categories:

 

  • Entering new markets;
  • Expanding business-directions (structure of deals from the point of view of the business-directions is a lot similar for the considered markets – the largest amount of deals are concluding in the sphere of providing traditional telecommunication services);
  • Purchase of certain assets in order to enter the market with a certain technology faster, often to 
    launch LTE network and 4G.

 

Detailed results of the research are presented in the full version of the report:
“Investment Strategies of the Largest World Mobile Connection Operators for 2010 – 2012” (80p)

 

1. Resume
2. Introduction
       2.1 Methodology
       2.2 Definition of the key parameters of selection
       2.3 Geography
       2.4 Participants (market players)
       2.5 Value of deals
       2.6 Industries
3. Statistical analysis of deals
       3.1 By number of concluded deals
       3.2 By value of deals
       3.3 By industries
       3.4 By geographical features
              3.1.1. Australia and Pacific Basin
              3.1.2. Asia
              3.1.3. Asia and Middle East
              3.1.4. South America
              3.1.5. Europe
              3.1.6. North America
4. Profiles of the players and their investment strategies
5. Conclusions
List of companies mentioned in the report

 

List of illustrations

Fig. 1. Number of deals by years, 2010-2013, deals
Fig. 2. Number of deals by years, 2010-2013, deals
Fig. 3. Structure of concluded deals by investing industries, 2010 – 2012
Fig. 4. General structure of the deals for 2010 – 2012, % of the total number of considering deals
Fig. 5. Dynamic of the structure of deals in 2010 – 2012, % of the total number of deals in the year
Fig. 6. Structure of the concluded deals by business-directions, 2010 – 2013
Fig. 7. Structure of the concluded deals by business- directions on the developed markets (Japan, South Korea), 2010 – 2013
Fig. 8. Structure of deals by industries, Africa and Middle East, 2010 – 2013

 

List of tables

Table 1. Largest players in Europe, Asia and North America
Table 2. Largest players in Latin America, Middle East and Africa, Australia and Pacific Basin
Table 3. Companies participated in M&A deals in 2010 – 2012
Table 4. Deals concluded on the territory of Australia, 2010 – 2013
Table 5. Number of deals concluded in the sphere of providing the traditional telecommunication services
Table 6. Dynamic of the number of deals, Asia, 2010 – 2013
Table 7. Number of concluded deals by years in the view of separate business-directions, 2010 – 2013
Table 8. Number of concluded deals by years in the view of separate business-directions, 2010 – 2013

 

 

 

This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.