The Data Tsunami in Africa - Spectrum Allocation, Infrastructure Sharing and Industry Consolidation

The Data Tsunami Spectrum Allocation, Infrastructure Sharing and Industry Consolidation

Mobile data traffic is doubling every two years

© Copyright Coleago 2014

TMT Finance & Investment - Africa 2014 - London 2

Source: Ericsson (November 2013)

Feature/Basic Phone

Smartphone

-

500

1,000

1,500

2,000

2,500

3,000

2011 2012 2013 2014 2015 2016 2017 2018 2019

Feature/Basic Phone Smartphone Mobile PC/Router/Tablet

Smartphones and LTE drive traffic growth



49%

81%

Central Europe, Middle East & Africa subscriptions (m)

Source: Ericsson (November 2013) Source: Ericsson (November 2013)

Traffic growth varies between regions/markets



Operators need to act now

Increase capacity and bandwidth to respond to demand l  Re-farm spectrum l  Add small cells l  Invest in transmission l  More spectrum l  Introduce LTE and LTE-A

Increase revenues? l  Data tariffs that reflect bandwidth and

volume needs l  New services l  Superior network performance l  Better customer segmentation l  Better churn management

Revenues will not keep pace with costs l  Engage Managed Service providers,

particularly for cloud l  Share network infrastructure l  Merge or acquire



$

Time

Costs

Network sharing – 200% growth in 4 years



Source: Coleago

2001-09 deals

2001-14 deals

+200%

2014 – an uptick in MNO in-market M&A?



In-market MNO M&A transactions

Source: Coleago

Regulators have a difficult balancing act



Clarity Stability

How Coleago helps operators

Spectrum services l  Spectrum strategy, valuation and

auction support l  More than 50 projects worldwide, on

every continent

Transaction services l  Strategy and business planning l  Information Memorandum l  Due diligence l  Implementation planning/execution l  More than 20 projects to date

Network sharing services l  TowerCos, active, passive and

spectrum sharing l  End-to-end from strategy through to

transformation l  Projects completed in 8 markets

We've written the book!



Key messages



Data traffic will increase dramatically

Profits will be squeezed and ROI will fall unless operators act now

Sharing and consolidation will change the face of the industry

Coleago helps operators respond to these challenges

Thank you

This presentation and our white papers re Spectrum, Network Sharing and Transaction services will be available to download from TMT shortly after this conference.



Scott McKenzie

+44 7825 294 576 [email protected] www.coleago.com

Director Coleago Consulting Ltd