Mobile data traffic is doubling every two years due to the growth of smartphones and LTE networks. This rapid growth is straining network capacity and operator revenues cannot keep pace with rising costs. To address these challenges, operators need to increase network capacity, invest in new spectrum and infrastructure, and consider network sharing agreements or industry consolidation through mergers and acquisitions. Consulting firm Coleago helps mobile network operators develop strategies to respond to these issues and achieve sustainable growth.

1. The Data Tsunami
Spectrum Allocation, Infrastructure
Sharing and Industry Consolidation

2. Mobile data traffic is doubling every two years
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Source: Ericsson (November 2013)

3. Smartphones and LTE drive traffic growth
Smartphone
Feature/Basic Phone
3,000
2,500
2,000
1,500
1,000
500
-
2011 2012 2013 2014 2015 2016 2017 2018 2019
Feature/Basic Phone Smartphone Mobile PC/Router/Tablet
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49%
81%
Central Europe, Middle East & Africa subscriptions (m)
Source: Ericsson (November 2013) Source: Ericsson (November 2013)

4. Traffic growth varies between regions/markets
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5. 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
$
Costs
Revenues will not keep pace with
costs
l Engage Managed Service providers,
particularly for cloud
l Share network infrastructure
l Merge or acquire
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Time

6. Network sharing – 200% growth in 4 years
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Source: Coleago
2001-09 deals
2001-14 deals
+200%

7. 2014 – an uptick in MNO in-market M&A?
In-market MNO M&A transactions
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Source: Coleago

8. Regulators have a difficult balancing act
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Clarity
Stability

9. 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!
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10. 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
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11. Thank you
Director
Coleago Consulting Ltd
This presentation and our white papers re Spectrum, Network Sharing and
Transaction services will be available to download from TMT shortly after this
conference.
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© Copyright Coleago 2014
Scott McKenzie
+44 7825 294 576
scott.mckenzie@coleago.com
www.coleago.com