Vodafone, Deustche Telecom, Telefonica and other leading European telecommunication companies. 1st part of global telecoms strategy review. Total companies to be reviewed is about 16-18. We looked through their reports, interviews and made our own view on their strategy. Feel free to contact us with your commentary or if you've found any mistakes.

1. Telecom Strategy overlook 2015
Europe: Part 1
TMT Venture
research@tmtventure.com

2.  About
 Vodafone
 Deutsche Telecom
 Telefónica
 Contacts
Quick look at telecom strategy from
market leaders by TMTVenture.com
It’s our first market research of global telecom strategy
2015 presentation cycle. We would like to cover all
regions and it would be about 18 companies reviews.
It consist of companies overview with key stats and cover
main topics of companies strategy. We use companies
annual reports, market reports and other internet trusted
sources.
This report start our European market overview.
Vodafone, Deutsche Telecom and Telefónica are our first
reviewed companies.
Best regards,
Ivan Zakharov
Expert at TMTVenture.com

3. Vodafone Group plc is a
British multinational
telecommunications
company and the second
largest mobile operating
group in the world in terms
of subscriptions.
 HQ: London, Great
Britain
 Subscribers: 495M
(+5%)
 Revenue: $64.6B (+11%)
 EBITDA: $18.2B (+8%)
 CAPEX: $14.3B (+46%)
 Employees: 90 000
Vodafone in 26 countries
Mobile services
(446M sub.)
Landline
(28M sub.)
Broadband
(12M sub.)
PayTV
(9M sub.)
Revenue 2014 split by key markets, %
27%
20%
14%
12%
13%
14% Germany
UK
Italy
Spain
Vodacom (Africa)
India

4. CAPEX and M&AGeography
Highlights Consumer Enterprise
Services
 Become a data company
 Deeper and stronger presence in
existing markets
 Unified Communications – bundle of
mobile and fixed line services
 Enterprise expansion - M2M and cloud
solutions
 Continue to leverage group synergies
 Active M&A and Infrastructure
investments
 Deeper and stronger presence in
existing markets (Europe, Africa, India)
 Best mobile voice and data (coverage
and quality) – 4G/HSPA+
 Worry-free usage through Vodafone Red
- globally branded pricing plan
 Focus is on next-generation networks
(fibre or cable)
 Upgrade retail presence, modern shops
focused on service as well as sales
 Strategy and investment is focused on
three high-growth product areas:
 unified communications
 cloud and hosting and
 machine-to-machine (M2M)
 Become world leader in M2M (22m sim)
 Develop Connectivity and leadership in
“Connected Car” services provider
 Development of Vodafone Global
Enterprise
 Spread across a globe M-pesa service
(20m users) which now is growing fast
in India and Africa
 Development of content services to
stimulate 4G data plans
 Bundle content packages with 4G plans
 True triple play – broadband, TV,
telephone
 Launch or buy own TV channel (Sky)
 Company is going to expand their
services on emerging markets:
 India,
 Ukraine,
 Turkey,
 Africa
 Increase Europe-based assets
profitability
 Left several markets: Australia, USA
 Double new sites(2G/3G/4G)
construction (Project Spring)
 M&A activity:
 Sell “non-core markets” assets
 Buy fixed line operators
 Buy enterprise operators
 Buy M2M and FinTech providers

5. Deutsche Telekom AG is a
Germany-based company
engaged in the
telecommunications
services and information
technology sectors. Mostly
known by T-mobile brand.
 HQ: Bonn, Germany
 Subscribers: 202M
(+4%)
 Revenue: $70.9B (+4%)
 EBITDA: $19.9B (+1%)
 CAPEX: $13.3B (+6%)
 Employees: 230 000
Deutsche Telekom in 26 countries
Mobile services
(151M sub.)
Landline
(30M sub.)
Broadband
(17M sub.)
PayTV
(6M sub.)
35%
36%
19%
10% Germany
USA
Europe
Other
Revenue 2014 split by key markets, %

6. CAPEX and M&AGeography
Highlights Consumer Enterprise
Services
 Leading European Telco
 Integrated IP networks - develop pan-
European operator
 Best customer experience – coverage
and service quality
 First truly converged market offer
 Partnership with OTT players rather
than competing with them
 TV across all screens in Europe
 M2M and new technologies leader
 Best mobile voice and data (coverage
and quality) – 4G/HSPA+
 Fully converged bundled tariff plans
with most popular OTT services
 Focus is on fibre and cable networks
 Best customer experience via checking
3rd parties ratings
 Customer self service capabilities in one
App
 Un-carrier strategy for US market
 One-stop shop for business with
bundled tariffs and partner’s services
 Integration of OTT services like:
Salesforce, SAP, Cisco
 Integration of GTS
 Best M2M international coverage and
leadership in M2M Car connectivity
 Cloud VPN solutions
 Specialized healthcare and smart
metering solutions
 Partnership with security, productivity,
personal, entertainment OTT services
providers
 Bundle content packages with 4G plans
 Spread across entire market presence of
TV services on both IPTV and Mobile TV
with multiscreen experience
 Launch own TV channels in several
regions
 My wallet solution based on NFC
 Company is going to expand their
services on European market:
 Germany
 Austria,
 Netherlands
 Company is planning to stabilize
Germany assets profitability
 Left several markets: USA (possible JV),
UK
 Double new sites (4G/5G) construction
 Migrate entire fixed network to the
Internet protocol (IP) for all customers
 M&A activity:
 Sell US&UK assets
 Active M&A in Austria and
Netherlands
 No major acquisitions outside
Company’s footprint
 Minor technology M&A

7. Telefonica, S.A. is an
integrated and diversified
telecommunications group
operating in Europe and
Latin America. Brands:
Telefónica, O2, Vivo,
Movistar.
 HQ: Madrid, Spain
 Subscribers: 341M
(+6%)
 Revenue: $57.0B (-12%)
 EBITDA: $65.4B (+10%)
 CAPEX: $10.6B (+17%)
 Employees: 120 000
Telefónica in 21 countries
Mobile services
(278M sub.)
Landline
(39M sub.)
Broadband
(21M sub.)
PayTV
(7M sub.)
24%
22%
26%
14%
11%
3% Spain
Brazil
HispanoAmerica
UK
Germany
Other
Revenue 2014 split by key markets, %

8. CAPEX and M&AGeography
Highlights Consumer Enterprise
Services
 Become a Digital Telco:
 Bundled Mobile services
 Away from selling minutes to
selling Gigabytes
 Cloud services for B2C and B2B
 Development of Enterprise BU
 Active M&A and Infrastructure
investments
 Increasing efficiency through
simplification and cost-cutting
 Provide new more data-related and
bundled plans
 Develop 3G and 4G coverage, especially
advanced MIMO and VoLTE
 Growth average revenue per access by
B2C connectivity and broadband
services
 Increase the penetration of
smartphones by lowering entry price
points and seizing upon the prepaid
smartphone opportunity
 Move M2M/Cloud/Security to
enterprise business unit to strengthen it
 Develop M2M Alliance with several
operators to provide global M2M
coverage using jasper over-the-Air
technology
 Provide API based enterprise solutions
for ecommerce
 Partnerships with B2B solutions
providers
 Further development of Telefonica
Digital – new business unit. Now on
global level
 Development of new services in Digital
Health, FinTech, mAds and etc.
 Development of content services to
stimulate 4G data plans, like Movistar
Video
 Use of BigData inside of the company to
provide more personalized services
 Simplification of corporate functions
from a regional to global model and
adapting the structure to the new
operating model
 Concentration on 3 key markets (Spain,
Brazil and Germany) to keep it share in
total revenue at level of 66%
 Cooperation on Chinese market
 Keep CAPEX expenditures on rate 17%
of revenue for next 2 years
 M&A consolidation on Brazil and
German markets to create a synergy
 M&A activity:
 Sell UK assets
 Buy new European assets
 OTT and venture investments in
following to Digital strategy

9. TMT Venture
research@tmtventure.com
Subscribe to our weekly reports at
TMTVenture.com
 TMT Venture is an educational
project launched to get deeper
insight in TMT and Venture
markets
 We make researches in TMT
industry
 We help startups: define
strategy, make financial model,
investment presentation,
valuation, express startup
screening and our experts fund
raising support
 We help venture investors
with: startup and market
analysis, knowledge base,
searching new startups, due
diligence