We outline our ‘proxy model’ for valuing Digital Services Businesses, based on current best practice, which has significant advantages over traditional approaches. This report, our second of two on valuation, gives a worked example of a telco’s digital business in Asia that is already worth $1bn, and includes an analysis of approaches being taken by some leading telcos today.
A high-level analysis of the M2M market, including the strategies of Vodafone, AT&T and Telefonica, and the impact that the Internet of Things and new entrants such as Google and others will have with new business models. What are the implications for operators, and where is it all leading?
The network is one of telcos’ key assets. The case for investing in it was once straightforward: the bigger and faster the better. Yet today, many forces are combining to cloud that picture, such as virtualisation, regulation, the success of Internet services, network sharing, market consolidation and in some cases saturation, to name a few. To kick off our ‘Future of the Network’ research stream, we outline the key questions determining future investments in the network and our forthcoming work to address them. In Part 2, we’ll outline the key disruptive forces on the network.
Netflix’s success in the US and in Western Europe has demonstrated that consumers are willing to change how they watch and pay for TV and movies. As a result Netflix’s OTT proposition is challenging traditional pay TV models and changing how new broadband services are looking at content. For some players Netflix is a threat and for others an opportunity. So, how should content owners, channels, pay platforms and broadband providers respond?
STL Partners’ industry transformation analysis, including a recent global survey of telco executives, suggests operators’ digital ambitions are rising fast but, given 9 substantial implementation challenges, too little is currently being done to engender successful industry-wide business model transformation. We also look at the lessons from NTT DoCoMo, one of the operators that has made the most overall progress towards a ‘digital’ model.
BT’s attempt to acquire EE in the UK presents the regulator and its competitors with choices that could re-frame the principles of regulation and competition in an era of consolidation, with consequences for many other markets. Will BT succeed, and if so, what will be the terms of the deal, and how will the market subsequently play out?