Telecom Strategy overlook 2015 Europe: Part 2 TMT V enture research@tmtventure.com
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About
Orange SA
Telenor Group
Vimpelcom
Contacts
Quick look at telecom strategy from
market leaders by TMTVenture.com
It’s our next 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 finish our European market overview. Orange
SA, Telenor Group and Vimpelcom are our second
reviewed companies.
Best regards,
Ivan Zakharov
Expert at TMTVenture.com
Orange SA, formerly France
Telecom SA, is a France-
based European mobile
operator. Orange SA has a
50% share in a British
telecom operator EE.
HQ: Paris, France
Subscribers: 268M
(+9%)
Revenue: $43.4B (-3%)
EBITDA: $13.4B (-3%)
CAPEX: $6.2B (+1%)
Employees: 157 000
Orange in 26 countries
Mobile services
(206M sub.)
Landline
(36M sub.)
Broadband
(18M sub.)
PayTV
(8M sub.)
Revenue 2014 split by key markets, %
49%
10%
7%
11%
23% France
Spain
Poland
Africa
Other
CAPEX and M&A Geography
Highlights Consumer Enterprise
Services
Offer richer connectivity in both mobile and fixed line services
Deeper and stronger presence in existing markets
Reinvent the customer relationship
Unified video content service for key markets
Enterprise expansion - M2M and cloud solutions
Diversify by capitalising on its assets
Triple the average data speeds on its fixed and mobile networks
A single Orange customer service number with interactions history
Smart and Megastores with test spaces for customers
Launch Voice over WiFi
Increase the penetration of smartphones
Launch premium services – “The First”
Leadership in M2M services worldwide, The Group wants to be present across the entire value chain
Develop mobile, flexible and collaborative work tools
The private and hybrid cloud for multinationals
Cyber-defence
More then 10% of revenue form IT services
Use of BigData inside of the company to provide more personalized services
Spread across a Europe the Orange Cash service which now is growing fast in Africa (13m users)
Develop Orange TV services across Europe (new TV interface “Polaris”, TV stick)
Launch new video channels, gaming and sports services
Improve revenue growth in France and effectively compete with low-cost player Iliad
Develop Spain operations after acquisition of Jazztel
95% 4G coverage in Europe
Mobile phone coverage to 80% of the population in Africa
Prioritize investments based on their impact on the customer experience
Migrate to the Internet protocol (IP)
Expand high-capacity fixed service to increase 5x times and full 4G coverage
M&A activity:
Sell UK asset - EE
Selective M&A policy focused on existing footprint
Investments in startups program
Telenor Group is one of the
world's largest mobile
telecommunications
companies with operations
in Scandinavia, Eastern
Europe and Asia. Group also
own 33% in Vimpelcom.
HQ: Fornebu, Norway
Subscribers: 201M
(+9%)
Revenue: $17.0B (+0%)
EBITDA: $6.2B (+7%)
CAPEX: $3.6B (+25%)
Employees: 33 000
Telenor Group in 13 countries
Mobile services
(196M sub.)
Landline
(1M sub.)
Broadband
(2M sub.)
PayTV
(2M sub.)
23%
11%
16% 12%
38%
Norway
Sweden
Thailand
Malaysia
Other
Revenue 2014 split by key markets, %
CAPEX and M&A Geography
Highlights Consumer Enterprise
Services
Develop into a digital service provider
Internet for all – coverage, content and monetization
Strengthen the relationship with current customers
Keep cost efficient operations
Lead in M2M, Online Classifieds and Financial Services
Disciplined and selective M&A
Best in Basic Voice and Basic Internet Services
Reduce the number of plans by 70% and make them data centric
Bite-sized and service based pricing in developing markets
Marketing campaigns and free trials
Increase smartphones penetration and stimulate device upgrades through low price device campaigns
Lead in M2M through partnership with automotive, industrial, heavy industry companies
Implement OpenID service for Ecommerce, Classifieds, Banks and etc.
Partner with social media and entertainment players to stimulate usage
Bring relevant content and services to people to stimulate reasons to use the Internet
Use of BigData inside of the company to provide more personalized services
Make Local Impact from connecting everyone and driving vital services like Financial Services, mHealth, etc.
Return to growth in Thailand
Improve fixed broadband performance in Norway and Sweden
Overcome barriers to internet usage in Bangladesh
Enable basic internet services for the masses in India
Implement cluster based operating model across all operations
Fuel M2M development in APAC region
Increase network investments in Thailand and Myanmar
Keep CAPEX expenditures on rate 18% of revenue for next 2 years
Share network in Europe
M&A activity:
Sell VimpelCom stake
Selective M&A on existing footprint
Investments in Online Classifieds and Financial services
Vimpelcom is one of the
world’s largest integrated
telecommunications
services operators. Key
brands are "Beeline" and
"WIND“.
HQ: Amsterdam,
Netherlands
Subscribers: 231M
(+2%)
Revenue: $19.6B (-13%)
EBITDA: $8.0B (-4%)
CAPEX: $4.3B (-1%)
Employees: 56 000
Vimpelcom in 14 countries
Mobile services
(222M sub.)
Landline
(3M sub.)
Broadband
(6M sub.)
PayTV
(1M sub.)
40%
25%
9%
6% 6%
14% Russia
Italy
Algeria
Pakistan
Ukraine
Other
Revenue 2014 split by key markets, %
CAPEX and M&A Geography
Highlights Consumer Enterprise
Services
Become #1 or #2 on key markets (also with M&A)
Development of asset-light model (share network)
New revenue streams – Data, Fixed-line and B2B
Significant OpEx optimization
Reinvent complex traditional Telco model to simplified digital customer experience
Provide new more data-related and bundled plans
Develop 3G and 4G coverage (VoLTE)
Increase the penetration of smartphones
Customer-centric transformation
Shift to own-branded stores distribution and growth in new channels
Develop fixed-line proposition with fiber network and IPTV service
Significant SME opportunity, particularly in emerging markets
Focus on B2B customer satisfaction:
customer service quality and functionality
bundled tariff plans
Develop services:
M2M,
IP VPN and Anti DDos,
Fleet management systems
Development of new services in Mobile commerce and mAds
Partnership with content services to stimulate 4G data plans, like Yandex.Music, WhatsUp
Use of BigData inside of the company to provide more personalized services
Outsource backend services and platforms
Focus on existing footprint, with selective in-country consolidation
Transform Algerian business unit
Disposal of non-core assets in Laos and Zimbabwe
Focus on network improvement on key markets to get best quality results
Wi-fi points investments
Share and/or sell infrastructure if it is possible
Migrate entire fixed network to the Internet protocol (IP) for all customers
M&A activity:
Sell non-core assets
Consolidation on key markets
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