Blog

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Telco-OTT Battle Is Looming In India As Net Neutrality Policy Is Reviewed

Posted by Matt Walker  on December 14, 2017

Globally, operators are experiencing a rough patch, with sliding core revenues combined with an ongoing need to invest and maintain their networks. The wide usage of apps and services provided by OTTs, purchased easily from a smartphone or other device (e.g. Apple TV, R... READ MORE

Tag(s): Regulations & policy, Mobile broadband, Over the top (OTT), Telcos, Content/video

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Understanding The Carrier-Neutral Market (And Why Revenues Will Pass $40B This Year)

Posted by Matt Walker  on December 11, 2017

MTN Consulting has just published a “Market Review” of the carrier-neutral network operator (CNNO) sector. The report assesses the key role that these tower, data center, and bandwidth specialists are playing in the downsizing of the telecom sector. While ma... READ MORE

Tag(s): Capex, Data centers, Telcos, Fiber optics, Infrastructure sharing, Cell towers

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Indian Operators Divesting Tower Assets To Raise Cash

Posted by Matt Walker  on November 2, 2017

Faced with tough competition and high debt, Indian telecom operators are spinning off their tower assets to investors or independent tower companies to improve their financial situation. The 2016 sale of Tata Teleservices’ tower business (Viom) to ATC, an... READ MORE

Tag(s): Capex, Regulations & policy, M&A, Mobile broadband, Telcos, Infrastructure sharing, Cell towers, India

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Weak network spending climate becoming more apparent

Posted by Matt Walker  on October 31, 2017

Fidelity’s “Communications Equipment” index is up nearly 11% so far this year, tracking just a few points behind the S&P 500’s YTD gain of about 15%. Looking ahead, though, the communications equipment sector remains challenged, something 3Q1... READ MORE

Tag(s): Capex, Earnings, Fixed broadband, M&A, Mobile broadband, Telcos

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First Few 3Q17 Telecom Vendor Reports: YTD Revenues Down 3.4%

Posted by Matt Walker  on October 25, 2017

If you’re looking for a capex bump in the telecom sector, results for 3Q17 so far won’t reassure you. The vendors that have reported are not seeing much growth. For six vendors (or divisions) with high exposure to telecom, annualized revenues continued thei... READ MORE

Tag(s): Capex, Earnings, Telcos

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Cisco Buys BroadSoft For $1.9B In A Cloud & Collaboration-Driven Deal

Posted by Matt Walker  on October 23, 2017

Cisco Systems is one of the largest suppliers to network operators worldwide, including telcos. Its growth strategy from the start has been reliant heavily on acquisitions, and 2017 has been no exception. Today the vendor announced it would buy Gaithersburg, Maryl... READ MORE

Tag(s): Cloud, M&A, Telcos, Collaboration

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Early Telco Reporters Verizon & Rogers Provide Mixed Signals For Vendors

Posted by Matt Walker  on October 19, 2017

The first sizable telcos reported 3Q17 earnings this morning: Verizon and Rogers. Both can point to reassuring bottom line results. For the 9 months ended September, operating & net margins improved year-over-year, as did earnings per share. Rogers’ EPS throug... READ MORE

Tag(s): Capex, Earnings, M&A, Telcos, Content/video, Infrastructure sharing, Cable TV

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Communications Sector M&A Dominated By Infrastructure In 3Q17

Posted by Matt Walker  on October 18, 2017

October’s seen a few mergers already, including Airtel-TTSL, a tower sale by Zain and the long-rumored Sprint-T-Mobile transaction (confirmed yesterday). Some interesting deals came out of 3Q17 too, especially in infrastructure markets.63 M&A transactions announced, includi... READ MORE

Tag(s): Data centers, M&A, Telcos, Fiber optics, Infrastructure sharing, Cell towers

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India’s RCom Under Pressure After Its Failed Merger With Aircel

Posted by Matt Walker  on October 12, 2017

Reliance Communications’ (RCom) long-planned merger with Aircel, part of Maxis, fell apart last week in the face of legal and regulatory hurdles. This news comes as multiple operators in India are struggling with debt and declining margins. Both RCom and Aircel f... READ MORE

Tag(s): Capex, Earnings, M&A, Mobile broadband, Telcos, Infrastructure sharing, Cell towers, India

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Third Quarter Earnings Season Around The Corner (And Yes, It’s Cloudy)

Posted by Matt Walker  on October 6, 2017

Over the next 3 weeks, companies across the communications sector will begin reporting third quarter (3Q17) results. Watch for telco progress The world has never been so reliant on secure communications, but the underlying market is in a bit of turmoil. The cloud and ... READ MORE

Tag(s): Cloud, Data centers, Earnings, M&A, R&D, Telcos, Content/video

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Comtech Expects Flat 2018; US Market An Issue?

Posted by Matt Walker  on October 4, 2017

If you follow telecom closely yet haven’t heard of Comtech, that’s no surprise. Acquisition of TCS in 2016 doubled the company’s size Comtech Telecommunications Corp. is far smaller than the biggest vendors in the  market (Huawei, Ericsson, Noki... READ MORE

Tag(s): Earnings, M&A, Mobile broadband, Telcos, Transmission

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China Mobile To Go (More) Global?

Posted by Matt Walker  on September 29, 2017

Buying opportunities During the 2008-9 financial crisis, some wondered (including me) if the relatively flush Chinese operators would use the downturn as a buying opportunity into overseas telco markets. China Mobile seemed promising, given its (now even higher) cash r... READ MORE

Tag(s): Capex, M&A, Mobile broadband, Telcos

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Rising Costs Plague India’s Tata Teleservices As Competition Intensifies

Posted by Matt Walker  on September 27, 2017

Tata Group is looking for a clean break Tata Teleservices (TTSL) has family ties to one of India’s biggest industry groups, but that hasn’t helped it escape the “Jio effect” in recent years.  With just 8.7 million subscribers and ... READ MORE

Tag(s): Regulations & policy, Mobile broadband, Telcos, Fiber optics, Infrastructure sharing

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Cloud R&D And Network Investment

Posted by Matt Walker  on September 24, 2017

A little accounting background: To expense or capitalize R&D There’s an ongoing debate in accounting circles (yes, they argue) about whether R&D spending should be expensed or capitalized. Under US GAAP, R&D is expensed. Another set of reporting stan... READ MORE

Tag(s): Capex, Cloud, Data centers, R&D, Telcos

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Running Converged Networks Is Costly; A View From Thailand

Posted by Matt Walker  on September 23, 2017

Mobile operator AIS to consolidate ownership in CS Loxinfo Thailand’s largest mobile operator AIS announced this month it would spend $79M to buy a 56% stake in CS Loxinfo, an enterprise-focused fixed line operator. AIS is picking up 42% from a Thaicom ... READ MORE

Tag(s): Fixed broadband, Regulations & policy, Mobile broadband, Telcos, Fiber optics

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Mobile operators & towers: to own or not?

Posted by Matt Walker  on September 20, 2017

Over the last few years, the independent tower sector has grown dramatically. Much of the growth has come from asset spin-offs: a mobile operator sells some portion of its towers to a specialist, in exchange for cash and a commitment to lease the towers back. The logic is simp... READ MORE

Tag(s): Telcos, Fiber optics, Cell towers, , Small cells

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Telco capex in 3Q17 up 4% YoY (preliminary); what’s in store for 2018?

Posted by Matt Walker  on November 21, 2017

Not all telcos have reported, but a large sample (of 60 companies) has spent US$50.2B on capex in 3Q17. That’s up 4% year-over-year (YoY), after adjustments for acquisitions.A 4% growth rate for telco capex is relatively high by recent standards (Fig. 1). LTE spending declines ... READ MORE

Tag(s): Capex, Telcos,

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Operators feel the pinch of rising labor costs

Posted by Subramanian Venkatraman  on December 7, 2018

Operators feel the pinch of rising labor costs  Global telecom operators are facing a cost crunch. Based on MTN Consulting’s analysis, annualized operating profit margins have fallen for five straight quarters, from 13.7% in 2Q17 to 12.7% in 3Q18. This profit dip co... READ MORE

Tag(s): Artificial intelligence (AI), Telcos, Labor costs

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Indian government’s decision to welcome Huawei for 5G trials receives mixed response

Posted by Subramanian Venkatraman  on January 15, 2019

Indian government’s decision to welcome Huawei for 5G trials receives mixed response  The Indian government’s recent decision to invite Huawei for 5G trials has sparked a debate between two opposing bodies. Indian telecom export body TEPC (or Telecom Equipmen... READ MORE

Tag(s): Telcos, India, 5G, Huawei

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