Chris Buist's presentation to the TMT Finance and Investment MENA Forum in Dubai, May 2014: Mobile data traffic is doubling every two years, driven by smartphones and LTE. EBITDA will be squeezed and ROI will fall unless operators act now to increase capacity and bandwidth to respond to demand. Network sharing and industry consolidation will change the face of the industry. Coleago helps operators respond to these challenges.

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
Central Europe, Middle East & Africa subscriptions (m)
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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Source: Ericsson (November 2013)
49%
Source: Ericsson (November 2013)
81%

4. Traffic growth varies between regions/markets
Global mobile traffic (monthly ExaBytes)
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5. Operators need to act now
Increase capacity and bandwidth to respond to
demand
 Re-farm spectrum
 Add small cells
 Invest in transmission
 More spectrum
 Introduce LTE and LTE-A
Increase revenues?
 Data tariffs that reflect bandwidth and volume needs
 New services
 Superior network performance
 Better customer segmentation
 Better churn management
$
Costs
Revenues will not keep pace with costs
 Engage Managed Service providers, particularly for
cloud
 Share network infrastructure
 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
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Spectrum services
 Spectrum strategy, valuation and auction support
 More than 50 projects worldwide, on every
continent
Transaction services
 Strategy and business planning
 Information Memorandum
 Due diligence
 Implementation planning/execution
 More than 20 projects to date
Network sharing services
 TowerCos, active, passive and spectrum sharing
 End-to-end from strategy through to transformation
 Projects completed in 8 markets
We've written the book!

10. Key messages
Data traffic will increase dramatically
Costs
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$
Time
EBITDA 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

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
Chris Buist
+43 664 352 1068
chris.buist@coleago.com
www.coleago.com