The telecommunications sector is transitioning from a down-cycle to an up-cycle in 2016. During the down-cycle, providers cut operating expenses by 90%, dividends by 80%, and assets sales by 70%, while raising equity by 20% and hybrid securities by 50%. As the sector moves to the up-cycle, providers are expected to increase capital expenditures by 20%, dividends by 60%, mergers and acquisitions by 70%, and share buybacks by 90%.

1. EMEATelecommunications
Service Providers
2016 Outlook

2. The sector is
2016 Outlook
Transitioning

3. from the
Down-Cycle
Up-Cycle
to the
Transitioning

4. from the
Down-Cycle
Up-Cycle
to the

5. Down-Cycle
Up-Cycle
Cut Opex
-90%

6. Down-Cycle
Up-Cycle
Cut Dividends
-80%
Down-Cycle

7. Down-Cycle
Up-Cycle
Asset Sales
-70%
Down-Cycle

8. Down-Cycle
Up-Cycle
Hybrids
-50%
Down-Cycle

9. Down-Cycle
Up-Cycle
Raise Equity
-20%
Down-Cycle

10. Down-Cycle
Up-Cycle
Increase
Capex
+20%

11. Down-Cycle
Up-Cycle
Increase
Dividends
+60%
Up-Cycle

12. Down-Cycle
Up-Cycle
M & A
+70%
Up-Cycle

13. Down-Cycle
Up-Cycle
Buybacks
+90%
Up-Cycle