Orange SA, Telenor Group, Vimpelcom, Vodafone, Deustche Telecom, Telefonica and other leading European telecommunication companies.
2nd part of global telecoms strategy review. Total companies to be reviewed is about 16-18. We looked through their reports, interviews and made our own view on their strategy.
Feel free to contact us with your commentary or if you've found any mistakes.
2. 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
3. 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
4. CAPEX and M&AGeography
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
5. 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, %
6. CAPEX and M&AGeography
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
7. 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, %
8. CAPEX and M&AGeography
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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