Exclusive extracts from this 75-page-long report:
- Who are the key players?
On a global basis, the telecommunications sector is fairly fragmented, with competition taking place at a regional level., despite players such as Vodafone or Telefonica conducting operations globally. That is why the report focuses on the European region. Consolidation is increasing on the continent, however, single markets remain quite consolidated at the national level, with three to five large providers in each country on average.
Groups analysed in this report include: Deutsche Telekom, Telefonica, Vodafone, Orange, BT Group, TIM – Telecom Italia, Altice Europe, Telenor, Telia Company and Iliad.
- What are the players' strategies?
Leading telecom operators have been focused on convergent packages (or multi-play packages bundling fixed and mobile services, as well as cable/media content, under triple-play or quadruple-play offerings). Quad-play offerings, for instance, have become the norm, and consist of a combination of TV, broadband Internet, mobile and fixed line telephony services. Over the past few years, telecom groups have ramped up efforts to develop their media offerings, by partnering with cable groups and OTT providers, and/or by acquiring or launching brand new TV channels as well as entering content production as a means for differentiation.
- What are the players' key growth and profitability drivers?
Competitive pressures in European markets have hampered leaders' revenues and operating margins. In 2018, leading European telecom operators such as Iliad and Vodafone witnessed a significant contraction in their profitability levels. While Telia's operating margins have been the highest among the leading groups analysed, its profitability deteriorated markedly to 15.8% from 17.3% in the previous year, or 25.1% in 2016.