EY - Inside Telecommunications - Issue 15

Inside Telecommunications - Issue 15

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EY - Prashant Singhal

In this issue we explore industry themes, from new partnering needs spurred by the Internet of Things and smartphone growth opportunities in emerging markets to growing industry support for IPX technology and shifting internet governance models.

Prashant Singhal
Global Telecommunications Leader

 

2014 has very much been the year of M&A in telecommunications, and transactions continue to underline a sector in transformation. Consolidation scenarios are playing out, with both Europe and Latin America witnessing significant levels of activity. The second half of the year has seen a number of tower sale-and-leaseback deals struck in Africa.

The third quarter of 2014 has proved notable for the telecommunications sector in a number of ways. High levels of M&A activity, allied to operator announcements of new service launches, underline an industry in transition, while regulatory issues such as net neutrality continue to generate plenty of news flow.

Network migration strategies continue to be a focus area for operators the world over.
With more than 330 LTE networks now commercially available in 112 countries, 4G investment levels are slowing and overall mobile capex is forecast to increase by 5.9% worldwide in 2014, below the growth rate posted in 20131.

Some vendors are already considering alternative technology solutions to provide better rural connectivity for the Internet of Things (IoT). Low power wide area (LPWA) public wireless technologies can provide high-reach, low-cost connectivity as well as long battery life for devices that only need to send and receive occasional messages.

Services such as connected car insurance, smart metering and security systems could all benefit from alternative technological approaches in an M2M setting. The read-across for mobile operators eager to monetize their existing network footprint for IoT services is clear: coverage levels require greater focus, and network quality is by no means a differentiator confined to high-spending consumers in urban areas.

 

1 “ABI Research: Worldwide wireless operator capex to increase by 5.9% by end-2014,” FierceWireless, 5 November 2014.


EY - Adrian Baschnonga

Adrian Baschnonga
Lead Analyst
Global Telecommunications Center