Sunday, 19 November 2017

Latest Global 100 report: The New World

By Mary Lennighan, Total Telecom
Monday 23 December 13

The M&A trend in the US is paving the way for a significant shift in the global telecoms landscape.

Some of the biggest names in the global telecoms industry are redrawing the map. A cursory glance at the new Global 100 ranking of the world’s biggest operators by revenue suggests that the industry has spent the past 12 months in stasis; there has been no change in the top seven, minimal movement in the top 20, and at €1.28 trillion, total revenue was flat compared with last year. But the figures do not tell the whole story. There has been a raft of M&A activity since last year’s report was published as telcos strengthen their positions in core markets and seek out new worlds to conquer. As a result, the Global 100 is on the brink of change. The US has been particularly active. In the past year Japan’s Softbank closed its $21.6 billion takeover of Sprint, which itself snapped up mobile broadband specialist Clearwire; AT&T and T-Mobile US bought up smaller rivals; and Verizon paid $130 billion for sole control of Verizon Wireless. Softbank and Sprint rank 14th and 15th respectively on the Global 100 table, both up one place on last year. But a combined Softbank/Sprint would have revenues of €54.71 billion, which would put it ahead of Vodafone at number seven. The tie-up will give Sprint a much-needed investment boost and help shore up its finances. The US operator saw its revenue grow by 4.95% in dollar terms in the past year, but its net loss widened considerably. Softbank, which ranks ninth by net income, increased revenues–again in own currency terms–by 5.5% and is growing at pace…

Some of the biggest names in the global telecoms industry are redrawing the map. A cursory glance at the new Global 100 ranking of the world’s biggest operators by revenue suggests that the industry has spent the past 12 months in stasis; there has been no change in the top seven, minimal movement in the top 20, and at €1.28 trillion, total revenue was flat compared with last year. But the figures do not tell the whole story. There has been a raft of M&A activity since last year’s report was published as telcos strengthen their positions in core markets and seek out new worlds to conquer. As a result, the Global 100 is on the brink of change. The US has been particularly active. In the past year Japan’s Softbank closed its $21.6 billion takeover of Sprint, which itself snapped up mobile broadband specialist Clearwire; AT&T and T-Mobile US bought up smaller rivals; and Verizon paid $130 billion for sole control of Verizon Wireless. Softbank and Sprint rank 14th and 15th respectively on the Global 100 table, both up one place on last year. But a combined Softbank/Sprint would have revenues of €54.71 billion, which would put it ahead of Vodafone at number seven. The tie-up will give Sprint a much-needed investment boost and help shore up its finances. The US operator saw its revenue grow by 4.95% in dollar terms in the past year, but its net loss widened considerably. Softbank, which ranks ninth by net income, increased revenues–again in own currency terms–by 5.5% and is growing at pace…

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