The Global Cellular Industry Balance Sheet

The Global Cellular Industry Balance Sheet A wireless intelligence $1,100,000,000,000 Total revenues generated by mobile operators worldwide will hit US$ 1.1 trillion in 2012 BRIC countries B.R.I.C U.S E.U (Brazil, Russia, India, China) will overtake the US in terms of +$30b +$16b $3b revenue size in 2012, generating over US$ 200 billion. Mobile Operators' Total Revenue Growth between 2008-10 Voice services still Developing 2012 economies are driving the growth and will 2007 represent 70% of total revenues despite 70% encouraging data trends represent 40% of global In 2012, we expect that over 33% of total revenues globally will come from non-voice services while data-only services will represent close to 20% of total revenues 20% 33% 33% revenues non-voice services data-only services in 2012 Large operator groups with international footprint contributed 50% of total revenues generated in 2010 Developed world trendline: outsourcing network sharing measures Capex was squeezed to preserve cash flows, and profits were maximized through cost saving initiatives. "Healthy balance sheets served as a cushion against global financial turmoil" Cost saving initiatives: Joss Gillet, Senior Analyst, Wireless Intelligence economies of scale consolidation 2008 "Macroeconomic volatility" often quoted in Earnings 2010-11 operators talk about "Macroeconomic improvement in core markets" 2008 Global Recession Awakening Global EBITDA (profits) 21% 2% Global Cash Flows 28% 7% Revival in network spending led by LTE, HPSA+ and mobile Wimax deployments Global Capex Global Capex 15% 15% -3% -3% 2009 2010 2008 2009 "Developing economies are playing a critical role in balancing the high level of maturity seen in most developed economies" Global EBITDA Market saturation, regulatory pressures (MTR and roaming cuts) and higher customer cost are having a negative impact on margins. Total -1% -0.3% revenues stalled at 2% Joss Gillet, Senior Analyst, Wireless Intelligence 2009 2010 Today in the developing world: 16% 7% 11% However, 3G is only accounting for 16% of regional connections. REVENUE GROWTH 2010 EBITDA GROWTH 2010 The region is passing 5 billion cellular connections and 100% market penetration. The region is driving in global revenues -8% and capex declined by 8% in 2010. There is an urgent need for more network sharing agreements, affordable devices and services as well as more affordable spectrum. Further network investments are needed in order to turn immature data opportunities in low-ARPU markets into profitable segments. About Wireless Intelligence: G wireless intelligence Wireless Intelligence is the definitive source of mobile operator data, analysis and forecasts, delivering the most accurate and complete set of industry metrics available. Relied on by a customer base of over 700 of the world's mobile operators, device vendors, equipment manufacturers and leading financial and consultancy firms, the data set is the most scrutinised in the industry. With over 5 million individual data points – updated daily - the service provides coverage of the performance of all 940 operators and 700 MVNOS across 2,200 networks, 55 groups and 225 countries worldwide. wirelessintelligence.com • [email protected] • twitter.com/wi © Wireless Intelligence 2011. Unauthorised reproduction prohibited. The new report The Global Cellular Industry Balance Sheet is available to Wireless Intelligence customers and select members of the media. Please contact [email protected] for further information. Design by Furthr www.furthr.co.uk