Belgian Telecom

Part
01
of two
Part
01

Belgian Telecom Competitive Landscape

The competitive landscape for competitors of Telenet has been compiled in the attached spreadsheet. The competitors selected for analysis were KPN, Proximus, and BICS.

Methodology

We have selected three competitors of Telenet based on your preferences. Since competitors were to be selected from the Belgian telecom market, we've selected competitors that operate in the market but are not necessarily headquartered in Belgium because there are many competitors that are not headquartered in Belgium but actively operate in the Belgian market. We've selected operators that operate in the B2B market but not necessarily only the B2B market, i.e. they may be operating in the B2C market as well. We also shortlisted competitors based on the services provided by Telenet. There were competitors that provided services that did not compare to those offered by Telenet, e.g. BeTV, and were excluded.

We compiled a list of competitors in the Belgian market and shortlisted a few based on the criteria mentioned above. Among the shortlisted operators, we selected three top competitors based on the annual revenues. The initial list of competitors included BeTV, KPN, Numericable, Option N.V., Proximus, Scarlet, Tele2, Telindus, TV Vlaanderen, Voxbone, BICS, and BASE. We excluded BeTV, Option N.V., and Voxbone because they offer different services as compared to Telenet. Numericable was excluded because it has now become a part of Telenet. Tele2, Scarlet, Telindus, TV Vlaanderen, and BASE were excluded based on annual revenues. Therefore, the final three selected competitors were KPN, Proximus, and BICS. We have analyzed these competitors to create the competitive landscape. The sources used for gathering information have also been added to the spreadsheet.

Conclusion

We shortlisted top competitors based on the provided preferences and compiled a competitive analysis of four companies including Telenet. The competitive landscape has been compiled in the attached spreadsheet.
Part
02
of two
Part
02

Telenet Acquisitions

Belgian telecommunications company Telenet acquired Nextel and SFR Belux in 2017, and BASE in 2015. These acquisitions are part of Telenet's expansion and allow it to extend its reach in Belgium. Briefly, the acquisitions boost Telenet's mobile and fixed networks, and improve their ability to deliver services like landline/mobile telephony, high speed internet and digital TV. This will in turn allow them to effectively compete for growth opportunities within the mobile telecommunications market. See below for a deeper dive into our findings.

BASE
Telenet acquired Belgium's third largest mobile network BASE in a step towards being able to provide fixed and mobile services to individual customers and businesses. Long term access to the mobile network means Telenet can now more effectively compete for future growth opportunities. Telenet paid 1.35 billion euros for the company, valuing it at 5.0x BASE Company’s 2015 adjusted EBITDA. Key points of the acquisition highlighted by Telenet include the ability to control their own destiny in a large and growing mobile business, replacing usage-based MVNO with a stable network model, combining their existing leading fixed line network with a strong mobile network, creating value through synergy potential, building value creation and a more effective financing structure.

SFR BELUX
SFR Belux was acquired by Telenet in 2017. This meant that Telenet further increased its reach by being able to offer cable services to an additional 90,000 customers in Belgium and Wallonia, and 15,000 customers in Luxembourg. The acquisition also provided Telenet with a further extended footprint in Brussels, and the introduction of competitive and appealing quadruple-play offers (combination of video, high-speed internet, fixed and mobile telephony). Relevant to your conversation with Telenet Business, B2B growth is also expected to increase while Telenet becomes the nation's largest cable operator. They will be injecting a further 12 million euros into the cable network as well over 2017/18, primarily focused at modernizing the existing network.

NEXTEL
Perhaps even more relevant to your request, the acquisition of Nextel is aimed at improving their ability to target B2B clients. Telenet had previously focused on small business, but the acquisition of Nextel allows them to aim more towards medium to large business, providing end-to-end services like cloud based telephone systems, integrated LAN/Wi-Fi solutions, Unified Communication & Collaboration (UCC), camera surveillance, and building access controls. Absorbing Nextel into their business means Telenet can address a growing market for 'total solutions' - providing both networking and telephony services.



SUMMARY
In summary, the acquisitions of these three companies by Telenet appear to be part of a strategy to become a larger player in the telecommunications space in Belgium. Pairing their existing fixed line services with mobile networks through BASE, expanding the cable infrastructure with SFR Belux and increasing their expertise and capacity to create 'total solutions' through Nextel establish Telenet as a leader in providing integrated solutions to both business and consumers.
Sources
Sources