Telcos Competitive Landscape

Part
01
of four
Part
01

US Competitors Part 1

Comcast is a telecommunications conglomerate that aims is to always be creative, competitive, and innovative. Conversely, Charter Communications strives to provide its customers with high quality entertainment and superior communications products. Detailed information regarding the company overview, competitive advantage, target market, products and services, and pricing for Comcast, Charter Communications, and Sprint have been provided in the following spreadsheet.

summary of findings

  • Through its subsidiaries, such as Xfinity, NBC Universal, and Sky, Comcast creates entertainment and technology that is accessible to millions of people across the world.
  • Comcast offers video, security and automation services, high-speed internet, and voice through its Xfinity brand.
  • Charter Communications is an internet, voice, and TV company that sells its products under the brand Spectrum.
  • Sprint is a telecommunications company that has 54 million customers. The company offers a wide range of wireline and wireless communications services and products.
  • Sprint has a competitive edge over its competitors because it significantly increased its download speeds through Sprint LTE Advance and will be among the first companies to launch the 5G network.

research strategy

To find the requested information, we looked through the websites of Comcast, Charter, and Sprint, their annual reports, and media publications. We looked at media platforms such as Enterpreneur, Forbes, and Investopedia. Using these sources, we found information regarding the company overview, competitive advantage, target market, products and services, and pricing for the three companies. We included the information that we found in the US tab of the following spreadsheet
Part
02
of four
Part
02

US Competitors Part 2

Frontier Communications is a leading provider of internet, TV, and phone services to business and residential customers since 1935. On the other hand, Crown Castle International is in the market from the past 25 years while SBA Communications has almost 30 years of proven execution and experience in the domain of wireless infrastructure solutions. Below, we presented these companies' overview while details have been populated in the attached spreadsheet.

Frontier Communications

  • Frontier Communications was incorporated in 1935 and is a Fortune 500 company along with being a member of the S&P SmallCap 600.
  • The company is a leading provider of internet, TV, and phone services to business and residential customers.
  • It has 22,000 employees in 29 states.
  • Frontier offers cost-effective solutions for consumers' needs in connectivity. It also provides the network, managed services, equipment, and purchase/lease options to meet the needs of the business and their budget.
  • Frontier Communications serves residential group of customers offering services through its fiber-optic and copper networks. This includes video, advanced voice, high-speed internet, and Frontier Secure digital protection solutions.

Crown Castle International

  • The company is in the market from the past 25 years and works across 100 countries with approximately 5,000 employees and revenue of $70 billion.
  • The company owns expertise in the full suite of services for project strategy and planning, design and implementation, and maintenance and support.
  • The company is making advancements in interconnectivity technology along with ranging its portfolio to towers, small cells, and fiber, as well as through partnerships with forward-looking companies, municipalities, wireless carriers, and other service providers.
  • The company has a larger share of 9.2% from customers in the Communications Services Industry.

SBA Communications

  • SBA Communications is an independent owner and operator of wireless communications infrastructure and is in the market since 1989, headquartered in Boca Raton, Florida.
  • The company is a part of S&P 500 and has two primary businesses - Site Leasing and Site Development.
  • The company owns and operates thousands of wireless connectivity towers across North, Central and South America based on its in-house experience in site acquisition, zoning, and construction.
  • It delivers rapid turnaround on all lease transactions and offers flexible lease terms and competitive pricing.
  • The company extensively serves the leading national and regional wireless communications carriers in the US.

Research Strategy:

In order to identify the comprehensive information on each of the listed company (Frontier Communications, Crown Castle International, and SBA Communications), we conducted an extensive research on each company's official website along with searching their section related to their annual reports, financial statements, press releases, products and services, and investors relations. Through the search, we found the required information relating to the companies' website link, overview, competitive advantage, target market, products, and services, along with pricing/price model.

For the information relating to the demographics and psychographics, we researched through various site analytical tools such as SimilarWeb which analyzes their website traffic and shared references on their potential/existing customers that are mostly visiting the site. Also, the companies' analysis reports published by market research companies such as Seeking Alpha and CSIMarket also shared relevant information to state the insights on this information.

Additionally, it was found that SBA Communication and Crown Castle are mostly dealing with commercial business consumers which offer turnkey solutions as an independent wireless infrastructure provider based on their large and national wireless network providers' needs and demand. Hence, no information on their pricing/price model was disclosed by the company publicly.
Part
03
of four
Part
03

European Competitors Part 1

Telefonica is the market leader in Spanish-and-Portuguese-speaking countries while Orange and BT are market leaders in France and the UK, respectively. Details pertaining to these companies have been populated in the attached spreadsheet.

Telefónica

  • It was founded in 1924 and headquartered in Madrid, Spain.
  • Its main product is data-driven services, which makes up to 53% of its total revenue. The company is more dependent on data-driven services.
  • Telefonica is dominant in Spanish-and-Portuguese-speaking markets; in both Latin American and European countries.
  • Telefonica has 356 million customers, comprising 270 million mobile customers, nearly 13 million fiber and cable customers, and over 8 million pay TV customers.

Orange

  • Orange, S.A. was founded in 1990 and headquartered in Paris, France.
  • Its main market is France, which makes up to half of its total revenue.
  • Orange has been the number one mobile network in France for eight years in a row.
  • Orange serves 264 million customers around the world. It has 56 million 4G customers.
  • It is the number one FTTH in Europe.
  • Orange has been a leader in fiber optics in Europe for three years and has connected 29 million homes to FTTH.

BT

  • BT Group Plc was founded in 2001 and is headquartered in London, the United Kingdom.
  • BT provides communications products and services in the United Kingdom, Europe, the Middle East, Africa, the Americas, the Asia Pacific, and internationally.
  • BT's main market is the UK and it is the market leader there.
Part
04
of four
Part
04

European Competitors Part 2

The mobile division Sky Line Rental of Sky UK costs £18.99 per month and it has an 18-month minimum term. While Swisscom inOne mobile subscriptions start from CHF 200 per month for an inOne mobile premium. The spreadsheet can be found here.

SKY UK

COMPANY WEBSITE: www.sky.com
OVERVIEW:
COMPETITIVE ADVANTAGE:
TARGET MARKET:
  • The target market for Sky UK includes everyone.
  • Sky’s marketing messages are tailored to different segments of the population.
  • The core audience or also known as the ‘family unit,’ remains with SkyDigital.
  • The company is serving 23 million customers with multiple products across seven markets.
  • The seven markets include the UK, Ireland, Germany, Austria, Italy, Spain, and Switzerland.
  • The company is the largest pay-TV provider in Italy.
  • It has more than 4.8 million customers, and it is considered to be a dominant operator in Germany and Austria, in where it has 5.3 million pay-TV subscribers.
  • Sky UK is also trying to tap the 78 million households that are yet to enter the pay-TV industry.
  • Additionally, the company is also finding other opportunities to grow and add new products and services to their portfolio, like their upcoming launch of a triple-play service in Italy in 2019.
PRODUCTS/SERVICES:
PRICING/ PRICE MODEL:
  • Sky TV packages start from £22 per month for 18 months, £27 per month thereafter. Additional set-up fees apply.
  • Sky Broadband Essential + Sky Entertainment package costs £44.50 per month for 18 months inclusive of Broadband Boost, half price for 18 months and line rental (£39.95 one-off cost).
  • Separate contracts apply for TV starting at £22 per month, Broadband Essential(including line rental): £20 per month and Sky Talk Pay As You Go: £0 per month.
  • The mobile division Sky Line Rental costs £18.99 per month and comes along with an18-month minimum term.
  • If required, the compatible line costs £20 connection charge and calls packages are not available to BT line rental customers with BT Basics.

SWISSCOM (SWITZERLAND)

OVERVIEW:
  • Swisscom is Switzerland’s leading telecoms and IT company.
  • Its headquarters is located in Ittigen.
  • Swisscom uses Fastweb when providing services outside Sweden.
  • The Confederation owns 51% of it, and it is one of Switzerland’s most sustainable and innovative companies.
COMPETITIVE ADVANTAGE:
  • By the end of 2018, Swisscom’s pilot 5G networks were in operation in seven Swiss cities and are digitizing the 240 alpine cabins and helping alpine associations finance the necessary power supply solutions.
  • Swisscom also acquired the 5G spectrum and fixed wireless business of Tiscali, Italy.
TARGET MARKET:
  • Swisscom has over 2.3 million customers, with around 4.6 million connections for inOne product and over 1.43 million customers in Fastweb Italy.
  • Over 50% of residential customers rely on inOne, which is a flexible combination of mobile, broadband, TV, and fixed-line telephone products.
PRODUCTS/SERVICES:
PRICING/ PRICE MODEL:
  • The new inOne mobile subscriptions start from CHF 200 per month for an inOne mobile premium, CHF 80 per month for inOne mobile go and CHF 45 per month for inOne mobile basic.
  • The Swiss mobile flat costs CHF 65 per month, and the Swiss mobile light costs CHF 25 per month.
  • inOne mobile data XL Data subscription costs CHF 49 per month.

TELIA (SWEDEN)

COMPANY WEBSITE: www.teliacompany.com/en/
OVERVIEW:
COMPETITIVE ADVANTAGE:
  • Telia is introducing 5G AI solutions for industrial use.
  • The project is done through various stages, and it is predicted to be in its “full-scale production stage” in June 2019.
TARGET MARKET:
PRODUCTS/SERVICES:
PRICING/ PRICE MODEL:
  • Telia prepaid card costs SEK 249 per month and can be used in both mobile phones, tablets.
  • Telia Unlimited mobile subscription plans cost SEK 589 per month per person, Telia Mobil 30 GB costs SEK 469 per month per person, Telia Mobil 6 GB costs SEK 369 per month per person and Telia Mobil 2 GB costs SEK 219 per month per person.

VEON (NETHERLANDS)

COMPANY WEBSITE: www.veon.com
OVERVIEW:
COMPETITIVE ADVANTAGE:
  • In 2018, VEON entered into an agreement with CK Hutchison Holdings Ltd. for the sale of its 50% stake in the Italian Joint Venture.
  • The company received EUR 2.45 billion in cash consideration.
  • Veon also revised their arrangement with Ericsson to upgrade its core IT systems.
  • The upgrade includes the new digital business support system, which is predicted to create a more personalized experience for VEON users.
TARGET MARKET:
PRODUCTS/SERVICES:
PRICING/ PRICE MODEL:
  • Veon is a part of the Telenor group and because of this, the individual pricing model of Veon is not available.
  • Veon mobile subscription plan in Russia costs RUB 385.79 per month per customer whereas the Broadband subscription plan costs RUB 358.96 per month per customer.

Research Strategy

The search was straight forward for the listed Telecom European Competitors, and the information was found mostly from each of the companies’ website, annual reports, Bloomberg company profiles, and Crunchbase. However, we could not find the individual pricing model of Veon since its part of the Telenor group of companies.

To identify the pricing/price model of Veon Ltd., we started our search by looking for the plans and pricing details from their website. However, there was no information regarding the pricing plans among the web pages and hyperlinks on the website. We then looked at each market mentioned in the website to identify the pricing as it might differ with the region/market, but there was no pricing information mentioned among the ten listed markets on their website.

We then scoured through their investor presentations, annual reports, sustainability reports, and media releases but this search did not provide any fruitful results. We also checked third-party publications to see if any source has compared the plans or provided information regarding the topic. However, after scouring through sources like Bloomberg, Crunchbase, Cellphone-companies.com, Telecompaper, and others, we found that no information can be found regarding the subscription plans. We were able to locate the revenue, the number of subscribers, and other information, but not the plans they provide.

We concluded that this is because the company is held under the Telenor group of companies and subscription plans for the group are available and but not for individual companies like Veon.
Therefore, we calculated the pricing model by dividing the total revenue of the company by the number of customers. We then used the number of months to get per month per customer pricing.
We used the Russian market for our calculations as it was the biggest market for Veon, and the company does not operate in the Netherlands even though it is headquartered there. Additionally, the company is present in ten markets, and calculating the pricing for each market would have been impossible, so we used the biggest market (The Russian Market) as a proxy for the calculation of the pricing model.

CALCULATIONS

Russian Market:
Mobile total revenue FY 2018- 256,008
Customers- 55.3 million
The cost of mobile subscription plan
Mobile total revenue divided by customers:
256,008/55.3 =RUB 4629.44 per year
Per month cost:
RUB 4629.44 per year/ 12= RUB 385.79 per month per customer
Broadband revenue 2018- 10,338
Broadband customers- 2.4 million
The cost of broadband subscription plan:
Broadband revenue/Customers= 10,338/2.4 = RUB 4,307.5 per year
Per month cost:
RUB 4,307.5 per year/12 = RUB 358.96 per month per customer
Sources
Sources

From Part 01
From Part 02
From Part 03
Quotes
  • "Orange, S.A. was formerly known as France Telecom and changed its name to Orange S.A. in July 2013 provides telecommunications services to residential, professional, and large business customer"
Quotes
  • " Orange serves 264 million customers around the world"
Quotes
  • "Orange serves 27 countries; in Europe (Belgium, France, Luxembourg, Moldova, Poland, Romania,Slovakia and Spain) and Africa and the Middle East (Botswana, Burkina Faso, Cameroon, Central African Republic, Côte d’Ivoire, Democratic Republic of the Congo, Egypt, Guinea-Bissau, Guinea, Jordan, Liberia, Madagascar, Mali, Mauritius, Morocco, Niger, Senegal, Sierra Leone and Tunisia)"
Quotes
  • "BT operates in four segments: Consumer, Enterprise, Global Services, and Openreach. The Consumer segment offers mobile, broadband, home phone, and TV services under the BT, EE and Plusnet brands. The Enterprise segment sells communications and IT services to businesses and public sector organizations; and provides network products and services to communications providers and the services include fixed voice, mobile, converged connectivity, and networked IT. The Global Services segment offers enterprise communications services, including managed network and IT infrastructure services to enterprise customers. The Openreach segment builds and operates fixed network that connects the homes and businesses. It also provides wholesale ‘last mile’ fixed access from premises to exchanges; and installs and maintains fiber and copper communications networks"
From Part 04