Valuation drivers in the telecommunications industry pdf

Cloud storage and data analytics are another part of the ecosystem. There are also many other factors that need to be considered like regulations, security, data privacy and standards for connectivity. While the challenges are many, India looks set to grow and move into a formidable position in the telecom industry and its growth. This is due to the vast nature of our country, the penetration level that can be made possible, and the massive demand for alternative services through the telecom ecosystem.

Your email address will not be published. He has worked across at various levels in an organization with diverse sets of people, work cultures, geographies, and even diverse type of organizations like Govt. Over last 2. He has served clients across Asia Pacific.

He has served clients across Asia Pacific and Europe. Have experience in the field of customer support,Sales,Marketing and communication with cross functional execution abilities. Three and half years experience in Fourth Dimension Solutions at Senior Management position and grew company from normal pvt ltd to Public Ltd organization.

Have degree view of sales and number growth and achieved in driving the double digit growth for year over year. Besides Sales also looked after marketing and promotion activities including Digital Marketing. Won various awards for company globally in alliance with various Meadi agencies.

Serving clients across Asia Pacific. MS in computer networking from Clemson S. However, we believe this approach should be used more often because it is a useful cross-reference. They provide for contractual rights to receive money or contractual obligations to pay money on fixed or determinable dates.

Contracts represent the value of rights that arise from contractual arrangements. This methodology is useful for assessing such agreements as MVNO network sharing, content and applications or roaming agreements. The main analysis that should be performed concerns the favorable or unfavorable terms of the contract relative to the market: does this contract provide the operator with a competitive dis advantage? Supply contracts and distribution agreements shall be checked for any off-market terms and conditions as well as for any exclusivity clauses, as these might give rise to an intangible asset being identified, recognized and valued.

IRUs enable operators to use the networks of other telecommunications carriers for an amount that can be compared to a rent.

All IRUs are signed for long-term periods and represent a competitive advantage over other market participants, as capacity is limited in the market and, once contracted, they are not available to other market participants. Therefore, these contracts may represent a great deal of value to their owners, and are often included in the PPA. Non-compete agreements are contracts between a buyer and a seller of a business, restricting the seller from competing in the same industry for a specific period of time, often within a defined geographic area.

The main limitation of this approach is that it is highly subjective, and the inputs are discretionary in each case. The principle have a significant impact on values. In the context of PPA, the approach is applicable When using income as a basis for the if the market and income approaches valuation methodology, such as the relief cannot be applied.

It which is based on the construction should also be consistent with the overall or purchase of an exact replica of the company weighted average cost of capital intangible asset WACC. Goodwill considers certain adjustments might be needed. Replacement cost new and reproduction cost new may follow changes in the prices of new equipment. Goodwill in the telecommunications industry often includes the following elements: Post-acquisition subscriber base development Any post-acquisition subscriber growth that cannot be assigned to existing subscribers might only be captured in goodwill.

As a result, goodwill may integrate the future benefits of bundled services. Access to powerful distribution networks Acquiring an operator which owns sales outlets enables the acquirer to offer its services to a wider population. Geographical expansion Winning new markets for the acquirer will enlarge its geographical coverage, and enhance its brand value.

Buy vs. Defensive strategy Acquiring a competitor may enable the acquirer to reduce price wars in certain geographical areas, or to protect itself against acquisition by a larger operator.

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Download now. For Later. Related titles. Carousel Previous Carousel Next. Jump to Page. Search inside document. Sunil Bharti Mittal, 0 0 during the World Economic Forum Deal value Number of deals 27 January Source: Thomson SDC Platinum Footprint growth has featured heavily in the last decade, where transaction levels peaked twice: the first peak was due to the building of scale during the technology bubble of , which launched the global footprint growth in the mids. Economic factors Past performance was positive and relatively stable, and is not expected to grow significantly in the future past return on equity is approximately equal to the future return on equity.

Figure 11 — Recent transaction-based valuation multiples — 18 16 Different fee structures exist, which make comparisons very difficult: 1.

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