There has been a steep rise in merger and acquisition activity in 2015 specifically in technology and telecommunication sector. According to analysts, almost $406 billion were spent on deals in buying technology and telecom companies globally by May 2015. These M&A deals are reflecting the underlying focus of the companies on the digital economy which consists of cloud, mobile data, analytics, e-commerce, social, security and payments. Volume and value of technology focussed M&A deals is continuously increasing year-on-year. According to a study by Oxford, emerging economies, such as Brazil, India and China could see a GDP uplift between $97 billion and $418 billion due to digital technologies. Some of the motives behind these M&As could be:<\/p>

<\/p>

Gain a leadership position: <\/strong>Several mergers and acquisitions are also happening to gain a leadership position and to increase the coverage in key areas. Charter Communication will buy Time Warner Cable for $55 billion and hence would serve nearly 23 million residential and business Internet customers which will challenge the market leader Comcast having 27 million customers. Cross-border deal between Liberty Global and Vodafone in the UK and Germany has the potential to increase market share of each of the players in their respective markets. Similarly, series of acquisitions by Flipkart and Snapdeal in India indicate their intention to consolidate their position in the digital commerce market and to boost their capabilities through appropriate technology and talent.<\/p>

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Venturing into wireless data business: <\/strong>The growth of data services and success of wireless devices have attracted new entrants in the market. The basic wireless subscription is getting saturated and customers are demanding more innovative services like live streaming TVs and videos. Dish Network bought another 10MHz spectrum for $13.3 billion in the US auction taking its total spectrum holding to 56 MHz. However, it has not built the infrastructure to use this expensive spectrum. The proposed merger of Dish network and T-Mobile can provide a good platform for Dish Network to utilise the unused spectrum and provide a good platform for T-Mobile to improve its service offerings by using Dish\u2019s spectrum to expand coverage as well as capacity and provide innovative services, thus helping in greater customer acquisition.<\/p>

<\/p>

Exit strategy and increased scale: <\/strong>The high profile M&As in Europe and US market are also enabling exit strategies for other players. The potential T-Mobile and Dish Network merger could be opportunity for Deutsche Telekom, who owns 66% of T-Mobile in US, to exit the American market and acquire share in other lucrative European markets. Similarly, potential mergers between Reliance Communication & Sistema and between Airtel & Augere Wireless Broadband would help broaden 4G coverage in India for Airtel and Reliance.<\/p>

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Expansion into new geography: <\/strong>Saturation in US and Europe is encouraging companies to venture into new geography. America Movil, owning about 80% of landline market and 70% of mobile market in Mexico, is considering acquiring stakes in Indian operator. The stiff challenge in domestic market and the growing demand of wireless and data services in India which is the 2nd largest telecom market in the world are the reasons behind the geographical expansion. Similarly, global giants like Alibaba and Softbank are eying the Indian digital commerce market for expansion.<\/p>

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Cross-border consolidations:<\/strong> Altice, the French telecom company with significant presence in Europe acquired Suddenlink Communications, the seventh largest US cable TV company. This will help cross-border consolidation between the US and Europe.<\/p>

<\/p>

In view of above M&A activities, it is clear that digital services are driving the companies to go for mergers or acquisitions to fill the technology gap and talent expansion. Although growth in data is the major factor, there are other factors like low interest rate, decline in oil prices, dollar appreciation and pressure from investors to focus on top-line growth. The future M&A deals would reflect similar trends of digital phenomenon to deliver real gains in productivity and revenue.<\/p>","blog_img":"","featured":0,"status":"Y","seo_title":"Is digital economy driving the M&As in telecom and technology?","seo_url":"is-digital-economy-driving-the-m-as-in-telecom-and-technology","cms_link":"is-digital-economy-driving-the-m-as-in-telecom-and-technology\/779","updated_at":"2015-07-22 17:18:52","time":"2015-07-22 17:18:52","authors":[{"author_name":"Hemant Joshi","author_description":"Partner, Deloitte India","author_designation":"Partner","author_company":"Deloitte India","profile_pic":"retail_files\/pic_author_1404798937_temp.jpg"}],"tags":[],"url_seo":"is-digital-economy-driving-the-m-as-in-telecom-and-technology"}">

    在电信和数字经济推动并购技术?

    赫曼特Joshi
    • 赫曼特Joshi,伙伴,德勤印度,
    • 更新于2015年7月22日下午05:18坚持

    有陡峭的上升在2015年并购活动专门技术和电信行业。分析人士表示,近4060亿美元用于交易购买全球科技和电信公司在2015年5月。这些并购交易反映了潜在的公司关注的数字经济由云、移动数据,分析、电子商务、社交、安全和支付。技术集中并购交易的数量和价值同比不断增加。牛津大学的一项研究称,新兴经济体,如巴西、印度和中国能看到GDP上升970亿美元和4180亿美元之间由于数字技术。一些这些并购背后的动机:

    获得领导地位:几个并购也发生在获得领导地位,增加关键领域的报道。宪章通信将以550亿美元收购时代华纳有线电视,因此近2300万住宅及商业互联网服务客户将挑战市场领袖康卡斯特拥有2700万的客户。自由全球之间跨境交易和沃达丰英国和德国的有潜力增加市场份额每个球员在各自的市场。同样,Flipkart公司一系列的收购和Snapdeal在印度表示他们打算在电子商务市场巩固自己的地位,通过适当的技术来提高他们的能力和才华。

    冒险进入无线数据业务:数据服务的发展和无线设备的成功吸引了市场的新进入者。基本的无线订阅越来越饱和,客户要求更多创新服务直播电视和视频。菜网络买了另一个10 MHz频段在美国以133亿美元的价格拍卖以其总光谱56兆赫。然而,它还没有建造基础设施使用这种昂贵的频谱。菜网络的合并和t - mobile菜网络可以提供一个好的平台利用未使用的频谱,并提供一个良好的平台,t - mobile,以改善其服务使用菜的频谱扩展覆盖能力和提供创新服务,从而帮助更多的顾客。

    退出策略,增加规模:高调的欧洲和美国市场的并购也使其他玩家退出策略。潜在的t - mobile和菜网络合并可能是德国电信的机会,谁拥有66%的t - mobile,退出美国市场并获得分享其他有利可图的欧洲市场。同样,潜在并购之间的依赖之间的通信和Sistema Airtel & Augere无线宽带将有助于扩大4 g覆盖在印度Airtel和依赖。

    扩张进入新的地理:饱和度在美国和欧洲是鼓励企业进入新的地理。墨西哥美洲电信公司,拥有约80%的固定电话市场和手机市场的70%,在墨西哥,印度运营商正考虑入股。国内市场的激烈挑战和不断增长的需求的无线数据服务在印度是世界上第二大电信市场地理扩张背后的原因。同样,阿里巴巴和软银等全球巨头为印度电子商务市场扩张。

    跨境合并:Altice,法国电信公司在欧洲收购Suddenlink通信、美国第七大有线电视公司。这将有助于美国和欧洲之间的跨境合并。

    鉴于以上的并购活动,很明显,数字服务推动合并或收购的公司去填补技术空白和人才扩张。尽管数据增长的主要因素,还有其他因素,如低利率、油价下降,美元升值,投资者关注营收增长的压力。未来的并购交易将数字现象反映了类似的趋势提供真正的生产力和收入。

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    • 通过赫曼特Joshi,伙伴,德勤印度
    • 更新于2015年7月22日下午05:18坚持