Telecoms 2018 - brandfinance.combrandfinance.com/images/upload/telecoms_300_report_2018_website... · • However, if the brand’s poor Business Performance persists, ... (WeChat),

Telecoms 300 2018The annual report on the world’s most valuable telecoms brandsFebruary 2018

Brand Finance Telecoms 300 February 2018 3.

Foreword.What is the purpose of a strong brand: to attract customers, to build loyalty, to motivate staff? All true, but for a commercial brand at least, the first answer must always be ‘to make money’.

Huge investments are made in the design, launch, and ongoing promotion of brands. Given their potential financial value, this makes sense. Unfortunately, most organisations fail to go beyond that, missing huge opportunities to effectively make use of what are often their most important assets. Monitoring of brand performance should be the next step, but is often sporadic. Where it does take place, it frequently lacks financial rigour and is heavily reliant on qualitative measures, poorly understood by non-marketers.

As a result, marketing teams struggle to communicate the value of their work and boards then underestimate the significance of their brands to the business. Sceptical finance teams, unconvinced by what they perceive as marketing mumbo jumbo, may fail to agree necessary investments. What marketing spend there is, can end up poorly directed as marketers are left to operate with insufficient financial guidance or accountability. The end result can be a slow but steady downward spiral of poor communication, wasted resources, and a negative impact on the bottom line.

Brand Finance bridges the gap between marketing and finance. Our teams have experience across a wide range of disciplines from market research and visual identity to tax and accounting. We understand the importance of design, advertising, and marketing, but we also believe that the ultimate and overriding purpose of brands is to make money. That is why we connect brands to the bottom line.

By valuing brands, we provide a mutually intelligible language for marketing and finance teams. Marketers then have the ability to communicate the significance of what they do, and boards can use the information to chart a course that maximises profits. Without knowing the precise, financial value of an asset, how can you know if you are maximising your returns? If you are intending to license a brand, how can you know you are getting a fair price? If you are intending to sell, how do you know what the right time is? How do you decide which brands to discontinue, whether to rebrand and how to arrange your brand architecture? Brand Finance has conducted thousands of brand and branded business valuations to help answer these questions.

Brand Finance’s research revealed the compelling link between strong brands and stock market performance. It was found that investing in highly-branded companies would lead to a return almost double that of the average for the S&P 500 as a whole.

Acknowledging and managing a company’s intangible assets taps into the hidden value that lies within it. The following report is a first step to understanding more about brands, how to value them and how to use that information to benefit the business.

The team and I look forward to continuing the conversation with you.

David Haigh CEO, Brand Finance

Brand Finance Telecoms 300 February 2018 5.Brand Finance Telecoms 300 February 2018 4.

Foreword 3

About Brand Finance 4

Contact Details 4

Definitions 6

Executive Summary 8

Regional Overview 12

Telecoms Infrastructure 10 14

Full Table 16

Methodology 22

Understand Your Brand’s Value 23

Consulting Services 24

Communications Services 25

Contents.

4.

About Brand Finance.Brand Finance is the world’s leading independent brand valuation and strategy consultancy.

Brand Finance was set up in 1996 with the aim of ‘bridging the gap between marketing and finance’. For more than 20 years, we have helped companies and organisations of all types to connect their brands to the bottom line.

We pride ourselves on four key strengths:• Independence• Technical Credibility• Transparency• Expertise.

Brand Finance puts thousands of the world’s biggestbrands to the test every year, evaluating which are the strongest and most valuable.

For more information, please visit our website:www.brandfinance.com

Contact Details.For business enquiries, please contact:Richard HaighManaging Director [email protected]

For media enquiries, please contact:Konrad JagodzinskiCommunications Director [email protected]

For all other enquiries, please contact:[email protected]+44 (0)207 389 9400

linkedin.com/company/ brand-finance facebook.com/brandfinance

twitter.com/brandfinance

For further information on Brand Finance®’s services and valuation experience, please contact your local representative:

Country Contact Email addressAsia Pacific Samir Dixit [email protected] +65 906 98 651 Australia Mark Crowe [email protected] +61 282 498 320Brazil Geoffrey Hamilton-Jones [email protected] +55 1196 499 9963Canada Bill Ratcliffe [email protected] +1 647 3437 266Caribbean Nigel Cooper [email protected] +1 876 8256 598China Scott Chen [email protected] +86 1860 118 8821East Africa Jawad Jaffer [email protected] +254 204 440 053France Victoire Ruault [email protected] +44 0207 389 9427Germany Holger Mühlbauer [email protected] +49 1515 474 9834India Ajimon Francis [email protected] +91 989 2085 951Indonesia Jimmy Halim [email protected] +62 215 3678 064Ireland Simon Haigh [email protected] +353 087 6695 881Italy Massimo Pizzo [email protected] +39 0230 312 5105Mexico & LatAm Laurence Newell [email protected] +52 1559 197 1925Middle East Andrew Campbell [email protected] +971 508 113 341Nigeria Babatunde Odumeru [email protected] +234 012 911 988Romania Mihai Bogdan [email protected] +40 728 702 705Spain Teresa de Lemus [email protected] +34 654 481 043 South Africa Jeremy Sampson [email protected] +27 828 857 300Sri Lanka Ruchi Gunewardene [email protected] +94 114 941 670Turkey Muhterem Ilgüner [email protected] +90 216 3526 729UK Richard Haigh [email protected] +44 0207 389 9400USA Amy Rand [email protected] +44 0207 389 9432Vietnam Lai Tien Manh [email protected] +84 473 004 468


Definitions.

Definitions. Brand Value

+ Enterprise Value The value of the entire enterprise, made up of multiple branded businesses.

Where a company has a purely mono- branded architecture, the ‘enterprise value’ is the same as ‘branded business value’.

+ Branded Business Value The value of a single branded business operating under the subject brand.

A brand should be viewed in the context of the business in which it operates. Brand Finance always conducts a branded business valuation as part of any brand valuation. We evaluate the full brand value chain in order to understand the links between marketing investment, brand- tracking data, and stakeholder behaviour.

+ Brand Contribution The overall uplift in shareholder value that the business derives from owning the brand rather than operating a generic brand.

The brand values contained in our league tables are those of the potentially transferable brand assets only, making ‘brand contribution’ a wider concept. An assessment of overall ‘brand contribution’ to a business provides additional insights to help optimise performance.

+ Brand Value The value of the trade mark and associated marketing IP within the branded business.

Brand Finance helped to craft the internationally recognised standard on Brand Valuation – ISO 10668. It defines brand as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.

[Telefonica]

[Movistar]

Brand Value

[Movistar]

[Movistar]

Enterprise Value

Branded Business Value

Brand Contribution

Bra

nd

Str

eng

th I

nd

ex

Widely recognised factors deployed by marketers to create brand loyalty and market share.

Marketing Investment• A brand that has high Marketing Investment but low Stakeholder Equity may be on a path to growth. This high investment is likely to lead to future performance in Stakeholder Equity which would in turn lead to better Business Performance in the future.• However, high Marketing Investment over an extended period with little improvement in Stakeholder Equity would imply that the brand is unable to shape customers’ preference.

Stakeholder Equity• The same is true for Stakeholder Equity. If a company has high Stakeholder Equity, it is likely that Business Performance will improve in the future.• However, if the brand’s poor Business Performance persists, it would suggest that the brand is inefficient compared to its competitors in transferring stakeholder sentiment to a volume or price premium.

Business Performance• Finally, if a brand has a strong Business Performance but scores poorly on Stakeholder Equity, it would imply that, in the future, the brand’s ability to drive value will diminish.• However, if it is able to sustain these higher outputs, it shows that the brand is particularly efficient at creating value from sentiment compared to its competitors.

MarketingInvestment

Perceptions of the brand among different stakeholder groups, with customers being the most important.

Quantitative market and financial measures representing the success of the brand in achieving price and volume premium.

StakeholderEquity

BusinessPerformance

Brand Strength

Brand Strength is the efficacy of a brand’s performance on intangible measures, relative to its competitors.

In order to determine the strength of a brand, we look at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance.

Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding rating up to AAA+ in a format similar to a credit rating.

Analysing the three brand strength measures helps inform managers of a brand’s potential for future success.

Investment

Equity

Performance


Executive Summary.

Internet Giants Challenge Telecoms

American telecoms players continue to dominate the Brand Finance Telecoms 300 league table, with AT&T retaining the title of the sector’s most valuable brand, but most US brands experience a loss in value as they fend off competition from internet giants. Challenges presented by technology brands, such as Facebook-owned WhatsApp and Microsoft-owned Skype, have meant American telecoms must update their voice and video calling service offerings to stay relevant.

Telecoms revenue growth has been in decline since 2013 as more customers opt for Over-The-Top (OTT) messaging services to remain in touch. With Microsoft (Skype), Facebook (Messenger, WhatsApp), Amazon (Alexa), Tencent (WeChat), Google (Hangouts) and many other firms expanding in this space, demand for OTT services is causing telecoms brands to adapt fast. However, 79% of mobile customers worldwide think that demand for OTT is outpacing the ability of telecoms brands to adjust, according to a 2017 Mobile Economy report by the GSMA.

Whilst American telecoms brands are at the top of the table, they are grappling with falling brand values as they find themselves navigating a complex regulatory environment and competitive offerings from the internet challengers, all whilst battling sinking revenues. In order to survive in the digital era, telecoms must put up a strong fight by adopting innovative strategies.David HaighCEO, Brand Finance

Executive Summary.

Nevertheless, when taking a snapshot of brand representation by country, the US still dominates as American brands hold the largest share or 28% of the total brand value in the Brand Finance Telecoms 300 league table. By comparison, China and Japan each account for 11% of the brand value in the telecoms sector and British telecoms brands occupy 8% of the league table.

AT&T Calling out Competitors

AT&T maintained its position as the leading telecoms brand in the world, despite its brand value falling 5% from US$87.0 billion to US$82.4 billion over the past 12 months. AT&T struggled with the loss of postpaid mobile phone subscribers as lower pricing for its unlimited plans failed to attract customers in a saturated US market. Looking to the future, the brand is now involved in new 5G network investments and participating in intensive testing for vehicle-to-everything (V2X) networks.

America’s largest wireless network, Verizon, came in second place with a brand value of US$62.8 billion, down

Brand Value Change 2017-2018 (%)

Top 10 Most Valuable Brands

Rank 2018: 1 2017: 1 BV 2018: $82,422m BV 2017: $87,016mBrand Rating: AAA-

1

Rank 2018: 9 2017: 9 BV 2018: $18,928m BV 2017: $20,621mBrand Rating: AA+

9

+3%


10


7 +36%


8

-5%

-5%

-8%

-14%


6 0%


2

Rank 2018: 3 2017: 3 BV 2018: $53,226m BV 2017: $46,734mBrand Rating: AAA

3 +14%


4 +1%


5 +10%

Golan Telecom

my

2degrees

Almadar Aljadeed

UQ Communications

Videotron

POST Luxembourg

Touch

Amaysim

VNPT

-37%

-37%

-44%

-46%

-49%

-51%

-52%

-54%

-60%

-78%

281%

228%

145%

141%

140%

135%

96%

96%

95%

84%

China All Access

Mobilis

FLOW

The Utility Warehouse

Telecom Egypt

Natcom (Viettel)

Reliance Communications

KDDI

Movicel

DigiMobil

Brand Finance Telecoms 300 February 2018 10. Brand Finance Telecoms 300 February 2018 11.

Executive Summary.

Brand Value Over Time

Brand Value by Country

Executive Summary.Executive Summary.

Top 15 Strongest Brands

BSI Score

89.3

BSI Score

84.3

BSI Score

83.5

BSI Score

84.8BSI Score

84.7

BSI Score

85.4

BSI Score

87.9BSI Score

87.8BSI Score

86.5BSI Score

85.6

from US$65.9 billion last year, dropping 5% in brand value. Also placed within the top 10 in 6th spot is American brand Xfinity, the wireless and TV service owned by the wider Comcast network and valued at US$26.1 billion. Another American brand which has seen its brand value drop is independent business connectivity provider, Spectrum, which came in 12th place whilst contending with a 15% fall in brand value.

China Makes its Presence Felt

The biggest success story from China in the Brand Finance Telecoms 300 league table is China Telecom which saw a 36% growth to its brand value, rising through the ranks to 7th place this year, from 10th last year. The brand is valued at almost US$24.0 billion. China Telecom is stepping up efforts towards 5G deployment, with plans to run a phased testing period for capacity and performance of 5G networks across six cities from 2017 to 2019 before launching commercially in 2020. China Telecom is also the country’s biggest fixed-line network services provider.

China Mobile is ranked in 3rd place, with a brand value of US$53.2 billion, up 14% from last year, taking the title of most valuable telecoms brand in Asia. China Mobile boasts the world’s most extensive mobile network and the world’s largest mobile phone customer base. Its success can also be credited to the advanced moves it is making in the testing of single-carrier 400G Optical Transport Networking (OTN) - the first of its kind for domestic providers. China Mobile is also the strongest brand in the Brand Finance Telecoms 300 league table with a Brand Strength Index (BSI) score of 89.3 and a corresponding AAA brand rating.

Altice is One to Watch

The new entrant, Netherlands-based Altice, ranked 68th and valued at US$1.9 billion, is the brand to watch as it orbits its focus on subsidiaries in the US, Europe, Middle East, and the Caribbean. Its French competitors are fighting hard to maintain top status, with Orange continually investing in fibre infrastructure and brand strengthening. In light of this, Altice is committed to increasing investments in customer services and has vowed to restore value proposition with its worldwide masterbrand strategy set to roll out this year.

Bra

nd V

alue

(US

D b

n)

Year

0

20

40

60

80

100

2018201720162015201420132012

Colour Country Brand Value % of total (USD bn)

United States 218.4 28%

China 88.8 11%

Japan 82.8 11%

United Kingdom 65.2 8%

Germany 41.5 5%

France 33.9 4%

Others 255.8 33%

Total 786.4 100%

BSI Score

BSI Score

BSI Score

BSI Score

83.4

83.0

82.9

82.8

84.3BSI Score


Regional Overview.Most Valuable Telecoms Brands by Region

North America

Latin America

Europe

Australasia

Asia

Middle East & Africa

US$82.4 billion

US$6.1 billion

US$40.2 billion

US$7.7 billion

US$53.2 billion

US$12.4 billion

Etisalat are Middle East Winners

In the Middle East, Etisalat has been named the region’s most valuable telecoms brand for the first time. The Abu Dhabi-based operator has turned the dial up with a 40% increase to its brand value, cementing its place as a Strategic Enabler in the UAE’s digital transformation. Etisalat boasts an impressive AAA- brand rating and is the only telecom provider from the region to break the US$7 billion brand value mark. The key growth drivers behind Etisalat’s US$7.7 billion brand value include the brand’s innovative customer service-driven strategy, its leadership position on the 5G revolution, and successful launches of global brand-building initiatives.

Deutsche Telekom Does it Again

Deutsche Telekom achieved a 10% increase in its brand value over the last year, taking it beyond the US$40 billion barrier to US$40.2 billion. In Europe, the 5G revolution will be the next territory in which Deutsche Telekom could further dominate. Its reputation as a reliable

Claro Leads in Latin America

Claro is the most valuable telecoms brand in the Latin American region. Ranked 32nd and valued at US$6.1 billion, Claro has led its Mexican parent company América Móvil’s portfolio, which also includes Telcel (41) and Telmex (74), and has become the group’s first truly pan-regional brand. Claro operates in numerous countries throughout Central and South America as well as the Caribbean providing subscribers with a variety of telecoms services and high-speed mobile internet options.

telecommunications provider in Germany has led to success beyond German borders, as it extends the business across Europe and North America. Deutsche Telekom is not only building a reputation as a leading technology company which continues to invest in cutting-edge infrastructure, such as the new fibre-optic cabling throughout its fixed network, but it is also broadening its brand appeal by using the memorable magenta brand colour in the creation of a fashion and accessories range.

Telstra Skips up to 13th Place

Australia’s Telstra, continues to perform exceptionally well across a number of brand attributes, with a resulting 14% increase in brand value to US$12.4 billion, taking the title of the most valuable telecoms brand in the region and 13th place in the Brand Finance Telecoms 300 2018. The strength of the brand contrasts with the decline in Telstra’s market value of 21%, highlighting the ever increasing role of the brand in the organisation’s overall business strategy. Telstra is committed to investing further in the upcoming launch of 5G services, which is expected to go live in early 2019.

It is a resounding victory for the Middle East to have over 20 brands represented in the Brand Finance Telecoms 300 rankings. This year, Etisalat emerges as the most valuable brand in the region. Through a combination of brand building engagements, leading the charge of the 5G revolution and successful delivery on its digitisation roadmap, Etisalat goes from strength to strength.Andrew CampbellManaging Director, Brand Finance Middle East

Latin America’s market dynamics and the region’s evolving networks will drive telecoms to refine their offerings. Claro, a brand that has played an increasing role for Mexico’s América Móvil, is a case in point. Laurence Newell Managing Director, Brand Finance Mexico

Regional Overview.


Brand Finance Telecoms Infrastructure 10.

Top 10 Most Valuable Brands


1 +51%

Rank 2018: 9 2017: 8 BV 2018: $1,044m BV 2017: $1,321mBrand Rating: A+

9

Rank 2018: 10 2017: New BV 2018: $935m

Brand Rating: A+

10


7 +34%

Rank 2018: 8 2017: 9 BV 2018: $1,204m BV 2017: $1,247mBrand Rating: A+

8 -3%

-21%

-6%

Rank 2018: 6 2017: 6 BV 2018: $3,521m BV 2017: $2,869mBrand Rating: AA

6 +23%


2


3 +71%


4 0%


5 -10%

Top 5 Strongest Brands

BSI Score

83.4BSI Score

81.4BSI Score

76.2BSI Score

75.9BSI Score

71.7

Huawei Way Ahead

Chinese brand Huawei comes out top in the Brand Finance Telecoms Infrastructure 10 league table, valued at US$38.0 billion, up 51% from last year’s US$25.2 billion. Huawei’s phenomenal global rise continues with its smartphone business now firmly in third place behind Apple and Samsung. The core networking business, which delivers the bulk of global revenue, is growing with the expectation of 5G services coming online soon. Since 2012, Huawei has grown nearly 700% from US$4.8 billion to US$38.0 billion, trailblazing Chinese efforts to build home-grown brands.

Nokia Makes a Comeback

Favoured Finnish brand Nokia is the third most valuable telecoms infrastructure brand worldwide, reaping the benefits of refreshing its well-loved mobile phones. Nokia’s brand story in the past few years can be likened to that of a phoenix rising from the ashes. Nokia has seen a 71% increase in brand value to US$8.4 billion in the past year, quadrupling since the low point of US$2.0 billion in 2014.

Nokia has focused the brand on its core networks activities as well as extending into new licensing areas over the last year. It is a perfect example of how reinvigorating a well-loved brand through licensing can be a route to success. We expect to see significant growth of Nokia’s brand value in the future as the implementation of the new strategy accelerates.Bryn AndersonDirector, Brand Finance

Brand Finance Telecoms Infrastructure 10.


Brand Finance Telecoms 300 (USD m)Top 300 most valuable telecoms brands 1-50

Rank2018

Rank2017

Brand name Country Brand value(USD m)2018

%change

Brand value(USD m) 2017

Brandrating2018

Brandrating2017

1 1 AT&T United States 82,422 -5% 87,016 AAA- AAA

2 2 Verizon United States 62,826 -5% 65,875 AAA- AAA-

3 3 China Mobile China 53,226 +14% 46,734 AAA AAA

4 4 NTT Group Japan 40,872 +1% 40,542 AA+ AA+

5 5 T (Deutsche Telekom) Germany 40,152 +10% 36,433 AA+ AA+

6 6 Xfinity United States 26,121 0% 26,180 AA+ AA+

7 10 China Telecom China 23,979 +36% 17,599 AA+ AA+

8 8 Orange France 22,206 +3% 21,526 AAA- AAA-

9 9 SoftBank Japan 18,928 -8% 20,621 AA+ AA

10 7 Vodafone United Kingdom 18,744 -14% 21,831 AA+ AA+

11 11 au Japan 16,626 -2% 16,919 AA+ AAA-

12 12 Spectrum United States 13,396 -15% 15,738 AA- AA

13 14 Telstra Australia 12,436 +14% 10,943 AAA AAA-

14 13 BT United Kingdom 11,494 0% 11,439 AA+ AAA-

15 19 China Unicom China 11,479 +23% 9,355 AA AA

16 16 Movistar Spain 11,415 +13% 10,065 AAA- AAA

17 18 Bell Canada 10,830 +12% 9,686 AAA- AAA-

18 15 Sky United Kingdom 10,162 -2% 10,368 AAA- AAA-

19 26 TIM Italy 8,656 +33% 6,492 AAA- AA+

20 17 O2 United Kingdom 8,637 -11% 9,719 AA+ AAA-

21 23 Rogers Canada 7,887 +14% 6,898 AAA- AAA-

22 31 Etisalat UAE 7,702 +40% 5,512 AAA- AA+

23 25 Telus Canada 7,701 +17% 6,564 AAA AAA-

24 20 Sprint United States 7,455 -16% 8,848 AA AA

25 28 3 United Kingdom 7,347 +15% 6,367 AA AA+

26 27 Centurylink United States 7,075 +10% 6,412 AA- AA-

27 22 Telenor Norway 6,855 -4% 7,163 AA+ AAA-

28 33 SK South Korea 6,701 +28% 5,233 AAA- AA

29 21 Airtel India 6,660 -14% 7,722 AAA AA+

30 29 STC Saudi Arabia 6,651 +7% 6,218 AA+ AA+

31 24 Swisscom Switzerland 6,201 -7% 6,633 AAA AAA

32 32 Claro Mexico 6,085 +12% 5,430 AAA- AAA-

33 30 SFR France 5,793 0% 5,808 AA+ AAA-

34 41 Chunghwa China (Taiwan) 5,507 +50% 3,668 AA+ AA+

35 34 KT South Korea 5,252 +3% 5,091 AA+ AA+

36 39 Telkom Indonesia Indonesia 5,168 +19% 4,335 AAA AAA-

37 38 EE United Kingdom 4,686 +7% 4,377 AAA- AA

38 36 Telia Sweden 4,281 -7% 4,614 AA+ AA

39 45 Optus Australia 3,946 +19% 3,316 AAA- AA+

40 72 UQ Communications Japan 3,767 +140% 1,568 A+ A-

41 42 Telcel Mexico 3,539 0% 3,552 AA+ AAA-

42 37 Dish Network United States 3,437 -25% 4,593 A+ AA-

43 49 Singtel Singapore 3,426 +31% 2,625 AAA- AA

44 46 Ooredoo Qatar 3,369 +9% 3,104 AA+ AA

45 47 MTN South Africa 3,252 +9% 2,975 AAA- AA+

46 61 AIS Thailand 3,211 +49% 2,162 AAA AA+

47 48 Viettel Telecom Vietnam 3,178 +18% 2,686 AA- A

48 44 KPN Netherlands 3,134 -6% 3,348 AAA- AAA-

49 51 LG U+ South Korea 3,029 +16% 2,618 AA AA50 62 Free Mobile France 2,964 + 40% 2,121 AAA- AA+

Top 300 most valuable telecoms brands 51-100

Brand Finance Telecoms 300 (USD m).

Rank2018

Rank2017


%change


Brandrating2018

Brandrating2017

51 40 Virgin Media United Kingdom

52 58 Bouygues Telecom France

53 56 Wind Italy

54 64 du UAE

55 43 Frontier Communication United States

56 55 Telefonica Spain

57 53 Axiata Malaysia

58 71 Tracfone United States

59 60 Proximus Belgium

60 52 PLDT Philippines

61 35 KDDI Japan

62 59 Shaw Canada

63 63 Vivo Brazil

64 57 Zain Group Kuwait

65 75 Taiwan Mobile China (Taiwan)

66 76 MTS Russia

67 50 Turk Telekom Turkey

68 New Altice Netherlands

69 65 Turkcell Turkey

70 69 Optimum United States

71 67 UPC Switzerland

72 66 Idea Cellular India

73 97 A1 Austria

74 70 Telmex Mexico

75 89 Megafon Russia

76 73 Tigo United States

77 82 Globe Telecom Philippines

78 78 Maxis Malaysia

79 83 Windstream United States

80 118 Videotron Canada

81 109 VNPT Vietnam

82 91 Tele2 Sweden

83 92 HKT China (Hong Kong)

84 86 TM Malaysia

85 85 DiGi Malaysia

86 80 TDC Denmark

87 74 Ziggo Netherlands

88 102 TRUE Thailand

89 90 BCE Canada

90 88 Far Eastone Telecommunications China (Taiwan)

91 96 Telenet Belgium

92 100 Starhub Singapore

93 93 Elisa Finland

94 New AOL United States

95 87 Oi Brazil

96 84 Beeline Russia

97 79 Mobily Saudi Arabia

98 104 FASTWEB Italy

99 111 Safaricom Kenya100 99 Entel Chile


Top 300 most valuable telecoms brands 101-150 Top 300 most valuable telecoms brands 151-200


Rank2018

Rank2017


%change


Brandrating2018

Brandrating2017

151 New C&W Communication United Kingdom

152 148 CJ Hellovision South Korea

153 154 HOT Israel

154 160 Intelsat Luxembourg

155 140 VTR Chile

156 198 JAS Thailand

157 168 Colt Luxembourg

158 190 Cell C South Africa

159 157 TDS United States

160 164 Cyfrowy Polsat Poland

161 180 VIBO Telecom China (Taiwan)

162 165 TPG Telecom Australia

163 186 Bics Belgium

164 184 Shenandoah Telecommunications United States

165 155 SKY PerfecTV! Japan

166 158 Inmarsat United Kingdom

167 161 Netvigator China (Hong Kong)

168 176 Eutelsat Communications France

169 181 inwi Morocco

170 205 MPT Myanmar

171 175 Pelephone Israel

172 170 AAPT Australia

173 195 CTM China (Macau)

174 185 OTE Greece

175 163 Vonage United States

176 192 Consolidated United States

177 194 Asiacell Iraq

178 179 General Communication United States

179 169 Cosmote Group Greece

180 191 Jazz (Mobilink) Pakistan

181 178 SKY (New Zealand) New Zealand

182 189 Moov UAE

183 188 Embratel Brazil

184 New DBS Israel

185 196 kolbi Costa Rica

186 206 Euskaltel Spain

187 210 Cellnex Telecom Spain

188 213 Kazakhtelecom Kazakhstan

189 147 FLOW Panama

190 244 2degrees New Zealand

191 New Dialog Sri Lanka

192 203 Yousee Denmark

193 208 Axtel Mexico

194 177 HGC China (Hong Kong)

195 217 Time dotCom Malaysia

196 167 DishTV India

197 199 Movil Panama

198 197 Earthlink United States

199 187 m:ts Serbia200 200 Okinawa Cellular Japan

Rank2018

Rank2017


%change


Brandrating2018

Brandrating2017

101 105 Cogeco Canada

102 103 Personal Argentina

103 95 US Cellular United States

104 112 Freenet Germany

105 108 Spark New Zealand

106 101 IM3 Ooredoo Indonesia

107 107 Play Poland

108 113 Sunrise Switzerland

109 New Suddenlink United States

110 117 Plus Poland

111 124 Maroc telecom Morocco

112 110 Rostelecom Russia

113 138 Mobifone Vietnam

114 115 XL Indonesia

115 106 Digicel Jamaica

116 119 Bezeq Israel

117 133 Drillisch Telecom Germany

118 122 MCI Iran

119 120 Mobistar Belgium

120 114 TalkTalk United Kingdom

121 145 West United States

122 151 Vinaphone Vietnam

123 141 Nos Portugal

124 137 Meo Portugal

125 127 Izzi Mexico

126 129 eir (Eircom) Ireland

127 116 BSNL India

128 142 Dna Finland

129 135 SES Luxembourg

130 130 Glo Mobile Nigeria

131 98 Reliance Communications India

132 153 U Mobile Malaysia

133 132 iiNet Australia

134 139 OmanTel Oman

135 131 BASE Belgium

136 143 Sonatel Senegal

137 149 Telecom (Argentina) Argentina

138 123 Smartone China (Hong

139 150 Cellcom Israel

140 134 Telkom South Africa

141 121 EchoStar United States

142 172 Megacable Mexico

143 162 PT Empresas Portugal

144 126 Tata Communications India

145 174 M1 Singapore

146 125 Aircel India

147 136 Yoigo Spain

148 144 Cincinnati Bell United States

149 128 Liberty Global Netherlands150 166 PCCW China (Hong Kong)



Top 300 most valuable telecoms brands 201-250 Top 300 most valuable telecoms brands 251-300

Rank2018

Rank2017


%change


Brandrating2018

Brandrating2017

251 270 Thaicom Thailand

252 311 Amaysim Australia

253 261 Tango Luxembourg

254 346 my Thailand

255 267 Asia Pacific Tel China (Taiwan)

256 277 Mobitel (SL) Sri Lanka

257 240 Net263 China

258 258 Telindus Luxembourg

259 362 Golan Telecom Israel

260 329 Almadar Aljadeed Libya

261 273 Lynx Mobility Canada

262 303 Quality Net Kuwait

263 246 Cubacel Cuba

264 276 Jawwal Palestine

265 275 Gamma Communications United Kingdom

266 264 DEN India

267 319 GO Malta

268 278 Rignet United States

269 262 m:tel Serbia

270 272 Ufone Pakistan

271 263 Netia Poland

272 283 BH Telecom Bosnia and Herzegovina

273 256 Nepal Telecom Nepal

274 298 Umniah Jordan

275 294 Telsur Chile

276 312 Samart Telcoms Thailand

277 289 Teletalk Bangladesh

278 285 Mas Movil Spain

279 293 Fullrate Denmark

280 287 Midas Poland

281 296 mcel Mozambique

282 300 Dhiraagu Maldives

283 331 Telekom Networks Malawi

284 281 MTI Japan

285 286 Bakcell Azerbaijan

286 305 Telmob Burkina Faso

287 292 CellOne United States

288 242 Natcom (Viettel) Haiti

289 New Liberty PR Puerto Rico

290 201 DigiMobil Spain

291 310 Rightel Iran

292 307 bmobile Trinidad & Tobago

293 304 Unitel Mongolia

294 333 BOLT! Indonesia

295 295 Tiscali Italy

296 336 VivaCell Armenia

297 236 Movicel Angola

298 291 USA Mobility United States

299 313 Malitel Mali300 323 OPT New Caledonia

Rank2018

Rank2017


%change


Brandrating2018

Brandrating2017

201 152 Telecom Egypt Egypt

202 159 The Utility Warehouse United Kingdom

203 182 Djezzy Algeria

204 219 Telekom Slovenia Slovenia

205 248 POST Luxembourg Luxembourg

206 221 Nowtv China (Hong Kong)

207 207 Blue Label Telecom South Africa

208 232 Ringcentral United States

209 222 DigitalGlobe United States

210 253 Touch Lebanon

211 216 SaskTel Canada

212 227 Batelco Bahrain

213 226 LinkNet Indonesia

214 235 Ptcl Pakistan

215 New Ncell Nepal

216 193 Mobilis Algeria

217 204 banglalink Bangladesh

218 223 EastLink Canada

219 211 iBasis United States

220 215 C Spire Wireless United States

221 218 Kyivstar Ukraine

222 212 FairPoint Communications United States

223 233 Econet Wireless Zimbabwe

224 237 Yes Malaysia

225 214 IDT United States

226 224 BTC Panama

227 251 Africell Gambia

228 225 Zong Pakistan

229 229 Iridium United States

230 230 ETB Colombia

231 252 Ethio-Mobile Ethiopia

232 266 Sure Isle Of Man

233 280 Smartfren Indonesia

234 537 Tricom Dominican

235 249 LMT Latvia

236 243 Citic China (Hong Kong)

237 290 TT (Tunisie Telecom) Tunisia

238 228 Commnet United States

239 282 Movitel Mozambique

240 220 China All Access China

241 255 Hawaiian Telcom United States

242 271 Vivacom Bulgaria

243 250 Cable & Wireless communications United States

244 257 Sri Lanka Telecom Sri Lanka

245 268 MetFone Cambodia

246 259 hathw@y India

247 260 Alaska Communication Systems United States

248 279 Roshan Afghanistan

249 265 Kcom United Kingdom250 274 Libyana Libya

Brand Finance Telecoms 300 (USD m).Brand Finance Telecoms 300 (USD m).


Methodology.

What is a Brand Value Report?

Brand Valuation Summary

+ Internal understanding of brand+ Brand value tracking+ Competitor benchmarking+ Historical brand value

Brand Strength Index

+ Brand strength tracking+ Brand strength analysis+ Management KPIs+ Competitor benchmarking

Royalty Rates

+ Transfer pricing+ Licensing/franchising negotiation+ International licensing+ Competitor benchmarking

Cost of Capital

+ Independent view of cost of capital for internal valuations and project appraisal exercises

Customer Research

+ Utilities + Insurance+ Banks+ Telecoms

For more information regarding our Brand Value Reports, please contact:

Richard HaighManaging Director, Brand Finance [email protected]

What are the benefits of a Brand Value Report?

Insight

Provide insight as to how the brand is performing vs. key competitors on underlying measures and drivers of brand value and brand strength.

Strategy

Understand where brand value is being generated by region and channel in order to identify areas of opportunity that warrant further investigation.

Benchmarking

Track year-on-year changes to brand value and set long-term objectives against which high-level brand performance can be benchmarked.

Education

Provide a platform of understanding which the company can use to educate employees on the importance of the brand.

Communication

Communicate your brand’s success to shareholders, customers, and other strategically selected audiences.

Understanding

Understand and appreciate the value of your brand as an asset of the business.

A Brand Value Report provides a complete breakdown of the assumptions, data sources, and calculations used to arrive at your brand’s value.

Each report includes expert recommendations for growing brand value to drive business performance and offers a cost-effective way to gaining a better understanding of your position against competitors.

Understand Your Brand’s Value. Brand Finance calculates the values of the brands in its league tables using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668.

This involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a licensor would achieve by licensing the brand in the open market.

The steps in this process are as follows:

1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.

2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.

3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.

4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.

5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.

6 Apply the royalty rate to the forecast revenues to derive brand revenues.

7 Brand revenues are discounted post-tax to a net present value which equals the brand value.

Brand Strength Index (BSI)Brand strengthexpressed as a BSIscore out of 100.

Brand Royalty RateBSI score applied to anappropriate sectorroyalty range.

Brand RevenuesRoyalty rate applied toforecast revenues toderive brand value.

Brand ValuePost-tax brandrevenues discounted to a net present value (NPV)which equals the brand value.


We offer a variety of services to help communicate your brand’s success.

Strongest Global Brand 2018

Your Brand

Your Brand ValueExplain and discuss your brand’s performance in more depth.

Press Release Assist with the creation of a press release communicating your brand’s success.

CEO QuoteSupply a quote in recognition of your brand’s performance for you to use in external and internal communications.

Social Media Coordinate with your social media activity to communicate your brand’s success more effectively.

AwardsProduce an accolade plaque and hand-written certificates, personally signed by our CEO, to recognise your brand’s performance.

AdvertisingAllow full use of the Brand Finance logo on your ad designs and create a bespoke digital endorsement stamp for your website and investor relations use.

1. Valuation: What are my intangible assets worth?Valuations may be conducted for technical purposes and to set a baseline against which potential strategic brand scenarios can be evaluated.

+ Branded Business Valuation+ Trademark Valuation+ Intangible Asset Valuation+ Brand Contribution

2. Analytics: How can I improve marketing effectiveness?

Analytical services help to uncover drivers of demand and insights. Identifying the

factors which drive consumer behaviour allows an understanding of how brands

create bottom-line impact.

Market Research Analytics +Return on Marketing Investment +

Brand Audits +Brand Scorecard Tracking +

4. Transactions: Is it a good deal? Can I leverage my intangible assets?Transaction services help buyers, sellers, and owners of branded businesses get a better deal by leveraging the value of their intangibles.

+ M&A Due Diligence + Franchising & Licensing+ Tax & Transfer Pricing+ Expert Witness

3. Strategy: How can I increase the value of

my branded business?Strategic marketing services enable

brands to be leveraged to grow businesses. Scenario modelling will

identify the best opportunities, ensuring resources are allocated to those activities which

have the most impact on brand and business value.

Brand Governance + Brand Architecture & Portfolio Management +

Brand Transition + Brand Positioning & Extension +

MARKETING FINANCE TAX LEGAL

We help marketers to connect their brands to business performance by evaluating the return on investment (ROI) of brand-based decisions and strategies.

We provide financiers and auditors with an independent assessment on all forms of brand and intangible asset valuations.

We help brand owners and fiscal authorities to understand the implications of different tax, transfer pricing, and brand ownership arrangements.

We help clients to enforce and exploit their intellectual property rights by providing independent expert advice in- and outside of the courtroom.

2. ANALYTICS

3. STRATEGY 4. TRANSACTI

ON

S1.

VAL

UATION

Brand & Business Value

Example digital endorsement stamp for use on your website as well as in investor relations and advertising,

to recognise your brand’s performance.

Consulting Services. Communications Services.

How we can help

Brand Finance Telecoms 300 February 2018 26.

Value-Based Communications

We execute strategic communications programmes to optimise the value of your business and to enhance brand perception among stakeholders.

SERVICES- Research and Insights- Project Management and Agency Steering- Content and Channel Strategy- Integrated Communications Planning and Execution- Communications Workshops

For more information, contact [email protected] or visit www.brand-dialogue.co.uk

Brand Dialogue is a member of the Brand Finance plc group of companies

3 Birchin Lane, London, EC3V 9BW +44 0207 389 9410 www.brandexchange.com [email protected]

Private Members Club & Events Venue

3 Birchin Lane, London, EC3V 9BW +44 (0) 207 3899 410 www.brandexchange.com [email protected]

BECOME A MEMBERA contemporary and exclusive members’ club & events venue in the heart of the City of London

Characterful space for meetings and private eventsMembers’ events with focus on marketing and branding

Discounted room hire for members

Brand Exchange is a member of the Brand Finance plc group of companies

®

Contact us.

The World’s Leading Independent Brand Valuation and Strategy ConsultancyT: +44 (0)20 7389 9400E: [email protected] www.brandfinance.com

Documents

Telecoms 2018 - brandfinance.combrandfinance.com/images/upload/telecoms_300_report_2018_website... · • However, if the brand’s poor Business Performance persists, ... (WeChat),