6 Lessons Learned from the Mobile Industry

Transcription

1 6 Lessons Learned from the Mobile Industry Commonwealth Digital Broadcasting Switchover Forum 2015 Rostan Schwab, IFC Senior Investment Officer

2 IFC Overview IFC is the member of the World Bank Group focused on the private sector Founded in 1956 with 184 member countries Largest multilateral source of loan/equity financing in Emerging Markets Over $97 Billion Invested Since 1956 AAA-rated by S&P and Moody s Equity, quasi-equity, loans, risk management and local currency products Takes market risk with no sovereign guarantees Promoter of environmental, social, and corporate governance standards Resources and know-how of a global development bank with the flexibility of a merchant bank Holds equity in over 756 companies worldwide across the following sectors: - Agriculture - Financial Markets - Manufacturing Service - Health & Education - Infrastructure - Oil, Gas and Mining - Telecoms, Media & Technology 2

3 TMT Global Expertise 3

4 IFC Financing in TMT Telecoms Media Technology Satellite Infrastructure Data Centers Submarine Cable Applications e/m Payment Systems Wireless/Cellular Content Information Security Fiber Backbones Incubators IT Services Broadband Hardware/Devices Managed Services Towers MVNO's Cross Cutting Venture Investments Greenfield Projects to Corporate Expansions 4

5 Lesson 1: New Technology / Increased Access The introduction of mobile technology has led to a dramatic increase in access to voice services. In 2014, total mobile subscriptions amounted to 6.8 billion, a 93% global penetration. Source: Ericsson Mobility Report,

6 Lesson 2: New Technology / New Growth The introduction of mobile technology has led to a significant growth in the global telecom market, and a switch from developed to emerging markets. 6

7 Lesson 3: A Change in Players Dynamics 1/2 The introduction of mobile technology has led to a change in players dynamics, with larger players increasingly dominating the space. Source: Delta Partners,

8 Lesson 3: A change in Players Dynamics 1/2 Today, a select club of global titans has emerged together with a strong group of multiregion emerging challengers. And some of the big dormants are waking up. Source: Delta Partners,

9 Lesson 4: New Technology / New Devices and New Uses Mobile technology was initially designed for voice services on a cellphone. It is now increasing used for data and with multiple devices (smartphones, tablets, PCs). Source: Ericsson Mobility Report,

10 Lesson 5: Ever-Evolving Business Models The introduction of mobile technology has led to the emergence of ever evolving business models, seeking to better adapt to the promises of the technology / customer demands. State-Owned Telecom Operator MOBILE ADVERTISING SOCIAL NETWORKS Private Mobile Network Operator (MNO) E-COMMERCE OTT COMMUNICATIONS Mobile Virtual Network Operator (MVNO) INTERNET OF THINGS VIRTUALIZATION Independent Tower Company FINANCIAL SERVICES MNO Fi. Services Primary Infrastructure play Primary digital play Mobile Outsourced Network Operator (MONO) CONTENT Etc 10

11 Lesson 6: the Need for a Rigorous Approach to Investment Despite the overall success of mobile telephony, a rigorous approach to investment was and still is today required. Below are the main topics of an IFC due diligence. Adequate technology vs Market conditions (ex GSM vs CDMA)? Track record of the sponsor in managing / investing in similar ventures? Size of the market opportunity Competition Credibility / Consistency of Business Plan Overall macro-political and regulatory environment / Timing? Business model? Existence of successful precedents? Greenfield / Proof of concept / Established operations? Replicability? Quality of Management Team Environment & Social due diligence Others 11