Growth Possibilities for US Telco

Team name: UBIK-TRIO

Team members: Sai Barath Sundar ; Shivam Gupta ; Ankit Goyal

Wireless Service
Providers

Radio & TV
broadcasters

Currently leases Tower

Space to
Government
Wireless data
agencies
provider.

Presence in US enables
TELCO to expand portfolio in
US.

Customized co-location and

managed rooftops &
services.

Growth Avenues

Expansion Plans
Increased speed of network
deployment.
TELCO
Plans US
to grow
organically
and inorganically

NZONE, US

US TELCO

New tech. like 4G, Internet

of Things and resource
skilled in them

Present worth: $ 5666.98

million

NZONE, US : $4384 million

Newer technologies like 4G,

Internet of Things.

Over estimation
of growth

Consolidation and expansion of

capabilities in foreign markets.

Services provided are in line

with TELCOs future plans
ASA Towers
Relatively new company so
price is low compared to
worth.

Fuzzy
Organizational
Structure.

Decrease OpEx & CapEx.

Increase revenue by short
term renting of unused space

RISKS
Price Offered
ASA Towers: $44 million

Slowing
subscriber
growth.

Risk of losing
brand value of
acquired
company.

Short and Long Term

plans

Organizational
restructuring.
Venturing into new

CZECH REPUBLIC

USA

GDP = -0.7%
Telecom Penetration
= 75%

GDP = 2.2%
Telecom Penetration
=80%
Towers-35000

INDIA

NIGERIA

ARGENTINA

GDP = 2.9%
Telecom
Penetration =83%

20% of US Telcos
International
Revenue
Client- Govt.
agencies

25% of US Telcos
International
Revenue
4 established Global
Clients

NAMIBIA

Telecom Industry is expected to recover at a

steady rate considering the following factors:
Consumer spending is expected to increase at a
average annual rate of 2.8%
Upgrade to 4G wireless technologies such as LTE (9%
y-o-y growth), WiMAX, etc.
Reduction in operational cost due to infrastructure
sharing and collocated communication sites.

GDP = 5.1%
Telecom Penetration =
110%

28.0
26.0
24.0
22.0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Industry Revenue (in Billion $)

Current
Industry
Scenario

Executive
Summary

Financial
Analysis

Organic Growth
Avenues

Nzone Communications, Inc

(United States)

450
400
350
300
250
200
150
100
50
0
2015

2016

2017

Revenue

2018

2019

Operating Expenses

EBITDA

NET WORTH = $
4384
TeleMOm
Networks Limited
(Czech Republic)

600

2020

90
80
70
60
50
40
30
20
10
0
2015
-10

Microsoft Excel
300
Worksheet

500

250

400

200

300

150

200

100

100

50

Inorganic
Growth
Avenues

Integration Risks and

Recommendations

M&A

ASA Towers, Inc (Argentina)

Revenue

2016

EBITDA

2017

Operating Expenses

2018

2019

2020

NET WORTH = $
43.7BBA
mAfrica Limited
(Namibia)

2015

2016

2017

Revenue

2018

2019

Operating Expenses

EBITDA

NET WORTH = $

2020

2015

2016

2017

Revenue

2018

2019

Operating Expenses

EBITDA

NET WORTH = $

2020

Increase
in
revenue
for US
Telco
revenue

NZone
Communication, Inc

Strengths

ASA Towers, Inc

Offers IoT Services

Colocation solutions

Diverse wireless
technologies portfolio

High speed network

deployment

TeleMo Networks
Limited

BBA Africa Limited

Stable Revenue Growth
Rate

Distributed antenna solutions

(DAS)

Broad portfolio of tower

infrastructure such as selfsupporting lattice towers,
monopoles, rapid
deployment towers
In-building solution

High Revenue Growth Rate

Weaknesses

Decreasing revenue
growth rate

The company forecast

predicts negative EBITDA for
the next 3 years.

Very high OPEX

Decreasing revenue growth

rate

Narrow technological
portfolio

High CAPEX and OPEX

Opportunities

IoT will lead to data

explosion which will in
turn lead to increase in
demand for smaller cell
sites and in-building
solutions
The presence in USA
the home ground for
US Telco Ltd.

High competition with

strict regulations and
legal barriers

Spectrum constraints

Threats

International presence

High GDP growth rate.

Less competition with

moderate regulations and
legal barriers.

Moderate competition
with less regulatory and
legal barriers

Low telecom penetration in

the region.

The portfolio of towers and

technology (distributed
antenna system) will help US
Telco in future expansion

Moderate GDP growth rate

for a developing country
(Argentina); can hinder
telecom growth.

High Telecom
penetration in the
region.

Negative GDP growth rate.

Increase
in
revenue
for US
Telco
revenue

NZone Communications, In
1000.00
(US)
Worth of the firm by
market multiples =
$4384.37 Million dollars
by 2020.
The actual worth by
2020 is expected to be
$273.97 million
Any price below $4380
million can be offered

800.00
845.65 865.38 860.89 837.93
600.00

789.60 743.14

400.00
200.00

46.55

0.00

2015

47.85

47.78

46.51

43.90

41.38

2016

2017

2018

2019

2020

DCF in EBITDA multiples (millions)

DCF (millions)

ASA Towers, Inc

100.00
(Argentina)

Worth of the firm by

market multiples is to
be $ 43.7m by 2020.
The actual worth by
2020 is expected to be
-$28.16m
Any price below $43
million can be offered

80.00

90.69

60.00
40.00
20.00
-6.73
0.00
2015

-20.00

-40.00
-32.72

49.49
-4.46

-8.04

-8.74

2016

2017

2018

-22.69

-27.87

DCF (millions)

-13.20

-1.43

1.24

2019

2020

DCF in EBITDA multiples(millions)

Executive
Summary

Current
Industry
Scenario

Financial
Analysis

Organic Growth
Avenues

Inorganic
Growth
Avenues

M&A

Long Term Plans:

Short Term Plans:

Using synergy
between acquired and
existing subsidiaries to
reduce OPEX & CAPEX
Better asset utilization

Integration Risks and

Recommendations

Over estimation
of growth
avenues and
growth rates on
acquisition

Inconsistencies
in
organizational
structure after
acquisition and
management of
skilled
workforce

RISK
S Risk of losing

Slowing
subscriber
growth due to
high market
penetration

brand value of
acquired
companied by
not projecting
them distinctly.

Restructuring the US
Telcos subsidiaries
and acquired
companies into two
distinct businesses
Telecom Infrastructure
and Telecom Wireless
Services

Telecom Operator will

leverage on Telecom
infrastructure of sister
concern in order to
increase subscribers
and further reduce
operation cost.

Aggressively market
IoT service to diversify
service portfolio and
gain sufficient market
share to sustain future
growth.

Thank you
Please find Resumes attached below