Citigroup

Executive Summary:

Theglobaltele commu nication smar ketcont  inuesits transform ation intot hein dustr yfocusi ngon digitalp  roduct sastra dition als egmen tofthei ndust ryisst agnatin g,cost-cutti nginiti ativ efilledit scapacity(-38 %revenueand-60%ROEdeclineintheglobaltelecomindustryforthelast5years).Thetransformationismainlydrivenbyrapidlychangingongoinginnovationsandtechnologicaldevelopments(e.g.$50bnofM2Mmarketvalueisexpectedin2020).Theinternetcompanieshavebeenabletoembedmanyofthetraditionaltelecomservicesintotheirofferingsatalmostnocosttotheircustomers.Asaresult,telecomcompaniesactivelystartedtodisposeorsharetheircapitalintensiveinfrastructureviasellingorrentingittotheirpeersandgovernmententities.