BUSINESS AND FINANCE
Top 100 mobile brands (excluding handset makers) Rank Brand / (domicile)
2011 1 Vodafone (UK)
Brand Brand Enterprise Brand Value Rating
2011 (US$ m) 2011 (US$ m) Enterprise Value (%)
2 China Mobile (Hong Kong) 3 AT&T Wireless (US) 4 Movistar (Spain) 5 T-Mobile (Germany) 6 NTT DoCoMo (Japan) 7 Orange (France) 8 Verizon (US) 9 O2 (Spain)
10 MTN (South Africa) 11 au (Japan) 12 SFR (France) 13 MTS (Russia)
14 Softbank (Japan)
15 Swisscom (Switzerland) 16 Telcel (Mexico) 17 Sprint (US)
18 Bharti Airtel (India)
19 SK Telecom (South Korea) 20 Telenor (Norway) 21 Etisalat (UAE) 22 Zain (Kuwait)
23 China Unicom (China) 24 Alcatel-Lucent (France) 25 Vivo (Brazil) 26 Wind (Italia)
27 Megafon (Russia) 28 Telecom Italia (Italy) 29 KPN (Netherlands) 30 Rogers (Canada) 31 STC (Saudi Arabia) 32 Turkcell (Turkey) 33 Claro (Mexico) 34 Optus (Australia) 35 TIM (Brazil)
36 Bouygues (France) 37 Telia (Sweden)
38 Mobily (Saudi Arabia) 39 Telstra (Australia) 40 Telus (Canada) 41 Bell (Canada) 42 TMN (Portugal) 43 Oi (Brazil)
26,819 AAA+ 195,989 14% 19,317 AA 170,543 11% 16,124 AA+ 92,035 18% 11,842 AA 142,731 8% 11,503 10,838
9,260 AA+ 111,581 8% 7,096 AA 571,640 1% 6,558 AAA- 44,407 15% 4,723 AAA 34,810 14% 4,479
4,101 AA+ 11,396 36% 3,458
3,431 AA- 62,877 5% 3,085
2,930 A 46,380 6% 2,863 2,839 2,601 2,468 2,312 2,293
A+ 27,613 16% AA- 22,902 15% AA 30,565 10% AA 22,929 12%
2,260 A+ 44,435 5% 2,246
2,082 AA- 43,964 5% 2,079 AA- 2,033 AA-
2,017 AA+ 58,992 3% 2,011 A+ 27,312 7% 1,979 AA+ 30,564 6% 1,801 A+ 27,985 6% 1,764 AAA 14,382 12% 1,724 AA- 48,698 4% 1,543 AA 28,412 5% 1,525 1,453
1,349 AAA- 15,313 9% 1,330
1,280 AA- 40,226 3% 1,165 AA 20,137 6% 1,001 AA 31,137 3% 939
44 Reliance Communications (India) 45 Centurylink (US) 46 US Cellular (US) 47 Bezeq (Israel) 48 Nextel (US)
49 Tele3 (Sweden) 50 Idea (India)
938 AA+ 46,028 2% 865
865 AA- 19,571 4% 828 820 809
808 AA- 10,280 8% 806
AA- 6,701 12%
fell 6.7% percentage points says Gartner. That decline in fortunes is more reason
to invest in the brand, says Brand Finance. “Nokia’s brand value may have fallen significantly in recent years, but brand remains one of its key assets,” says Bird. “As it looks to recover its position by investing in new technology and part- nering with Microsoft, the company will need to leverage consumers’ latent good- will towards the brand, built up over many years of reliable service, in order to ride out the storm.” Indeed, Nokia’s announcement that it
is unlikely to release smartphones based on Microsoft’s Windows Phone 7 operat- ing system—its main platform for future devices—for almost a year could further impact unit sales and profitability in the short term, placing even more emphasis on brand loyalty. Nokia has one of the highest brand
values to enterprise values (BV/EV) in the Brand Finance ranking at 36%—other
8
AA- 4,573 18% AA 7,955 10% AA- 4,760 17%
AA-
AA 8,114 12% 14,063 6%
A+ 12,215 11%
AA- 10,230 15% AA 3,812 38%
AA- 28,861 10% AA 15,866 16% AA- 21,036 12% AA- 19,564 12% AA- 20,193 11%
A+ 8,992 25% — —
— —
AA 76,498 15% AA- 56,399 19%
51 Chunghwa Telecom (Taiwan) 52 Indosat (Qatar)
53 E-Plus (Netherlands) 54 Kcell (Sweden) 55 Comcel (Mexico) 56 Tigo (Luxembourg) 57 Wataniya (Qatar)
Value Value/
Rank Brand / (domicile) 2011
Brand Brand Enterprise Brand Value Rating
Value Value/
2011 (US$ m) 2011 (US$ m) Enterprise Value (%)
783 AA 19,590 4% 757 AA+ 4,898 15% 748 BBB 10,041 7% 723
58 China Telecom (China) 59 DiGi (Malaysia)
60 LG U+ (South Korea) 61 PT Telkom (Indonesia) 62 Leap (US)
63 Mobilkom Austria (Austria) 64 Ucell (Sweden)
65 América Móvil (Mexico) 66 Mobistar (Belgium) 67 PLDT (Philippines) 68 KT (South Korea) 69 ACL (Qatar) 70 Harris (US)
71 Singtel (Singapore) 72 Cosmote (Greece) 73 Celcom (Malaysia) 74 Maxis (Malaysia) 75 Entel (Chile)
709 A- 11,595 6% 700 A 11,600 6% 699 AA+ 4,538 15% 680 AA- 53,470 1% 652 620
586 AA 22,755 3% 557 556 507
466 AA- 13,251 4% 459 AA 16,417 3% 450 449 438 434
76 Ericsson (Sweden) 77 Taiwan Mobile (Taiwan) 78 Cellcom (Israel) 79 Azercell (Sweden) 80 Mobinil (Egypt) 81 Avea (Turkey) 82 Elisa (Finland)
83 Freenet (Germany) 84 Tracfone (Mexico)
85 Maroc Telecom (Morocco) 86 Hotlink (Malaysia) 87 Qtel (Qatar)
88 3 (excl. Hong Kong) 89 Personal (Argentina) 90 Embratel (Brazil) 91 Indosat (Indonesia) 92 Sonatel (Senegal) 93 Clearwire (US) 94 TDC (Denmark) 95 XL (Indonesia) 96 Kyivstar (Norway) 97 Virgin (US)
98 Sonera (Sweden) 99 Globe (Philippines) 100 Starhub (Singapore)
notable companies with high BV/EV include Alcatel-Lucent (38%), Motorola (36%) and SFR (36%). In simple terms, the higher the BV/EV the more important the brand is worth as an asset to the busi- ness, says Brand Finance. Bird says it depends on where the company is in its lifecycle as
to how
important the BV/EV is: If it is a mature company and it has a high BV/EV the implication is that it is trading on its brand—in effect the brand is compensat- ing for the poor performance of the company in other areas, including finan- cially. A mature telecoms company would expect a BV/EV of around 10%-20%, but that can vary considerably depending on how effectively a company can use its brand to influence purchasing decisions and differentiate itself in the minds of consumers, he says. “Companies in decline, but with a strong
heritage, may see a fall in brand value lag behind a fall in business value, as low
407 AA- 23,745 2% 390
501 AA 115,949 0% 490
AA- 6,765 11%
A+ 6,346 10% AA 5,263 12%
A 3,194 17% A+ 3,265 17% AA- 4,791 11%
A 4,152 12%
429 AA- 7,225 6% 428 AA- 5,975 7% 413
386 AA- 6,438 6% 382
362 AA- — — 358 AA- 4,398 8% 357 AA- 4,865 7% 356 353 349 348 345
336 A 336
330 A+ 44,290 1% 307 298
290 A+ 12,933 2% 287 AA- 10,740 3% 286 285
A 2,609 13% A 6,006 5%
A 2,927 10%
285 AA- 16,249 2% 284 AA- 3,453 8% 283 252
A 3,660 8% A 3,793 7%
profitability causes the enterprise value to fall faster than brand value,” says Bird. “In these instances the brand can become an absolutely vital asset for the company to use to pull through tough times.” Telcos like other companies are taking
a risk, therefore, if they decide to rebrand their well-known operations. Telefonica since last May has been rebranding to Movistar—the brand familiar through- out its operations in Latin America—in its home market Spain; the operator retains the O2 brand in the UK, Ireland, Germany, Czech Republic and Slovakia, and the Telefonica brand will be used in “an institutional role” and for large/ multinational accounts says the company. As a result, the Telefonica brand has fallen sharply in this year’s Brand Finance ranking from 13 to 73, its brand value going down by US$6.69 million, while Movistar has risen from 10 to 6, its brand value the biggest climber going up by US$5.27 million (see tables p.6).
www.totaltele.com March 2011
A 6,298 5% A+ 2,469 12%
A+ 4,446 9% A+ 6,328 6% AA- 3,632 11%
A- 2,370 15% A- 5,797 6% A 5,687 6% A 8,095 4% AA 4,445 8%
AA 2,977 15% AA 6,423 7% A+ 8,647 5% A 4,672 9%
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