BUSINESS AND FINANCE

“Our valuations are based on the hypo-

thetical royalty income stream generated by a trademark,” says Bird. “Since Movistar is replacing Telefonica, the royalty income you would expect to receive from owning the Movistar trademark has increased, and hence brand value has gone up.” Bird says while there are potential bene-

fits from synergies in advertising and sponsorship by extending the brand across markets, there are risks in taking the brand value from one place and moving it to another. “The jury is out as to whether the Movistar brand positioning will be able to extend to replace Telefonica with current

fixed-line customers. The posi-

tioning required to appeal as a young and funky mobile operator is different to that of a tried and tested reliable fixed-line operator,” he says. “However, rebranding to Movistar is likely to make it much easier for the company to offer converged or bundled products.” Telefonica says 89% of retail fixed

broadband accesses are bundled as part of a dual- or triple-play service in Spain, while in Latin America it is 86%. Increasingly those bundles will include fibre-to-the-home as well as mobile offer- ings. Services under the Movistar brand in Spain were extended in February when the company launched an upgraded fibre- network product, for business customers initially, at 100-Mbps. Movistar plans to extend its FTTH footprint in Spain from 300,000 homes currently to 1 million by the end of the year. Extending the brand in international

markets could be key to Europe’s big operators in future. Telefonica, France Telecom/Orange and Telecom Italia all cited difficult conditions in their home markets when they reported results in February, with international operations playing an increasingly important role. Telefonica was boosted by its South American operations, and in particular by Brazilian mobile subsidiary Vivo, of which

it gained full ownership last September. Telefonica posted a net profit of E10.17

billion in the year to the end of December, up from E7.78 billion in 2009, and reve- nues of E60.74 billion up 7.1% annually. But in Spain revenues were down 5% year-on-year to E18.7 billion. Mobile customers across Telefonica’s Latin American operations rose by 10.8% last year to 149.3 million and globally grew 8.9% to 220.2 million; but Movistar Espana reported a decline in mobile subscribers in the fourth quarter. In total, revenues from its home market are now below 31%. France Telecom went through the

process of rebranding to Orange several years ago, but it faces further brand upheaval in the UK having completed the merger of its operations with T-Mobile as Everything Everywhere in April 2010. Last month the organisation announced it will start to rebrand some retail outlets under the new name, a step further than

Have Breakfast with Total Telecom and join in a new series of mini conferences connecting buyers and sellers of telecom products and services in a focused, cost-effective and engaged environment.

What we’re talking about in 2011: BreakfastTalk to us, and get involved today!

Cloud Services - 29 March How should operators provide cloud services to enterprises? Do they compete with aggregators and IT companies or is partnership the way forward?

The Content Battle - 19 May Recent discussions around a two-tier Internet have reawakened the debate about customer satisfaction, maximising the commercial opportunities of content and content delivery networks.

Mobile Traffic Offloading - 13 July Demand for smart devices and explosive growth in data usage are grinding mobile networks to a halt. The only choice is to offload traffic: Total Telecom looks at the options.

Breakfast

mHealth Update - 14 September mHealth is revolutionising healthcare on every level - social, environmental, and economic. What are the opportunities for operators?

Global 100 Operators - 18 October In 2010 we predicted a shake up in the global operator rankings due to M&A activity. As the 2011 report comes to market, we examine whether these changes have materialised and look at the current drivers behind the new rankings.

For more information or to book your place, please contact sales@totaltele.com Breakfast www.totaltele.com/breakfast Breakfast Breakfast

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