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Campus Maverick_US Telco Ltd | Table of contents
Table of contents
CompanyBackground 2
Data Sheet Additional Information 7
Questions 9
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Campus Maverick_US Telco Ltd | CompanyBackground
CompanyBackground
US Telco Limited is a holding company that operates as a real estate
investment trust (REIT) which owns, operates, and develops multitenant
communications real estate. US Telcos major presence is in the United States
with some presence in Canada and EU through its fully owned subsidiaries. Its
primary business is property operations, which includes the leasing of space on
communications sites to wireless service providers, radio and television
broadcast companies, wireless data providers, government agencies and
municipalities, and tenants in various other industries. Its US property segment
includes operations in the United States, and its services segment offers tower-
related services in the United States.
The company has a strong asset base that can cater to new tenants and new
equipment for existing tenants on its sites. The company's communications real
estate portfolio consisted of 85,000 communications sites, including 35,000
domestic communications towers and 50,000 international communications
towers. The company has a well-established domestic and international tenant
base. Around 65% of domestic revenues come from five clients and 45% of
international revenues come from four established global clients in India (two
clients with 25% of international revenue) and Nigeria (two government
agencies with 20% of international revenue).
Industry Trends
The global wireless network infrastructure market stood at $52 billion
in 2014
Global Long-Term Evolution (LTE) revenue is up 9 percent year-over-year,
totaling $6.1 billion
Significant economic incentive exists for carriers to choose a colocation
model over building their own site
Approximately 63% of sites in the US are on owned land or have a ground
lease with at least 20 years until renewal
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Campus Maverick_US Telco Ltd | CompanyBackground
Geographic Benchmarks
US 2.2% 80%
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Campus Maverick_US Telco Ltd | CompanyBackground
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Campus Maverick_US Telco Ltd | CompanyBackground
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Campus Maverick_US Telco Ltd | CompanyBackground
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Campus Maverick_US Telco Ltd | Data Sheet
Additional Information
Data Sheet
Additional Information
From 2011 to 2016, industry revenue declined at an annualized rate of 4.6% to
$25 billion. In 2016, revenue is expected to grow by 3.9%.
The mobile phone market in the US has reached nearly saturation levels.
Smartphone penetration in the country is about 77.1%. Accordingly, mobile
phone subscription growth will be negatively impacted. As the wireless industry
continues to mature, future wireless growth will increasingly depend on the
carriers' ability to offer innovative data services to customers, which in turn,
will depend on the availability of additional spectrum.
The telecom sector in the United States is witnessing significant spectrum and
capacity constraints on the wireless network in certain markets. Such
constraints will limit the carriers' ability to increase and expand to additional
markets in the coming years. The impending saturation and unavailability of
spectrum will impact wireless growth prospects in the United States.
Consolidation among wireless carriers could impact customer demand for the
communications sites, because the existing networks of wireless carriers often
overlap. In addition, if wireless carriers share their sites or permit equipment
location swapping on their sites with other carriers to a significant degree, it
could reduce demand for communications sites.
Consumers demand for broadband technologies and the speed at which they
shift to 4G technologies will influence capital expenditure on wireless
infrastructure beyond 2016. To effectively compete in a market for products
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Campus Maverick_US Telco Ltd | Data Sheet
Additional Information
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Campus Maverick_US Telco Ltd | Questions
Questions
Question 1: Given the current business/industry situation, what are the some
of the growth avenues that US Telco should look at and why?
Question 3: For the two targets identified, what buying price would you
recommend to US Telco?
Question 4a: What would be the key integration risks and considerations
that US Telco will have to consider to integrate successfully with your
chosen target?
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Campus Maverick_US Telco Ltd | Questions
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