Carlos Valdecantos

Review of Spain's Fixed Line and Broadband Market

Re: Adamski
A brief note to comment that the logos appearing in our site refer to Telefonica Movistar (mobile arm) and have nothing to do with broadband and wireline.

Secondly, answering to your doubts on the quality of service and Telefonica, we just got the official information of the Minister of Industry and telecommunications of Spain: (www.usuariosteleco.es/.../).

You may read that, according to this official site, Telefonica was the fixed line operator in Spain with the less number of incidences, with a total number of 1,29 incidences per 10,000 subscribers, improving this ratio in a 1,28% compared to the same period of 2008. Apart Ono had 2,28 incidences per 10,000 subs and Orange 3,78 per 10,000 subs.

Hope to have clarified that it is NOT us who say that. It's the official telecom regulator of the country.
Best regards
CVA

On Oct 25 01:05 PM Adamski wrote:

> "Telefónica’s dominant position has a lot to do with customer satisfaction."
> - has this anything to do with the writers client list (see his website)?
>
>
> Telefonica make their profits in Spain by ignoring customers, their
> complaints, and their requirements.
>
> They change the contract that is made with them at will, removing
> the free calls and other benefits whenever they choose, and resulting
> in a 2 hour phone call and an argument to get the contract set back
> to what it was the month before.
>
> And if you choose to use one of the suppliers who provide services
> closer to the European norm, you could be without internet for weeks
> whilst Telefonica lose the paperwork asking for a change of ISP.
>
>
> I stay with Telefonica, who charge 3 times the price that my friends
> in the UK pay, because I can't afford the down time, and I have often
> dealt with them for clients using other ISPs, when it's just a game
> of pingpong dealing with complaints.
>
> If they make so much money in other countries, cant they just get
> out of Spain? They are holding the country back.

Is Zain Africa worth $12 Billion?

Fully AGREE Nwabu. Having said this, ARPU per subs shouldn't be the only KPI to address in a valuation. The penetration levels in 50% of their countries show room for, at least, 30% of market penetration increase which means bigger volumes that, at lower ARPUs, will still be a relevant revenues figure (relevant enough to make someone pay 12Bln). On the other hand, EBITDA levels will decrease as a result of the expensive cost of doing business in Africa. Net, net, I think it's more than a good valuation for current times. It's not a bad time to get out.

Is Zain Africa worth $12 Billion?

A detailed analysis of main kpis required to understand Zain's valuation can be found at consultantvalueadded.c... article:
consultantvalueadded.c.../
Bes regards
C

Mobile in Africa: the land of opportunity

Alan,
Main stocks to consider in the African region are:
1. ZAIN (www.google.com/finance...)
2. MTN (www.google.com/finance...)
3. Vodacom (www.google.com/finance...)
4. Orascom (www.google.com/finance...)
5. Etisalat (www.google.com/finance...)
6. Orange Africa (www.google.com/finance...)
7. Milicom (www.google.com/finance...)

Of course, MICC is a good option to invest if you are seeking exposure to fast-growing emerging markets. There might be more conservative options but I would say MICC is a good way to invest in emerging mobile.

Best
CVA

Mobile in Africa: the land of opportunity

Alan,
Main stocks to consider in the African region are:
1. ZAIN (www.google.com/finance...)
2. MTN (www.google.com/finance...)
3. Vodacom (www.google.com/finance...)
4. Orascom (www.google.com/finance...)
5. Etisalat (www.google.com/finance...)
6. Orange Africa (www.google.com/finance...)
7. Milicom (www.google.com/finance...)

Of course, MICC is a good option to invest if you are seeking exposure to fast-growing emerging markets. There might be more conservative options but I would say MICC is a good way to invest in emerging mobile.

Best
CVA

Unleashing a price war in the fixed line front in Brazil?

Alan, you should read this article at consultantvalueadded.com. You will find an embedded presentation. That's the "come inside" comment.
Best

Room for Improvement in Vivo Participacoes

Following the success of my previous post related to vivo, and after our first article publication in SeekingAlpha, I’d like to share some additional insights related to the latest results published by vivo and their comparison with the rest of the market players. As detailed before, despite the growth achieved on a yearly basis, 1Q09 has not been a completely successful quarter for Vivo. The usual market slowdown of the first quarters has had a particularly high impact in the whole market due to two factors: A) The proximity to saturation of the Brazilian mobile market (136% of penetration over addressable market) and B) The impact of the financial downturn.

More info here: consultantvalueadded.c.../