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Brand value increases across categories

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Part 3 | The Categories<br />

Telecom Providers<br />

ECOSYSTEMS EVOLVE<br />

FROM TALK TO REALITY<br />

Telecoms expand mission<br />

TELECOMS OUTGREW their name.<br />

Voice communication—the very activity<br />

that defined telecoms—grew more slowly<br />

than other types of data transmitted on<br />

telephones and other mobile devices that<br />

people used to organize their lives.<br />

This change followed development of<br />

communications ecosystems that integrate<br />

the creation of digital content, its<br />

distribution over networks, and delivery<br />

on mobile and stationary devices.<br />

For telecoms, the ecosystems present<br />

an opportunity to expand their narrow<br />

distribution utility. Telecoms sought<br />

partnerships and acquisitions to brand<br />

content or devices and engage more<br />

closely with the end consumer. Some<br />

telecoms companies attempted to form<br />

their own branded ecosystems.<br />

The existing ecosystems were organized<br />

around the largest consumer technology<br />

brands— Apple, Google, Amazon, Microsoft<br />

and Facebook—because they offered<br />

the full menu of content, distribution,<br />

and devices.<br />

In the context of this transformation, brand<br />

<strong>value</strong> of the telecom providers overall rose<br />

only 1 percent last year, but the increase<br />

followed a 7 percent decline. These other<br />

trends also characterized the category:<br />

106 <strong>Brand</strong>Z Top 100 Most Valuable Global <strong>Brand</strong>s 2013<br />

Monetizing data<br />

Telecoms attempted to monetize<br />

the information they have about<br />

the preferences of their customers,<br />

as regulations allowed.<br />

Mobile payment<br />

In emerging markets, telecoms often<br />

leapfrogged banks to become the<br />

proprietors of mobile payment solutions.<br />

Consolidation<br />

Mergers and acquisitions<br />

continued to rationalize the<br />

category in mature markets.<br />

Global scale<br />

Indicative of the scale of the telecom<br />

category, the first four brands in the<br />

<strong>Brand</strong>Z telecom ranking—AT&T,<br />

China Mobile, Verizon and Vodafone—<br />

also are among the Top 20 most valuable<br />

global brands <strong>across</strong> all <strong>categories</strong>.<br />

With the purchase of Cable & Wireless,<br />

Vodafone positioned itself for convergence.<br />

It gained greater capacity for serving<br />

business clients and a fiber-optic network<br />

in the UK that strengthened its position<br />

against BT. BT entered the ranks of the<br />

<strong>Brand</strong>Z Top 100 Most Valuable Global<br />

<strong>Brand</strong>s this year, although it fell just short<br />

of the Top 10 telecom category ranking.<br />

Definition<br />

The telecom provider category<br />

includes brands that primarily<br />

develop, maintain and market<br />

hardwire or wireless infrastructure<br />

networks for voice and data<br />

transmission.<br />

Top 10 Telecom Providers<br />

<strong>Brand</strong> <strong>value</strong><br />

2013 $M<br />

<strong>Brand</strong><br />

contribution<br />

<strong>Brand</strong> <strong>value</strong> %<br />

change 2013 vs 2012<br />

1 AT&T 75,507 3 10%<br />

2 China Mobile 55,368 3 18%<br />

3 Verizon 53,004 3 8%<br />

4 Vodafone 39,712 3 -8%<br />

5 Deutsche Telekom 23,893 2 -11%<br />

6 Orange 13,829 2 -10%<br />

7 Movistar 13,336 2 -22%<br />

8 MTN 11,448 3 23%<br />

9 MTS 10,633 3 11%<br />

10 Airtel 10,054 3 -13%<br />

Valuations include data from <strong>Brand</strong>Z, Kantar Worldpanel, Kantar Retail and Bloomberg.<br />

<strong>Brand</strong> Contribution measures the influence of brand alone on earnings, on a scale of 1 to 5 (5 highest).<br />

Technology | Telecom Providers<br />

Up 1%<br />

107

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