InsideTelecommunicationsJonathan Dharmapalan Global Telecommunications LeaderExpanding service propositions, debating digital rightsWelcome to the 13th edition of Inside Telecommunications, EYs review of the most signifcant developments in the telecoms sector. In this issue, we consider a number of industry themes, from innovations in LTE broadcast and roaming services to the latest developments in data protection regulatory frameworks and submarine cable systems. We hope you fnd this material useful. Please do not hesitate to share your feedback with me or any of my colleagues at EY.Issue 13Service innovation 4Mobile operatorsmull opportunitiesin LTE broadcast4Catering for new demand scenarios in mobile roaming 6Regulation 12Rewriting the dataprotection landscapein Europe 12US 600MHz auctionrules under scrutiny 14Mergers and Acquisitions16Introduction 16Residential bundleambitions drive deals in France, Spainand the Netherlands 16Private equity maintainsits focus on telecoms opportunities 18Security needs informadjacent market moves19Divestitures now a keytheme in Asia 19Technology8Submarine cable projectssurging in Latin Americaand Asia 8Stakeholders consider5G migration time frames 10Contents3 Issue 13 |This years Mobile World Congress event boasted record attendance, with more than 85,000 people visiting the Barcelona event. The mobile industrys annual gathering serves as a unique platform for mobile operators and vendors to showcase their latest products while volunteering the latest in industry thinking, and a number of key themes emerged during a busy week.Foremost was the positive note struck by operators as they contemplate a widening landscape of over-the-top (OTT) service providers. Historically, mobile operators have viewed mobile instant messagings impact on SMS revenue streams with anxiety, yet MWC 2014 witnessed a palpable change in sentiment, with service providers advertising their willingness to partner with OTTs in order to provide more attractive monthly packages and improve the customer experience.Successful big data propositions will hinge on reassuring customers and partners that data is being stored, collected and repurposed in ways that safeguard digital rights while providing direct benefts to end users themselves. In this light, mobile operators, device vendors and actors in adjacent industries will need to highlight the roles they can play as data custodians, particularly as regulatory frameworks regarding data protection, retention and sovereignty are revised in new ways. Operators are also keen to improve their agility in a digital world, and MWC 2014 saw a number of industry players stress the importance of evolving network architectures. Network functions virtualization (NFV) projects can give operators the ability to simulate network resources, decoupling and optimizing different network functions to support fxed-mobile convergence and more fexible service provisioning, for example. As mobile players consider new service use cases, partnering scenarios and network concepts, they nevertheless face continuing uncertainties in the regulatory environment. Rules surrounding customer data retention and net neutrality are in fux, while operators in Europe remain critical of what they see as barriers to consolidation, which they believe could help offset a congested competitive landscape and stimulate greater levels of network investment.Despite the EUs prospective single market reform package, operators see in-market merger assessments as an impediment to more rational market structures. As such, all eyes will be on the EU antitrust bodys forthcoming reviews of planned mobile mergers in Germany and Ireland. ForewordAdrian BaschnongaLead AnalystGlobal Telecommunications Centerabaschnonga@uk.ey.comThe telecommunications sector has evolved in various directions in the frst three months of 2014, with mobile operators keen to outline their strategies for an increasingly digital world at Mobile World Congress 2014 (MWC 2014). Issues surrounding customer security and privacy are being hotly debated, while regulatory attitudes to consolidation remain a key sector talking point.4 | Inside Telecommunications1. Global LTE network forecasts and assumptions, 2013-2017, GSMA Intelligence, 26 November 2013. 2. Cisco Visual Networking Index: Global Mobile Data Traffc Forecast Update, 2013-2018, Cisco,5 February 2014.same content simultaneously. Its one-to-many distribution characteristics help drive down the cost per bit of video transmission and make more effcient use of available spectrum compared to traditional unicast approaches. One study suggests that LTE Broadcast could offoad up to 11.5% of daily mobile data demand per user if implemented.3 Meanwhile, there is a growing range of use cases that can take advantage of eMBMS, from streaming of additional content at live events to broadcast music and radio.Mobile operators mull opportunities in LTE broadcastLTE networks are now available in all regions, with 176 million LTE connections worldwide at the end of 2013.1 Given the higher rates of data consumption and average revenue per user (ARPU) uplift associated with 4G, such take-up rates augur well for the mobile industry, with LTE set to account for around one in eight mobile connections worldwide by 2017.Nevertheless, beyond the merits of faster mobile data access, unique LTE value propositions are taking longer to mature. Mobile video has long been viewed as one of the differential capabilities of 4G networks and is set to account for more than two-thirds of global mobile data traffc by 2018.2 In this light, operators are sizing up opportunities in LTE broadcast services.LTE Broadcast, also known as evolved multimedia broadcast service (eMBMS), offers a number of advantages over traditional methods of delivering mobile video by allowing many users to receive the 1.Service innovationSource: LTE Broadcast, Ericsson, February 2013.Figure 1: LTE Broadcast sample service propositionsServices Description Mobile operator business model and beneftsLive event streaming In-venue, local or nationwide coverageof key events (e.g., sports, concerts)Subscription, pay per view, pay per event, season pass, revenue share from content partners. Saves on network expansion, high QoS.Real-time TV streaming Live broadcast of one or more popularTV channels or other curated contentSubscription, pay per view, revenue share from content partners. Saves on network expansion, high QoS.News, stock market reports, weather and sports updatesNews, stock market reports, weather, sports updates including live broadcasts and on-device cachingSubscription, advertising-supported software, free for premium customers. Increases service breadth and directs demand away from unicast capacity.Broadcast music and radio Broadcast radio and music services Subscription, advertising-supported, free for premium customers, revenue share from content partners. Directs demand away from unicast capacity, reducing network congestion.Off-peak media delivery Delivery of TV shows, movies, newspapers, YouTube videos including software, app and frmware updatesSubscription, pay-per-view, revenue share from content partners. Delivers services while not taxing unicast resources.3. Content for ALL The Potential for LTE Broadcast/eMBMS, iGR, January 2013.5 Issue 13 |Mobile operators are turning to LTE Broadcast in increasing numbers. In January, South Koreas KT Corp. unveiled a commercial LTE Broadcast service in partnership with Samsung, marking a world frst.4 In February, Europe witnessed its frst live trial of LTE Broadcast as Vodafone and Ericsson conducted live tests of the technology in a German football stadium.5 US-based Verizon has also trialed the service at this years Super Bowl event, while Australias Telstra demonstrated live video coverage capabilities at Melbourne Cricket Ground in January with the help of Ericsson.6Although eMBMS technology scores well from a technical point of view, service roadmaps are far from straightforward. For operators looking beyond trials and toward commercial mobile broadcast services, delineating and prioritizing use cases will be vital. Localized content propositions could involve video streamscarrying footage from additional camera angles at a sports stadium or advertising special offers at a shopping mall. Beyond live streaming, operators can also choose to deliver TV and video clips to user devices when the network load is low, which in turn will require insights into content popularity and busy-hour traffc distribution. Meanwhile, eMBMS use cases are not limited to the consumer market: the technologys multicast capabilities could enable the one-to-many transfer of machine data in any fle format, for example. Looking ahead, a holistic view of new service opportunities will be paramount. New mobile broadcast capabilities may require new types of partnership with broadcasters and stadium owners, while a mix of charging models from pay-per-view and ad-supported services to revenue sharing with partners will also need to be assessed. Furthermore, operators would do well to heed the lessons from their past endeavors in the mobile TV space. Many early operator initiatives failed for a number of reasons, from high subscription prices and poor content availability to high integration costs, as a number of technologies such as DVB-H and MediaFLO failed to gain critical mass. Small device screen sizes have also historically acted as a brake on demand, and EY research suggests that many users have yet to warm to notions of TV or movie content provided to them on the move.Figure 2: UK broadband user views on mobile TV/movie services (% respondents)Source: The Bundle Jungle, EY, December 2013 (survey of 2,500 UK broadband households, conducted in August 2013).Do you agree with the following statement?: I like to watch TV programs/movies on a mobile device when I am on the move (i.e., not at home or at work).510131858Strongly agreeStrongly disagreeNeither agree nor disagreeSlightly disagreeSlightly agree4. Samsung Electronics and KT Join Forces For Worlds First Commercial LTE eMBMS, Samsung, 27 January 2014. 5. Europes frst live trial of LTE broadcast: Revolutionising video delivery across mobile networks, Vodafone, 25 February 2014. 6. Telstra and Ericsson conduct live stadium trial of LTE broadcast, Ericsson,31 January 2014.6 | Inside TelecommunicationsWhile the analyst community remains skeptical as a result of previous operator forays into mobile TV, there are reasons for greater optimism this time round. For one, eMBMS enjoys support from leading infrastructure vendors as well as smaller industry specialists. Even so, a game of catch-up can be expected in terms of smartphone compatibility. In this light, many operators will see LTE Broadcast as a way of cutting costs and making their networks more effcient in the frst instance. The chief advantage of eMBMS lies in its ability to drive increased content consumption at no additional cost, yet isolating and monetizing the right demand scenarios will take time.Catering for new demand scenarios in mobile roamingMobile roaming services are once again in the spotlight following the European Parliaments decision in April to ban roaming charges beginning in December 2015 as part of a wider vote on proposed regulation to create a single telecoms market in the region.7 The move to abolish roaming charges is set to beneft consumers long wary of the costs of using their phones abroad: research highlights that a quarter of Europeans switch off their mobile phones when traveling in the EU, while 47% would not use the mobile internet in another EU country.8Although roaming regulations have been tightening in Europe for several years with various estimates suggesting a 2%-5% drop in operator revenues as a result of new rules EU research suggests that mobile service providers are missing out on around 300 million customers as a result of high roaming costs, with negative effects for other businesses such as application developers. Meanwhile, regulators in other regions are also targeting reductions in roaming costs draft legislation tabled earlier this year sought to cap international roaming prices between Australia and New Zealand, for example.9All told, recent regulatory decisions are putting ever greater pressure on operators retail pricing strategies, while customer demands for competitively priced international mobile services are growing worldwide. Looking ahead, roaming charge reductions are predicted to stimulate growth in global roaming revenues, which are set to account for over 8% of global operator billed revenues by 2018.10 Rising demand for international mobile data services is seen as the principal driver of increased revenues, with mobile data forecast to account for almost half of billed revenues in 2018, up from 36% in 2013.Even without regulatory triggers, mobile operators are beginning to work competitively priced roaming options into their service plans as they seek new ways to differentiate. In recent years, US operators have driven innovations in their tariff structures on a number of fronts, such as shared and family data plans; now they are looking to make the most of rising demand for roaming services. In October last year, T-Mobile USA launched unlimited 2G data roaming in 100 countries for customers on select packages, with top-up data passes available at an extra cost for more data-hungry customers. European operators have also been keen to offer new propositions before regional roaming charges are abolished. In January this year, French operator Bouygues introduced a plan offering unlimited voice, texts and 3G to and from all EU countries, plus several others, priced at 29.99. This followed Oranges launch of a SIM offer aimed at tourists traveling to France, which offers two hours of calls, 1,000 text messages from Europe to the rest of the world, and 1GB of data in mainland France.7. European Parliament votes to end roaming charges, expand consumer rights and make it easier to create better telecoms, European Commission, 3 April 2014. 8. Roaming: 300 million extra customers for telecoms companies when roaming charges end, survey shows, European Commission, 17 February 2014.9. Australian government targets international roaming, Computerworld,31 January 2014. 10. Press Release: Mobile Roaming to Represent 8% of Global Operator Billed Service Revenues by 2018, fnds Juniper Research, Juniper Research, 4 March 2014.Figure 3: Global mobile operator roaming revenue forecastSource: Juniper Research, 4 March 2014.2018 20140102030405060708090100US$b7 Issue 13 |At the same time, mobile operators are looking at new ways of offering 4G services to their traveling customers. In March,NTT DOCOMO launched outbound LTE roaming for its customers across eight countries worldwide, relying on tie-ups with fve different operators in order to provide fat-rate data roaming.11 Other operators in Europe and the US have also launched LTE data roaming plans: Orange is now offering LTE roaming at no extra cost on certain packages, while EE is offering 4G services to UK customers when in France and Spain, with plans to extend its coverage to the US and other European countries later this year.12Operators must carefully consider how best to position their4G roaming packages. On the one hand, they will have to ensure that international LTE capabilities replicate their home-market offerings. As the roaming market matures, the effective positioning of premium mobile data services to travelers particularly enterprise customers for whom roaming is a key driver of the purchasing decision will prove critical. Many mobile users may already favor low-cost or free Wi-Fi services when traveling, while one report has shown that 43% of mobile workers have experienced a high mobile data roaming bill.13

Alongside this, roaming specialists have already made signifcant strides in improving the customer experience. Last year, MVNO Truphone, which operates in Australia, Netherlands, the UK and the US, began offering shared plans for businesses, allowing companies a single pool of minutes and megabytes for use in multiple countries. Another player, Voiamo, offers roaming in 40 countries with mobile data plans that start at just 0.02 per MB.14In this light, mobile operators must think how best to combine roaming capabilities within existing consumer packages or confgure brand new packages aimed at distinct customer segments. For enterprise clients, this may involve providing customized solutions to help predict and manage costs while also providing access to business-critical applications. Combinations of mobile and Wi-Fi connectivity will also come to the fore: BT Global Services is developing a SIM-based solution aimed at mobile operators who want to offer their customers a better international Wi-Fi roaming experience, for example.15There are also plenty of technical challenges to overcome. Issues such as spectrum fragmentation are likely to limit the availability of internationally confgured LTE handsets, while other pain points will include the LTE steering of roaming or signaling challenges. Changes in roaming architecture are required: wholesale carriers have an important role to play in enabling LTE roaming peering in 11. DOCOMO to Offer LTE Roaming for Customers Traveling outside Japan,NTT DOCOMO press release, 26 March 2014. 12. EE customers to beneft from superfast 4G in France and Spain, EE press release, 13 March 2014. 13. Mobile Workers Report Average Monthly Data Roaming Bill Shock of $1,089 Globally, According to New Data from iPass, iPass, 22 August 2012. 14. Globalgig announces Go Roaming for consumers and businesses, launches new countries, TruTower, 6 July 2013. 15. BT helps mobile operators and wi-f providers meet wi-f roaming challenges,BT, 11 February 2014.an internetwork packet exchanged (IPX) environment, while new partnerships between operators and vendors will be needed in order to deploy LTE diameter signaling infrastructure. Roaming hubs will also play a more prominent role in operator thinking, given the need to streamline bilateral partnerships in a more complex roaming environment. Question: How many LTE bilateral roaming partners do you expect to have in three years time?Figure 4: Mobile operator LTE bilateral roaming partnershipsSource: LTE Roaming: Global Market Status and Drivers for Growth, Informa Telecoms & Media, June 2013. More than300, 81 to 25, 2651 to 100, 2426 to 50, 28101 to200, 10201 to 300, 4Looking ahead, mobile operators face a delicate balancing act. They must respond to new types of customer demand in roaming, ensuring that customers perceive new forms of value instead of bill shock. Alongside this, the costs and complexities of providing roaming in an LTE environment are rising. Mobile operators must evaluate how best to adapt their existing horizontal partnerships while carefully calibrating their offerings to stimulate take-up among price-sensitive consumers even as they protect existing premiums in the enterprise space.8 | Inside Telecommunications16. Global Bandwidth Research Service, Executive Summary, TeleGeography, 2014. 17. Telmex, America Movil launch AMX1 submarine cable system, TeleGeography, 18 December 2013.Submarine cable projects surging in Latin America and AsiaGlobal data connectivity needs are growing rapidly, and submarine cable systems have a crucial role to play in supporting demand for bandwidth. Global bandwidth demand measured in terms of used international capacity reached 138Tbps in 2014, a 4.5-fold increase in demand since 2009, while prices are declining in nearly all markets worldwide.16High growth rates in consumer mobile and broadband usage, coupled with the advent of cloud computing and content delivery networks, have prompted a number of new cable projects in recent years.Sub-Saharan Africa has witnessed a number of new consortia-backed projects and is the leading region worldwide in terms of activated capacity along major undersea routes. However, there has been a surge in cable projects in Latin America during the past year, driven by a number of factors, from strong economic growth rates and national strategic considerations to event-driven bandwidth demands. 2.TechnologyAiming to position itself as a regional hub, Brazil is expected to account for the lions share of growth in the Latin American submarine cable market. Major global sporting events such as the 2014 World Cup and the 2016 Olympic Games, coupled with national broadband coverage targets, are stimulating a wave of new investment. In December, Telmex and America Movil launched the AMX1 submarine cable system, a 7,800km submarine cable system linking Brazil, Colombia, the Dominican Republic, Guatemala, Mexico, Puerto Rico and the US. Requiring overall investments of US$1.1b, it allows the Latin American operator to provide international connectivity across all its subsidiaries.17Source: Submarine telecoms industry report 2013, Submarine Telecoms Forum and Terabit Consulting,March 2013.Figure 5: Growth in activated capacity along major undersea routes, 20071227%33%36%41%47%54%71% Sub-Saharan Africa IntercontinentalNorth America-South AmericaPan-East AsiaSouth Asia and Middle East IntercontinentalTranspacicAustralia and New Zealand IntercontinentalTransatlantic9 Issue 13 |18. Brazil, Europe plan undersea cable to skirt U.S. spying, Reuters,24 February 2014. 19. Angola Sees Trans-Atlantic Cable Quickening Links to Asia, Bloomberg,13 November 2013.In February, the Brazilian Government and European Union agreed to lay an undersea communication cable between Brazil and Portugal as part of US$185m cable project to reduce reliance on the US for transatlantic traffc in the wake of concerns about data surveillance. Existing connectivity between Europe and Brazil is outdated and used only for voice transmission, while pricing on the North America-South America transport corridor remains high relative to other routes. A joint venture between Brazils Telebras and Spains IslaLink Submarine Cables is set to lay the link, with construction slated to begin in July.18Last year, Angola Cables announced plans to build a 6,000km submarine cable to Brazil and link it with existing routes that connect Africa and Asia. The South Atlantic Cable System (SACS) is set to be completed in 2014 and will provide faster routes between Brazil and Asia. Meanwhile, the Angolan Government sees an increased telecommunications presence as one route to reducing its dependence on oil, which accounts for 97% of exports.19Brazil is the very much the leader in terms of international bandwidth demand in Latin America, accounting for 62% of regional demand last year. Meanwhile, South Atlantic routes are becoming more important in order to provide alternatives to routes through Egypt, where service disruption and rising political risks have led to frustrations among submarine cable system providers and client companies alike.New cable systems driven by operator consortia are alsoappearing in other regions. In January, a consortium of17 companies including China Unicom, Telecom Egypt, Etisalat, Omantel, Ooredoo and PCCW Global signed an agreement to build the frst submarine cable linking Southeast Asian countries to Africa and Europe via the Middle East. Scheduled for completion in 2016, it will eventually connect 40% of the worlds population and is designed both to relieve congestion on existing systems while also supporting expected growth in bilateral trade between Asia and Africa. Source: Submarine telecoms industry report 2013, Submarine Telecoms Forum and Terabit Consulting, March 2013.Figure 6: Share of South American international bandwidth demand by country, 201362%13%9%5%3%2%3%3%BrazilArgentinaColombiaChile EcuadorPeruVenezuelaOthers10| Inside Telecommunications21. eFive Telecoms confdent that South Atlantic cable will make it into the water, Move This Cable, 12 September 2013. 22. 5G Infrastructure PP: The next generation of communications networks will be Made in EU, European Commission Fact Sheet, 2013. 23. Industry Proposal, Horizon 2020 Advanced 5G Network Infrastructure for Future Internet PPP. 20. 15 telcos form SEA-ME-WE 5 consortium, Telecom Asia, 10 March 2014.In March, a consortium of 15 operators including China Mobile International, Orange, Saudi Telecom, SingTel and Telekom Malaysia issued contracts for the construction of an undersea cable system linking Singapore to France via Sri Lanka. The 20,000km SEA-ME-WE 5 system will provide connectivity across 17 countries and will address the urgent need for more capacity along the Southeast Asia-Middle East- Western Europe route.20Aside from the construction of new undersea systems, upgrading capacity on existing infrastructure is ongoing. Many operators are boosting transmission speeds from 10Gbps (G)/40G to 100G as cloud-based applications drive demand. In December, Indias Reliance Globalcom upgraded its FA-1 North transatlantic cable to 100G wavelengths, while Telstra and Tata Communications have upgraded their transpacifc cable routes to 100G technology in recent months. There is also plenty of investment under way in terrestrial fber-optic networks to make the most of submarine cable systems, particularly in Africa, where pain points remain in terms of supporting infrastructure.Looking ahead, operators face a number of challenges as they look to boost international connectivity through submarine cable investments. Unlike Africa, for example, Latin America is a more mature region in terms of telecommunications infrastructure, with submarine cabling in place for more than a decade. In this light, there is a risk of too many competing systems, especially given that older infrastructure can be upgraded at a low unit cost due to technological advances in dense wave division multiplexing (DWDM), for example. Meanwhile, altogether new routes for international connectivity are being pursued. Canadas Arctic Fibre is building out a US$62m submarine backbone network between London and Tokyo, which is expected to launch in 2015. An ambitious plan, it demonstrates how investors attention is turning to previously unfeasible geographies in a bid to provide alternatives to traditional transit routes. While new routes can take advantage of strong regional demands, submarine cable systems remain complex projects prone to delays and uncertainties, as highlighted by question marks surrounding the South Atlantic Express (SAex) cable betweenAfrica and Brazil.21Stakeholders consider 5G migration time framesAlthough mobile operators are very much in the throes of migration to LTE networks and services, ever-shortening technology cycles mean that many industry players are already looking ahead to future iterations of mobile network technology.5G remains very much a nascent concept, referring less to a new industry standard and more to a long-term vision as to how mobile infrastructure will evolve over the next decade. For the time being, most operators will be focused on extracting better performance from current technologies. This is hardly surprising given that2G still accounts for two-thirds of global mobile connections and4G represents just 4% of mobile subscribers worldwide. Nevertheless, recent announcements from governments, regulators and industry players underline the importance of a long-term view of mobile infrastructure evolution. Mindful of Europes laggard status in 4G rollouts, the EU has recognized the need for early investment. In December, the EU signed an agreement with a public-private partnership (PPP), the 5G Infrastructure Partnership, which will receive 700 million in funding over the next seven years as part of the broader Horizon 2020 research program.The 5G PPPs focus will be on building the foundations for the next decade of communications networks, with plans to boost European capabilities in areas such as smart cities, e-health and intelligent transport.22 The new body has outlined an ambitious set of KPIs regarding new infrastructure, including providing capacity via communications infrastructures that is 1,000 times higher compared to 2010 rates and reducing service creation from 90 hours to 90 minutes.2311 Issue 12 |The Mobile World Congress held in Barcelona in February was also the scene of a number of positive developments. The Next Generation Mobile Networks Alliance (NGMN), made up of 21 mobile operators, announced an initiative to defne use cases for 5G, tackling issues, such as application programming interfaces (APIs), latency and resiliency in the process.24 Once the operators involved have specifed their requirements, they will start defning architectures to deliver them before collaborating with standardization bodies, regulators and vendors and possiblyOTT players too. During the event, the European 5G PPP also announced plans to up its investment budget to 4.2b. Private sector participants had previously pledged to match the ECs initial investment, but their fnancial backing now stands at fve times the amount invested by the public sector. National governments are also making the case for investment in 5G. During the CeBIT trade fair in March, the UK Prime Minister announced a research and development partnership with Germany on the internet of things (IoT), 5G technology and a single European digital market. The UK package also includes measures to double the economic benefts of spectrum to 100m by 2025. The UK regulator Ofcom has announced a spectrum review with future 5G and IoT services in mind.While upgrade paths to 4G have seen the mobile industry shed the range of technology variants available during the 2G era, the move to 5G will have to embrace a shift to a world of connected devices and new M2M-driven use cases, which in turn will position future mobile network technologies as a collection of different standards.Accepted network defnitions are lacking, yet there is growing consensus that the next wave of mobile infrastructure technology will be more user-centric and energy-effcient. Looking ahead, much will hinge on the next International Telecommunications Union (ITU) World Radiocommunication Conference (WRC) in 201516, where the ITU will fnalize its vision for 5G technology and decisions regarding additional spectrum release will be made.In the interim, greater collaboration between operators, vendors and regulators is absolutely essential if 5G R&D is to make headway. In addition, there is still plenty of standardization work to be done in the world of LTE. During MWC 2014, the Global TD-LTE Initiative (GTI) highlighted the importance of harmonizing the time-division duplexing (TDD) and frequency-division duplex (FDD) variants on multi-band and multi-mode devices in the 4G environment, for example. Add to this the growing operator focus on small-cell rollouts, coupled with new initiatives in network virtualization, and it is clear that operators still have plenty of initiatives to contend with in the world of 4G. 24Mobile Operators work together to defne requirements for 5G, NGMN Alliance, 24 February 2014.Source: 5G Technology: A Vision, Huawei Technologies Co., Ltd, 2013. Figure 7: Indicative 5G technology roadmap and timeline11 Issue 13 |5G Research 5G standard 5G product 5G deploymentRel 10 Rel 11 Rel 12 Rel 13 Rel 14 Rel 15 Rel 163GPPStandards2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021ITU WRC-12 ITU WRC-15 ITU WRC-18/1912| Inside TelecommunicationsRewriting the data protection landscape in EuropeThe worlds of online data privacy and security are colliding in new ways, forcing regulators to revisit existing rules regarding data protection and retention. In Europe, the majority of end users remain concerned about how their privacy is safeguarded online, although consumers in Germany are relatively less troubled, perhaps refecting already strict data protection laws in place at a national level. Such anxieties have been exacerbated by the Snowden revelations of 2013, which have in turn prompted a number of governments to revisit issues of cybersecurity and data sovereignty.Longer-term trends involving globalization alongside the rise of social networks, big data and cloud computing are also driving the need for updated guidelines on how organizations treat personal data. In this light, policy-makers are keener than ever to address obsolescent legislation, introduced at a time when the online world was in its infancy.3.Regulation25. Progress on EU data protection reform now irreversible following European Parliament vote,European Commission, 12 March 2014.In January 2012, the European Commission proposed a far-reaching reform of the EUs 1995 data protection rules in order to strengthen citizens digital rights. Industry estimates forecast that EU consumers personal data to be worth 1 trillion by 2020, underscoring the role that improved rules can play in unlocking new business opportunities.25The EUs proposed reform, the General Data Protection Regulation (GDPR), aims to address a number of issues, from providing a unifed framework for all EU member states without the need for accompanying national laws to underlining requirements for consumer consent to data collection, as well as the concomitant right to be forgotten if consent is withdrawn or there is no legitimate reason for an organization to retain online data. Source: Big Brother Watch Online Survey, ComRes, June 2013 (survey of online adults including those in France (1,050), Spain (1,037), UK (2,050) and Spain (1,037)).Figure 8: Concern over online privacy in selected European marketsQuestion: How concerned, if at all, are you about privacy online?0% 20% 40% 60% 80% 100%UKSpainGermanyFranceVery concerned Fairly concerned Not very concernedNot at all concerned Don't know13 Issue 13 |26. Half of UK Businesses Unaware of New EU Data Laws, Trend Micro,24 April 2014.27. GSMA Urges European Parliament And Member States To Reach Rapid Agreement On Consistent And Innovation-Friendly Data Protection Rules, GSMA, 12 March 2014.The EU is now taking a number of steps forward with data protection reform. In March, the European Parliament voted in favor of the proposed package. This followed a series of delays in 2013 as amendments pivoting on different classifcations of privacy risk according to whether data was personally identifable or truly anonymous were debated. As mobile operators look to take advantage of their customer information assets by providing location-sensitive services such as targeted advertising, a full understanding of changing compliance requirements is essential. However, awareness of EU data protection reforms varies signifcantly between member states, with only half of UK businesses reportedly aware of the upcoming reform, compared to 87% of enterprises in Germany.26In this light, operators should be sensitive to the challenges involved in adhering to new rules at a local market level, both in terms of how they communicate to customers but also in their interactions with partners. European consumers see operators in a favorable light as data custodians compared to other industry actors, suggesting a natural advantage if they can communicate effectively with their customers and wider stakeholders.Although operators broadly welcome moves to harmonize data protection across the EU, the sheer range of pre-existing rules affecting access to personal data and its storage and reuse will present challenges. Reacting to the European Parliaments vote on the GDPR, the GSMAhighlighted the need to reduce inconsistencies between the GDPR and the ePrivacy Directive,a 2002 law designed to complement the original Data Protection Directive and which itself was revised in 2009 to accommodate new stipulations for notifcations of personal data breaches.27Meanwhile, in May the European Union Court of Justice ruled that web search results could be amended in instances where information about individuals was inadequate or no longer relevant. Although the ruling has been widely seen as a victory for those backing the right to be forgotten, enforcing such digital rights will be challenging and the notion of data that is in the public interest is another complicating factor.With consumers digital rights looming ever larger as a consideration among policy makers, other rules concerning data on individuals use of communications networks also face fresh scrutiny. In April, the European Court of Justice (ECJ) invalidated the EUs 2006 Data Retention Directive, a set of rules obliging ISPs and telcos to retain data on citizen use of electronic communications in order to combat terrorism and organized crime. 0 10 20 30 40None of theseDon't knowOther companiesNational governmentEuropean Union bodiesCompanies that manufacturemobile devicesSpecialist data protection bodiesMobile operatorsInternet Service ProvidersConsumer bodiesWould be the best Currently doing a good jobSource: The future of digital trust, Orange, February 2014 (survey of 2,028 mobile phone owners in UK, France, Spain and Poland).Figure 9: Consumer confdence in different entities data protection credentials % respondents14| Inside TelecommunicationsRuling that the data retention framework infringed upon fundamental rights to privacy, the ECJ also highlighted a lack of safeguards against the abuse of and unlawful access to personal data. The ruling follows campaigns by privacy groups in Austria and Ireland challenging the Directive and means that EU member states are no longer required to transpose it into their national laws. Europe is not alone in revisiting its approach to data retention: in March, US President Barack Obama announced plans to end existing practices for the retention of bulk telephony data.28Individual states are still free to introduce laws at a national level, and the decision leaves the door open to a revised directive, as espoused by the European Data Protection Supervisor.29 However, any decision regarding a new EU proposal is unlikely until a new Commission takes offce in November 2014. While the data retention ruling is likely to infuence ongoing discussions regarding GDPR, it creates uncertainties for member states that have transposed the 2006 Data Retention Directive into national law. The ePrivacy Directive contains a provision for member states allowing for data retention, but this alone will not provide a long-term solution.The data retention judgment also criticized the 2006 Directive for not requiring data to be stored in the EU; this may in turn complicate future cooperation between the EU and other countries regarding the sharing of data for law enforcement purposes. Beyond that, the lack of certainty on what now constitutes lawful data retention will in turn have repercussions for prospective right to be forgotten stipulations in the GDPR. In this light, the read-across for operators is likely to become more complex before it becomes more straightforward. Although recent EU developments suggest that the privacy rights and security needs connected to personal data and its use by both commercial organizations and the public sector are being considered more holistically, this has in turn highlighted the shortcomings of a number of long-standing rules. There is now a complex interplay between notions of digital rights and national security. While a single data protection regulation will help provide greater clarity and consistency across Europe, uncertainties will persist, as highlighted by the latest ruling on data retention. For their part, operators will need to work closely with a wide range of stakeholders from national regulators to ecosystem partners to ensure their views are understood as existing rules are revised. In the meantime, they should be clear on how they classify customer data, with well-defned protocols and policies in place. This in turn will help them adapt and respond to future changes in law regarding access to end-user data and its collection and storage.US 600MHz auction rules under scrutinySpectrum is the lifeblood of the mobile sector. Regulators readily recognize the economic multiplier effects of mobile broadband networks, which is in turn stimulating efforts to repurpose spectrum bands for mobile use in order to make the best use of what is a fnite resource.Since its 2010 National Broadband Plan, the US Federal Communications Commission (FCC) has emphasized the importance of wireless spectrum and incentive auctions as a means of economically benefcial reallocation. The 600MHz band currently occupied by TV broadcasters is seen as particularly suitable for mobile broadband use, and in May the FCC outlined the structure and terms of a reverse and forward auction that will repurpose this band for wireless carriers, with broadcasters sharing in the resulting revenues.28. Statement by the President on the Section 215 Bulk Metadata Program,The White House, 27 March 2014. 29. Press Statement: The CJEU rules that Data Retention Directive is invalid, European Data Protection Supervisor, 8 April 2014.Figure 10: US 600MHz Wireless Band Plan ProposalSource: Federal Communications Commission, 2012.LMR TV channels TV channels600MHzDownlink600MHzUplink700MHzUplinkLower guard bandUpper guard bandChannel 37470Frequencies in MHzTV channel number608-X 608 614 698-Y 69851 37 1415 Issue 12 |30. Staff Summary: Incentive Auction Report And Order, Federal Communications Commission, 15 May 2014. 31. FCC Commissioner Pushes for Unlicensed Spectrum in 600 MHz Band,Wireless Week, 7 May 2014.32. Research reveals real value of Freeview TV,Digital UK, 20 January 2014.15 Issue 13 |The auction is slated to start in mid-2015, and the FCC estimates that there will be 85MHz of spectrum in the 600MHz band in urban areas and possibly more in rural areas. Demand is expected to be high for these frequencies, given their signal propagation characteristics, and the sell-off would mark the frst low-band spectrum auction in the US since the 2008, when frequencies in the 700MHz band were freed up for mobile use. However, the auction is throwing up plenty of challenges. The FCC is seeking to promote competition from smaller operators, yet a range of industry players are concerned with protecting and extending their spectrum assets. Under measures passed by the FCC, established wireless carriers who already hold signifcant low-band spectrum will face restrictions on the amount of 600MHz they can bid for.30Rules restraining bidding on certain spectrum blocks have caused consternation. Established operators believe that spectrum reserve policies will lead to lower prices, which could undermine the spectrum clearing process if broadcasters feel they have not received fair value for their spectrum. Many believe that a lack of restrictions would in fact enable more effcient use of spectrum, with bidders able to amalgamate their holdings into larger blocks. Others have pointed to the success of the secondary market for 700MHz spectrum whereby operators of all sizes swapped orsold spectrum as evidence against auction caps. There are also fears that restrictions could push prices higher for the swathes that leading carriers are allowed to bid on costs that could be passed onto consumers. Elsewhere, unlicensed spectrum advocates are trying to secure more space on the 600MHz band. In May, representatives from Google, Microsoft and Broadcom met with the FCC to push for the establishment of 10MHz guard bands and 11MHz duplex gap, with wireless broadband development allowed in both.31Opponents such as the Wireless Medical Telemetry Service (WMTS) Coalition warn against sharing spectrum with unlicensed uses until possible interference issues have been addressed. For its part, the FCC has made available a total of 14 to 28MHz of guard band spectrum for unlicensed use in a given area, depending on how much spectrum is given up by broadcasters in a reverse auction. Advocates of unlicensed spectrum welcomed the move, and the regulator believes that existing use cases such as wireless microphones and medical telemetry can be protected with the development of technical rules. Meanwhile, the geographic size of license has historically been another bone of contention. Established carriers have favored the use of larger economic areas (EAs), while smaller players have preferred smaller cellular market areas (CMAs). Rural operators have suggested that EAs would limit their ability to participate in the auction, while larger operators see EAs as the best route to economies of scale, allowing for deployment across larger contiguous areas. Conscious of this divergence in industry sentiment, the FCC has sought an element of compromise.Licenses will be available through partial economic areas (PEAs), dividing the country into 428 markets. According to the FCC, this would allow local players to enter the market while also enabling larger carriers to aggregate licenses to provide services on a wider scale.All told, the FCCs auction rules have attempted to strike a balance between meeting the needs of both new entrants and established wireless carriers. While there remains disagreement within the FCC itself over the merits of auction bidding limits, early signs suggest that larger carriers are broadly satisfed with the new rules. Nevertheless, the regulatory challenge stretches well beyond anxieties over ensuring wireless competition per se. Some broadcasters have been hesitant to commit to participating in the auction without understanding all the implications, and the FCC has promised to conduct a thorough outreach program to help TV companies as a result. In this light, managing the concerns of different industry sectors is as important as building consensus on the auction rules themselves.Balancing the interests of mobile operators and TV broadcasters will provide a test for regulators worldwide. In May, the Brazilian Government opened a public consultation on the upcoming 700MHz frequency band auction, and regulatory agency Anatel is set to publish the results of tests exploring the coexistence of digital TV and mobile broadband services. In the UK, TV networks fear regulatory plans to move digital TV services from 700MHz to 600MHz spectrum in order to make way for 4G. A report by Digital UK says that appetite for mobile video is already being met through Wi-Fi networks, while also claiming that digital TV service Freeview creates more value per unit of spectrum than mobile data.32 In this light, it is clear that competing industry views will shape national spectrum release policies for some time yet. 16| Inside TelecommunicationsIntroductionDeal activity remains pronounced across the global telecommunications sector and related market segments. The frst three months of 2014 saw 108 deals announced during the quarter, down almost a third from the previous quarter. However, deal value was up US$19.3b to US$58.7b, refecting a number of sizable transactions as cable players build scale and mobile operators take aim at adjacent markets while also bulking up their spectrum holdings. Divestments are a signifcant theme too, with both European and Asian operators offoading non-core businesses as they reduce debt and sharpen the focus of their portfolios.Breaking down announced transactions by geography, Europe, Middle East, India and Africa (EMEIA) maintains its status as the leading region for M&A, with over US$50b of deals refecting large-scale consolidation and adjacent market moves. Europes top three deals alone accounted for 81% of global transactions in the three months to March, while deal value fell sequentially in both the Americas and Asia-Pacifc. Private equity continues to act as an important catalyst for deals worldwide, with sizable deals notched up in markets as diverse as Spain and Mozambique.4.Mergers and AcquisitionsResidential bundle ambitions drive deals in France, Spain and the NetherlandsEstablished players in Europe continue to look for new growth opportunities, and the ability to up-sell additional services to existing subscribers is becoming an increasingly important differentiator in a crowded market. In this light, it is no surprise that the ability to provide combinations of broadband, pay-TV, and fxed and mobile telephony is driving a number of landscape-changing acquisitions. Figure 9: Telecoms M&A deal value by target area Q4 2013/Q1 2014Source: ThomsonOne, Capital IQ, Mergermarket.US$21,317US$50,883 US$4,354US$659 US$206US$3,185 US$13,504US$ 3,928 Asia-PacicJapanAmericasEMEIA1Q14 4Q1317 Issue 13 |In France, leading players are looking to offset the effects of a mobile price war that is now infltrating the residential fxed-line market, with triple-play packages available for less than 20 per month. Consolidation is seen as a way of offsetting price pressure, and in March, Vivendi confrmed that it had received bids from cable player Numericable and alternative operator Bouygues for SFR, the number two French mobile provider. Vivendi subsequently accepted Numericables raised bid in a deal that would give the media player 13.5b in cash plus a potential milestone payment as well as a 20% stake in the new entity. Announcing the news, Vivendi highlighted a number of factors behind the decision, including commitments to preserving employment, a low level of potential antitrust risks, and the balance between up-front cash and stock participation that ensured the highest possible valuation.33For its part, Numericable owned by Luxembourg-based investment company Altice has underlined 2017 run-rate savings of more than 1b through the deal via network, marketing and IT synergies.34 While a lower level of antitrust risks was one of the criteria for selecting the winning bid, the acquisition has nevertheless proved contentious, with incumbent Orange highlighting regulatory and tax concerns in its wake.35Despite Bouygues failure to merge with its rival mobile operator, the French Government remains keen on consolidation in the mobile market itself. Economy Minister Arnaud Montebourg has stressed that consolidation would preserve jobs in the long term while also enabling French operators to compete more effectively with global web giants. Operators are moving sideways into related segments in other European markets. In March, UK-based mobile group Vodafone agreed to acquire Spanish cable operator Ono for a total consideration of 7.2b on a debt- and cash-free basis. Ono currently services 7.2 million homes in 13 of Spains 17 regions and has a well-established pay-TV and broadband offering.36The move accelerates Vodafones stated strategy to provide unifed communications to its customers, widening its services portfolio in the process to include fxed broadband and pay-TV as well as mobile. Like France, the Spanish market is notable for strong take-up of converged fxed and mobile offers, and Vodafones acquisition marks its second major cable acquisition in Europe, following last years 7.7b swoop for Germanys Kabel Deutschland. 33. Vivendi selects the Altice/Numericable offer for SFR, Vivendi, 5 April 2014. 34. Creating the French Champion in Very High Speed Fixed- Mobile Convergence, Numericable, 17 March 2014.35. Orange plans complaint over Numericable-SFR merger, Mobile World Live,14 May 2014.36. Vodafone to acquire Grupo Corporativo Onon, S.A, Vodafone Group,17 March 2014.18| Inside Telecommunications37. Yoigo cuts prices in escalating Spanish mobile phone war, Reuters,30 November 2012. 38. Liberty Global to Acquire Ziggo, Liberty Global, 27 January 2014.Following the deal, Vodafone expects to achieve cost and capex synergies with a run rate of 240m before integration costs. The worlds number two mobile operator sees Onos cable network as complementary to its ongoing fber-to-the-home (FTTH) build program in Spain. Looking ahead, the transaction will help Vodafone compete better in a market that saw a damaging price war in 2012, and rivals already have converged offerings.37Elsewhere in Europe, cable operators are increasing their exposure to core markets. In January, US-based Liberty Global announced an agreement to acquire leading Dutch cable operator Ziggo in a deal worth 10b (US$13.7b). Liberty already owns UPC, the number two cable player in the Netherlands, and this latest deal gives the cable giant access to 90% of Dutch homes, while increasing its exposure to mobile and enterprise segments.38 However, the EUs antitrust body is investigating the deal, concerned that the deal could reduce competition in the Netherlands. Private equity maintains its focus on telecoms opportunitiesPrivate equity activity continues to play a signifcant role in telecommunications worldwide, and the frst three months of 2014 have seen a number of acquisitions and exits across a range of industry subsegments. In North America, private equity frms are targeting smaller telcos that are broadening their service propositions. During the quarter, Canadian frm Novacap acquired Oxford Networks a regional US service provider in need of additional funds as it builds a fber backbone for US$50m, while another Canadian investment fund, Investel Capital, acquired teliPhone Navigata-Westel, a provider of voice, data, cloud and IPTV services, for US$41m.Meanwhile, African tower frm IHS raised US$490m in March to fund expansion, with three new investors taking equity in the towerco, including Goldman Sachs, the IFC Global Infrastructure Fund and African Infrastructure Investment Managers. The UK-based frm owns and manages more than 10,000 mobile towers in Nigeria, Cameroon and Ivory Coast and has built an additional 3,500 towers for mobile operators. African opportunities have also proved attractive to Israel-based Athlone Investments, which in March took a 74% stake in Mozambique-based regional data center operator Vaninga for US$112m.Looking ahead, tower investment opportunities are likely to remain a focus area for private equity frms, particularly as operators in regions such as Latin America shift their focus toward sale-and-leaseback business models.Figure 10: Consumer take-up fxed and mobile broadband and telephony bundles in selected marketsSource: International Communications Market Report, Ofcom, 12 December 2013.% broadband households0102030France Spain Germany Italy UKFixed phone, mobile phone, xed broadband and mobile broadbandFixed phone, mobile phone, xed broadband19 Issue 12 |39. SK Telecom to acquire No.4 security company, Maeil Business Newspaper,10 February 2014, via Factiva, 2014 MAEKYUNG.COM Inc. 40. Telus adds bench strength to its security and risk management technologies with acquisition of Groupe Enode Inc., Telus, 24 March 2014.41. Orange Business Services bolsters security services with Atheos acquisition, Telecoms.com,6 January 2014.19 Issue 13 |In Australia, Telstra bolstered its growing cloud computing business with the AU$60m acquisition of O2 Networks in January. The company, a network and security integrator that services 370 enterprise clients, will sit within the Australian incumbents Network Applications and Services business unit. Meanwhile, Orange Business Services announced that it had acquired French cybersecurity frm Atheos for an undisclosed sum in January. Atheos was founded in 2002, initially focusing on identity access management before branching out into broader cybersecurity consulting.41Divestitures now a key theme in AsiaIn recent quarters, Asian operators have been more aggressive than operators in other regions when it comes to acquiring companies in adjacent markets, while consolidation remains an important theme in many countries. However, realignment of their portfolios means that many Asian carriers are exiting non-core businesses that do not dovetail with their fast-changing strategies. The regions largest announced deal during the frst three months of 2014 was Yahoo! Japans proposed purchase of mobile operator eAccess from parent company SoftBank Corp for US$3.2b. Yahoo! Japan, itself partly owned by SoftBank, has come under increased competition from OTT rivals and the acquisition would help unlock synergies between mobile service provision, online advertising and e-commerce. Security needs inform adjacent market moves Operators continue to assess opportunities to broaden their service propositions in technology subsegments. Data privacy and security are important customer concerns, and telcos are keen to underline their trust credentials with end users. In this light, a number of leading operators are acquiring capabilities in the security space.In February, SK Telecom acquired NSOK, Koreas number four security system company, for an undisclosed amount. The deal is expected to create synergies with SKs existing smart home and personal data protection services, including its Sky Safe offering, an unmanned image-based security service launched last year.39 Fellow Korean operator KT Corp. is also present in the enterprise security market through its subsidiary KT Telecop.In Canada, integrated carrier Telus acquired Enode, a Quebec City-based security IT frm, in March. Enode provides businesses and government agencies with cutting-edge technologies and services for security and risk management and is set to be integrated into Telus Security Solutions, a 180-strong team within the operator. The acquisition marks Telus latest foray into IT-centric services, following a US$150m investment in data centers in 2012 that signaled a strategic shift into the cloud market.40Figure 11: Top 10 telecoms M&A by deal value, Q1 2014Source: ThomsonOne, Capital IQ, Mergermarket.Please note that Yahoo! Japan and Softbank announced in May that they would not proceed with the proposed sale of eAccess.US$23,589US$13,700US$10,025US$3,315US$3,174US$1,150US$1,130US$490US$422US$411 Kudelski/Conax (from Telenor)Platinum Equity/Sensis (from Telstra)Liberty Global/VTR GlobalComInvestor Group/IHS HoldingsDeutscheTelekom/T-Mobile Czech RepublicAltimo/private investor stakeYahoo! Japan/eAccess (from SoftBank)Vodafone Holdings Europe/Grupo Corporativo ONOLiberty Global/ZiggoNumericable Group/SocitFranaise de RadiotlphoneBuyer/Seller Deal value (US$m)20| Inside TelecommunicationsFigure 12: Selected telecoms M&A in Asia-PacifcDate Bidder Target Stake (value) Business nature of target27 Mar 2014 Mobikom Sdn Bhd (Malaysia) Packet One Networks (Malaysia) 56.8% (US$106m) Wireless broadband service provider27 Mar 2014 Yahoo! Japan eAccess Limited (Japan) 33.29% (US$3,175m) Mobile network operator11 Mar 2014 Sejong Telecom (South Korea) Onse Telecom (South Korea) 25.43% (US$39m) Telecom service provider7 Mar 2014 Cathay Century Insurance (Taiwan) Taiwan Star Cellular Corporation 14.5% (US$89m) Mobile service provider17 Jan 2014 Shenzhen Keybridge Communications (China)Emaxx Telecom (Cambodia) 65% (US$15m) 4G mobile operator13 Jan 2014 Platinum Equity (US) Sensis Pty (Australia) 70% (US$411m) Online directories and digital marketingSource: Mergermarket, Telecom Asia, Factiva.However, in May Yahoo! Japan and SoftBank announced that they would not proceed with the deal, with Yahoo! Japan instead offering mobile services via the eAccess network while leaving eAccess as a separate company to own and operate network infrastructure. While the proposed deal would have given SoftBank cash to aid its pursuit of overseas acquisitions, the company has since prepareda 300b bond issue targeting Japanese retail investors.4242. Yahoo Japan drops $3.2 billion plan to buy eAccess from Softbank. Reuters, 19 May 2014. 43. Telstra to sell majority stake in Sensis, Telstra, 13 January 2014.In January, Telstra announced the sale of 70% of its stake in Sensis to private equity player Platinum Equity for AU$454m. Commenting on the deal, Telstras CEO underlined that Platinum Equitys plans to operate Sensis as a separate entity would give Sensis the focus to extend and enhance its customer offerings inan agile digital world.4321 Issue 13 |22| Inside Telecommunications23 Issue 13 |EY|Assurance | Tax | Transactions | Advisory About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.comHow EYs Global Telecommunications Center can help your businessTelecommunications operators are facing a rapidly transforming business model. Competition from technology companies is creating challenges around customer ownership. Service innovation, pricing pressures and network capacity are intensifying scrutiny on return on investment. Additionally, regulatory pressures and shareholder expectations require agility and cost efficiency. If you are facing these challenges, we can provide a sector-based perspective to addressing your assurance, advisory, transaction and tax needs. Our Global Telecommunications Center is a virtual hub that brings together people, cultures and leading ideas from across the world. Whatever your need, we can help you improve the performance of your business. 2014 EYGM Limited. All Rights Reserved.EYG no. EF0141CSG/GSC2014/1375777ED NoneIn line with EYs commitment to minimize its impact on the environment, this document has been printed on paper with a high recycled content.This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.ey.com/telecommunications@EY_TelecomsJonathan Dharmapalan Global Telecommunications Leaderjonathan.dharmapalan@ey.comHolger Forst Global Telecommunications Assurance Leader holger.forst@de.ey.comStaffan Ekstrm Global Telecommunications TAS Leaderstaffan.ekstrom@se.ey.comAmit Sachdeva Global Telecommunications Advisory Leaderamit.sachdeva@in.ey.comBart van Droogenbroek Global Telecommunications Tax Leaderbart.van.droogenbroek@lu.ey.comContacts