Jason Whalley and Peter Curwen
This paper aims to investigates the argument that the financial case for continued internationalisation by telecommunication companies is unclear with respect to Deutsche Telekom…
Abstract
Purpose
This paper aims to investigates the argument that the financial case for continued internationalisation by telecommunication companies is unclear with respect to Deutsche Telekom, a leading international telecommunications company.
Design/methodology/approach
The international footprint of Deutsche Telekom is mapped over the period 1995-2013 (inclusive). Data are drawn from the annual reports of Deutsche Telekom as well as its principal subsidiaries. After mapping the international footprint, the financial dimension of this internationalisation is investigated to determine whether there are financial returns from continued international expansion.
Findings
The results demonstrate the extensive and complex nature of the international footprint of Deutsche Telekom. The company operates in 38 countries through a variety of lines of business, with its systems division being responsible for almost half of these countries. Although international markets now account for a majority of the company’s revenues, the lack of consistent data means that it is not clear whether the financial returns from internationalisation are positive.
Research limitations/implications
The paper highlights the challenges of using annual reports as a source of data, as well as the difficulties of mapping the international operations of large multinationals like Deutsche Telekom.
Originality/value
The paper uniquely seeks to relate the international footprint of Deutsche Telekom to its financial performance.
Details
Keywords
Peter Curwen and Jason Whalley
The purpose of this paper is to examine in a fully up-to-date manner the position in respect to the licensing and launch of long-term evolution (LTE) in a region that attracts…
Abstract
Purpose
The purpose of this paper is to examine in a fully up-to-date manner the position in respect to the licensing and launch of long-term evolution (LTE) in a region that attracts relatively little attention when treated as a whole because the emphasis is usually upon the very large individual markets (China, India and Japan) contained within it. The purpose is also to examine the role of international groups and the extent to which the licensing of LTE can make a difference to the structure of mobile markets in the region.
Design/methodology/approach
The initial step was to compile extensive databases with respect to the licensing and launch of high-speed networks in the region – defined both narrowly and also to encompass countries that are often treated as part of the Middle East – arranged so as to emphasise the status of dominant incumbents. There is a discussion of new entry and its potential to disrupt incumbents.
Findings
For historical reasons, the region contains countries that have strong differences whether defined in terms of economic, social or cultural characteristics, and hence it has not been easy for a network with international aspirations to expand outside its home market nor for, say, European-based operators to gain a foothold. Attempts to introduce competition via new licences has also been problematic because of the strong, and sometimes very large, incumbents already present.
Research limitations/implications
This is necessarily an overview that uses selected data to describe the overall picture because of the substantial number of quite different markets surveyed.
Practical implications
It is possible to forecast how certain structural changes will occur – primarily the withdrawal of international groups such as Millicom that prefer to concentrate upon other regions.
Originality/value
The databases that underpin the analysis are author-compiled and entirely original.
Details
Keywords
Jason Whalley and Peter Curwen
The purpose of this paper to analyse Hutchison Whampoa's involvement in the telecommunication industry.
Abstract
Purpose
The purpose of this paper to analyse Hutchison Whampoa's involvement in the telecommunication industry.
Design/methodology/approach
A brief overview of Hutchison Whampoa is provided before a timeline of the company's involvement in the telecommunications industry is presented. This is followed by the recounting of the company's performance in three areas, namely geographical footprint, mobile subscribers and financial returns. After discussing these three areas, an assessment of the company's exposure to 3G markets is made.
Findings
One finding is that Hutchison Whampoa has actively engaged in the telecommunications industry through buying and selling businesses, often through complex organisational structures. A second finding is that the company has been very successful in the past at building and selling mobile operations, though it is unlikely to be as successful with its current series of 3G investments.
Research limitations/implications
Some of the data used in the paper are hard to establish with certainty.
Practical implications
The ownership of service providers and the services available may change as Hutchison Whampoa manages its portfolio of telecommunication investments.
Social implications
As a late entrant in many markets, Hutchison Whampoa has aggressively sought to capture market share, resulting in new services and lower prices. Whether this will continue in the future is uncertain.
Originality/value
There are no other case studies of Hutchison Whampoa's involvement in the telecommunications industry in the public domain.