The World’s Most Valuable Mobile Telecoms Brands 2008
China Mobile brand worth $31bn…Vodafone brand worth $22bn… Value of top 100 mobile brands tops $300bn…Europe is most valuable region…
December 11, 2008 - Intangible Business, the world’s leading independent brand valuation consultancy, has today published the first of what will become an annual league table of the 100 most valuable mobile telecoms brands in the world. Over 500 of the world’s biggest mobile telecoms brands were analysed using historical financial data and qualitative expert panel data – providing unique insight into each brand’s financial contribution and strength in the eyes of the consumer.
The Top 10
1. China Mobile $30.8bn
2. Vodafone $22.1bn
3. Verizon $20.4bn
4. AT&T $18.9bn
5. T-Mobile $16.9bn
6. Orange $15.5bn
7. NTT DoCoMo $14.9bn
8. KDDI $14.5bn
9. Movistar $10.8bn
10. Sprint $9.7bn
The report, ‘The World’s Most Valuable Mobile Telecoms Brands 2008’, also reveals the brands punching above and below their weight, and the regions and countries which own the most valuable mobile telecom brands:
Brands Punching Above Their Weight Most Valuable Countries of Ownership
1. Mobily $1,415m 1. US $53.8bn
2. Qtel $802m 2. Japan $36.5bn
3. PMCL $787m 3. China $36bn
4. Airtel $2,809 4. UK $26bn
5. Tata Indiacom $922m 5. Spain $22.7bn
William Grobel, marketing director of Intangible Business, said: “Brands are generally the main differentiator in the largely commoditised telecoms industry. This research highlights just how valuable telecoms brands are. Collectively, the top 100 are worth over $300bn. China Mobile’s ascendancy to the top has been impressive. With Chinese penetration levels not even at 50%, there is considerable scope for the brand’s value to dwarf its already impressive $31bn.”
Grobel added: “2009 is likely to see further consolidation with a preference for acquisitions over organic growth as assets become cheaper. This research helps identify which brands are performing well and which look vulnerable. Nowhere is immune from the global slowdown and the telecoms sector is no exception. Maintaining brand equity will be challenging for all.”
Methodology
Brand values are a reflection of a brand’s ability to generate future income. It is a forward looking study that uses historic performance and future trends to predict future value. Three years of publicly available historical sales data was gathered for 500 of the world’s biggest telecoms brands. To determine the strength of the brands, each brand was also scored on nine hard measures, sourced from Informa Telecoms & Media, and nine measures of brand strength from a panel of industry experts. Using this data each brand was then valued using the relief-from-royalty methodology to produce the top 100.
Definitions of components of brand strength
Hard measures
Turnover: volume of branded mobile income
Subscriptions: number of active subscribers attached to each brand
Customer churn: proportion of customers leaving the brand annually
Market share: average market share in each main market of mobile telecoms users
Penetration: proportion of the market which has telecoms services
CAPEX: volume of capital expenditure invested in future benefits
EBITDA: earnings before interest, taxes, depreciation and amortization
ARPU: average revenue per user
Profitability: level of relative profitability of each brand
Panel measures
Share of market: measure of market share
Brand growth: projected growth based on 3-5 years historical data and future trends
Price positioning: a measure of a brand’s ability to command a premium
Market scope: number of markets in which the brand has a significant presence
Brand preference: a measure of relative pre-disposition or spontaneous selection of a brand
Brand awareness: a combination of prompted and spontaneous awareness
Brand relevancy: capacity to relate to the brand and a propensity to purchase
Brand heritage: a brand’s longevity and a measure of how it is embedded in local culture
Brand perception: loyalty and how close a strong brand image is to a desire for ownership
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