The Deloitte M&A Index H1 2015 | 5 Spotlight on mobile sector M&A Last year 364 deals were announced In two of the world’s biggest mobile markets, involving mobile operators, the highest China and India, increasing competition is since 2011. In the UK, rapidly changing encouraging mobile carriers to look abroad consumer consumption habits have led to for growth opportunities. China Mobile M&A and joint venture announcements recently announced the acquisition of an that are reshaping the telecoms market. $881 million stake in True Corp, one of The ramifications of these deals could be far Thailand’s leading operators. reaching as sellers could use their proceeds to invest or do more M&A in other markets once Carriers will need to innovate to drive future they exit the UK. revenues and to that end we expect them to make smaller acquisitions in areas such as In Europe intense competition has eroded the telematics and the Internet of Things to derive margins of mobile operators. Consolidation new revenue streams. is widely expected, following which the remaining operators will be able to realise cost synergies and free up capital to invest in infrastructure and digital technologies. Figure 7. Total volumes and values of M&A involving mobile carriers (2010-15 YTD) Deal volumes $bn 160 180 160 120 140 120 80 100 80 60 40 40 20 0 0 20120100 20120111 20122012 20132013 20142014 20152015 Q1Q1 Q1Q1 Q1Q1 Q1Q1 Q1Q1 YTYTDD Deal volumes (LHS) Disclosed deal values (RHS) Source: Deloitte analysis based on data from Thomson One Banker