The integrated telecom industry consists of companies that provide telecommunication services using airwaves (wireless) and/or cables (wireline). These companies provide a variety of services, including voice calling, data and video. Below is current consensus forecast data on unit economics such as subscribers and net subscriber additions; financials, including total revenue by wireless and wireline; and key ratios, such as EBITDA margin. These key integrated telecommunications metrics aid market participants in identifying integrated telecom industry trends and future performance of integrated telecom companies, such as China Mobile, Vodafone, Telefonica and T-Mobile. View all Telecom Resources >
What are the most important integrated telecom KPIs?
Key performance indicators (KPIs) are the most important business metrics for a particular industry and are where investors should look to find an investment edge. When understanding market expectations for the integrated telecom industry, whether at a company or industry level, here are some of the integrated telecom KPIs to consider:
- Ending Subscribers
- Net Addition
- Average Revenue Per User (ARPU)
- Churn Rate
- Gross Addition
- EBITDA Margin
- Capex to Sales
What questions do these key integrated telecom metrics answer?
With Visible Alpha’s integrated telecommunications forecast data, you can discover:
- Which integrated telecom companies have the highest number of wireless subscribers?
- Which telecom company is expected to add the most new users in the next year?
- What are the leading telecom companies by wireless revenue? By wireline or cable revenue?
- Which telecom company is expected to have the lowest financial leverage in the next two years?
How can this data be used?
By opening up forecast data on key integrated telecommunications KPIs, Visible Alpha is enabling institutional investors, retail investors, business reporters, students and more to quantify and compare market expectations for companies across the telecommunications industry.
How do I attribute Visible Alpha?
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This guide highlights the key performance indicators for the integrated telecommunications industry and where investors should look to find an investment edge, including:
- Telecom Industry Business Model & Diagram
- Key Telecom Metrics PLUS Visible Alpha’s Standardized Industry Metrics
- Available Comp Tables
- Industry KPI Terms & Definitions
Churn rate is the percentage of subscribers who discontinue or do not renew their subscription. Churn is calculated as the number of disconnected subscribers divided by the number of beginning subscribers. Churn rate measures service efficiency.
Disconnects are the number of subscribers who discontinue or drop service over a given period.
Gross additions are a client volume factor measuring the actual number of total new subscribers added before subtracting disconnects for a given period.
Net additions measure the volume of net subscribers left after subtracting disconnects from gross additions.
Ending subscribers represents the number of subscribers a company has at the end of the period, which reflects the net additions to existing subscribers over a given period.
Average subscribers is the average number of subscribers in a period. This number is often calculated by taking the average of beginning and ending subscribers of a period.
Average Revenue Per User (ARPU)
For telecom companies, ARPU is the average monthly revenue that a company receives per user. ARPUs are expressed as monthly or annual value and can be calculated as total revenue divided by the average number of subscribers for a particular period. ARPU is a unit pricing factor.
Postpaid is the service/plan type for which billing is generated after the service is delivered. Postpaid clients generally deliver higher ARPUs, higher margins and a lower churn rate.
Customers of prepaid services/plans, pay upfront and in advance of using the service typically resulting in upfront payments and recharges. The prepaid business generally has lower ARPUs and higher churn rates.
EBITDA (earning before interest, tax and depreciation) margin measures a company’s operating profit (before depreciation) as a percentage of revenue.
Capex to Sales
Capex to sales measures how much capital expenditures incurred as percentage of sales (revenue). In telecommunications, most of the capital expenditure is in terms of spectrum charges and network development.
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