5G to finally take off in 2022
L
LOW RISK for entreprises
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Fragmentation
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Internationalization
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Capital Intensity
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Profitability
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Fragmentation
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Internationalization
-
Capital Intensity
-
Profitability
Updated in December 2021.
- Highly regulated, concentrated markets with generally predictable cash-flows and limited churn
- Generally high EBITDA margins (30-40%)
- Long-term trend of booming data use
- Resilience to periods of downturns in advanced economies
- Market maturity in advanced economies leads to strong price competition
- Highly capital intensive business (capex in the range of 10-20% of revenue)
- High leverage (net debt / EBITDA > 3) among a few large U.S. and European players
- Uncertainties related to the U.S.-China tensions, Huawei of China being the leader in 5G technologies
- Sensitivity to periods of downturns in emerging economies
Key players
Country | Role | Sector risk |
---|---|---|
United States |
#1 Market by revenue |
B
Medium risk |
China |
#2 Market by revenue |
B
Medium risk |
Japan |
#3 Market by revenue |
B
Medium risk |
United Kingdom |
#4 Market by revenue |
B
Medium risk |
Germany |
#5 Market by revenue |
A
Low risk |