Beg to differ, your statement is a sweeping generalisation not really applicable to telcos, and I quote some experts in that area to provide some edification :
“
Goodwill in the telecommunications industry often includes the following elements:
- Post-acquisition subscriber base development. Any post-acquisition subscriber growth that cannot be assigned to existing subscribers might only be captured in goodwill.
- Bundled offers (convergence synergy). The emergence of "quadruple-play" offers — bundles of fixed telephony, broadband internet, mobile telephony and TV — are likely to lead to gains in market share and average ARPU, and a reduction in churn rates. Mergers in the telecom sector tend to build on existing "triple-play" offers. As a result, goodwill may integrate the future benefits of bundled services.
- Access to powerful distribution networks. Acquiring an operator which owns sales outlets enables the acquirer to offer its services to a wider population.
- Geographical expansion. Winning new markets for the acquirer will enlarge its geographical coverage, and enhance its brand value.
- Buy vs. build. Acquiring a profitable business with a large, established network may lead to future growth, saving time and money that would have been required to build a similar network from scratch.
- Defensive strategy. Acquiring a competitor may enable the acquirer to reduce price wars in certain geographical areas, or to protect itself against acquisition by a larger operator.”
http://www.ey.com/gl/en/industries/...in-the-telecommunications-industry---goodwill
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