The battle in the telecoms industry for dominance has never been more vigorous and fierce. Mergers and acquisitions are expected to once again become the order of the day with almost all companies trying to increase their footprint in the global arena.

With the recession hitting global economies in 2008, times have been difficult for the telecoms industry to raise the funding necessary for growth and expansion, concurrent with the views of a report by the UN on the global telecoms industry. With a constant downward pressure on prices and a constant upward pressure on facilities demanded by mobile customers, telecom companies are finding it difficult to meet up to the customer expectations. In a report by Ericsson, the way of the future is described as 'free and cheap'. This environment of cut throat competition due to customer expectation is turning the telecoms industry into an increasingly volatile field.

In view of the present climate, it has become imperative for telecom companies to have a sound strategy with strong financials to deliver on the strategies. 'If you allow technology to take charge, you lose. That is the fundamental lesson here. User experience will always win', says one telecom company. It will be those companies who successfully align their strategy with the demands of their customers that will survive and dominate in the end.

How the future will play remains to be seen, but for a telecoms company, it is given that technology will play a dominant role in its development and the development of the market as a whole. From 2G to 3G and 4G, technology has been on the edge of its seat and is always inching for more, enabling a wide array of applications to run on mobile devices. 'Creative destruction', as Schumpeter, a famous economist and a political scientist aptly put it, describes the innovation in the telecoms industry.

This report is the latest in an annual series of reports documenting Vodafone and its market position. In this report, Vodafone's position is comprehensively contrasted against 3 of its principal rivals on a global scale, namely Telefonica-O2, France Telecom/Orange and Hutchison Whampoa (mainly through its H3G Group and HTIL businesses).

Strength in strategy versus sound financial management or both?

Strategic perspective is what is said to give direction and strength to a company's operations, its vision for the future, its investments and its performance in the financial markets.

While strategic management is important, financial management to carry on the strategic objectives of a company is equally important. The flow of analysis in this report involves comprehensive analysis of each company's strategy and then moves on to their financial management performance. This has been done keeping in mind that a strategically sound company also needs a sound financial management.

The report first applies this analytical framework to Vodafone, and then to France Telecom, Telefonica and HWL. The analysis of each company takes into account how the history of each company plays the most important role in the development of strategy.

Leading on, the strategic analysis of all these companies is carried out followed by ratio analysis of the operations of each of the companies in question.

Finally, a comparison is made between the four companies as to which company is better suited to tackle future developments in the telecommunications industry.

Additional financial analysis has been carried out in the end in order to provide a comprehensive view of each of the company's performance in the stock market and what interested investors can expect to gain by investing in these four companies. The approach to this analysis is done in with the principles of value investing, an approach followed by legendary investor Mr. Warren Buffett.

This report gives a concise view of the four companies which will enable a reader to understand the companies and also the telecommunications industry in general and how both are going to play out in the future.

Who should read this report?

This is a unique, independent analysis and includes primary research. Inferences have been drawn from trusted sources to help the process of analysis when required. It is expected that the report will prove beneficial to decision making personnel in telecoms companies or investor.

Companies in focus

This report analyses which, among the four companies, has a better chance of being one of those telecom companies that will lead the way into future generations. Views on stock market performance, financial management and capability of higher management of the four companies will be analyzed in detail because these indicators would give a comprehensive idea about their potential in strategy fulfillment.

Though these four companies are direct competitors in very few markets, the best known being the UK, it can be deduced from their growth strategies that they will soon become direct competitors in many markets in years to come. Taking this into account, this report is a comprehensive insight into the global telecom market.

Why you need to order this report today:
Mobile Operators - Learn what issues face the leaders in the telecommunications industry, and gain insight into the developmental issues facing them. Learn how to mitigate problems that might arise in a scenario where expansion is the key.

Institutional investors - Gain insights into the four companies covered and view an analysis done with the principles of value investing. Gain insights into the complete financial ratio analysis of the four companies.

Who needs to read this report?
Directors, VP and Senior managers in:
• Mobile/Cellular carriers and operators
• Mobile handset manufacturers
• Institutional Investors
• Analysts
• Mobile applications developers and engineers
• Mobile advertisers/marketers
• Mobile web content players

CHAPTER 1 INTRODUCTION
1.1 GLOBAL SCENARIO OF THE TELECOMMUNICATIONS INDUSTRY
1.2 COMPANIES IN FOCUS
CHAPTER 2 ANALYSIS OF VODAFONE
2.1 COMPANY OVERVIEW
FIGURE: GLOBAL FOOTPRINT

2.2 HISTORY
2.2.1 EARLY HISTORY
2.2.2 BECOMING A GENUINE GLOBAL PLAYER
2.2.3 NOT PLAYING BY THE RULES
2.2.4 VODAFONE GETS TRULY GLOBAL
2.2.5 MERGERS & ACQUISITIONS ON A SPREE
2.2.6 VODAFONE BRINGS COLOUR TO THE SCREEN
2.2.7 THE 3G TAKES CHARGE
2.2.8 END OF AN ERA: MANAGEMENT CHANGE
2.2.9 SOME DECISIONS COST DEAR
2.2.10 EMBARKING ON TECHNOLOGY AND EMERGING MARKETS
2.2.11 THE SMARTPHONE ERA
2.2.12 CONSOLIDATION FOR STABLITY

2.3 MILESTONES TIMELINE

2.4 STRATEGY
2.4.1 1990- 2008: GROWTH, CONSOLIDATION, CHANGE
2.4.1.1 TAKING ON THE WORLD
2.4.1.2 GROWING CAUTIOUSLY
2.4.1.3 RAGING IN AGAIN
FIGURE: A CYCLICAL CHANGE IN VODAFONES STRATEGY
2.4.2 2008- PRESENT: BALANCED STRATEGY
FIGURE: 2008 BALANCED STRATEGY
2.4.3 FUTURE DEVELOPMENTS IN STRATEGY

2.5 FINANCIAL PERFORMANCE- PAST 5 YEARS

2.6 FINANCIAL RATIO ANALYSIS
2.6.1 WHAT'S THE BOTTOM LINE? ANALYSIS OF VODAFONE'S PROFITABILITY
CHART 1: REVENUE TREND- PAST 5 YEARS
CHART 2: PROFIT MARGIN TREND- PAST 5 YEARS
CHART 3:OPERATING PROFIT TREND WITH IMPAIRMENT LOSSES- PAST 5 YEARS
CHART 4:OPERATING PROFIT TREND WITHOUT IMPAIRMENT LOSSES- PAST 5 YEARS
2.6.2 THE PROFITABILITY- SHARE PRICE CORRELATION
CHART 5:EPS TREND- PAST 5 YEARS
CHART 6:SHARE PRICE TREND- PAST 5 YEARS
2.6.3 CUSTOMER GROWTH: ARPU, CUSTOMER BASE
CHART 7: NUMBER OF CUSTOMERS TREND- PAST 5 YEARS
CHART 8: ARPU TREND- PAST 5 YEARS
2.6.4 HOW THIN IS THE CHEESE? ANALYSIS OF VODAFONE'S EFFECIENCY
CHART 9: TOTAL ASSET TURNOVER- PAST 5 YEARS TREND
CHART 10: FIXED ASSET TURNOVER- PAST 5 YEARS TREND
2.6.5 CAN VODAFONE PAY THE BILLS? LIQUIDITY ANALYSIS OF VODAFONE
CHART 11: CURRENT RATIO- PAST 5 YEARS TREND
CHART 12: INTEREST COVER RATIO- PAST 5 YEARS TREND
2.6.6 SHAREHOLDERS RULE: RETURN ON EQUITY
CHART 13:RETURN ON EQUITY TREND- PAST 5 YEARS
2.6.7 SOURCE OF FINANCING: DEBT OR EQUITY?
CHART 14:GEARING RATIO TREND- PAST 5 YEARS
2.6.8 CASH IS KING: CASH FLOW ANALYSIS OF VODAFONE
CHART 15:OPERATING CASH FLOW TREND- PAST 5 YEARS
CHART 16 :NET CASH FLOW TREND- PAST 5 YEARS
2.6.9 A BIRDS EYE VIEW

2.7 A SILVER LINING IN ITS STRATEGY
2.7.1 MARKET FORECAST OF INDIA
CHART 17: INDIAN MOBILE MARKET FORECAST TILL 2015

2.8 KEY POINTS OF THE ANALYSIS
CHAPTER 3 ANALYSIS OF FRANCE TELECOM
3.1 COMPANY OVERVIEW
FIGURE: GLOBAL FOOTPRINT

3.2 HISTORY
3.2.1 EARLY HISTORY
3.2.2 AN ERA OF CHANGE
3.2.3 RAPID DEVELOPMENT OF FRENCH TELECOM
3.2.4 DEAL WORTH A HIGH FUTURE VALUE

3.3 TIMELINE OF FRANCE TELECOM'S HISTORY

3.4 STRATEGY
3.4.1 MAIN DRIVERS
3.4.2 2006- 2008, THE NExT (NEW EXPERIENCE IN TELECOMS) STRATEGY.
3.4.3 FRANCE TELECOM'S SELECTIVE ACQUISITION STRATEGY
3.4.4 FRANCE TELECOM'S DEBT CRISIS
3.4.5 FROM FRANCE TELECOM TO ORANGE
3.4.6 STRATEGY 2012
FIGURE: FRANCE TELECOM'SORANGE 2012 STRATEGY
3.4.7 ORANGE- STAR PLAYER IN FRANCE TELECOM'S TEAM
FIGURE: POSITION OF ORANGE IN THE WORLD TELECOMS MARKET
FIGURE: ORANGE LABS
FIGURE: ORANGE GLOBAL REACH

3.5 FINANCIAL PERFORMANCE OF FRANCE TELECOM

3.6 FINANCIAL RATIO ANALYSIS
3.6.1 FRANCE TELECOM'S PROFITABILITY: MARGINS
CHART 18:REVENUE TREND- PAST 5 YEARS
CHART 19:PROFIT MARGIN TREND- PAST 5 YEARS
CHART 20:OPERATING PROFIT MARGIN TREND- PAST 5 YEARS
3.6.2 THE EARNINGS- SHARE PRICE CORRELATION
CHART 21:EPS TREND- PAST 5 YEARS
CHART 22:SHARE PRICE TREND- PAST 5 YEARS
CHART 23:EPS- SHARE PRICE CORRELATION- PAST 5 YEARS
3.6.3 FRANCE TELECOM'S CUSTOMER GROWTH: ARPU, CUSTOMER BASE
CHART 24:NUMBER OF CUSTOMERS TREND- PAST 5 YEARS
CHART 25: ARPU TREND- PAST 5 YEARS
3.6.4 FRANCE TELECOM'S OPERATIONAL EFFECIENCY: TURNOVER
CHART 26: TOTAL ASSET TURNOVER- PAST 5 YEARS TREND
CHART 27: FIXED ASSET TURNOVER- PAST 5 YEARS TREND
FIGURE: ORANGE 2012 STRATEGY
3.6.5 CAN FRANCE TELECOM PAY ITS BILLS? CURRENT RATIO, INTEREST COVER
CHART 28: CURRENT RATIO- PAST 5 YEARS TREND
CHART 29: INTEREST COVER RATIO- PAST 5 YEARS TREND
3.6.6 HOW HAS FRANCE TELECOM MANAGED SHAREHOLDERS FUNDS: RoE
CHART 30:RETURN ON EQUITY TREND- PAST 5 YEARS
3.6.7 SOURCE OF FINANCING
CHART 31:GEARING RATIO TREND- PAST 5 YEARS
3.6.8 CASH MANAGEMENT OF FRANCE TELECOM
CHART 32: CASH FLOW TREND (NET AND OPERATING)- PAST 5 YEARS
3.6.9 ON A WHOLE: FINANCIAL PERFORMANCE

3.7 FUTURE FOCUS
FIGURE: FUTURE FOCUS OF ORANGE
FIGURE: ORANGE KEY DATA
FIGURE: ENTERPRISE BUSINESS GLOBAL REACH

3.8 KEY POINTS

CHAPTER 4 ANALYSIS OF TELEFONICA
4.1 COMPANY OVERVIEW
FIGURE: GLOBAL FOOTPRINT

4.2 BACKGROUND
4.2.1 1924-1970: FIRST BASE WITH RAPID TECHNOLOGICAL DEVELOPMENT
4.2.2 1970-1990: GOVERNMENT REGULATIONS
4.2.3 1990-1998: SOUTH AMERICAN EXPANSION
4.2.4 LIBERALISATION
4.2.5 TELEFONICA: 21st CENTURY
4.2.6 O2

4.3 MILESTONES TIMELINE

4.4 STRATEGY
4.4.1 TILL 2005
FIGURE: STRAGEGY IN 2005
4.4.2 FURTHER DEVELOPMENTS
FIGURE: REVISED STRATEGY OF 2007
4.4.3 STRATEGY- FUTURE
FIGURE: VISION 2011
FIGURE: TRANSFORMANTION KEYS FOR DEVELOPMENT
FIGURE: REPTRAK REPUTATION MODEL

4.5 FINANCIAL PERFORMANCE- TELEFONICA

4.6 RATIO ANALYSIS
4.6.1 HOW MUCH PROFIT DOES TELEFONICA PRODUCE EACH YEAR?
CHART 33:REVENUE TREND- PAST 5 YEARS
CHART 34:PROFIT MARGIN TREND- PAST 5 YEARS
CHART 35:OPERATING PROFIT MARGIN TREND- PAST 5 YEARS
4.6.2 THE EARNINGS- SHARE PRICE CORRELATION
CHART 36:EPS TREND- PAST 5 YEARS
CHART 37:SHARE PRICE TREND- PAST 5 YEARS
CHART 38:EPS- SHARE PRICE CORRELATION- PAST 5 YEARS
4.6.3 REVENUE GENERATORS: CUSTOMERS
CHART 39:NUMBER OF CUSTOMERS TREND- PAST 5 YEARS
CHART 40: ARPU TREND- PAST 5 YEARS
4.6.4 OPERATING EFFECIENCY OF TELEFONICA
CHART 41: TOTAL ASSET TURNOVER- PAST 5 YEARS TREND
CHART 42: FIXED ASSET TURNOVER- PAST 5 YEARS TREND
4.6.5 HOW IS TELEFONICA PAYING IS BILLS EVERY YEAR?
CHART 43: CURRENT RATIO- PAST 5 YEARS TREND
CHART 44: INTEREST COVER RATIO- PAST 5 YEARS TREND
4.6.6 HOW IS TELEFONICA MANAGING THEIR SHAREHOLDERS MONEY
CHART 45:RETURN ON EQUITY TREND- PAST 5 YEARS
4.6.7 SOURCE OF FINANCING
CHART 46:GEARING RATIO TREND- PAST 5 YEARS
4.6.8 CASH FLOW ANALYSIS OF TELEFONICA
CHART 47: CASH FLOW TREND (NET AND OPERATING)- PAST 5 YEARS
4.6.9 A CONSISE VIEW

4.7 KEY POINTS

CHAPTER 5 ANALYSIS OF HUTCHISON WHAMPOA
5.1 COMPANY OVERVIEW

5.2 HISTORY
5.2.1 HTHKH- HUTCHISON TELECOMMUNICATIONS HONG KONG HOLDINGS LIMITED.
5.2.2 H3G
5.2.2.1 OVERVIEW
FIG: H3G GLOBAL FOOTPRINT
5.2.2.2 THE BEGINNING, 2000- 2005
5.2.2.3 H3G AND MOBILE 2.0
5.2.3 HTIL- HUTCHISON TELECOMMUNICATIONS INTERNATIONAL LIMITED
5.2.4 METRO BROADCAST CORPORATION LIMITED (METRO)

5.3 TOTAL TELECOMMUNICATIONS GLOBAL FOOTPRINT

5.4 MAJOR MILESTONES- TIMELINE
5.4.1 HTHKH
5.4.2 H3G
5.4.3 HTIL
5.4.4 METRO BROADCAST CORPORATION LIMITED (METRO)

5.5 STRATEGY
5.5.1 HTHKH
5.5.1.1 STRATEGIC OBJECTIVES OF HTHKH
FIGURE: HTHKH STRATEGIC OBJECTIVE
5.5.2 HTIL
FIGURE: HTIL GROWTH STRATEGY
5.5.2.1 GROWTH MECHANISM OF HTIL
5.5.3 H3G
5.5.3.1 BRINGING MOBILE 2.0 TO THE WORLD
5.5.3.2 MOBILE 2.0
5.5.4 METRO

5.6 FINANCIAL PERFORMANCE- GROUP AND SEGMENT
5.6.1 CONSIDERATIONS

5.7 RATIO ANALYSIS
5.7.1 REVENUES
CHART 48:REVENUE TREND (GROUP)- PAST 5 YEARS
CHART 49:RE