Philip Marshall, Ph.D., is Senior Research Fellow, Technology Research at Yankee Group. He conducts telecom technology research, arming clients with the knowledge and tools to capitalize on the global connectivity change. He is focused on the service providers’ and vendors’ perspectives to investigate market and service opportunities and trends for connectivity systems. Dr. Marshall joined Yankee Group in 2000, holding various roles including managing Yankee Group’s technology research.
Over the last couple of years I have been focused on identifying sustainable
business models for communication service providers.
As part of this analysis I have investigated the return on invested capital
(ROIC) as a ratio of weighted average cost of capital (WACC) for a variety of
service providers globally.
The Exhibit below summarizes the results for several Tier 1 service
providers. For the sake of comparison I included companies that are not
telecom providers, including Walmart, Procter and Gamble, RIM and Nokia and
Visa. The WACC essentially represents the minimum rate of return that a
company must achieve before it creates value for equity and debt holders.
In cases where the ratio of ROIC to WACC is less than one, we are essentially
seeing capital value erosion. A variety of household names including Verizon,
Vodafone, Comcast and Deutshe Telecom fall below the... (more)
Philip Marshall, Ph.D., is Senior Research Fellow, Technology Research at Yankee Group. He conducts telecom technology research, arming clients with the knowledge and tools to capitalize on the global connectivity change. He is focused on the service providers’ and vendors’ perspectives to investigate market and service opportunities and trends for connectivity systems. Dr. Marshall joined Yankee Group in 2000, holding various roles including managing Yankee Group’s technology research.
Sue Poremba
Scott Sellers
Anthony Franco
Daniel Morris
Wayne Walls
Niki Acosta
Jereme Hancock
Oren Michels
Marvin Wheeler
Douglas Kim
