Research Notes

Strand Consult launches new free service exclusively for financial analysts. How does regulation impact telecom operators’ ability to invest and profit?

For more than 20 years Strand Consult has analyzed the telecom market and has advised its clients on how to navigate in an increasingly complex world. Over the years, we have built a team of experts who not only understand the operational part of the industry, but its policy and regulation. Ten years ago public affairs accounted for just 5-10% of a CEO’s time; today the amount is 25-40%, and in periods, even more.

Strand Consult now launches now a free conference call service for financial analysts covering the telecom industry. The goal is lift analysts’ knowledge level of how the various policy and regulatory measures affect firms’ willingness to invest and profit in the future. This will help financial analysts be more informed when they interview the companies they cover.

In practical terms Strand Consult works with telecom companies worldwide, primarily with senior management and boards of directors to deliver expert knowledge. Increasing our discussions focus on how political and regulatory actions affect the industry. See our many research notes documenting how measures such as roaming, rejected mergers, net neutrality, and other measures impact the industry’s ability to increase shareholder value.

Strand Consult observes a gulf between the financial community and officials within the telecom operation in how they understand and assess the impact of regulation. Those in the functions of investor relations, public affairs, and senior leadership have different perspectives and financial analysts may get different stories depending on who they talk to. There are also cultural differences between operators. For example American operators are more inclined to sue authorities over disagreements whereas in the EU, this happens to a lesser degree.  Strand Consult will help financial analysts gather these multiple perspectives to get the full picture of the role of regulation. 

Over the last few years, financial analysts have grown increasingly interested in telecom operators’ regulatory challenges. It is clear that they see how regulation will impact an operator’s ability to invest and its profitability for shareholders. Financial analysts desire to know more about this area, ask critical questions, and improve their assessments for investors. Moreover financial analysts take a greater role in communicating their views to governments, particularly as they see how regulation impacts investments and their likelihood to invest in a given country.

Strand Consult will hold its first call for financial analysts on Friday, February 17, 2017 at 15:00 CET (10 AM EST) for 30 minutes. The topic will be “How we think the political change in the United States and the new Presidential administration will affect regulation in the US, EU and other parts of the world”. Strand Consult will make remarks and then answer participant questions. See a related research note for the topic. Many speculate on the future of US telecom policy. See Strand Consult’s comments on the festive rumors from a number of media.

Participation on the call is limited to financial analysts covering the telecom industry. To join, please complete the information in this link.

If you are a telecom operator and would like more information about how regulation impacts the industry, contact us and learn about our “Executive workshops for Top Management and Board Members in the mobile and telecom industry

Best regards,
John Strand

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