Mobile connection aggregation provider analysis for NTTDoCoMo

LONDON, March 25, 2015 /PRNewswire/ -- All 4 companies under the study provided various types of mobile aggregation services and some of them use M&A for quick adaptation of emerging service and market, for example:
Syniverse bought BSG to strengthen her position in the financial clearing service. The company also bought the HK base Interactive Technology Holdings for the expansion of interoperability & number portability business in Asia Pacific. Sybase (main business used to be selling applications to enterprises) bought Mobile365 (rebrand as Sybase 365 after the takeover) for an instance access into the mobile message aggregation business.

All 4 companies provide different levels of mobile aggregation services because:
Mobile carriers' need for one stop solution over mobile aggregation service is expected to increase. CITIC 1616, the Hong Kong based company, do not have the "financial clearing" service yet which may weaken their competitiveness in her home Asia market. Aggregators can diversify their business risk from being too focused on a few or too
niche services.

All 4 companies under the study seems do not have mobile carrier as shareholder. However, investment fund seems quite interested in these companies / the industry
propspect. Listed in NYSE, over 40% of Sybase 365's share are hold by at least 10 investment or asset management fund. Private company MACH, is owned by the private equity firm Warburg Pincus. From the various M&A activities done and also the interviews with the industry associations, the associations seems to adapt minimal interfere policy over M&A activities. The association (GSMA) may express their concerns to the related parties for any M&A that seems to harm the industry development.

- In NYSE main board (parent company, Sybase Inc.)
Listed - In NYSE main board - Not listed - In HKSE company
- Asia HQ in Singapore
- Other Asian offices in:
- Australia (Sydney)
- China (Beijing, Guangzhou)
- Hong Kong
- India (Mumbai, New Delhi)
- Malaysia (Kuala Lumpur)
- Taiwan (Taipei)
- South Korea (Seoul)
- Key local Asian Pacific clients:
- KT Freetel
- LG Dacom
- HQ in Hong Kong
- No offices outside
Hong Kong
- Key local Asian Pacific clients:
-China Mobile
-China Unicom
-Viettel (Vietnam Telecom)
- Asia HQ in Singapore
- Other Asian offices in:
- Hong Kong
- Key local Asian
Pacific clients:
- SingTel
- Mobile One
- Taiwan Mobile
- Asia HQ in Hong Kong
- Other Asian offices in:
- China (Beijing)
- Singapore
- Japan (Tokyo)
- Key local Asian Pacific clients:
- Hutchison Telecoms
- SingTel
Asian
Pacific
Operation
- In 2014 US$137M
- Asia: 60%
- Europe, North America, South America: 40%
- Washington DC, US
Sybase 365
- In 2007: US$190M
- Asia: nearly 100%
- China: 46.5%
- In 2007: US$150M
- Unknown regional split
- In 2007: US$377.5M
- Asia: 11%
- Europe, Africa, South America: 9%
- North America 80%
Revenue by region:
Base - Florida, US - Luxembourg - Hong Kong
country
Company Syniverse Technologies MACH CITIC 1616

- About 120 carrier clients
- Customer relationship is built by regular client visiting, joining trade shows, and holding workshops
- US$136.5 million
- SMS and MMS interoperability services including connection, data clearing, and financial clearing, accounted for about 50% of 2007's total revenue
- Majority of revenue comes from Asia Pacific customers, accounted for around 60% of 2007's total revenue Sybase 365
- About 1,147 clients including 261 carriers and 886 enterprise customers (for VPN service)
- Customer relationship is built by regular client visiting
- Over 400 clients, all are fixed or mobile carriers
- Customer relationship is built by regular client visiting, establishing 24-hour client supporting team, and holding user meetings
- About 580 clients, over 90% of its customers is fixed or mobile carriers, Verizon is the largest among
- Customer relationship is built by regularly client visiting, establishing a user group for invited clients, and attending industry associations' activities
Relationship with clients
- Around US$190 million, growth rate: 8.9%
- Around US$150 million
- US$377.5 million for 2007, growth rate: 12.0%
Company revenue in 2007
- Voice and SMS interoperability services including connection, and data clearing, accounted for around 90% of 2007's total revenue
- Majority of revenue comes from China customers, accounted for 46.5% of 2007's total revenue
- Voice, SMS, and MMS services including connection, data and financial clearing, accounted for around 50% of 2007's total revenue
- Voice and message (SMS and MMS) interoperability service, including roaming, hubbing, data clearing, and financial clearing, accounted for nearly 50% of 2007's total revenue
- Majority of revenue comes from North America business, accounted for nearly 80% of 2007's total revenue

Core business
Company Syniverse Technologies MACH CITIC 1616
Name

- It offers mobile banking and payment solution, which is currently the market advantage to attract customers, and has good global mobile reaching with over 700 wireless carriers
- Increasing competitiveness of the industry in Asia Pacific region may threaten the advantage of it
- It has solid business relationship with China telecom carriers and knowledge of China market can attract customers who need to expand China business
- Threats from competitors who have the ability to provide more comprehensive one-stop solution.
- The claim of having 70% of globe financial clearing and 80% of Asia data and financial clearing service coverage is attractive customers
- Few offices and personnel located in Asia Pacific may weaken customers' confidence toward service support
- It has a wide range of interoperability services that can attract customers who pursue one-stop solution
- Fast growing business of other companies both in Asia Pacific and North America may threaten its business
Market positioning opportunity and threat
- It offers more diversified solutions for different client types and has more offices and larger portion of employees located in Asia Pacific
- It does not have voice interoperability service
- It understands the China telecom market and the demands of China customers, and has solid business relationship with China telecom carriers
- It does not have financial clearing service, which China customers show their growing demands
- Perception of strong R&D support by emphasized promotions of its R&D capability
- Not a listed company, which unclear financial status, and only 2 offices in Asia Pacific
- Solid and long-term business relationship with clients in North America and market advantage for the number portability service
- Focus on operator related services, but enterprise solution develop slowly
Market positioning strength and weakness
- Sybase Inc. acquired Mobile 365 to create Sybase 365 in Nov 2006
Sybase 365
- It acquired Silver Linkage Group in Dec 2007
- Merge between MACH and Cibernet in May 2007
- It acquired BSG wireless service in Dec 2007
Most recent M&A activities
Syniverse MACH CITIC 1616
Technologies
Company
Name

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