Morgan Stanley Research analysts Emmet Kelly, Francois Meunier, Jean Abergel and Patrick Wellington discuss their outlook across technology, media and telecommunication for the TMT Conference taking place in Barcelona.
To discuss trends and innovations likely to dominate 2015, Morgan Stanley is hosting 180 companies and 800 investors in technology, telecoms and media in Barcelona on November 19 and 20, 2014. The firm's analysts highlight themes likely to emerge at the annual TMT Conference in the videos below.
Morgan Stanley European Telecoms Analyst Emmet Kelly sees meaningful opportunity for mobile carriers, as they upgrade wireless networks to technology and growth standards that are in the US market. Building out fledgling LTE and fiber networks and monetizing the data from those networks is one path to growth. Wireless consolidation through M&A, a trend already underway across the Continent, could also be accretive in some of Europe’s larger markets. After a year of industry contraction, these two factors suggest wireless trends are improving for European carriers.
Morgan Stanley European Technology Analyst Francois Meunier addresses a new cycle in technology, forming around semiconductors, the devices they power and the disruptive nature of mobile payments such devices make possible. He also explains how the network upgrade cycle and consolidation in the telecoms sector could be a boon for telecom equipment manufacturers. Efficiencies created from technology should allow corporate managers across industries to grow earnings, providing yet another tailwind for spending.
Morgan Stanley European Media Analyst Patrick Wellington breaks down the two trends driving the media sector: the inroads of digital advertising on traditional formats and the voracious demand for video. He discusses how content providers are well-positioned to fill the growing desire among distributors for more video and take advantage of a shift in video consumption patterns across devices, and how companies will put their cash piles to work. Despite a lack of high-profile events to leverage, expect advertising growth rates in the year ahead to be similar to the solid advances of 2014.
Morgan Stanley Co-Head of European Telecoms Jean Abergel highlights the unique characteristics of the highly fragmented, country-specific European media and telecom landscape, and how industry consolidation can create value through economies of scale. He also addresses the themes of fixed mobile convergence, where wireless carriers target cable operators, and the power of content to drive subscriber growth, retention and revenue.