VCs perspective on Telecom investments 18308 Adi Gan

1
VCs perspective on Telecom investments 18/3/08
Adi Gan
2
Slowdown In Technology Investment?

• Technology investment, as a percentage of total
  VC investments, has declined
• Roughly 10B decline between the two periods

3
Negative US VC Sentiment Towards Telecom
Investments?

• Shift from Telecom Carrier Equipment, Enterprise
  Equipment, and Semiconductor to Internet and
  Consumer Products

4
Worldwide Telecom Revenues
5
Worldwide Telecom Spending Forecast
CAPX (B)
IDCs Worldwide Telecom Spending 20072011
Forecast Worldwide Telecom Black Book, 2007
6
Yet, Communication Technology Is Very Attractive

• Total investment in Communication Technology is
  second after Software
• It might be the right time to look for
  opportunities

7
So, Which Communication Technologies Are VCs
Investing In?

• The hyped areas are clearly Video on the Network
  and NGN Wireless Services.
• The areas that have not recovered from the
  telecom bust are Optical Networking and
  Components

8
Media and Content Revolution
Limited selection location
Initial mobility
Anywhere
Anytime
My Digital Media
9
Technologies Involved
Consumer Electronics Technologies
Internet Applications and Technologies
Home Networking Technologies
Broadband Video Infrastructure
10
(No Transcript)
11
So Where Do Opportunities Lie In Next Generation
Networks ?

• Content Distribution
• Wireless Broad Band
• Backhaul
• Value Added Services
• Better Efficiencies

12
How Are VCs Looking At New Communication
Investments?

• Cost till Alpha and GA
• Competition with the large integrators
• Total investment required
• Exit potential
• Potential co investors

13
QA

• Thank you and good luck !