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Telecom brand values grow globally, driven by maturity of new tech, study
U.S. based brand Verizon remains the world’s most valuable telecoms brand for the 4th consecutive year despite a 3% year-on-year reduction taking its brand value to US$67.4 billion.
Every year, leading brand valuation consultancy Brand Finance puts thousands of the world’s biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 150 most valuable and strongest brands in the telecoms industry are included in the annual Brand Finance Telecoms 150 2023 ranking.
Following a pandemic-led boom in wireless internet demand, Verizon has lost subscribers to fast-growing rivals in the telecoms industry in 2022, contributing to its slight brand value decrease. Verizon’s 5G network will be the brand’s primary focus going forward.
On top of this, wireless mobility and nationwide broadband are set to be two of the most significant contributors to its planned growth in 2023. It is focusing on innovation, continued investment, and the incorporation of advanced technology deployment to provide a better offering to consumers, businesses, and the public sector alike.
Deutsche Telekom (brand value up 5% to US$62.9 billion) is again both the 2nd most valuable telecoms brand globally and Europe’s most valuable brand. This impressive performance comes partly as a result of the brand’s strong organic revenue growth within European markets, with customer numbers growing at a steady rate across the board. However, the brand’s value has grown substantially in connection with its record customer additions in the United States.
Swiss full-service provider, Sunrise, is the fastest growing telecoms brand in the ranking after a 68% brand value increase took it to US$1.8 billion. This comes off the back of a successful merger with Switzerland’s largest cable operator, UPC, in 2021. As part of a brand refresh, Sunrise has also introduced a new brand design and logo. It has also launched the Sunrise Business brand, strengthening its identification with and positioning within the business customer segment.
U.S based brand Optimum followed closely behind as the second fastest growing brand with a 67% increase to a brand value of US$2.5 billion after a similarly successful merger. The brand merged with Suddenlink in 2022 and has combined all of the company’s telecommunications goods under a single name. In combination with this, it also launched a new nationwide brand campaign, “Get Closer, Go Farther”. This emphasises its promise to bring customers closer together with Optimum products and services.
Lorenzo Coruzzi, Senior Consultant, Brand Finance: “Both outlined mergers and subsequent brand-refreshes highlight two examples of the benefit for brands of adjusting their brand architecture and combining two or more weaker brands under a more distinct and consolidated master-brand. This indicates significant brand value potential to be unlocked by other such brands operating under an unconsolidated brand architecture.”
As part of Brand Finance’s analysis, research is conducted into the role of specific brand attributes in driving overall brand value. One such attribute, growing rapidly in its significance, is sustainability. Brand Finance assesses how sustainable specific brands are perceived to be, represented by a ‘Sustainability Perceptions Score’. The value that is linked to sustainability perceptions, the ‘Sustainability Perceptions Value’, is then calculated for each brand.
Kenyan telecoms brand, Safaricom (brand value up 3% to US$709 million) is perceived to be the world’s most sustainable telecoms brand, with an impressive Sustainability Perception Score of 6.46 out of 10.
As well as being the world’s most valuable telecoms brand, Verizon also has the highest Sustainability Perceptions Value, estimated at US$5.8 billion.
While its position at the top of the table is not an assessment of its overall sustainability performance, it indicates how much brand value Verizon has tied up in sustainability perception. Brand Finance’s research finds that consumers around the world perceive that Verizon is minimising its negative impacts, reflected in Verizon’s top ranking in this area.
