Among the biggest telecom industry stories this week was AT&T’s acquisition of DirecTV in a deal worth more than $48 billion. AT&T is again in the headlines as the world’s most valuable telecom brand, according to Millward Brown’s BrandZ ranking.
The new list reflects extensive diversification by leading providers into sectors such as banking, cloud services, and entertainment, including AT&T’s DirecTV purchase. Top performers are pulling ahead: the BrandZ Top 10 telecom brands rose 8% year-on-year, compared with a 1.3% gain for the rest of the industry.
BT recorded the largest increase, jumping 61% in brand value and entering the Top 10 for the first time. The UK operator is now valued at $15.4 billion and moved up 30 places to rank 64 among all global companies, not just telecoms.
The BrandZ Top 10 Most Valuable Telecom Brands 2014
| Rank 2014 | Brand | Brand Value 2014 ($M) | Brand Value Change | Rank 2013 |
|---|---|---|---|---|
| 1 | AT&T | 77,883 | +3% | 1 |
| 2 | Verizon | 63,460 | +20% | 3 |
| 3 | China Mobile | 49,899 | -10% | 2 |
| 4 | Vodafone | 36,277 | -9% | 4 |
| 5 | Deutsche Telekom | 28,756 | +20% | 5 |
| 6 | Movistar | 20,809 | +56% | 7 |
| 7 | Orange | 15,580 | +13% | 6 |
| 8 | BT | 15,367 | +61% | NEW |
| 9 | MTS | 12,175 | +14% | 9 |
| 10 | MTN | 10,221 | -11% | 8 |
Like AT&T and Verizon, BT has benefited from the high margins and rapid growth in cloud services, which helped raise its brand value. Industry consolidation through mergers and acquisitions has also driven value gains for multiple operators. Vodafone, for example, has pursued acquisitions of cable operators in Spain and Germany to strengthen its position in Europe. However, Vodafone’s brand value fell about 9% to roughly $35.3 billion, a decline partly linked to the sale of its stake in Verizon in the United States.
Spain’s Movistar has grown strongly despite a weak domestic economy by launching bundled offers like Movistar Fusión, a single tariff that combines landline, mobile, broadband and pay-TV. Price-sensitive consumers seeking value helped Movistar sign up 2.5 million Fusión customers within a year, lifting its brand value 56% to around $20.1 billion.
Were you surprised by any of the brands in the Top 10? Share your thoughts in the comments.