Telecom Services

SUMMARY

The global outlook series on Telecom Services provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a bird's eye view of the structure of the global Telecommunications Industry, and provides special primers on mobile communication, the wireless era, the opportunities boded by the liberalization of telecommunication services. Market sectors briefly summarized include Wireless Communication, Mobile Messaging, Data Transmission Services, Mobile Telephone Services, CDMA Cellular Telephone Services, GSM Services, Broadband Fixed Wireless Access Services and Residential Fixed-Wireline Communications, among others. The discussion on the global market is illustrated with 13 fact, and data rich tables, which measure select service/network technology categories by various parameters. The report also presents a crisp review of recent big-bang mergers and acquisitions, in addition to select noteworthy corporate developments. The US market is quantitatively analyzed with 17 information rich tables designed to provide the reader a statistical insight into the market. Other regional markets synopsized and researched include Canada, Mexico, Japan, Belgium, France, Germany, Kazakhstan, UK, Eastern Europe, Western Europe, Australia, China, India, South Korea, Taiwan, Thailand, Latin America, Argentina, Brazil, Puerto Rico, Middle East and Africa, among few others. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 367 companies worldwide.

TABLE OF CONTENTS

1. Overview 1

• Mobile communication industry 1
  • Table 1: Global Mobile Communication Market (2006): Percentage Breakdown of Mobile Data Revenues By Category - Messaging, Premium Messaging, Downloads, Browsing, Internet, Java, Music, Video Streaming and Mobile Payments 1
• Global Telecommunication Services Market 1
• Global Telecom Industry to Register Strong Growth Through 2013 2
  • Table 2: Global Telecom Industry Revenue by Services Category in US$ Billions for 2006 2
  • Table 3: Global Telecom Market (2006): Revenues in US$ Billion for Select Regions - North America, Europe, Asia-Pacific, Latin America, and Middle East/Africa 2
  • Table 4: Major Indicators of Global Telecom Market (2005) 3
• Wireless - The Fastest-Growing Segment 3
  • Table 5: Global Leading Markets for Wireless Communications by Number of New Subscribers in Millions for 2005 by Country - China, India, Indonesia, Russia, and United States 3
  • Table 6: World Market for Wireless Handsets by Technology -GSM, CDMA, 3G and Others Independently Analyzed with Annual Shipments in Thousand Units for Years 2003 through 2008 3
  • Table 7: World Market for Wireless Handsets by Geographic Region - Percentage Breakdown of Annual Sales Shipment Volume for the Years 2006 & 2008 for the United States, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Latin America, and Rest of World 4
• Mobile Instant Messaging 4
  • Table 8: World Market for Mobile Messaging Services by Type- Short Messaging Services, Multimedia Messaging Services, Mobile Email, and Others (Mobile Instant Messaging & Push-To-Talk) Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2005 through 2008 5
  • Table 9: Worldwide Mobile Messaging Services Market (2005-2009): Number of Wireless Instant Messages Sent Breakdown by Segment- Public IM and Enterprise IM (In Billion) 5
• Distribution Channels of Wireless Services 5
• Future Prospects in the International Market 5
• Liberalization of Telecommunications Services to Offer All-round Benefits 5
• Mergers Become Order of the Day in Telecom Services 6
• Telecom Mergers Expected to Resurge Job Market 7
• Wireless Services Overtake Long-Distance Services 7
• Global Mobile Subscribers 7
• Mobile Data Communications 7
• Mobile Messaging Technologies 8
• Short Messaging Services 8
  • Business Mobile Services Demand to Increase 8
  • The Impact of Value-Added Services on Mobile Usage 9
  • SMS Market Shows Less Prospects for Business Use 9
  • Boost for Remote Access 9
  • Role of Mobiles in Growth of Remote Access 9
  • Telecom Companies Seek Higher Growth Potential 9
• DSL Subscribers 10
  • Growth Rate in the Market 10
  • Leading DSL Subscribers 10
    • Table 10: Global DSL Subscribers by Geographic Region 2005Percentage Market Share for Europe, Latin America, North America, and Asia Pacific 10
    • Table 11: Global Digital Subscriber Line (DSL) Connections Per 100 Inhabitants: 2005 Connections for South Korea, Hong Kong, Taiwan, Canada, Denmark, Belgium, Germany, Sweden, Finland, and US 10
• Data Transmission Services 10
• Mobile Telephone Services 11
  • Growth Rate in the Market 11
  • Competition in Gulf Countries 11
  • Trends in the market 11
  • Impact of Liberalization 11
  • Lack of Foreign Investment 11
  • Mobile Penetration 11
    • Table 12: Global Mobile Telephone Service Subscriber Net additions by Country: 2005 in millions for China, Mexico, Brazil, Italy, Spain, Japan, Thailand, France, Philippines, UK, Turkey, Indonesia, and Other Countries 12
• Expansion Schemes in Fixed Line sector 12
• GSM Services 12
  • Growth Rate in the Market 12
  • Growth in Gulf Countries 13
  • Competition in Gulf Countries 13
  • Trends in the market 13
  • Innovations by GCC States 13
• CDMA Cellular Telephone Services 13
• Broadband Fixed Wireless Access Services 13
• Broadband & Dial Up Access 14
  • Table 13: Global Broadband & Dial up Access Penetration (Connections, Bandwidth, and Revenues): 2005 Percentage Market Share 14
• Residential Fixed-Wireline Communications 15
• UMTS Services 15
  • Leading Companies 15
  • Innovations in 3G Service 15
  • Leading Japanese Vendors 15

2. Mergers and Acquisitions 15

3. Strategic Corporate Developments 27

4. Product Launches 34

5. A North American Perspective 34

• Overview 34
  • Table 14: North American Market for Wireless Handsets (2005): Market Shares of Leading Vendors by Volumes Shipped for Motorola, LG, Nokia, Samsung, Kyocera, Sony Ericsson, Audiovox, and Others 34
  • Table 15: Telecom Industry in Canada (2006): Percentage Market Share by Leading Cellular/ PCS Operators - Aliant Mobility, Bell Wireless Alliance, MTS Mobility, Rogers Wireless, SaskTel Mobility, and TELUS Mobility 35
  • Table 16: Broadband Internet Connections Households in North America: Annual Estimates for 2003 through 2008 in Millions for DSL Service Subscribers and Cable Modem Subscribers 35

5a. United States 35

• Overview 35
• Growth Outlook 35
  • Table 17: US Mobile Content Revenue for Mobile Operators, Content Providers and Aggregators and Content Enablement Platform Providers in US$ Billion (2006-2010) 36
• Competitive Trends in Wireline Business Telecom Services 36
• Spending in the US Telecom Industry 36
• Market Structure 37
  • Table 18: Sales of Major United States Cellular Service Providers - Verizon, AT&T, Sprint Nextel, Qwest, Alltel and Nortel in US$ billions (2006) 37
  • Table 19: US Telecom Market (2005): Percentages of Household Penetration of Telecom and Related Services by Category 38
  • Table 20: US Telecom Market (2005): Revenues in US$ Billion for Leading Telecom Companies - Verizon, AT&T, Sprint Nextel, BellSouth, Qwest, and Nortel 38
• Broadband Services 38
  • Broadband Services through Cable Operators 38
  • Broadband Services through Local Exchange Carriers 38
  • Broadband Services through DSL Carriers 38
  • Broadband Satellite Communication Services 39
• High-Speed Internet Access Services 39
• Wireless Communications 39
• Wireless Communication Services 40
  • Table 21: Factors for Selecting Wireless Services by Users in the US: 2005 Percentage Breakdown for Complete Regional or National Coverage, Service Pricing, International Roaming Coverage, Wireless Internet and Data Services, and Handset Selection and Price 40
• Wireless Telephone Services 40
  • Table 22: Wireless Telephone Service Market in the US: 2005Percentage Market Share for Verizon, SBC/Bell South, AT&T/SBC, and Others 40
  • Table 23: Wireless Telephone Communications Service Market by Area in the US: 2005 Estimates for Chicago, Cleveland-Akron, Detroit, Los Angeles, Milwaukee, New York, and San Francisco-Oakland-San Jose 41
• DSL Services 41
  • Table 24: Digital Subscriber Lines Installed by Carriers in the US: 2005 in Thousands of for Bell Atlantic, BellSouth, GTE, SBC Communications, US West, Rhythms Net Connections, Northpoint Communications, and Covad 41
• Wi-Fi Services 41
• Cellular Telephone Services 42
• Mobile Subscribers 42
  • Table 25: Cellular Subscribers and Cellular Penetration Rate in Leading the US Metropolitan Cities: 2005 Breakdown for New York, Los Angeles, Chicago, Washington D.C.\ Baltimore, & Others 42
  • Table 26: Cell Phone Owners by Age Group in the US: 2005Percentage Breakdown 43
• Cable Telephones 43
• Competitive Local Exchange Carriers (CLECs) 43
  • Table 27: Leading Competitive Local Exchange Carriers (CLECs) by Volume of Fiber Optic Line Deployed in the US: 2005 in Route Miles for Level 3 Communications Inc., AT&T Local, Digital Teleport Inc ITC Deltacom Adelphia Business Solutions, Time Warner Telecom Inc., GST Telecommunications Inc., Electric Lightwave Inc., NTS Communications, CapRock Communications Corp., Cox Communications Inc. and ICG Communications Inc. 43
• An Insight into WAP Technology 44
• Voice Over Digital Subscriber Line Services 44
• SOHO Wireless LAN 44
  • Table 28: Small Office/Home Office (SOHO) Wireless Local Area Network Providers' Revenues in the US: 2005 Percentage Market Share for Linksys, Buffalo, D-Link, Netgear, Intel, Actiontec, SMC, 3Com, Avaya, Proxim, and Agere 44
• Ethernet Services 45
  • Table 29: Retail Ethernet Service Providers in the US: 2005Percentage Market Shares of Metro Ethernet Provider, RBOC, and IXC 45
• Residential Telecommunication Services 45
  • Table 30: Average Monthly Household Telephone Service Expenditure in the US: 2005in US$ for Local and Long Distance Telephone Service 45
• Mobile Roaming Services - An Insight 45
• Long Distance Telephone Services 45
  • Table 31: Long-Distance Telephone Service Companies' in the US: 2005 Percentage Market Share for AT&T/SBC, MCI/ Verizon, Verison, Sprint, SBC, Qwest, and BellSouth 46
  • Table 32: Long-Distance Telephone Service Companies in the Northeast US: 2005 Percentage Market Share for AT&T/SBC, Verizon, MCI/ Verizon, and Sprint 46
  • Table 33: Long-Distance Telephone Service Companies' Services in the Southwest US: 2005Percentage Market Share for AT&T/SBC, Verizon, MCI/ Verizon, and Sprint 46

5b. Canada 47

• An Overview of Wireless Communications Industry 47
• Canadian Wireless Market to Triple by 2010 47

5c. Mexico 47

• Overview 47
  • Table 34: Leading Telecom Companies in Mexico: 2005Percentage Market Shares of Telefonos de, Televisa GPO, and Telecom Carso 47
• Long-Distance Telephone Services 48
• DSL & Cable Lines 48

6. Japanese Perspective 48

• Mobile Messaging Services 49
  • Table 35: Japanese Market for Mobile Messaging Services by Type - Short Messaging Services, Multimedia Messaging Services, Mobile Email, and Others (Includes Mobile Instant Messaging & Push-To-Talk) Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2005 through 2008 49
• 3G Mobile Communication Services 49
  • Table 36: Mobile Phones Penetration in Japan: 2004- 2005 in Percentage 49

7. European Perspective 49

• Mobile Messaging Industry 49
• Mobile Subscribers 50
• Leading Service Providers 50
• Regional Subscriber Base & Market Hindrances 50
  • Table 37: European Telecom Market (2005): Revenues in Billions of Euros for Leading Companies - BT, Deutsche Telekom, France Telecom, Telecom Italia, and Telefonica (Spain) 50
  • Table 38: European Telecom Market (2005): Percentages of Broadband Penetration for Select EU Countries 51
  • Table 39: Broadband Communication Service (DSL and Cable Modem) Subscribers by Country in Europe: 2005 for Sweden, The Netherlands, Austria, Denmark, Belgium, Iceland Luxembourg, Germany, Switzerland, Finland, France, Portugal, Norway, Spain, UK, Hungary, Poland, Ireland, and Greece 51

7a. Belgium 52

• Overview 52

7b. France 52

• Overview 52

7c. Germany 52

• Mobile Communications 52
• Mobile Messaging Services 52
  • Table 40: German Mobile Telephony Market (2006): Percentage Market Share by Leading Players - E-Plus Mobilfunk, O2 Deutschland, T-Mobile, and Vodafone Deutschland 53

7d. Kazakhstan 53

• Overview 53

7e. United Kingdom 54

• Telecommunication Services 54
  • Table 41: UK Telecom Market (2005): Percentage Market Share by Major Cellular Operators - O2, Orange, 3UK, T-Mobile, Vodafone 2G, and Vodafone 3G 54
  • Table 42: UK Fixed Exchange Line Market Share for 2005 by Company - BT, ntl/Telewest, and Other Indirect/Direct Access 54
• Mobile Phone Market 55
  • Table 43: UK Market for Wireless Handsets by Technology - GSM, 3G and Others Independently Analyzed with Annual Shipments in Thousand Units for Years 2005 through 2008 55
• Mobile Phone Services 55
• DSL Services 55

7f. Eastern Europe 56

• Russian Market Trends 56
• Russian Mobile Market to Register Stupendous Growth 56
• Mobile Service Penetration 56
• Changes in Mobile Segment 56
  • Table 44: Telecom Industry in Bulgaria (2005): Percentage Market Share of Mobile Subscribers by Operator - GloBul, Mobikom, MobilTel, and Vivatel 57
  • Table 45: Telecom Industry in Lithuania (2005): Percentage Market Share of Mobile Subscribers by Operator - Bite Lietuva, Tele 2, Omnitel, and Others 57
  • Table 46: Hungarian Mobile Telecommunications Market (2005): Percentage Market Share by Operator - T-Mobile, Pannon GSM, and Vodafone 57
  • Table 47: Hungarian Fixed Line Telecom Market (2005): Percentage Share by Leading Companies - Emitel, Hungarotel, Invitel, Monortel, and MT 57

7g. Western Europe 58

• Leading Service Providers 58
• Market Trends 58
• Telecommunication Services 58
  • Table 48: West European Market for Wireless Handsets (2005): Market Shares of Leading Vendors by Volume for Nokia, Samsung, Motorola, Sony Ericsson, Siemens, Sagem, and Other 58
  • Table 49: Telecom Market in Italy (2006): Percentage Market Share of Leading Cellular Operators - 3Italia, TIM 3G, TIM GSM, Vadafone 3G, Vadafone GSM, and Wind 58

8. Asia-Pacific Perspective 59

• Overview 59
• Liberalization & Licensing Efforts 59
• Mobile Market & Impact 59
  • Table 50: Major Telecom Companies in Indonesia 59
  • Table 51: Major Indicators of Indonesia's Telecom Market (2005) 59
  • Table 52: Major Indicators of New Zealand's Telecom Market (2005) 60
  • Table 53: Major Indicators of Malaysia's Telecom Market (2005) 60
  • Table 54: Vietnam's Telecom Market (2006): Revenues in US$ Million for Select Companies - VNPT, Viettel, SPT, EVN Telecom, Vishipel, and Hanoi Telecom 60
  • Table 55: Vietnam's Telecom Market (2006): Number of Subscribers in Million for Select Companies - VNPT, Viettel, SPT, and EVN Telecom 60
  • Table 56: Leading telecommunications operators by mobile communications revenues in Asia: Annual Market Estimate for 2005 in Billions of US$ for China Mobile, NTT DoCoMo, SK Telecom, Unicom, J-Phone Group and Others 61
• An Overview of Cellular Telephone Services 61
  • Wireless Subscribers 61
  • Mobile Messaging Services 61
    • Table 57: Asia-Pacific Market for Mobile Messaging Services by Type - Short Messaging Services, Multimedia Messaging Services, Mobile Email, and Others (Includes Mobile Instant Messaging & Push-To-Talk) Markets Independently Analyzed with Annual Revenues in US$ Million for Years 2005 through 2008 62
    • Table 58: Mobile Messaging Market in Asia Pacific: Percentage of Average Revenue Per User in Select Regions - China, Hong Kong, Taiwan, Australia, South Korea and Singapore 62
    • Table 59: MMS Market in Asia-Pacific (2002-2008): Percentage Breakdown of Growth in MMS Users in Select Countries- India, Hong Kong, South Korea, Australia, Taiwan, Philippines, Singapore, and PRC 62
• Broadband Services 63
  • Leading Broadband Service Providers 63
  • Factors Affecting the Broadband Market 63

8a. Australia 63

• An Overview 63
  • Fixed-Line Service Market Position 63
  • Telecom Competency Bill Draft 63
  • Ownership Reforms & Government Trials 63
  • Telecom Operator's Market Stand 63
  • Trade Practices Exemption & Australian Subscriber Base 64
  • 3G Services' Marketplace 64
  • 3G Technologies Impact 64
  • Operator Programs 64
  • Subscriber Growth & SMS Significance 64
    • Table 60: Major Indicators of Australian Telecom Market (2005) 65

8b. China 65

• Market Participants Compete Hard 65
• Fixed-Line & Mobile Communications 65
  • Table 61: Chinese Phone Users (in Millions) by Type - Mobile and Fixed-Line (2004-2006) 65
  • Table 62: Chinese Sales of 3G Value Added Services (2006-2010) in US$ Billions 66
  • Table 63: Major Indicators of China's Telecom Market (2005) 66
  • Table 64: China's Telecom Service Market (2005): Percentage Market Share by Revenues of Select Companies - China Mobile, China Netcom, China Telecom. China Tietong, and China Unicom 67
  • Table 65: Chinese Telecom Market (2006): Percentage Market Share by GSM/CDMA Operator 67
  • Table 66: Chinese Market for Wireless Handsets (2005): Market Shares of Leading Players by Volume for Nokia, Motorola, Samsung, Bird, Sony Ericsson, Lenovo, Amoi, TCL, and Others 67
  • Table 67: Chinese Market for GSM Handsets (2005): Market Shares of Leading Players by Value for Nokia, Motorola, Samsung, Bird, Sony Ericsson, Amoi, Lenovo, TCL, and Others 67
  • Table 68: Chinese Market for CDMA Handsets (2005): Market Shares of Leading Players by Value for Samsung, LG, Motorola, Hisense, Nokia, Daxian, Kyocera, and Others 68
• Fixed-Line Operators to Enter Mobile market 68
• Market Trends 68

8c. India 68

• Overview 68
• Indian Telecom Sector Perspective 69
• Mobile, Fixed-Line Telephone and Internet Subscribers 69
• Mobile Phone Services 70
  • Table 69: Indian Cellular Market (2006): Percentage Market Share by Leading Players - Airtel, Bharti, BPL, BSNL, Hutchison, IDEA Cellular, MTNL, Reliance Telecom, Spice, and Others 70
  • Table 70: Indian Market for GSM Handsets (2005): Market Shares of Leading Players by Volume for Nokia, Motorola, Samsung, Sony Ericsson, LG, and Others 70
  • Table 71: Indian Market for CDMA Handsets (2005): Market Shares of Leading Players by Value for LG, Nokia, Samsung, Motorola, Kyocera, and Others 71
  • Table 72: Indian Telecom Market (2006): Percentage Market Share of Fixed-line Operators -BSNL, MTNL, and Private Operators 71
  • Table 73: Indian Internet Service Providers (ISPs) Market (2006): Percentage Market Share of Leading Players - Bharti Infotel, BSNL, Data Infosys, MTNL, Reliance, Sify, VSNL, and Others 71
  • Table 74: Indian Telecom Market (2006): Percentage Share for Leading Companies by GSM Network - Bharti, BSNL, Idea, Reliance, Tata, and Other 71

8d. South Korea 72

• Overview 72

8e. Taiwan 72

• Overview 72
  • Table 75: Cellular Telephone Service (GSM) Subscribers by Operator in Taiwan: 2005 in Thousands for CHT, TCC, Far EasTone, KGT, and Mobitai 72

8f. Thailand 72

• Overview 72

9. Latin American Perspective 73

• Wireless Subscription Growth 73
• Performance of Leading Companies 73
• Wireless Penetration 74
  • Table 76: Wireless Penetration in Select Countries in Latin America (2005): Penetration Rates in Chile, Argentina, Colombia, Brazil, Venezuela, and Mexico 74
  • Table 77: Latin American Market for Wireless Handsets (2005): Market Shares of Leading Players by Volume for Nokia, Motorola, Siemens, Samsung, Sony Ericsson, LG, and Others 75
• Foreign Investments 75
• Cubas Telecom Industry Remains Low 75
• Economic Recovery Fuels Industry Growth Dominican Republic 76
• Mobile Communication Services 76
• Broadband Communication Services 76

9a. Argentina 76

• Major Companies Driving the Market 76
• Changes in Mobile Communications 76
• Economic Changes 77
• Countries Contributing for Rapid Growth 77

9b. Brazil 77

• An Overview 77
  • Expansion of Networks 77
  • Growth in Mobile Communications 77
    • Table 78: Brazilian Telecom Industry (2005): Percentage Market Share of Leading Cellular/ PCS Operators - BrT GSM, Telecom Americas (Claro), Telemar (Oi), Telpart, TIM Brasil, VIVO, and Others 77
    • Table 79: Brazilian Telecom Industry (2005): Percentage Market Share of Leading Broadband Service Providers - Brasil Telecom, Net Servicos, TELESP, Telemar, and Others 78

9c. Puerto Rico 78

• An Overview 78
• Wireless Services in Puerto Rico 78

10. Middle East & Africa 78

• African Mobile Communications Market - An Overview 78
• Debt Capital to Propel Mid-East and African Telecom Sector 79
• Mobile Services Market in Nigeria and Libya 79
• Egypt Telecom Market - A Huge Potential Ahead 79
• Trends in Telecom Market 80
• Changes in the Sector due to Liberalization 80
  • Table 80: Middle East Telecom Market (2005): Population, Total Number of Fixed Lines in Millions by Select Countries 80
  • Table 81: Middle East Telecom Market (2005): Number of GSM Subscribers in Millions by Select Countries 81
  • Table 82: Middle East Telecom Market (2005): Number of Internet Users in Millions by Select Countries 81
  • Table 83: Telecommunications Market in Egypt (2005): Percentage Share by Category - GSM, Fixed, Hardware/ Software, and Services 82
• Saudi Arabian Broadband Internet Market to Witness Encouraging Growth 82
• Wireless Communications 82
  • Wireless Communication Operators 82
  • Role of Foreign Investment in the Middle East and Africa 82