Professional Documents
Culture Documents
Guide To Telecom
Guide To Telecom
TELECOM
SERVICES/EQUIPMENT
ASIA
Guide to Telecoms
Telecoms Made Easy
This report provides a general reference guide for investors wishing to better
understand telecom technology and the alphabet soup of acronyms used in the
industry. We have produced this reference book for both telecom specialists as
well as generalist investors who want an overview of the industry.
This guidebook is divided into different sectors including, telecommunications
technology, including cellular, mobile handsets, broadband, fiber optics, radio,
satellite, internet, fixed line, etc. In each section, we provide key terminology used
as well as easy to understand explanations of the technology that supports these
services. We also provide information about some of the key industry players for
each technology, including some market-share data.
Some of the questions answered in this report include:
What is the difference between the various 3G technologies WCDMA,
CDMA2000, and TD-SCDMA? Why is CDMA better than GSM?
What is an Erlang and how does it help to measure traffic on a wireless network?
Jeff Kvaal
(LBI, New York)
1212.526.2216
jkvaal@lehman.com
Stuart Jeffrey
(LBIE, London)
4420.7102.4709
sjeffrey@lehman.com
Analyst Certification
We, Paul Wuh, Stanley Yang,
Sundeep Bihani, Danny Chu and
Sachin Salgaonkar, hereby
certify (1) that the views
expressed in this research report
accurately reflect our personal
views about any or all of the
subject securities or issuers
referred to in this report and (2)
that no part of our compensation
was, is or will be directly or
indirectly related to the specific
recommendations or views
contained in this report.
Erratum
This report replaces the version published previously, which had incorrect page numbers in
the appendix. We apologize for any inconvenience caused.
Lehman Brothers does and seeks to do business with companies covered in its research reports. As a result, investors should be
aware that the firm may have a conflict of interest that could affect the objectivity of this report.
Investors should consider this report as only a single factor in making their investment decision.
With the exception of research analysts based in our Taiwan branch, Lehman Brothers research analysts based outside the United
States are employed by foreign affiliates and are generally not qualified as research analysts by the NYSE or the NASD.
PLEASE SEE IMPORTANT DISCLOSURES INCLUDING FOREIGN AFFILIATE DISCLOSURES BEGINNING ON PAGE 83
Guide to Telecoms
Table of Contents
Cellular Technology.......................................................................................... 3
Mobile phone network terminology ................................................................... 10
Mobile Phone Network Components ................................................................. 14
Handset and Related Terms ............................................................................. 18
Spectrum and Auctioning................................................................................. 25
Wireless Software Terminology......................................................................... 28
Terminology for Other Wireless Technologies ...................................................... 29
Broadband and Access Terminologies ............................................................... 37
Broadband and DSL Terminology...................................................................... 39
Cable TV & Video Terminology ........................................................................ 43
Fiber and Optical Component terminology ......................................................... 46
Radio & Satellite Communication Terminology ..................................................... 51
Wireline Enterprise Network Terminology ........................................................... 54
Enterprise Network Component Terminology ....................................................... 62
Carrier Network and Equipment Terminology ...................................................... 66
Internet-related Terminology.............................................................................. 69
Various Telecom Organization ......................................................................... 71
Appendix ..................................................................................................... 75
Sources for Data ......................................................................................... 75
Lehman Brothers Global Telecom Team ........................................................... 76
Index ........................................................................................................... 77
Guide to Telecoms
Cellular Technology
Figure 1: Worldwide wireless subscribers
Subscribers
2003A
2004A
2005A
2006A
2007E
2008E
2009E
2010E
551
445
124
172
90
1,382
20%
702
582
174
192
115
1,765
28%
887
719
241
218
188
2,253
28%
1,122
835
303
251
272
2,784
24%
1,377
911
362
275
357
3,282
18%
1,619
961
396
294
442
3,710
13%
1,848
997
425
309
530
4,109
11%
2,062
1,024
446
322
635
4,488
9%
40%
27%
40%
27%
39%
26%
40%
27%
42%
23%
44%
18%
45%
14%
46%
12%
Asia Pacific
Europe
South and Central America
North America
Middle East and Africa
World
Growth Rate
APAC % of total subs
Growth Rate
2003A
2004A
2005A
2006A
2007E
2008E
2009E
2010E
Asia Pacific
Europe
South and Central America
North America
Middle East and Africa
World
15.1%
51.1%
22.9%
53.3%
9.7%
21.9%
19.2%
66.8%
31.9%
58.9%
10.9%
27.7%
24.1%
82.3%
43.8%
66.5%
17.7%
34.9%
30.3%
95.6%
54.8%
75.8%
25.5%
42.7%
37.1%
104.2%
65.0%
82.2%
33.3%
49.7%
43.2%
109.7%
70.8%
87.1%
41.1%
55.6%
45.2%
111.3%
70.2%
89.5%
42.8%
60.9%
46.7%
112.6%
69.8%
91.1%
44.3%
65.7%
Advanced Mobile Phone Service (AMPS): AMPS is an analog mobile phone system that
was used in U.S. from the 1980s to early 2000s. It was usually used in the frequency
range 800 MHz and used FDMA technology. It is also known as first generation cellular
technology. Total Access Communication System (TACS) is the European equivalent of
AMPS. TACS used in Japan was named Japanese Total Access Communication (JTAC).
Personal Communications Service (PCS): The name given to digital cellular services that
operate at 1900-MHz in the United States. PCS systems in use are D-AMPS, GSM and
CDMA.
Personal Access System (PAS): A limited mobility mobile network operating at 1900
MHz that is deployed in China. It is also known as Xiaolingtong in China. The number of
PAS subscribers in China is trending down as GSM and CDMA mobile phone service
pricing becomes more affordable.
Personal Digital Cellular (PDC): A second-generation digital cellular standard developed
in Japan that operates on the 800MHz and 1,500MHz frequency bands. It was
developed by DoCoMo and is incompatible with wireless networks outside of Japan.
Guide to Telecoms
Global System for Mobile Communications (GSM): This is currently the most popular
digital standard for mobile phones in the world. The GSM service is used by over 2
billion subscribers across more than 212 countries.
General Packet Radio Service (GPRS): A 2.5G mobile data service that is available to
users of GSM and D-AMPS. GPRS is a packet-switched technology and hence billed per
MB of data transferred. GPRS is usually used for accessing the internet and downloading
emails. GPRS provides a theoretical data download speed of 60-80 kbps but usually
averages about 30 kbps in real-world conditions.
Enhanced Data Rates for Global Evolution (EDGE): A packet switched mobile data
service for GSM networks that provides theoretical data speed of 384 kbps (but usually
averages about 80 to 160 kbps). EDGE is mainly used for data applications like
multimedia (such as music downloads) and video services. The provisioning of EDGE
and GPRS technology only requires software upgrades for GSM networkswhich makes
it relatively cost effective.
Wideband Code Division Multiple Access (W-CDMA): W-CDMA is a 3G mobile
technology. The technology supports a theoretical data transfer speed of up to 2Mbps
(but is about 384 kbps in real world examples).
Universal Mobile Telephony System (UMTS): Another name for the 3G technology.
UMTS combines W-CDMA, TD-CDMA, or TD-SCDMA air interfaces and the GSM
family of speech codecs.
Guide to Telecoms
High-Speed Packet Access (HSPA): Protocols that improve data transmission speeds for
existing WCDMA networks. The HSPA protocol is still under development with only
HSDPA currently being deployed.
High-speed Downlink Packet Access (HSDPA): A software upgrade for WCDMA that increases data download speeds. HSDPA improves the
downlink packet access speed. The theoretical maximum downlink data
transmission speeds using HSDPA are from 3.6 to Mbps14.4 Mbps.
Currently, there are 102 networks with HSDPA deployed in 55 countries.
HSDPA is relatively new and the number of handsets and PC data cards
using the service is still very limited.
High Speed OFDM Packet Access (HSOPA): This is part of the proposed
3GPP's Long Term Evolution (LTE) upgrade path for UMTS systems. It is also
known as Super 3G.
Long Term Evolution (LTE): This is a project within the Third Generation Partnership Project
to improve UMTS mobile phone standards. The objectives of LTE are to improve
efficiency, lower costs, improve services, make use of new spectrum opportunities, and
provide better integration with other mobile phone standards. The proposed LTE upgrade
path from UMTS is known as Super 3G or High Speed OFDM Packet Access (HSOPA).
Code Division Multiple Access (CDMA): This 2G technology was pioneered by
Qualcomm. CDMA usually operates at 800 MHz and 1900 MHz, therefore 2100
MHz. CDMA and GSM networks are not compatible. CDMA is a method of multiple
access that divides up a radio channel by using different pseudo-random code
sequences (unique code to each data) for each user. CDMA is a form of "spreadspectrum" technology, where each conversation is spread and transmitted over multiple
frequencies.
CDMA is considered to be a better technology than GSM:
CDMA requires fewer base stations compared to GSM to cover the same
area.
Guide to Telecoms
Since there are many more GSM networks in the world, GSM subscribers
have more opportunities to roam when traveling.
3G
2.5G
PDC
(2G)
GSM
(2G)
GPRS
(2.5G)
EDGE
(2.75G)
W -CDMA
(3G)
HSDPA
(3.5G)
TDMA
(2G)
CDMA One
(2G)
CDMA2000 1x RTT
(2.5G)
CDMA2000 EVDO
(3G)
CDMA2000- 1x RTT: This is an upgrade for CDMA that has more traffic channels and
provides QoS control. CDMA 2000 1x RTT (1 times Radio Transmission Technology)
provides a theoretical peak data download speed of 144 kbps (usually at 50 to 70
kpbs in actual usage).
CDMA2000- EV-DO: A 3G standard for CDMA technology. It stands for Evolution-Data
Optimized or Evolution-Data only. EV-DO provides data speeds of up to 2.4 Mbit/s with
Rev. 0 and up to 3.1 Mbit/s with Revision-A. This CDMA upgrade to 3G is much more
cost efficient than the upgrade to WCDMA for a GSM carrier.
EV-DO Revision-A: A modified version of the EV-DO standard that increases peak data
downlink speed up to a theoretical 3.1 Mbps and reduces latency. EV-DO Revision-A is
best suited for IP-based services like voice over Internet Protocol (VoIP) and video
telephony. This technology has been commercially deployed by KDDI in Japan, SK
Telecom, KT Freetel and LG Telecom in Korea, and Sprint and Verizon Wireless in the
United States.
EV-DO Revision B: An evolution of the EV-DO Rev A standard that provides a theoretical
peak downlink speed of 14.7 Mbit/second using better modulation schemes. However,
Guide to Telecoms
Rev B will require more spectrum than earlier technology upgrades. EV-DO Rev-B are
expected to be commercially available in 2008.
EV-DO Revision C: This next-generation CDMA2000 upgrade uses OFDMA technology
and is expected to be commercially available by mid-2009. It is also known as Ultra
Mobile Broadband (UMB).
Time Division-Synchronous Code Division Multiple Access (TD-SCDMA): A 3G mobile
telecommunications standard that is approved by the ITU and is currently being deployed
in China. There will be ten cities with significant TD-SCDMA test networks in China by
the end of 2007 (see Figure 8).
The "S" in TD-SCDMA stands for "synchronous, which means that uplink signals are
synchronized at the base station receiver which should reduce interference between
users.
Guide to Telecoms
Short Messaging Service (SMS): SMS is a text messaging service that is available
through a mobile phone. A SMS can have up to 160 characters.
Multimedia Messaging Service (MMS): MMS is a messaging service for 2.5G and 3G
mobile networks that enable the sending of multimedia attachments such images, audio,
and video clips. A MMS gateway, relay and server are the main equipment needed to
provide MMS service. Mobile handsets also need to be enabled to receive MMS.
Guide to Telecoms
i-mode: i-mode is a wireless Internet service first introduced by NTT DoCoMo in Japan in
February 1999. It provides data transmission speeds only up to 28.8 kbps. Unlike the
WAP standard (that uses WML), i-mode uses format C-HTML, based on HTML and
DoCoMo proprietary protocols ALP (HTTP) and TLP (TCP, UDP).
Freedom of Mobile Multimedia Access (FOMA): FOMA is the name for the 3G mobile
service offered by NTT DoCoMo in Japan. FOMA was the worlds first 3G service and
was launched in October 2001.
Fourth Generation (4G): 4G systems aim to provide an end-to-end IP solution where
voice, data and streamed multimedia can be served to users on an "Anytime, Anywhere"
basis at higher data rates than previous generation wireless networks. No formal
definitions for 4G have been established, as the technology is still evolving. The
technology is also expected to provide end-to-end quality of service and higher security.
Assignment of spectrum for 4G is not clear at this time.
International Mobile Telephony Advanced (IMT-A): ITU's official term for 4G mobile
telephony. IMT-A as per ITU will provide throughout of up to 100 Mbps for a mobile unit
and 1 Gbps for a fixed unit.
International Mobile Telecommunications-2000 (IMT-2000): The global standard for third
generation
(3G)
wireless
communications
as
defined
by
the
International
Guide to Telecoms
10
Guide to Telecoms
Facilities-based Operators: Network telecom operators that have their own network and
offer services on it.
F2M Substitution (fixed to mobile substitution): When a customer gives up his fixed-line
telecom connection and substitutes it with a mobile connection, this is called as F2M
substitution.
Interconnection: Interconnection means connecting calls between two carriers or the
connection between a carrier and a consumer.
Interconnection Rate: The amount that carriers receive and pay to connect a call between
two networks. Interconnection rates are usually different for calls made between two
fixed-line networks, fixed-to-mobile calls and mobile-to-mobile calls. The highest rates are
generally paid-for calls made between mobile and fixed-line networks.
Minutes of Use (MOUs): A wireless user's total connection timeoften expressed as
MOU for a given month.
Mobile Network Operator (MNO): A wireless carrier that owns and operates its own
mobile network.
Mobile Virtual Network Operator (MVNO): A company that does not own mobile
spectrum but sells mobile services under its own brand name using the network of a
licensed mobile operator.
Net New Connections (a.k.a. Net adds): Gross new subscriber connections minus the
number of disconnections from a network during a given periodalso referred to as the
net adds of a carrier.
On Net (on network calls): Calls that originate and terminate on the same network.
Off Net (off network calls): Calls that originate on the network of one carrier and
terminate on another network.
Refilling/Top-up: The process recharging a prepaid account with more money (value for
usage) is called as refilling or a top-up.
Mobile Number Portability (MNP): MNP allows a mobile telephone subscriber to retain
his/her telephone numbers when changing from one network operator to another. Asia,
Hong Kong, Korea and Singapore have already implemented MNP. Pakistan
implemented MNP in March 2007.
11
Guide to Telecoms
Termination Rate: The rate that one telecom carrier charges another carrier to complete
(terminate) a call.
Penetration Rate: The number of subscribers/connections divided by the population. For
example, a mobile penetration rate of 23% indicates there are 23 subscribers in the
market for every 100 people.
Subscriber Acquisition Cost (SAC): The cost that an operator incurs to acquire a new
subscriber. The typical costs come from sales and marketing, and handset subsidies. Also
refer to cost per gross addition (CPGA).
Spectrum/bandwidth: Spectrum or bandwidth is the width of the band of frequencies
that an electronic signal uses on a given transmission medium. It is expressed in terms of
the difference between the highest frequency signal component and the lowest frequency
signal component.
Handoff: A handoff is when a call is transferred from one base station to another (as user
moves from one cell to another) without disconnecting the call. It is also known as
Handover.
There are two types of Handoffs
Soft Handoff: A handoff in which the channel to the source cell is retained
as the connection to the target cell is established. This handoff is also
called make-before-break.
Preferential Roaming: In regular roaming, a mobile phone usually picks up a network that
has the strongest signal. In preferential roaming, the SIM is programmed to choose a predetermined network rather than the network with the strongest signal. Operators with a
global footprint use this means to retain more calls on their own network.
Cell Splitting: A means of creating more capacity on a wireless network by having more
than one cell site cover a particular area. Each cell site covers a smaller area, with lower
power MHz and is able to reuse frequencies more times over a larger geographic
coverage area, such as a city or MTA.
Frequency Reuse: The process of using the same frequencies repeatedly across a cellular
system. Since each cell is designed to use radio frequencies only within its boundaries,
the same frequencies can be reused in other cells not far away with little potential for
interference. This process helps mobile network operators handle large numbers of calls
with a limited number of channels.
12
Guide to Telecoms
13
Guide to Telecoms
Smart Antenna: This type of antenna uses algorithms to identify the direction of signal
and to locate the signal beam from a mobile phone. They are usually used in more
recent technologies like W-CDMA, TD-SCDMA and WiMAX. They are also known as
adaptive antennas.
Cell Sites: An area where antenna is placed to provide wireless services to mobile
phone users in that particular area (cell).
Picocell: The short-range area (approx. 100- 250-meter range) that is covered by a cell
site. A picocell is usually used to boost the signal in a small area, usually where there is
high density of userssuch as within a skyscraper in a central business district.
Femtocells: These are very small mobile phone base stations (even smaller than Picocells).
They are more inexpensive and easily scaleablewhich help operators to increase
coverage while reducing capex and opex.
Backhaul: Transportation of traffic to a centralized location. This is what is used to carry
voice or data services from a mobile network base station back to the switch or
exchange, to ultimately connect a call or to transfer data to another location.
The most commonly used technologies for backhaul are:
14
E1/T1 or T3 carriers
Fiber
Guide to Telecoms
Transceiver (TRX): Equipment that transmits and receives signals to and from mobile
phones. Transceivers are part of the base transceiver station system.
Base Transceiver Station (BTS): A BTS contains the equipment for transmitting and
receiving signals as well as the equipment for securing transmissions with the base station
controller. A BTS handles traffic from several transceivers (TRXs).
Base Station Controller (BSC): Equipment that manages a network of base stations and
provides the interface between the cell sites and the mobile switching center (MSC).
Base Station Subsystem (BSS): The part of a mobile network that handles the traffic and
signaling between mobile phones and network switching sub-systems.
Billing and Operational Support System (BOSS): Software systems that help manage the
cellular network.
Operations Support Systems (OSS): Software programs that manage the network by
provisioning services, configuring network components, and managing faults.
Business Support System (BSS): Software programs that focus on customer support. Major
functions include managing order data, billing, and offering value-added services.
Visitor Location Register (VLR): A database that stores information about roaming
customers that are currently roaming a network.
Home Location Register (HLR): A database that contains information of all the mobile
users (not roaming) that are in a network.
15
Guide to Telecoms
SMS Gateway: A system that helps deliver and receive SMS messages to or from mobile
devices. Messages are temporarily stored in the SMS center if they cannot be sent
immediately.
Active Telecom Infrastructure: Includes electronic infrastructure such as base tower
stations, microwave radio equipment, switches, antennas, and transceivers for signal
processing and transmission.
Passive Telecom Infrastructure: Includes non-electronic infrastructure equipment. Major
passive equipment includes towers, shelters, air-conditioning equipment, diesel electric
generators, batteries, and the technical premises. We estimate that passive infrastructure
accounts for approximately 55-60% of a network rollout cost.
Telecom Infrastructure Sharing: This is mainly used to lower capital expenditures between
one or more carriers.
The various types of infrastructure sharing include:
16
Guide to Telecoms
47%
27%
18%
4%
2%
W-CDMA Infra
Ericsson
Nokia-Siemens
NEC
Fujitsu/ALU
$ 6.1 billion
39%
30%
13%
8%
17
Guide to Telecoms
2002A
2003A
2004A
2005A
2006A
2007E
2008E
2009E
136
143
30
89
15
413
146
138
29
95
20
431
181
167
38
108
26
520
210
210
73
135
47
674
249
240
100
148
77
814
348
275
117
163
88
991
423
293
127
175
101
1118
493
304
133
185
116
1230
546
312
139
195
133
1325
2001A
2002A
2003A
2004A
2005A
2006A
2007E
2008E
2009E
250
0
69
46
34
8
7
413
263
0
81
42
32
12
1
431
342
3
100
27
37
11
1
520
484
18
122
11
24
15
0
674
603
44
135
2
14
16
0
814
720
88
160
0
5
18
0
991
735
168
168
0
1
45
0
1118
658
258
179
0
0
134
0
1230
550
338
187
0
0
250
0
1325
APAC
Europe
Latin America
North America
MEA
Total
Source: Gartner, Lehman Brothers estimates
GSM/GPRS/EDGE
WCDMA
CDMA(EVDORevA,IS,2000)
TDMA
PDC
Other digital
Analog
Total
Source: Gartner, Lehman Brothers estimates
18
Guide to Telecoms
Removable User Identity Module (R-UIM) or a CDMA Subscriber Identity Module (CSIM):
A SIM card for CDMA handsets. This allows a CDMA subscriber to switch mobile
phones, use the same number, and retain other stored data (such as phone numbers).
Most CDMA handsets sold globally do not have this feature. However, China Unicom
requires that all its CDMA handsets sold in China have an R-UIM.
International Mobile Equipment Identifier (IMEI): A unique number assigned to a
GSM/WCDMA phone. This number is found below the battery in a phone or can be
obtained by dialing *#06# into a mobile phone. If the phone is stolen then access to
the network is stopped by telling the operator to block the phone using its IMEI number.
International Mobile Subscriber Identity (IMSI): A unique number up to 15 digits that is
assigned to a GSM SIM card. The first three digits are the Country Code, and the
following digits are the Mobile Network Code. The IMSI number is sent by the mobile
phone to the network and is used to acquire details for the mobile phone in its Home
Location Register (HLR)
FeliCa: A brand name for the contactless IC card technology developed by Sony. The
card includes an integrated non-volatile memory and wireless communication chip which
facilitates data exchange when held adjacent to compatible reader/writers. The main
applications include e-money, prepaid cards for mass public transit systems, employee ID
cards, student ID cards and card-keys.
Contactless Card: A chip that uses radio frequencies to transmit data and does not need
any physical contact. It works on Near-Field Communication (NFC)an example being
Sony's FeLiCa chip-card technology.
Blackberry: The Blackberry is a mobile device that supports corporate email (it uses push
e-mail technology) apart from normal telephone features. It was developed by the
Canadian company Research In Motion (RIM).
19
Guide to Telecoms
Push Mail: An e-mail system that transfers new incoming email to a mail server then to a
mobile phone. This provides "always on email technology. Traditional e-mail is pull
based, requiring users to logon to request for emails.
Smartphones: A mobile phone with personal computer features like email, a personal
organizer, and multi-media functionality (Nokia 5500, 6680; Sony Ericsson W950).
Personal Digital Assistant (PDA): A handheld computer designed to provide computing
capabilities and act as personal organizers. PDAs are also known as pocket computers
or palmtop computers. Like a computer, a PDA has a calendar, address book features
and offers internet accessexamples include Nokia E61 and T-Mobile MDA.
36%
12%
10%
9%
8%
GSM-GPRS handsets
Nokia
40%
Motorola
21%
Samsung
11%
Sony Ericsson
8%
Benq/Siemens
4%
$ 79 billion
QWERTY Phones
RIMM
PALM
65%
25%
$ 4.0 billion
Symbian OS: A proprietary operating system for mobile devices that was developed by
Symbian Ltd. Symbian is owned by Nokia (47.9%), Ericsson (15.6%), Sony Ericsson
(13.1%), Panasonic (10.5%), Siemens AG (8.4%) and Samsung (4.5%). The software
provides customizable interfaces, along with Internet and PC connectivity software.
20
Guide to Telecoms
EPOC 32: An operating system for mobile devices that was developed by Psion and is
now supported by Symbian.
Palm OS: An operating system for personal digital assistants (PDAs) developed by Palm
Computing.
Original Equipment Manufacturer (OEM): A company that assembles a particular product
for a vendor who then sells the product under their own brand name. For the mobile
phone industry, examples include Compal, Quanta, etc.
Original Design Manufacturer (ODM): A company that designs, develops and
manufactures a product. These devices are sold to end users under someone elses
brand. Some examples of ODM companies include Taiwan-based BenQ, HTC and
GVC.
Mobile TV: The function of viewing video content on a mobile phone. The content is
usually streamed or broadcast over a network and is "real time". Mobile TV services,
similar to conventional TV services, depend on a multicast architecturebroadcasting the
same content to multiple subscribers through a simultaneous transmission. Mobile TV
technologies include DVB-H, ISDB-T, FLO, DMB (both S-DMB, a satellite-based
technology, and T-DMB, a terrestrial-based technology), and TDtv.
Lehman Brothers global telecom equipment team estimates that the service provider
opportunity may grow from less than $10 million in 2006 to $2.2 billion by 2009 in
North America and Europe. From a handset perspective, we estimate that units with
mobile TV functionality will grow from less than 100,000 units in 2006 to nearly 50
million units by 2009 in North America and Europe.
Digital Video Broadcasting Handheld (DVB-H): The DVB-H technical specification is an
open, nonproprietary standard developed as a derivative of the DVB-T (Digital Video
Broadcasting for Terrestrial Television) standard. The standard is designed to lower
battery power consumption and improve video quality in more difficult reception
environments. Because the DVB-H is compatible with DVB-T networks, this standard could
be adopted in regions that already have the DVB-T standard in placesuch as Western
Europe.
21
Guide to Telecoms
22
Guide to Telecoms
TDtv: Provided by IP Wireless, TDtv operates in the unpaired 3G spectrum bands that are
available in Europe and Asia at 1900 MHz and 2010 MHz. The system is designed to
allow W-CDMA operators to use existing spectrum to offer mobile TV and multimedia
services. TDtv base stations can be co-sited on existing W-CDMA sites and integrates at
the core network level in order to allow for integration of billing and other back-office
functionalities.
Digital Video Broadcasting Terrestrial (DVB-T): This technology is used in Europe to
transmit digital television.
Ringtones: The audio tone heard for an incoming call. Downloading ringtones is a form
of value-added service. Ringtones can be classified as
Monophonic: A ringtone that has ability to only sound one note or voice,
at a time.
Ring Back Tones: An audio tone or music that a caller hears after dialing and prior to the
call being answered at the receiving end. The service is also known as color ring tone. A
subscriber will pay to have different songs/melodies played while his caller waits for the
phone to be answered.
23
Guide to Telecoms
Figure 17: Mobile Application and Billing Market Share and Size
Mobile Applications
Comverse Tech
24%
RIMM
11%
Alcatel-Lucent
10%
Ericsson
10%
Openwave
8%
$ 5 billion
Source: Lehman Brothers Research
24
Telecom/OSS/Bill s-w
IBM
25%
Accenture
24%
Telcordia
12%
$ 7.1 billion
Guide to Telecoms
UMTS FDD is designed to operate in paired frequency bands, with uplink in the 19201980 MHz band, and downlink in the 2110-2170 MHz band. UMTS TDD is left with
the unpaired frequency bands 1900-1920 MHz, and 2010-2025 MHz. In most
countries, a paired spectrum is given for each operator- one for uplink and one for
downlink.
The frequencies of two adjacent operators on uplink or downlink are separated by a
small guard band to avoid interference.
25
Guide to Telecoms
3G License Process
The 3G licensing process is usually classified as either an Auction or Beauty contest (also
known as comparative selection).
Auctions
The types of auctions are
Ascending auction or English Auction: The price starts low and competing
bidders raise the price until nobody is prepared to bid any higher, and the
final bidder wins the prize at the final price he bid.
Advantages of an Auction
Disadvantages of an Auction
They are not appropriate if the number of bidders is less than the number of
licenses.
Beauty Contest
In this process, licenses are awarded on the criteria set out in the invitation bid. Criteria
might include, for example, speed of deployment, project viability, spectrum efficiency
and the ability to stimulate competition.
Advantages of a Beauty Contest
26
Guide to Telecoms
Setting selection criteria and evaluating against them can both be difficult
processes.
Spectrum
Australia
Bangladesh
Bhutan
GSM-900, 3G-TBD
Brunei
GSM-900, 3G-TBD
Cambodia
China
Hong Kong
India
Indonesia
Japan
Korea
Laos
GSM-900/1800, 3G-TBD
Macau
GSM-900/1800, 3G-TBD
Malaysia
Maldives
GSM-900, 3G-2100
Myanmar
Nepal
GSM-900
New Zealand
Pakistan
Philippines
Singapore
GSM-900/1800, 3G-2100
Sri Lanka
Taiwan
Thailand
Vietnam
27
Guide to Telecoms
28
Guide to Telecoms
29
Guide to Telecoms
Hot Spot: An area that is covered with a wireless LAN service. This is often a public
place (such as an airport lounge, in a hotel lobby, in a coffee shop, etc.) or a business
center. It is also known as a WiFi Hotspot.
Worldwide Interoperability for Microwave Access (WiMAX): WiMAX is a wireless
technology that provides wireless data over long distances, in a variety of different ways,
from point-to-point links to full mobile cellular-type access.
WiMAX is a further evolution of wireless connectivity that will extend wireless access
beyond current personal area networks (PANs), such as Bluetooth, and local area
networks (LANs), such as WiFi technology.
There are two main categories of WiMAX: fixed and mobile WiMAX.
Fixed WiMAX applications are point-to-multi-point and enable broadband access to
homes and businesses, whereas mobile WiMAX offer full mobility (like a cellular network)
at broadband speeds.
30
Guide to Telecoms
Fixed WiMAX (802.16-2004): This technology also known as 802.16d. This version of
WiMAX replaces the 802.16a specifications.
Mobile WiMAX (802.16e-2005): This technology is also known as 16e and is
expected to provide mobile data and voice applications. Sprint has chosen this
technology for its 4G deployment in the US. Although the technology is still evolving, we
expect some limited deployment during 2008.
31
Guide to Telecoms
Higher Data Rates: WiMAX can deliver higher data rates at lower prices than existing
cellular or broadband wireless networks. The improved efficiencies generally derive from
the more sophisticated air-interface standard, a streamlined data-only system, and
improved standardization.
Key Issues Hindering the Adoption of WiMAX:
Standardization Issues: There are currently several wireless broadband solutions in the
market such as WiBro in Korea, SmartBro in Philippines, as well as other proprietary
wireless broadband technologies. Although these technologies are similar, they differ in
terms of propagation characteristics and are not compatible.
Economies of Scale Could Prove to be Difficult for Equipment Vendors: Although we
believe that there is a viable business model for WiMAX (especially for fixed wireless
broadband), WiMAX equipment vendors might find it difficult to take advantage of
economy of scales in the near term, given the current limited deployment. In fact, IDC
estimates that WiMAX equipment will only represent about 7% of total wireless
equipment sold globally in 2010. Economy of scale also becomes an issue given the
various radio frequencies where WiMAX can be deployed---implying different
propagation characteristics, line of sight issues, etc.
Frequency Bands Allocated for WiMAX Differ by Country: The radio frequency
allocations for WiMAX vary by region. Although equipment vendors will provide
equipment for the various WiMAX frequencies, the economics of the network could vary
depending on the frequency band. The higher frequency bands (5.8 GHz) would most
likely require line-of-sight equipment. On the other hand, 2.3 GHz to 2.5 GHz would be
most optimal for non-line of sight products that require more robust in-building coverage.
Wireless Broadband (WiBro): A mobile wireless broadband technology developed and
deployed in South Korea. WiBro is now accepted by IEEE as part of the 802.16-2005
mobile WiMAX standard.
KT and SKT launched WiBro services at the end of June 2006. So far, WiBro has very
weak uptake due limited network coverage, a lack of differentiated features relative to
3.5G wireless services, and a limited selection of handsets/products for consumers.
Smart Bro: Smart in the Philippines is offering a wireless broadband service named Smart
Bro. Smart uses Canopy, a proprietary technology developed by Motorola. SmartBro
operates on unlicensed 5.6 GHz spectrum and has gained traction after being launched
in April 2006. Smart Bro targets areas in the country where DSL service is not available.
So far, Smart Bro already has about 170k subscribers on the network. Around 40% of
the Smart Bro subscribers are in Manila and the remaining 60% are in regions
throughout the rest of the Philippines.
32
Guide to Telecoms
CDMA - 3G
EVDO rev 0 EVDO rev A
TDS Standard
TD-CDMA TDS-CDMA
3GPP
3GPP
3GPP2
3GPP2
3GPP
Std Timeline
Completed
Completed
Completed
Completed
Commercial
Rollout
2003/04
2006/07
2002
Peak speed
384 Kbps
1.8-7.2 Mbps
Channel size
5 MHz
Strength
Weakness
Increased
voice capty
Low data
speed
Wimax
802.16d
802.16e
IEEE
IEEE
Completed
Chinese
Academy
2007
Completed
2007
2H 06
2004/05
2008
2005
2008/09
2.4 Mbps
3.1 Mbps
3 Mbps
2-4 Mbps
3 Mbps
20 Mbps
5 MHz
1.25 MHz
1.25-20 MHz
S/w upgarde
for high BW
High data
rate
S/w upgarde
for high BW
Customised
for TDtv
Political
Support
OFDM
technology
Cheaper
Efficient
Uplink
capacity
Uplink
capacity
Uplink
capacity
Vendor
Support
Proprietary
Only- China
Lack of
mobility
Timing
Uncertain
33
Guide to Telecoms
34
Guide to Telecoms
Multiple Input/multiple Output (MIMO): A term that refers to the use of multiple antennas
at the transmitter as well as receiver side. This technology increases throughput, improves
capacity and spectral efficiency, and reduces fading.
Two examples of MIMO are:
Figure 24: Bluetooth Technology can Transmit Data Wirelessly to a Variety of Devices
35
Guide to Telecoms
Wireless Local Loop (WLL): Replaces the traditional copper wire in the last mile for
normal telephony by wireless. Signals are sent over the wireless frequencies. WLL is also
known as Broadband Wireless Access (BWA).
Wireless Local Area Network (WLAN): Data speeds on wireless LANs range from 30 to
60Kbps. WLAN utilizes spread-spectrum and works in the 900 MHz to 2 GHz
frequency band.
Access Point (AP): A device that connects wireless devices to wireline networks.
WAP Gateway: Allows mobile handsets (using WAP protocol) to access the internet.
Fixed Radio Access (FRA): Another name for WLL.
36
SOHO/SMB Networking
Cisco
33%
Netgear
23%
D-Link
16%
Buffalo
5%
$ 2.3 billion
Security/VPN
Cisco
Nokia-CHKP
Juniper
Others
$ 3.2 billion
37%
20%
16%
27%
Guide to Telecoms
Symbol
kb
Mb
Gb
Tb
Value
10^3
10^6
10^9
10^12
Byte
Symbol
Value
kB
10^3
MB
10^6
GB
10^9
TB
10^12
Baud: Baud is a measure for data transmission speed. One baud is one electronic state
change per second. However, the preferred unit is bps (bits per second). A single state
change can involve more than a single bit of data, the bps unit of measurement is a
better unit for the measurement of data transmission speed.
Access, Last mile, Local Loop: The final connection to an end user is called the last mile
access. Access technology can either be wireless or wireline. Wireline access is usually
through copper or fiber and wireless may be limited mobility or cellular. In the case of a
wireline connection, the last mile tends to require more expenditure as wires or cables
need to be rolled out.
Customer-premises Equipment (CPE): Equipment in the consumers premises that is
connected with a carrier's telecom network. Some more commonly known CPEs are
telephones, DSL modems or cable modems, set-top boxes, etc.
Remote Access: Access to information/connection away from the home location.
Remote Termination Unit (RTU): A device installed at a remote location that collects and
transmits data to a central or the main station.
Local Loop Unbundling (LLU) or Unbundled Access: Permitting competitors to access an
incumbent carriers last mile connection to the end user. LLU was established to increase
telecom market competition and lower costs to end users.
37
Guide to Telecoms
38
Guide to Telecoms
Speed
ARPU ($)
Comments
DSL
2-10 Mbps
$10-30
Cable
1-3 Mbps
$15-35
Fiber
40 Mbps- 1Gbps
$40-50
Satellite
500 Kbps
$15-25
xDSL: A digital subscriber line that provides digital data transmission over traditional
telephone copper wires and is capable of providing speeds from 256 kbps to 24,000
Kbps, depending on the technology used, the quality of the copper infrastructure, and the
distance from the telecom carriers exchange.
39
Guide to Telecoms
40
Guide to Telecoms
HDSL2: A modified version of HDSL that uses two wires instead of four to
carry the same amount of data. It is less expensive than HDSL as it requires
less wiring. This technology can work over copper of lower gauge or
quality.
Very High Data Rate DSL (VDSL): This is the fastest DSL technology and provides up to 26
Mbps data transmission speed in a symmetric functionality and 52 Mbps (downlink) and
12 Mbps (uplink) in asymmetric access. This technology will only operate in a range of
up to 1000 feet from a central office. VDSL can support HDTV on copper and
applications like video on demand.
41
Guide to Telecoms
Digital Subscriber Line Access Multiplexer (DSLAM): A device that combines data signals
from various DSL subscribers into one stronger signal. Consumers that originally could not
be served by DSL can get access after the telephone company locates a DSLAM closer
to the end users. Depending upon the technology used, DSLAMs connect DSL lines with
Asynchronous Transfer Mode (ATM), frame relay, or Internet Protocol networks.
Naked DSL or Dry Loop DSL: A standalone DSL service that provides broadband internet
connection without requiring the end user to sign up for voice telephony service.
ADSL
IDSL
HDSL
SDSL
VDSL
Speed
Max
Uplink Downlink Distance
1 Mbps
24 Mbps
144 kbps 144 kbps
2 Mbps
2 Mbps
2.5 Mbps 2.5 Mbps
12 Mbps 52 Mbps
18,000 ft
35,000 ft
15,000 ft
22,000 ft
1.000 ft
Figure 32: Market Share and Market size for DSL Equipment
DSLAM
Alcatel-Lucent
Huawei
Nokia-Siemens
Ericsson
NEC
Others
$ 3.5 billion
Source: Lehman Brothers Research
42
40%
9%
8%
6%
5%
32%
xDSL Modem
Thomson
Siemens
Zyxel
2-Wire
Cisco
D-Link
$ 2.5 billion
21%
12%
12%
7%
6%
6%
Lines
needed
1
1
2
1
1
Guide to Telecoms
Source: TechWeb
Community Antenna Television (CATV): Known as Cable TV, this service provides analog
television service to consumers typically though a hybrid fiber-coaxial network. Recently,
CATV systems are being upgraded to support broadband internet access and voice over
IP through the cable infrastructure.
Multi Service Operator (MSO): This is another name for companies that own large cable
TV systems, such Comcast in the U.S. or Virgin Media in the U.K.
Cable Modem Termination System (CMTS): This system provides high-speed data
services like cable internet or Voice over IP to cable subscribers. It is located in a cable
company's headend.
Multichannel Multipoint Distributed Service (MMDS): Known as Wireless Cable, this
technology delivers video content over microwave frequencies. Typical equipment
required for MMDS are an antenna and cable headend.
Conditional Access System (CAS): A system in which digital video signals are transmitted
over satellite to subscribers. This service is called conditional access because it
provides access only to subscribers, unlike free-to-the-air broadcast channels which are
available to anyone with a television. A set-top box containing a conditional access
module is required in the customers home to receive and to decrypt the signal.
43
Guide to Telecoms
Hybrid Fiber Coax (HFC): A hybrid network of optical fiber and coaxial cable that is
used by cable TV operators. The optical fiber usually forms the backbone and the coaxial
cable is used between the backbone and the customers homes.
Wavelength division multiplexing is used for the optical cable and frequency division
multiplexing is used for the coaxial portion. The network is capable of providing analog
TV, digital TV, video on demand as well as other high-speed services-.
44
Guide to Telecoms
Speeds
Downstream Upstream
Date of
issue
1x
2x
3x
42 Mbps
42 Mbps
480 Mbps
Mar-97
Dec-01
Aug-06
10 Mbps
30 Mbps
120 Mbps
Standard-definition Television (SDTV): Television systems that meet the required resolution
requirements but are not considered high definition TVs. This technology requires less
bandwidth than HDTV. SDTVs are superior to analog TVs (NTSC, PAL, PAL2, SECAM) as
SDTVs do not suffer from ghosting effects, snowy images, or static noises.
High-definition Television (HDTV): A digital television broadcasting system with
significantly higher resolution than traditional TV formats.
Three HDTV standards are currently defined by the ITU:
1. 1080i (1,080 actively interlaced lines);
2. 1080p (1,080 progressively scanned lines);
3. 720p (720 progressively scanned lines).
Videophone: A telephone that allows two-way real time video communications.
Joint Photographic Experts Group (JPEG): A method of compression for photographic
images that was standardized in 1992.
Motion Picture Experts Group (MPEG): A standard used for encrypting and compressing
videos.
Various MPEG groups include:
MPEG-3: Originally used for HDTV but has since been replaced by MPEG2.
Figure 36: Market Share and Market Size for Cable Technology Equipment
Cable Modem
Motorola
Arris
Cisco- SF Atlanta
Thomson
$ 1.3 billion
34%
30%
22%
7%
CMTS
Cisco
Arris
Motorola
Bigband
$ 990 million
54%
24%
19%
3%
Cable Transmission
Cisco- SF Atlanta
36%
Motorola
27%
Others
37%
$ 2.3 billion
45
Guide to Telecoms
Multi-mode fiber: Fiber with a large (greater than 10 m) core diameter that
can carry multiple signals at a time.
Dark Fiber: Fiber that has been deployed but not utilized. This type of fiber-optic cable
has not been connected to any active or passive component and has been laid to be
used in the future. It is also known as unlit fiber.
Lit Fiber: This is fiber optic cable that is already being used and is attached to electronic
components.
Optical Carrier (OC-x): This describes the range of digital signals that can be carried on
a SONET network. It is generally denoted by OC-n, where OC is the optical signal and
n indicates increments of 51.8 Mbps.
OC-1=51 Mbps
OC-3=155 Mbps
Optical Components: Denotes equipment used for transmission and reception through an
optical fiber.
Active Optical Components: Denotes components that transmit, amplify and receive
signals in optical transmission.
46
Guide to Telecoms
Fiber to the Premise is a pure fiber connection from a central office to the end users
home. Fiber to the Node and Fiber to the Curb are hybrid fiber/copper connections,
with the difference being that a node is roughly 5000 feet (1 mile) from the end user
47
Guide to Telecoms
and a curb is roughly 500 feet. The closer a carrier builds out a fiber network to the
end user, the faster the data connection speed.
AT&T is a major supporter of the FTTN technology in the U.S., arguing that it can
generate enough bandwidth (approximately 25 megabits per second) to support fast
data, voice and video services; and FTTN is much more cost effective than FTTP.
Many telecom carriers have a tendency to choose to leverage their copper networks,
rather than deploy a new fiber connection, since their end users are more centrally
located. We believe that the quality of a carriers copper plant is a key factor to
enabling an easy migration to FTTN/FTTC.
BellSouth in the US has been a major supporter of FTTC since the late 1990s and enjoys
the economics of the solution based on the topography/geography of its users and the
fast new line growth in the location it serves. BellSouth has used this technology to offer
broadcast video services (basic cable) to some subscribers, as well as voice and DSL
connection.
Figure 39: Verizon and AT&T Capital Expenditure Estimates for FTTx
Verizon
Incremental CapEx due FTTP ($B)
FTTP Capex (% of Total CapEx)
# of Homes Passed (M)
Incremental CapEx/Home Passed ($K)
Year 1
1.3
13%
3
0.44
Year 2
0.9
9%
3
0.28
Year 3
0.7
7%
3
0.23
Total
2.9
10%
9
0.32
Year 1
1.4
17%
3
0.47
Year 2
1.7
21%
6
0.28
Year 3
1.3
16%
9
0.14
Total
4.4
18%
18
0.24
AT&T
Passive Optical network (PON): A fiber technology for premise and home networks. In
this network architecture, un-powered optical splitters are used to enable a single optical
fiber to serve multiple premises. Since the technology does not use active components,
the costs required to build out a passive optical network is lower than for other networks.
A PON requires Optical Line Termination (OLT) at the service provider's central office
and a number of Optical Network Units (ONUs) near the end users.
48
Guide to Telecoms
Optical Line Terminals (OLT): This equipment is located at a central office and interfaces
with the metropolitan network. The main functionality of OLT is to adapt the incoming
traffic from the metropolitan rings to the PON transport layer.
Optical Network Termination (ONT) and Optical Network Unit (ONU): Both types of
equipment have the same functionality. An ONT is located in a customers premise while
an ONU is located outside the premise. These devices serve as an interface between the
customers equipment and the PON.
49
Guide to Telecoms
50
Guide to Telecoms
Mobile
Personal
Communications
by
Satellite
(GMPCS):
personal
The
science
of
sending,
receiving
and
storing
information
via
51
Guide to Telecoms
Attenuation: This refers to the loss of strength (amplitude and intensity) of a signal
during the transmission through a medium. Amplifiers are used to strengthen a signal.
Decibel: The unit to measure attenuation is decibels. This is represented as per unit length
of medium. E.g. dB/cm, dB/km.
52
Guide to Telecoms
Portable Navigation Device: Mobile equipment that has GPS and navigation
functionality.
Crosstalk: Unwanted interference (generally pieces of speech or tones leaking from other
connection). Analog signals are more susceptible to crosstalk compared to digital
signals. A twisted pair cable is often used to reduce crosstalk for analog signals.
Far-end Crosstalk: Interference at the distance end of a transmission system.
Dispersion: The weakening of a signal that occurs in transmission through fiber optic
cabling. Two main types of dispersion include material dispersion and waveguide
dispersion. Material dispersion occurs due to the material of waves and wave guide
dispersion occurs due to the speed of a wave.
Line-of-Sight: Wireless transmission that takes place in a straight-line is line of sight
transmission. This type of transmission cannot travel if some obstruction blocks the signal.
28%
22%
18%
14%
8%
53
Guide to Telecoms
Time Division Duplex (TDD): A modulation technique that uses time division multiplexing
to separate outward and return signals with the same frequency band.
TDD is a particularly useful technology when uplink and downlink data speeds are
variable. As the amount of uplink data traffic increases, more bandwidth can be
allocated and can be reduced when it declines. The primary two technologies that use
TDD are TD-CDMA and TDS-CDMA.
Frequency-division duplex (FDD): A modulation technique that uses separate uplink and
downlink frequencies, which allows users to transmit and receive data simultaneously.
FDD is a more efficient technology for symmetric data traffic patterns. Radio frequency
planning is easier and more efficient when using FDD.
54
Guide to Telecoms
10 Base-T: A technological standard that denotes 10 Mbits/s speed for Ethernet over a
twisted pair. 10 Base-T was the first vendor-independent standard for the implementation
of Ethernet using twisted-pair wiring.
Other common standards are 100 BASE-T and 1000 BASE-T which are capable of
handling speeds at 100 Mbits/s and 1000 Mbits/s, respectively. These standards have
backward compatibility with 10 Base-T networks.
DS1/T1: A carrier signaling mechanism devised by Bell Labs that is widely used for
digital lines in North America, Canada and Japan to transmit voice and data. The
technology operates at 1.544Mbps. In Europe, T-1 lines operate at 2.048Mbps and
are known as E-Carriers.
Higher speeds are mentioned below
American Standards
European Standards
DS0: 64 Kbps
DS0: 64 Kbps
55
Guide to Telecoms
ISDN requires external power while, xDSL carries its own power on the
line.
56
Guide to Telecoms
Time Division Multiple Access (TDMA): This technology allows different users to share the
same frequency channel by dividing the signal into different timeslots.
TDMA is mainly used in various mobile phone technologies (such as GSM, PDC, iDEN)
and in satellite systems.
Wavelength Division Multiplexing (WDM): This technology multiplexes multiple optical
carrier signals on a single optical fiber. Telecom carriers like WDM as this technology is
able to expand the capacity of a network without having to lay more fiber.
Dense Wave Division Multiplexing (DWDM): A technology where 40 or more separate
wavelengths or channels of data are multiplexed into a single optical fiber.
Code Division Multiple Access (CDMA): CDMA is a method of multiple access that
divides a radio channel by using different pseudo-random code sequences (using a
unique code for each piece of data). CDMA is a form of "spread-spectrum" technology,
where each voice conversation is spread and transmitted over multiple frequencies.
Intelligent Networking (IN): An architecture for both fixed and mobile telecom networks
that allows operators to differentiate themselves by providing value-added services in
addition to traditional telecom services. This is typically achieved through software
upgrades.
Local Area Network (LAN): A computer network covering a small geographical area like
house or group of buildings. Most LANs are based on IEEE 802.3 Ethernet technology.
Metropolitan Area Network (MAN): A data network that usually spans over a city area.
These networks typically use wireless infrastructure or optical fiber connections to link
network sites. This technology is an IEEE 802.6 standard.
Wide Area Network (WAN): A computer network that covers a broad geographical
area (i.e. regional or national boundaries) and typically uses routers and public
communications links. The largest and most well-known example of a WAN is the
internet.
Long-haul Networks: These networks carry aggregated traffic across cities. These
networks mainly have point-to-point transmission links.
Multicast: A method of sending data to multiple recipients simultaneously.
Narrowcasting: Sending a message to a small group of people.
Open System Interconnection (OSI): An OSI Model is a seven-layer model in which each
layer performs a set of functions to support the other layers. The seven layers, from top to
57
Guide to Telecoms
bottom are: Application, Presentation, Session, Transport, Network, Data Link and
Physical. This architecture is considered one of the main standards for data networking.
Packet: A packet is a block of data carried over a computer network. It has a header
that contains information like the destination address.
Public Data Network (PDN): A network that provides data transmission services for the
public.
Point of Presence (POP): An interface point for communications devices. It is also termed
as a service providers location for connecting its users.
Point-to-Point Protocol (PPP): A term used to define a direct connection between two
nodes.
Point-to-Point Tunneling Protocol: A technology to implement virtual private networks. This
ensures secure transmission of messages from one VPN to another through a public
network.
Synchronous digital hierarchy (SDH): A method of transmitting digital information over
optical fiber in a synchronized manner to ensure that no data is lost. The SDH standard
was developed by the International Telecommunication Union (ITU).
Synchronous Optical Networking (SONET): SONET is the US equivalent standard of
SDH. SONET is used in the U.S. and Canada and SDH is used in the rest of the world.
The two standards are not compatible.
Figure 46: SONET and WDM Market Size and Market Shares
Long-Haul WDM
Alcatel-Lucent
23%
Nortel
10%
Huawei
10%
Siemens
9%
Ciena
9%
$ 1.8 billion
Source: Lehman Brothers Research
58
Metro WDM
Nortel
Cisco
Alcatel-Lucent
ADVA Optical
Fujitsu
$ 1.7 billion
19%
14%
13%
12%
7%
SONET/SDH
Alcatel-Lucent
Huawei
Fujitsu
Nortel
Nokia-Siemens
$ 5.3 billion
25%
12%
12%
11%
7%
Guide to Telecoms
Frame Format
SONET
SDH
BW
(kbits/s)
Line rate
(kbits/s)
OC-1
STS-1
STM-0
48,960
51,840
OC-3
STS-3
STM-1
150,336
155,520
OC-12
STS-12
STM-4
601,344
622,080
OC-24
STS-24
STM-8
1,202,688
1,244,160
OC-48
STS-48
STM-16
2,405,376
2,488,320
OC-96
STS-96
STM-32
4,810,752
4,976,640
OC-192
STS-192
STM-64
9,621,504
9,953,280
39,813,120
OC-768
STS-768
STM-256
38,486,016
OC-1536
STS-1536
STM-512
76,972,032
79,626,120
OC-3072
STS-3072
STM-1024
153,944,064
159,252,240
59
Guide to Telecoms
Virtual Private Network (VPN): A private communication network used by corporate users
to communicate securely over a public network. A VPNs encrypted data is sent using a
tunneling protocol.
P2P (peer-to-peer): A type of networking where computers are directly connected to each
other rather than communicating through intermittent nodes. Peer nodes simultaneously
function as client and server.
Router Protocol: A program used by routers to determine an appropriate path for data to
be moved toward its final destination. The path taken by the data is dynamically
determined depending on the traffic load of various route options.
Resource Reservation Protocol (RRP): A protocol that reserves and allocates bandwidth for
real-time transmission. It is mainly used for video data traffic.
Multiprotocol Label Switching (MPLS): A networking protocol that uses the properties of a
circuit-switched network over a packet-switched network. This technology protocol uses
labels that contain destination information attached to packets. MPLS is much faster than
older technologies (ATM and Frame Relay) as the routers only examine the top-most data
label and transfers it further.
Transmission Control Protocol (TCP): One of the core protocols used for the Internet. This
is a connection-oriented protocol that guarantees reliable and orderly delivery of data
from sender to receiver.
Unsigned Datagram Protocol (UDP): An internet protocol used for delivering data. Unlike
TCP, this protocol does not guarantee that the packets will be arriving in a particular
order at a destination. This protocol is often used in videoconferencing and similar
applications when it is necessary to get large amount of data through quickly and it does
not matter if some data packets are dropped.
IMS (IP Multimedia Subsystem): A framework used to deliver IP multimedia services to
consumers. IMS was originally designed by 3GPP to promote the evolution of cellular
networks beyond 2G.
Modulation: The process of varying an electrical signal (e.g. voice) so that it can be
transmitted over a particular channel in a required band.
Modulation can be either analog or digital. Analog modulation techniques are Amplitude
modulation (AM), Frequency modulation (FM) and Phase modulation (PM). Digital
modulation techniques are Amplitude-shift keying (ASK), Frequency-shift keying (FSK) and
Phase-shift keying (PSK).
Carrier Wave: A signal that is modified to carry information. Carrier waves are usually
at a higher frequency than the signal needed to be transmitted.
60
Guide to Telecoms
Baseband: The original information carrying signal that is modified by carrier wave.
Quadrature Amplitude Modulation (QAM): A modulation technique that modulates
amplitude and the phase of a carrier simultaneously. QAM is used in DSL equipment.
Quadrature Phase-shift Keying (QPSK): A digital modulation scheme that conveys data by
changing the phase of carrier wave. QPSK can carry twice as much data as other
techniques since uses four phases for data transmission.
ATM: A circuit-switched network that runs over SONET (Synchronous Optical
Networking) and has fixed cells of 53 bytes (48 bytes for data and 5 bytes for header).
ATM is a connection-oriented technology that is mainly used by corporate customers that
require high-bandwidth for large data transfers.
Virtual Circuit: A communication agreement established between two devices before a
call is initiated. They are primarily used for Asynchronous Transfer Mode (ATM) and
Frame Relay.
61
Guide to Telecoms
Backbone: The main path for carrying traffic between a source and destination in a
wireline network.
Switch: A networking device that connects Ethernet or other packet networks. One
purpose of a switch is to reduce network costs. With a switch deployed in a network, all
nodes do not need be connected to each other. Switches also transfer data packets
through a network. However, a switch mechanically forward data without regard to data
congestion (unlike routers).
Hub/Repeater: A device that amplifies or broadcasts a signal. These devices do not
manage traffic. Repeaters are available for both analog and digital signals.
Router: A networking device that forwards data traffic towards a destination based on
predetermined routing tables and protocols. 3 main types of routers are Enterprise, core
and edge.
62
Guide to Telecoms
74%
4%
3%
2%
2%
2%
Layer 4 - 7 Switch
F5 Networks
33%
Cisco
32%
Nortel
8%
Radware
7%
Foundry
7%
Others
13%
$ 0.8 billion
27%
13%
12%
11%
6%
Concentrator: A device that consolidates low-speed circuits into a high-speed circuit with
an intention of efficiently utilizing the limited network resources.
Leased Line: A transmission line that is reserved for private use.
63
Guide to Telecoms
Network Interface Card (NIC): A unit that acts as an interface between a computer and
the network cable. It is also known as a LAN adaptor.
PCMCIA: PCMCIA stands for "Personal Computer Memory Card International
Association. It is a peripheral interface designed for laptops/computers.
There are 3 main types of PCMCIA cards:
Type I: 16 bit interface and used for memory devices like FLASH, RAM.
Type II: 16 or 32 bit interface such as a modem or TV cards.
Type III:16 or 32 bit interface such as a Hard disk drives.
Node: An access point or a point on the network where there is a router or switching
equipment.
Converter: A device that coverts analog signals to digital signals. They are also called as
A/D converters.
Digital Signal Processor (DSP): The main function of DSP is to remove any noise or
compression of signals. DSPs ensure quality is maintained during transmission and allows
proper recreation of a signal. Before signal processing, an analog signal is first
converted to digital before passing through a DSP.
A to D
Converter
Digital Sig.
Processor
D to A
Converter
Analog
Signal
Twisted Pair: In this type of cabling, the two wires are wound together. This method
helps in canceling out the electromagnetic interference (EMI) from external sources and
also lowers the amount of crosstalk from neighboring wires. Twisted pair is mainly used
in telephone networks.
64
Guide to Telecoms
Unshielded Twisted Pair (UTP): UTP cables are not shielded cabling. The lack of shielding
provides a high degree of flexibility. Radiation generated during high speed transmission
is released and reduces interference. UTP is mainly used in computer networking.
65
Guide to Telecoms
Private Branch Exchange (PBX): A private telephone exchange that serves a particular
office. This exchange is connected to a public-switched telephone network (PSTN) and
can handle calls between extensions as well as connections to the PSTN. It is also called
as Private Automatic Branch Exchange (PABX) or Electronic Private Automatic Branch
Exchange (EPABX).
66
Guide to Telecoms
20%
17%
11%
9%
8%
7%
$ 7.2 billion
Class 4 switch: A switch that connects long distance lines in the Public Switched
Telephone Network (PSTN) to connect with telephone company offices.
Class 5 switch: A switch that directly serves subscribers. Class 5 switches usually utilize
hardware for the switching.
Softswitch: A device in a telephone network which connects calls from one phone line to
another through software. Older switches used hardware to carry out switching.
Next Generation Networking (NGN): A single network that transports services (voice,
data, and all sorts of media such as video) by putting all the data into packets. A NGN
uses Internet Protocol.
Incumbent Local Exchange Carrier (ILEC): A LEC that is an incumbent and has a
dominant position in the market.
67
Guide to Telecoms
Competitive Local Exchange Carrier (CLEC): A new telecom operator that competes
against the ILECs for customers. There are both facilities based CLECs that build out their
own networks and non-facilities based CLECs that lease network access on a wholesale
basis from the ILEC and resells telecom services to its customers.
Data Local Exchange Carrier (DLEC): A CLEC that specializes in DSL services. A DLEC
usually leases lines and resells them to Internet Service Providers (ISPs).
Regional Bell Operating Company (RBOC): The seven regional telco companies formed
to focus on a specific region after the splitting up of AT&T in US in 1984. The initial
seven Baby bells were Ameritech, Bell Atlantic, BellSouth, NYNEX, Pacific Telesis,
Southwestern Bell and US West. Over the past 10 years, these companies have merged
again to form three remaining companies: AT&T, Verizon, and Qwest.
Interexchange Carrier (IXC): A long-distance telephone company that carries voice traffic
between telephone exchanges.
68
Guide to Telecoms
Internet-related Terminology
Internet: The worldwide publicly accessible network that uses the standard IP protocol for
communications.
Internet2: A high-speed internet network used by government, academic and research. It
is also known as UCAID (University Corporation for Advanced Internet Development).
Intranet: A private computer network within an organization that uses internet protocol.
IP (Internet Protocol): A set of rules (protocol) regarding the transfer of packets over the
internet
ISP (Internet Service Provider): An Internet service provider gives its customers access to
the Internet and related services. Initially, most ISPs were run by the existing wireline
companies.
Portal: A web-site that acts as an access point to other sites on the internet. Portals
present information from diverse sources in a unified way. Some examples of internet
portals include: Yahoo, MSN, and Google.
Proxy Server: An intermediary server that requests other servers for required requests.
IP v4: The fourth iteration of the Internet Protocol (IP) and is the first version of internet
protocol to be widely deployed. IPv4 uses 32-bit (4-byte) addresses which translates to
4,294,967,296 possible unique addresses. However, some of the addresses are
reserved for special purposes such as private networks. With the increase in internet
subscribers, the number of available new addresses is declining.
IPv6 is expected to resolve the problem of limited number of internet addresses.
IP v6: The successor for IPv4 which support almost an unlimited number of addresses. IP
v6 is still in development.
Voice-Over IP: VoIP is the routing of voice conversations over the Internet using internet
protocol.
Internet Telephony: Using voice over IP to make telephone calls using the public internet.
69
Guide to Telecoms
Figure 56: Carrier VOIP and IP Telephony Market Share and Size
Carrier VoIP
Nortel
Cisco
Nokia-Siemens
Huawei
Sonus Networks
Ericsson
$ 3.4 billion
17%
11%
9%
8%
6%
6%
Ent IP Telephony
Avaya
19%
Siemens
14%
Cisco
13%
Nortel
12%
Alcatel
7%
NEC
6%
$ 5.4 billion
Skype: Skype is company that provides voice-over internet protocol (VOIP) service. Skype
operates on a peer-to-peer model, rather than the more traditional central server model.
In other words, a user directory is not stored at a centralized location but distributed
among various points in the network. Skype was acquired by eBay in September 2005.
MIME (Multi-Purpose Internet Mail Extensions): An internet email standard that allows
attachments to be included with an email.
70
Guide to Telecoms
71
Guide to Telecoms
Common Public Radio Interface (CPRI): An industry group aimed at defining publicly
available specification for the key internal interface of radio base stations between the
Radio Equipment Control (REC) and Radio Equipment (RE). Companies cooperating to
define the CPRI Specification include Ericsson AB, Huawei Technologies Co., Ltd, NEC
Corporation, Nortel Networks SA and Siemens AG
Infrared Data Association (IrDA): An association that defines the physical specifications
communications protocol standards for short-range exchange of data over infrared light.
The IrDA maintains a standard for infrared data transmission (up to 4 Mbps).
Location Interoperability Forum (LIF): Founded by Ericsson, Motorola and Nokia in
October 2000 to achieve the goal of providing global location-based services on
wireless networks and terminals.
Regulators & other bodies in the Asia Pacific Region:
Australia
Australian
Competition
and
Consumer
Commission
(ACCC):
An
China
72
Guide to Telecoms
Hong Kong
India
Indonesia
Korea
Malaysia
73
Guide to Telecoms
The Philippines
Singapore
Taiwan
Thailand
74
Guide to Telecoms
Appendix
Sources for Data
For all the worldwide market share and size: Dataquest, DellOro, Infonetics, RHK,
Synergy and Lehman Brothers.
Althosbooks.com
Broadband services forum
Converge Digest
FCC
Flexwatch
Frost and Sullivan
Gartner
Howstuffworks
IEC.org
Infocellular
IST-Bread
ITU
Linksys
OFCOM
RIMM
Starband
TEC
Techhweb
Telecordia
Three-g.net
Wikipedia
WIMAX forum
75
Guide to Telecoms
852.2252.6182
852.2252.6181
852.2252.6209
852.2252.1400
822.317.5168
822.317.5165
852.2252.6134
852.2252.6204
1.202.452.4717
1.202.452.4735
1.202.452.4748
1.202.452.4708
1.202.452.4737
1.212.320.7869
76
Wireless Equipment
Jeff Kvaal
Tim Luke
Noelle Swatland
Amir Rozwadowski
1.212.526.2216
1.212.526.4993
1.212.526.3370
1.212.526.4043
Satellite Navigation
Noelle Swatland
Andrew Gardiner
Stuart Jeffrey
1.212.526.3370
44.20.7102.8834
44.20.7102.4709
Guide to Telecoms
Index
Page No
55
26
29
29
29
29
29
72
36
37
72
16
46
16
63
41
3
71
47
26
26
40
61
52
10
10
10
62
14
73
15
15
15
61
37
26
15
35
37
19
35
62
39
39
39
56
10
15
37
43
Topic
Calling P arty P ays (CP P )
Capacitors
Carrier Wave
CDMA developm ent group (CDG)
CDMA S ubs criber Identity Module (CS IM)
CDMA2000- 1x R T T
CDMA2000- E V - DO
Cell S ites
Cell S plitting
Cell- F i
Central Office
Churn rate
Circuit
Circuit- S witched Network
Clas s 4 s witch
Clas s 5 s witch
Code Divis ion Multiple Acces s (CDMA)
Code Divis ion Multiple Acces s (CDMA)
Com m on P ublic R adio Interface (CP R I)
Com m unity Antenna T elevis ion (CAT V )
Com petitive L ocal E xchange Carrier (CL E C)
Concentrator
Conditional Acces s S ys tem (CAS )
Connection- Oriented network
Connectors
Contactles s card
Converter
Cos t per gros s add (CP GA)
Cros s talk
Cus tom er- prem is es equipm ent (CP E )
Dark F iber
Data L ocal E xchange Carrier (DL E C)
Decibel
Dens e Wave Divis ion Multiplexing (DWDM)
Dial- Up Connection
Digital Audio B roadcas ting (DAB )
Digital Cros s Connect
Digital L oop Carrier (DL C)
Digital Multim edia B roadcas t (DMB )
Digital S ignal P roces s or (DS P )
Digital S ubs criber L ine Acces s Multiplexer (DS L AM)
Digital V ideo B roadcas ting Handheld (DV B - H)
Digital V ideo B roadcas ting T erres trial (DV B - T )
Digital video recorder (DV R )
Direct- s equence s pread- s pectrum tech (DS S S )
Dis pers ion
DOCS IS
Downlink
DS 1/T 1
Dual m ode phone/hands ets
Page No
10
64
60
71
19
6
6
14
12
34
66
10
54
54
67
67
5
57
72
43
68
63
43
54
64
19
64
10
53
37
46
68
52
57
39
51
63
63
22
64
42
21
23
44
59
53
44
51
55
18
77
Guide to Telecoms
78
Page No
18
18
54
26
28
26
4
21
10
55
71
7
7
6
28
11
11
73
53
55
54
19
14
46
55
47
47
47
47
47
36
30
22
9
56
9
56
56
12
59
47
54
41
62
4
51
51
4
54
Topic
Handoff
Hard Handoff
HDS L 2
High B it R ate Digital S ubs criber L ine (HDS L )
High s peed downlink packet acces s (HS DP A)
High S peed OF DM P acket Acces s (HS OP A)
High- definition televis ion (HDT V )
High- S peed P acket Acces s (HS P A)
Hom e L ocation R egis ter (HL R )
Hop
Hot s pot
HS UP A (high- s peed uplink packet acces s )
Hub/R epeater
Hybrid (802.11a + g)
Hybrid F iber Coax (HF C)
IE E E
i- m ode
IMS (IP Multim edia S ubs ys tem )
IMT - 2000
IN (Intelligent Networking)
Incum bent L ocal E xchange Carrier (IL E C)
Infocom m Developm ent Authority of S ingapore (iDA)
Infrared Data As s ociation (IrDA)
Integrated Digital E nhanced Network (iDE N)
Integrated S ervices Digital B roadcas ting (IS DB - T )
Interconnection
Interconnection rate
Interexchange Carrier (IX C)
International m obile equipm ent identifier (IME I)
International m obile s ubs criber identity (IMS I)
International Mobile T elephony Advanced (IMT - A)
International T elecom m unications Union (IT U)
Internet
Internet P rotocol T V (IP T V )
Internet T elephony
Internet2
Intranet
IP (Internet P rotocol)
IP v4/IP v6
IS (Interim S tandard)
IS DN (Integrated S ervices Digital Network)
IS DN Digital S ubs criber L ine (IDS L )
IS P (Internet S ervice P rovider)
J 2ME (J ava 2 Micro E dition)
J oint P hotographic E xperts Group (J P E G)
L as ers
L ayer 2 S witch
L ayer 3 S witch
L ayer 4 S witch
Page No
12
12
41
41
5
5
45
5
15
62
30
5
62
29
44
71
9
60
9
57
67
74
72
4
22
11
11
68
19
19
9
71
69
49
69
69
69
69
69
4
56
41
69
28
45
47
62
62
63
Guide to Telecoms
Page No
33
63
53
46
57
37
39
72
51
5
57
73
23
28
59
57
35
70
73
72
11
33
28
28
11
11
28
21
11
31
51
60
23
45
28
45
45
45
43
57
43
34
8
46
35
35
56
60
42
39
Topic
Narrowcas ting
National Com m unications Com m is s ion (NCC)
National Developm ent & R eform Com m is s ion (NDR C)
National T elecom m unications Com m is s ion (NT C)
National T elecom m unications Com m is s ion (NT C)
Near F ield Com m unication T echnology (NF C)
Net new connections (a.k.a. Net adds )
Network Interface Card (NIC)
Next Generation Networking (NGN)
Node
OF DMA
Off net (off network calls )
Office of the T elecom m unications Authority (OF T A)
On net (on network calls )
Open S ys tem Interconnection (OS I)
Operations S upport S ys tem s (OS S )
Optical Carrier (OC- x)
Optical Com ponents
Optical L ine T erm inals (OL T )
Optical Network T erm ination (ONT )
Optical Network Unit (ONU)
Optical R eceiver
Original des ign m anufacturer (ODM)
Original equipm ent m anufacturer (OE M)
Orthogonal F requency- Divis ion Multiplexing (OF DM)
P 2P (peer- to- peer)
P acket
P acket- s witched network
P alm OS
P as s ive Com ponents
P as s ive Infras tructure S haring
P as s ive Optical Com ponents
P as s ive Optical network (P ON)
P as s ive telecom infras tructure
P CMCIA
P enetration R ate
P erm anent V irtual Circuit (P V C)
P ers onal acces s s ys tem (P AS )
P ers onal Com m unications S ervice (P CS )
P ers onal Digital As s is tant (P DA)
P ers onal Digital Cellular (P DC)
P ers onal video recorder (P V R )
P icocell
P lain Old T elephone S ervice (P OT S )
P oint of P res ence (P OP )
P oint- to- P oint P rotocol (P P P )
P oint- to- P oint T unneling P rotocol
P olyphonic
P ortable navigation device
P ortal
Page No
57
74
72
74
74
33
11
64
67
64
34
11
73
11
58
15
46
46
49
49
49
47
21
21
34
60
58
54
21
64
16
47
48
16
64
12
56
3
3
20
3
44
14
66
58
58
58
23
53
69
79
Guide to Telecoms
80
Page No
66
39
39
12
66
59
69
58
66
20
13
61
61
33
41
11
68
37
37
19
64
60
34
23
23
62
60
73
26
8
34
35
35
46
70
14
32
20
16
12
67
33
34
12
16
59
59
45
52
12
18
62
Topic
S ym bian OS
S ym m etrical Digital S ubs criber L ine (S DS L )
S ynchronous digital hierarchy (S DH)
S ynchronous Optical Networking (S ONE T )
T CP (T rans m is s ion Control P rotocol)
T Dtv
T elecom Infras tructure S haring
T elecom regulatory authority of India (T R AI)
T elem atics
T elephone exchange
T erm ination R ate
T erres trial T runked R adio (T E T R A)
T he Departm ent of T elecom (DOT )
T im e Dis tance of Arrival (T DOA)
T im e divis ion duplex (T DD)
T im e Divis ion Multiple Acces s (T DMA)
T im e Divis ion Multiplexing (T DM)
T im e Divis ion- S ynchronous CDMA (T D- S CDMA)
T rans ceiver (T R X )
T ri- band m obile phones
T runk
T runk lines
T wis ted P air
UDP (Uns igned Datagram P rotocol)
Ultra Mobile B roadband (UMB )
Univers al Mobile T elephony S ys tem (UMT S )
Unlicens ed m obile acces s (UMA)
Uns hielded T wis ted P air (UT P )
Uplink
V alue- added s ervice (V AS )
V ery High Data R ate DS L (V DS L )
V ery S m all Aperture T erm inal (V S AT )
V ideo on dem and (V oD)
V ideophone
V irtual Circuit
V irtual P rivate Network (V P N)
V is itor L ocation R egis ter (V L R )
V oice- Over IP
WAP Gateway
WDM (Wavelength Divis ion Multiplexing)
Wide Area Network (WAN)
Wideband Code Divis ion Multiple Acces s (W- CDMA)
WiMAX
WiMAX F orum
Wireles s Application P rotocol (WAP )
Wireles s broadband (WiB ro)
Wireles s L ocal Area Network (WL AN)
Wireles s local loop (WL L )
Wireles s Mark- up L anguage (WML )
xDS L
ZigB ee
Page No
20
41
58
58
60
23
16
73
51
66
12
51
73
51
54
57
56
7
15
18
66
66
64
60
34
4
34
65
51
13
41
52
44
45
61
60
15
69
36
57
57
4
30
71
28
32
36
36
28
39
34
Guide to Telecoms
81
Guide to Telecoms
82
Key to Investment Opinions Guide to Lehman Brothers Equity Research Rating System
Our coverage analysts use a relative rating system in which they rate stocks as 1-Overweight, 2- Equal weight or 3-Underweight (see definitions below) relative to other companies covered by the analyst or a team of analysts that are deemed
to be in the same industry sector (the sector coverage universe).
In addition to the stock rating, we provide sector views which rate the outlook for the sector coverage universe as 1-Positive, 2-Neutral or 3-Negative (see definitions below). A rating system using terms such as buy, hold and sell is not the
equivalent of our rating system. Investors should carefully read the entire research report including the definitions of all ratings and not infer its contents from ratings alone.
Stock Rating
1-Overweight The stock is expected to outperform the unweighted expected total return of the relevant country index over a 12-month investment horizon.
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RS-Rating Suspended The rating and target price have been suspended temporarily to comply with applicable regulations and/or firm policies in certain circumstances including when Lehman Brothers is acting in an advisory capacity in a
merger or strategic transaction involving the company.
Sector View
1-Positive Sector coverage universe fundamentals/valuations are improving.
2-Neutral Sector coverage universe fundamentals/valuations are steady, neither improving nor deteriorating.
3-Negative Sector coverage universe fundamentals/valuations are deteriorating.
Distribution of Ratings:
Lehman Brothers Equity Research has 2067 companies under coverage.
40% have been assigned a 1-Overweight rating which, for purposes of mandatory regulatory disclosures, is classified as Buy rating, 29% of companies with this rating are investment banking clients of the Firm.
44% have been assigned a 2-Equal weight rating which, for purposes of mandatory regulatory disclosures, is classified as Hold rating, 38% of companies with this rating are investment banking clients of the Firm.
12% have been assigned a 3-Underweight rating which, for purposes of mandatory regulatory disclosures, is classified as Sell rating, 25% of companies with this rating are investment banking clients of the Firm.
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