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com Business analysis for telecoms professionals November 2010

Global100

Rise and fall

rAnKing tHe WorLds biggest netWorK oPerAtors

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GLOBAL 100

CONTENTS
4 rise and fall
Companies in the Middle East, Latin America and Asia are starting to move up our Global 100 ranking, but one operator has abandoned its once lofty ambitions

5 Table: Biggest rank winners and losers

Which companies have gone up ladders and which have slid down snakes?

6 Table: ranking by revenues

The complete list of revenue figures for the top 100 operators

8 Table: Ranking by net prot and loss

Find out which companies have maintained the healthiest balance sheets

9 Analyst viewpoint
PricewaterhouseCoopers outlines a strategy for success in a digital world

10 Table: Complete rankings

The complete ranking of the top 100 global operators, with revenues and profits in euros and local reporting currencies, plus reporting periods

12 Contributed prole
Brazilian operator TIM sets out its strategy for expansion in Latams biggest market

13 Contributed prole
XConnect sets out its position on interconnection and peering, including HD voice

16 Table: Ceos and employees

Who are the leaders and how many have reduced headcounts?

18 Table: return on revenues

A measure of profitability, calculated as net income divided by revenues

19 Methodology and notes

Explanations and clarifications on how the G100 is compiled

www.totaltele.com November 2010

GLOBAL 100

RISE AND FALL

Companies in the Middle East, Latin America and Asia are starting to move up our Global 100 rankings, but one operator has abandoned its lofty ambitions
s we went to press with this years Global 100, the eyes of the telecoms world were not on the top of the tablethe top five all retained their places, while there was just one new entrant in the top 20but rather on the middle of the rankings, where one companys position belies the state of flux it finds itself in. Just three years ago Kuwaiti telecoms group Zain set out its aim to establish itself as a top 10 global operator by 2011. Its lofty ambitions helped push it into 47th place in the revenue rankings in 2009, from 60th the year before, a position it has retained this year. But as that 2011 deadline approaches, a change in strategy threatens to push Zain out of the Global 100 altogether. At the start of this year there were already signs that Zain was set to break up rather than expand its operations. By June the telco had concluded the sale of its African assets to Indias Bharti Airtel for US$10.7 billion. Looking at the operators service revenue figures for each of its separate country business units, which the company splits out in dollar terms only, the 15 businesses divested accounted for 41.4% of Zains revenues in 2009. Without those operations, Zain would likely have been in the bottom quarter of the table this year. Further developments mean Zain is unlikely to feature at all in the 2011 rankings. In early November United Arab Emirates incumbent Etisalat confirmed that it has made an offer to acquire 51% of Zain, subject to certain conditions that include the sale of Zains fourth-largest revenue-generating unit, Saudi Arabia. The deal is valued at around US$11.7 billion. The offer remains conditional, pending the completion of due diligence, but on the day it was announced Etisalat chairman Mohammed Omran was already talking about unifying our resources and integrating our networks. Zains lifespan as a standalone entity in the Global 100 could prove to be shortjust three years. Etisalat, as a result, is likely to continue to move up the rankings in 2011, from its position at number 45 this year. Zains top two revenuegenerating businesses (excluding the divested African operations) in 2009 were Iraq and Kuwait, which together contributed $2.56 billion to turnover. Etisalat rose five places in this years ranking from 50th in 2009, having the previous year held

overview

Mary Lennighan Editor Total Telecom

the number 61 spot, one place lower than Zain. Meanwhile, Zains former African operations should also provide new owner Bharti Airtel with a boost in the 2011 ranking. The Indian operator was one of the biggest winners in this years table, rising eight places to number 37; that is 20 places higher than it reached just two years ago. The addition of Zains African operations could have pushed Bharti Airtel into the top 30. Bharti Airtel is the highest ranking as well as the fastest rising of Indias representatives in the Global 100, but other telcos from the country also fared well, despite having a difficult time in 2009 as intense competition in the mobile space pushed ARPUs down. State-owned operator Bharat Sanchar Nigam Ltd (BSNL) rose four places to 44th in this years ranking, while Reliance Communications was up one to 62nd. Indias Tata Group does not feature in the Global 100 this year because its various telecoms businessesTata Communications, Tata Teleservices and Tata Teleservices Maharashtraare separate legal entities, none of which individually made the cut. However, the IT and communications segment contributed 525 billion rupees (8.63 billion) to Tata Groups revenues in the 2009-10 financial year, which would have put the company as a whole in the top 30. The biggest advances in the Global 100 ranking came in Latin America, with a Brazilian company making it into the top 20 for the first time. Oi, which provides fixed and mobile services in Brazil, advanced 21 places to take the number 20 position, largely due to the fact that Brasil Telecom was included in its results for the first time. We left Brasil Telecom in the rankings this yearit rose eight places to number 54but it will drop out of the top 100 next year: the Global 100 is based on annual financial figures, predominantly to the end of December or March (see methodology/notes p.19). Oi needs an injection of cash to allow it pay down debt and fund further expansion, but help is on the way. In October Brazilian regulator Anatel gave the go-ahead for Portugal Telecom to acquire a stake in Oi once the latter has cleared its 74 million-real (about 30 million) debt with the government. Portugal Telecom in July revealed that through a partnership with Oi it will take a combined direct and indirect stake in
www.totaltele.com November 2010

GLOBAL 100

Oi of 22.38% in return for a maximum investment of 8.4 billion reals (about 3.5 billion). Portugal Telecom fell by one place to number 36 in our rankings and could slide further next year, because its acquisition of Oi is unlikely to offset the loss of its stake in rival Brazilian operator Vivo; the Portuguese incumbent finalised the sale of its 50% stake in Brasilcel, the holding company for Vivo, to its equal partner in the venture Telefonica in September for $9.8 billion. Because both Telefonica and Portugal Telecom generated more than 3 billion in revenues from Vivo in 2009, the deal should give the Spanish operator a significant boost in our rankings next year. Telefonica has held the number five spot for several years, although in the most recent ranking it lost ground to the number four player, Germanys Deutsche Telekom. As has been the case for the past few years, there was little change at the top end of the ranking by revenues: the top five remain in the same order as 2009. Last year we predicted that Verizon Communications could well be pushing NTT for second spot this year, following the inclusion in its results of Alltel, the smaller mobile rival acquired by Verizon Wireless in early 2009. Verizon did indeed narrow the gap on NTT Communications, but only to 5.37 billion this year compared to 9.30 billion last year. In local currency terms, Verizon reported 10.7% growth from 2008 to 2009, while NTT saw revenues decline by 2.3% in its equivalent financial year ended 31 March. Moving down the list, France Telecoms slip to eighth place from sixth in the revenues league triggered the only changes in the top 10, lifting Vodafone and China Mobile to sixth and seventh respectively. Indeed, all three of Chinas operators made the top 20, generating over 83 billion in revenues between them, almost 5 billion more than they reported last year. The top 25 players each generated revenues in excess of 10 billion, and the top 10 alone accounted for more than half of the 1.1 trillion revenues recorded by all the companies in the Global 100. Meanwhile the net profit recorded by the top 100 telcos exceeded the 100 billion mark, and these rankings changed more dramatically yearon-year than on the revenue side (see p.8). Although fourth in revenue terms, Deutsche Telekom ranked as low as 59th by net profit, making it the biggest rank loser with a slip of 40 places compared to last year. Similarly, Brazilian high flyer Oi dropped 38 places year-on-year in the net profit table to 90th. Zain just held on to a
www.totaltele.com November 2010

ToP TeN: ranking winners

Revenue Rank 2010 20 65 58 59 82 28 37 54 33 52 Revenue rank change y-o-y 21 16 10 10 9 8 8 8 7 6 Company name (rank in 2009) Oi (41) CenturyLink (81) Telkom South Africa (68) CANTv (69) Iliad (91) SK Telecom (36) Bharti Airtel (45) Brasil Telecom (62) Rogers (40) Telkom Indonesia (58) Revenue in euros (m) 09-10 11,948 3,470 3,863 3,831 1,954 8,674 6,515 4,358 7,060 4,783 Source: Company data/Diana Crossland

ToP TeN: ranking Losers

Revenue Rank 2010 77 41 85 29 34 71 80 81 43 57 Revenue rank change y-o-y -11 -9 -7 -6 -6 -6 -6 -6 -5 -5 Company name (rank in 2009) PCCW (66) vimpelcom (32) Eircom (78) Qwest Communications (23) Hutchison Whampoa (28) Level 3 (65) Bezeq (74) Windstream (75) OTE (38) Megafon (52) Revenue in euros (m) 09-10 2,256 6,076 1,828 8,588 6,997 2,624 2,121 2,090 5,984 4,185 Source: Company data/Diana Crossland

top half place, falling 20 places to 48th, while China Unicom, which ranked 7th in 2009, slid 22 places to 29th. Unicoms domestic rival China Telecom was the second highest riser in the profits league, going up 56 places in the ranking to number 22 and recording profits of 1.47 billion. It was pipped only by UK incumbent BT, which rose 60 places to 26th position, recording a net profit of 1.15 billion. The top of the profits table made for familiar reading, with China Mobile hanging on to its number one spot with net income of 11.8 billion and AT&T and Telefonica slipping just one place each to third and fourth respectively with income of 8.74 billion and 7.78 billion. Vodafone meanwhile climbed to number two from eighth last year, posting net income of 9.67 billion. The biggest change at the top saw South Africas Telkom grab seventh place, up from 54, with income of 3.60 billion. Languishing at the wrong end of the profits table, Sprint made a loss of 975 million on top of its 2.0 billion loss last year. And Level 3 and Virgin Media posted losses of 431 million and 403 million respectively. n

The top 10 companies accounted for more than half of total revenues

GLOBAL 100

revenues
Revenue Company name rank in (rank in 2009) 2010 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 AT&T (1) NTT (2) verizon (3) Deutsche Telekom (4) Telefnica (5) vodafone (7) China Mobile (8) France Telecom (6) Telecom Italia (9) KDDI (10) BT (12) Sprint (11) Softbank (13) China Telecom (14) Amrica Mvil (15) Telstra (17) China Unicom (16) KPN (18) SFR (19) Oi (41) BCE (21) Telenor (22) KT (Korea Telecom) (20) TeliaSonera (24) MTN (27) Saudi Telecom Company (25) SingTel (30) SK Telecom (36) Qwest Communications (23) Swisscom (26) Liberty Global (29) Comcast (34) Rogers (40) Hutchison Whampoa (28) MTS (31) Portugal Telecom (35) Bharti Airtel (45) Telus (43) Telmex (37) Svyazinvest (42) vimpelCom (32) Belgacom (39) OTE (Hellenic Telecommunications) (38) BSNL (48) Etisalat (50) Wind/Infostrada (44) Zain (47) Bouygues Telecom (51) Turk Telekom (53) TDC (46) Revenue euros (m) 2009-2010 85,813 80,571 75,203 64,602 56,731 49,918 46,188 45,944 27,445 27,240 23,413 22,503 21,869 21,390 21,079 17,266 15,727 13,509 12,425 11,948 11,809 11,757 11,710 10,644 10,578 8,919 8,674 8,588 8,086 7,729 7,686 7,060 6,997 6,852 6,784 6,515 6,396 6,360 6,086 6,076 5,990 5,984 5,889 5,855 5,726 5,634 5,368 4,932 4,829 Accounting standard US GAAP US GAAP US GAAP IFRS IFRS IFRS IFRS IFRS IFRS Japanese GAAP IFRS US GAAP Japanese GAAP IFRS Mexican FRS AAS IFRS IFRS IFRS Brazilian GAAP Canadian GAAP IFRS Korean GAAP IFRS IFRS Singapore FRS Korean GAAP FASB IFRS FASB US GAAP Canadian GAAP HKFRS US GAAP IFRS US GAAP Canadian GAAP Mexican FRS IFRS US GAAP IFRS IFRS Indian GAAP IFRS IFRS IFRS IFRS Turkey FRS IFRS Revenue Company name rank in (rank in 2009) 2010 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 Telekom Austria (49) PT Telkom Indonesia (58) Time Warner Cable (unranked) Brasil Telecom (62) Chunghwa Telecom (54) virgin Media (56) MegaFon (52) Telkom (South Africa) (68) CANTv (69) Tele 2 (61) Freenet/Mobilcom (67) Reliance Communications (63) Orascom Telecom (59) US Cellular/TDS (60) CenturyLink (81) Telecom New Zealand (72) LG Telecom (70) Turkcell (64) Maroc Telecom (71) C&W Communications (unranked) Level 3 (65) C&W Worldwide (unranked) Shaw (79) MetroPCS (80) MIC/Tigo (73) AOL (unranked) PCCW (66) Telecom Argentina (77) PLDT (76) Bezeq (74) Windstream (75) Iliad (91) TalkTalk (unranked) FastWeb (86) Eircom (78) Global Crossing (82) Intelsat (87) Telekom Malaysia (84) SES (89) Colt Telecom (88) Charter Communications (94) Frontier Communications (90) Elisa Corporation (92) Cablevision (93) Telecom Egypt (96) Taiwan Mobile 99 MTS Allstream (98) Cellcom Israel (97) IDT (95) Inmarsat (unranked) Revenue euros (m) 2009-2010 4,801 4,783 4,469 4,358 4,331 4,291 4,185 3,863 3,831 3,828 3,650 3,640 3,533 3,502 3,470 2,959 2,949 2,702 2,683 2,633 2,624 2,542 2,506 2,428 2,352 2,272 2,256 2,245 2,222 2,121 2,090 1,954 1,892 1,852 1,828 1,769 1,753 1,752 1,701 1,622 1,527 1,477 1,430 1,338 1,269 1,245 1,205 1,194 1,179 1,171 Accounting standard IFRS Indonesian GAAP US GAAP US GAAP ROC GAAP US GAAP US GAAP IFRS IASB IFRS IFRS Indian GAAP IFRS US GAAP US GAAP IFRS Korean GAAP IFRS IFRS EUR US GAAP IFRS Canadian GAAP US GAAP IFRS US GAAP Hong Kong FRSs Argentine GAAP IFRS IFRS US GAAP IFRS IFRS IFRS IFRS US GAAP US GAAP FRS IFRS IFRS US GAAP US GAAP IFRS US GAAP IFRS SFAS Canadian GAAP IFRS US GAAP IFRS

9,444 Saudi Arabian GAAP

Source: Company data/Diana Crossland 6 www.totaltele.com November 2010

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GLOBAL 100

Net income (prots)

Net income Net income Company name rank rank change (net income rank in 2010 Y-o-Y in 2009) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 0 6 -1 -1 4 -1 47 -2 2 -6 -1 9 1 1 -2 45 0 -2 3 -8 3 56 2 -6 20 60 -1 -5 -22 -3 3 1 3 -2 14 -7 18 -18 14 -1 -4 18 -8 -1 -15 13 -16 -20 (unranked) -3 China Mobile (1) vodafone (8) AT&T (2) Telefnica (3) Amrica Mvil (9) NTT (5) Telkom SA (54) France Telecom (6) Telstra (11) verizon (4) SFR (10) KPN (21) TeliaSonera (14) SingTel (15) Saudi Telecom (13) Brasil Telecom (61) KDDI (17) Etisalat (16) MTN (22) Telecom Italia (12) Bharti Airtel (24) China Telecom (78) Swisscom (25) Telenor (18) BCE (45) BT (86) Telmex (26) MegaFon (23) China Unicom (7) Chunghwa (27) Belgacom (34) Turk Telekom (33) Telkom Indonesia (36) Maroc Telecom (32) vimpelCom (49) Reliance Comms (29) Softbank (55) MTS (20) CANTv (53) Portugal Telecom (39) Telus (37) Bezeq (60) SK Telecom (35) PLDT (43) Svyazinvest (30) MIC/Tigo (59) Turkcell (31) Zain (28) C&W Comms SES (47) Financial Net income/ year loss in euro (m) 2009-2010 ended 31 Dec 09 ended 31 Mar 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 10 ended 31 Mar 10 ended 31 Dec 09 ended 30 Jun 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 10 ended 31 Mar 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 08 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 10 ended 31 Dec 09 11,766 9,673 8,744 7,776 4,112 3,896 3,601 2,997 2,718 2,547 2,530 2,175 2,075 2,066 2,020 1,952 1,684 1,678 1,622 1,596 1,530 1,473 1,297 1,217 1,157 1,155 1,093 1,042 976 971 904 855 839 833 782 766 765 700 691 683 667 652 629 602 594 593 515 513 497 477 Net income Net income Company name rank rank change (net income rank in 2010 Y-o-Y in 2009) 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 NA NA NA NA NA NA -9 -8 11 -8 1 -18 1 4 -40 -10 -13 9 -12 1 10 -9 -1 -1 1 -2 6 (unranked) (unranked) -2 -6 5 -1 2 6 11 -8 -3 (unranked) 6 (unranked) -3 -3 0 -2 -38 2 -3 -1 0 NA NA NA (unranked) NA NA Bouygues Telecom (42) Qwest Comms (44) Tele 2 (64) Shaw (46) Telecom Egypt (56) OTE (38) KT (Korea Telecom) (58) CenturyLink (62) Deutsche Telekom (19) TDC (50) Wind/Infostrada (48) Taiwan Mobile (71) Orascom Telecom (51) Telecom Argentina (65) Freenet/Mobilcom (75) Windstream (57) Cellcom Israel (66) Telecom NZ (67) LG Telecom (70) Elisa Corp (68) Iliad (77) AOL Inmarsat PCCW (72) Telekom Malaysia (69) US Cellular/TDS (81) MetroPCS (76) Colt Telecom (80) Telekom Austria (85) Eircom (91) Frontier (73) MTS Allstream (79) TalkTalk Liberty Global (90) C&W Worldwide BSNL (83) FastWeb (84) Global Crossing (88) IDT (87) Oi (52) virgin Media (93) Level 3 (89) Intelsat (92) Sprint (94) Comcast Rogers Hutchison Whampoa Time Warner Cable Charter Cablevision Financial Net income/ year loss in euro (m) 2009-2010 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Aug 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 30 Jun 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 30 Jun 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 10 ended 31 Dec 09 ended 31 Mar 10 ended 31 Mar 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Jul 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 471 462 444 396 372 370 363 356 353 320 308 303 264 258 256 233 218 214 184 177 175 173 171 161 137 135 123 121 94 94 84 67 18 10 1 1 -34 -98 -119 -174 -403 -431 -545 -975 NA NA NA NA NA NA

Source: Company data/Diana Crossland 8 www.totaltele.com November 2010

GLOBAL 100

DIGITAL TRANSFORMATION
Colin Brereton, global communications leader at PricewaterhouseCoopers, outlines five strategic imperatives for success in the fast-moving digital marketplace
aving weathered the recent economic storm telecoms operators now find themselves confronting new, and arguably equally testing, challenges arising from a rapidly-changing digital marketplace. Operators are seeing their traditional sources of revenue squeezed by intense competition, while new market entrants capture the lions share of value from new services, applications and content. As a result, operators have found that their previously very firm grip on the digital consumer is being loosened at bewildering speed. To reassert themselves, operators need to address some critical strategic challenges. If they do this successfully, they will be able to reclaim their position as a powerful and indispensable link in the digital value chain. But if they fail, they face a future of declining revenues and narrowing margins, while others continue to reap the massive rewards on offer. Operators must tackle five strategic challenges: owning and understanding the consumer; monetising new services; driving an economic return from rising data traffic; achieving operational simplicity and efficiency; and creating value through consolidation. The first challenge arises from major changes in consumer behaviour. These are highlighted particularly by the way that consumers use smartphones to access content and services. As a result, the digital value chain is fashioning itself into fresh combinations, with new entrants ability to build their services around the consumer enabling them to capture most of the value on offer. Getting to the heart of the way customers use services and data is the key to success in the future. Customers loyalty and brand trust have shifted from networks to devices. Operators need to better understand their customers to rebuild stronger relationships, ensuring that offerings are tailored flexibly to meet diverse requirements. A one-size-fits-all approach will no longer work. In order to monetise new services effectively, customers must perceive value over and above the charges they pay for network access. The most dramatic illustration of this trend is the rapid growth in application stores offered by handset manufacturers. These now generate more than US$6 billion in annual revenues, with the total predicted to hit US$29 billion by 2013.

A N A LY S T v i e w P o i N T

Colin Brereton global comms leader, PricewaterhouseCoopers

The rise of data-hungry smartphones also means that operators are supporting consumers insatiable appetite for bandwidth without being able to charge appropriately. The most enthusiastic users of digital services are often the least profitable for the networks: One estimate from the US suggests that just 3% of smartphone users consume 40% of all network traffic. In response, some operators are already charging more to higher users of data services. To make these changes palatable to consumers, network operators may have to re-educate them about the value of connectivity and stress the benefits of differentiated pricing to lower users. Responding to consumer demands has left many operators with a legacy of complex, fragmented and expensive systems and operating models. This could prevent rapid strategic execution in the future, so simplification is critical. Customer data is also fragmented and held in silos: sometimes the same customer has accounts across multiple products, yet there is no common access to that information across the enterprise. Unifying customer data in one place can greatly enhance the ability to manage customer loyalty and drive lifetime value. And simplicity of operations will provide the ability to compete, as agility and responsiveness become the key qualities required for success in a fast-changing digital market. Consolidation is also driving change. Just a few years ago, operators from developed economies were busy expanding in emerging markets, but now service providers from those fast-growing economies are eyeing up assets in mature markets (read Total Telecom Plus, November). But consolidation has not always generated the shareholder value promised. Delivering value in the future will require a new approach from service providers that recognises the differences between consumer markets through distinct targeted branding and pricing, while achieving cost and operational benefits from centralised operations and infrastructure. The disruptive effects of digital transformation, pervasive as they are, are far from finished. Operators are still very much in the game; but in order to maintain their chances of victory, they will need to respond quickly and decisively to the new rules of play. n
9

www.totaltele.com November 2010

GLOBAL 100

Complete ranking table

Rank Company name in 2010 (rank in 2009) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 AT&T (1) NTT (2) verizon (3) Deutsche Telekom (4) Telefnica (5) vodafone (7) China Mobile (8) France Telecom (6) Telecom Italia (9) KDDI (10) BT (12) Sprint (11) Softbank (13) China Telecom (14) Amrica Mvil (15) Telstra (17) China Unicom (16) KPN (18) SFR (19) Oi (41) BCE (21) Telenor (22) KT (Korea Telecom) (20) TeliaSonera (24) MTN (27) Saudi Telecom Company (25) SingTel (30) SK Telecom (36) Qwest Communications (23) Swisscom (26) Liberty Global (29) Comcast (34) Rogers (40) Hutchison Whampoa (28) MTS (31) Portugal Telecom (35) Bharti Airtel (45) Telus (43) Telmex (37) Svyazinvest (42) vimpelCom (32) Belgacom (39) OTE (38) BSNL (48) Etisalat (50) Wind/Infostrada (44) Zain (47) Bouygues Telecom (51) Turk Telekom (53) TDC (46) Revenue in euros (m) 2009-2010 85,813 80,571 75,203 64,602 56,731 49,918 46,188 45,944 27,445 27,240 23,413 22,503 21,869 21,390 21,079 17,266 15,727 13,509 12,425 11,948 11,809 11,757 11,710 10,644 10,578 9,444 8,919 8,674 8,588 8,086 7,729 7,686 7,060 6,997 6,852 6,784 6,515 6,396 6,360 6,086 6,076 5,990 5,984 5,889 5,855 5,726 5,634 5,368 4,932 4,829 Revenue in reporting currency (m) 123,018 USD 10,181,376 JPY 107,808 USD 64,602 EUR 56,731 EUR 44,472 GBP 452,103 CNY 45,944 EUR 27,445 EUR 3,442,147 JPY 20,859 GBP 32,260 USD 2,763,406 JPY 209,370 CNY 394,711 MXN 25,029 AUD 153,945 CNY 13,509 EUR 12,425 EUR 29,881. BRL 17,735 CAD 97,650 NOK 19,649,120 KRW 109,161 SEK 111,947 ZAR 50,780 SAR 16,871 SGD 14,555,465 KRW 12,311 USD 12,001 CHF 11,080 USD 11,019 USD 10,602 CAD 77,784 HKD 9,823 USD 6,784 EUR 396,150 INR 9,606 CAD 119,100 MXN 264,413 RUB 8,710 USD 5,990 EUR 5,984 EUR 358,119 INR 30,831 AED 5,726 EUR 2,318 KWD 5,368 EUR 10,568 TRY 35,939 DKK Net income/ Net prot/ net net loss in loss in reporting euros (m) currency (m) 8,744 3,896 2,547 353 7,776 9,673 11,766 2,997 1,596 1,684 1,155 -975 765 1,473 4,112 2,718 976 2,175 2,530 -174 1,157 1,217 363 2,075 1,622 2,020 2,066 629 462 1,297 10 NA NA NA 700 683 1,530 667 1,093 594 782 904 370 1 1,678 308 513 471 855 320 12,535 492,266 3,651 353 7,776 8,618 115,166 2,997 1,596 212,764 1,029 -1,398 96,716 14,422 76,998 3,940 9,556 2,175 2,530 -436 1,738 10,104 609,695 21,280 17,161 10,863 3,907 1,055,606 662 1,925 14 NA NA NA 1,004 683 93,019 1,002 20,469 25,797 1,121 904 370 57 8,836 308 211 471 1,832 2,383 Country of reporting USA Japan USA Germany Spain UK Hong Kong France Italy Japan UK USA Japan China Mexico Australia Hong Kong The Netherlands France Brazil Canada Norway Korea Sweden South Africa Saudi Arabia Singapore Republic of Korea USA Switzerland USA USA Canada Hong Kong Russian Federation Portugal India Canada Mexico Russian Federation Russian Federation Belgium Greece India UAE Italy Kuwait France Turkey Denmark Financial year

ended 31 Dec 09 ended 31 Mar 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 10 ended 31 Mar 10 ended 31 Dec 09 ended 31 Mar 10 ended 31 Dec 09 ended 31 Dec 09 ended 30 Jun 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 08 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09

10

www.totaltele.com November 2010

GLOBAL 100

Complete ranking table

Rank Company name in 2010 (rank in 2009) 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 Telekom Austria (49) PT Telkom Indonesia (58) Time Warner Cable (unranked) Brasil Telecom (62) Chunghwa Telecom (54) virgin Media (56) MegaFon (52) Telkom (South Africa) (68) CANTv (69) Tele 2 (61) Freenet/Mobilcom (67) Reliance Communications (63) Orascom Telecom (59) US Cellular/TDS (60) CenturyLink (81) Telecom NZ (72) LG Telecom (70) Turkcell (64) Maroc Telecom (71) Cable&Wireless Comms (unranked) Level 3 (65) Cable&Wireless Worldwide (unranked) Shaw (79) MetroPCS (80) MIC/Tigo (73) AOL (unranked) PCCW (66) Telecom Argentina (77) PLDT (76) Bezeq (74) Windstream (75) Iliad (91) TalkTalk (unranked) FastWeb (86) Eircom (78) Global Crossing (82) Intelsat (87) Telekom Malaysia (84) SES (89) Colt (88) Charter Communications (94) Frontier Communications (90) Elisa Corporation (92) Cablevision (93) Telecom Egypt (96) Taiwan Mobile (99) MTS Allstream (98) Cellcom Israel (97) IDT (95) Inmarsat (unranked) Revenue in euros (m) 2009-2010 4,801 4,783 4,469 4,358 4,331 4,291 4,185 3,863 3,831 3,828 3,650 3,640 3,533 3,502 3,470 2,959 2,949 2,702 2,683 2,633 2,624 2,542 2,506 2,428 2,352 2,272 2,256 2,245 2,222 2,121 2,090 1,954 1,892 1,852 1,828 1,769 1,753 1,752 1,701 1,622 1,527 1,477 1,430 1,338 1,269 1,245 1,205 1,194 1,179 1,171 Revenue in reporting currency (m) 4,801 EUR 64,596,635 IDR 6,406 USD 10,898 BRL 198,361 TWD 3,804 GBP 181,833 RUB 38,305 ZAR 11,807,789 vEF 39,265 SEK 3,650 EUR 221,323 INR 5,065 USD 5,020 USD 4,974 USD 5,271 NZD 4,949,119 KRW 5,789 USD 30,339 MAD 2,346 USD 3,762 USD 2,265 GBP 3,390 CAD 3,480 USD 3,372 USD 3,257 USD 25,077 HKD 12,226 ARS 147,993 PHP 11,519 ILS 2,996 USD 1,954 EUR 1,686 GBP 1,852 EUR 1,828 EUR 2,536 USD 2,513 USD 8,608 MYR 1,701 EUR 1,622 EUR 2,189 USD 2,117 USD 1,430 EUR 1,918 USD 9,960 EGP 57,015 TWD 1,809 CAD 6,483 ILS 1,538 USD 1,038 USD Net income/ Net prot/ net net loss in loss in reporting euros (m) currency (m) 94 839 NA 1,952 971 -403 1,042 3,601 691 444 256 766 264 135 356 214 184 515 833 497 -431 1 396 123 593 173 161 258 602 652 233 175 18 -34 94 -98 -545 137 477 121 NA 84 177 NA 372 303 67 218 -119 171 94 11,332,140 NA 4,881 44,495 -357 45,289 35,712 2,129,693 4,555 256 46,550 379 193 511 382 308,124 1,104 9,425 443 -618 1 535 176 850 248 1,795 1,405 40,095 3,541 334 175 16 -34 94 -141 -781 673 477 121 NA 120 177 NA 2,917 13,888 101 1,182 -155 152 Country of reporting Austria Indonesia USA Brazil Taiwan UK Russian Federation South Africa venezuela Sweden Germany India Egypt USA USA New Zealand Korea Turkey Morocco UK USA UK Canada USA Luxembourg USA Hong Kong Argentina Philippines Israel USA France UK Italy Cayman Islands Bermuda Bermuda Malaysia Luxembourg UK USA USA Finland USA Egypt Taiwan Canada Israel USA UK Financial year

ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 30 Jun 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 10 ended 31 Dec 09 ended 31 Mar 10 ended 31 Aug 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Mar 10 ended 31 Dec 09 ended 30 Jun 10 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Dec 09 ended 31 Jul 09 ended 31 Dec 09

Source: Company data/Diana Crossland www.totaltele.com November 2010 11

CONTRIBUTED PROFILE

UPWARDLY MOBILE
Brazilian mobile operator TIM sets out its strategy for expansion in a highly competitive market,with 3G services, differentiated tariffs and the iPhone central to its plans
TIM Quick Facts (as of 3Q10)
Net Revenue CEO Headquarters Employees Subscribers ARPU MOU Market Capitalisation R$3.6 billion (3Q10) Luca Luciani Rio de Janeiro, Brazil 9,231 47 million (39.7 million prepaid); (7.2 million postpaid) R$23.4 123 minutes/customer/month R$15.0 billion (Sept 2010)

TiM BrASiL

voice central to growth

As the sole pure-play mobile company in Brazil, TIM sees voice services as the central element of its strategy: more than 85% of the operators revenues come from voice services. In turn, the Brazilian telecoms market is worth around R$100 billion per year, and the largest part of that comes from voice services. According to analyst company Hot Telecom, 80.3% of all telephony subscribers in Brazil were mobile users in 2009, and that proportion is set to rise to 83.5% in 2013. With that in mind, TIMs strategy is focused firmly on stimulating higher minutes of use from its customers, and on fixed-to-mobile substitution. In the second quarter, TIMs outgoing traffic more than doubled to 12.2 billion minutes compared to the previous year, and average minutes per customer reached 110 minutes per month compared to 73 minutes a year earlier (that has now risen to 123 minutes). When looking at the long distance business, traffic increasedfifteen-fold compared to a year earlier and put the company in a leadership position in a competitive domestic sector with some 40% market share.

his year turned out to be an exciting one for telecoms services in Brazil, with a spate of M&A activity. Latin Americas biggest market is also its fiercest battleground (see article in Total Telecom Plus, June), and competition in Brazil is set to intensify further as the regulator opens up the market to MVNOs and more 3G spectrum is auctioned, and as operators seek to integrate their fixed and mobile services. Telecom Italia-owned TIM Brasil (TIM Participacoes) is one operator well positioned to expand in the market, with a very clear mobile-focused strategy and a solid infrastructure. For the past two years the company has focused on maintaining a balance between growth and financial returns, and now is set for new challenges. TIM plans to make 3G services available to around 60% of the population by 2012, and is investing about 2.5 billion reais (about $1 billion) this year. Over the past 18 months the operator has carried out a turn-around strategy, and although not complete posted net revenues of 3.6 billion reais (about $1.5 billion) in the third quarter, up 6.1% from 3.44 billion reais in the same period a year earlier. Ebitda rose 19.6% to BRL924 million in the third quarter, and the Ebitda margin was 25.3%, up from 22.5% in the third quarter of 2009. As well as substantial improvements in financial results, there is other evidence of a successful turn-around. Sound results can be seen in terms of improvement in network quality metrics, skyrocketing total minutes of traffic and subscriber growth. Subscribers grew 18.5% year-on-year to 46.9 million at the end of the third quarter, and the company is aiming for 50 million subscribers by the end of the year. During the past 18 months, TIM has also adopted a new tariff strategy, moving from charging per-minute to charging percall and removing the traditional long distance barrier in Brazil. At the end of last year TIM bought local long-distance operator Intelig for about $70 million. Now we can see the Brazilian market as a single market, and we are happy to enable the creation of the largest community base in the country with 44 million users, says Luca Luciani, the companys CEO.
12

Unlocking data value

TIMs network supports the fast-growing data traffic of its customers. In the post-paid segment the company in July launched TIM Web, a transparent data card plan based on charging according to time spent rather than megabytes used. In the pre-paid segment the company is pursuing the as-yet unexploited market of internet cafs for lower social classes. TIM offers, via customized smartphones, a substitute option for internet cafs enabling connectivity to social networks such as facebook and twitter for a pre-paid daily charge. Infinity Web, launched in August, provides internet access for lower income customers for the cost of 0.50 reais per day. During the past 18 months 28 million users have joined the companys Infinity and Liberty plans. In 2011, the company plans to also concentrate on sales of Blackberry and iPhone handsets and services, with updated Internet navigation and other applications. n

www.totaltele.com November 2010

CONTRIBUTED PROFILE

PEERING INTO THE FUTURE

XConnect sets out its position on interconnection and peering services, including the latest international alliances and agreements to promote high-definition voice services
XConnect Quick Facts
Founded CEO Headquarters Services Customers POPs Global Alliance HD Alliance 2004 Eli Katz London Multimedia interconnect and IP peering Over 100 service providers in 20 countries US, Europe, Africa, Asia Enum-based IP peering federation High-definition voice peering federation

XCoNNeCT

Multisources extensive market knowledge and network capability with XConnects expertise in providing multimedia interconnection and carrier Enum registry services. The full suite of XConnects Interconnect 2.0 services will be deployed, enabling South African operators to interconnect their networks and route calls seamlessly and efficiently through a scalable, multilateral interconnection hub.

Next-generation networks
XConnect further enhanced its market leading position by announcing the first IP eXchange (IPX) platform to offer seamless integration with PathFinder, the GSMAs Number Translation Service, enabling interoperability and convergence between fixed and mobile networks. Based on standards and specifications developed by the GSMA, the XConnect IPX platform enables network operators to optimise routing and signalling and deliver new IP services via a high-quality, secure, managed IP connection with support for multiple commercial models. A full suite of IPX services is available within XConnects national federation environments in North America, Korea, Europe and South Africa, as well as accessible from XConnects points of presence globally. XConnects strategy and focus for 2011 remains on utilising its industry leading technology, capability and experience to capitalise on emerging next-generation network opportunities as adoption of IP networks continues. This includes increasing deployments of national federation hubs in partnership with established in-country partners, continued growth of Global Alliance members, product innovation and development to introduce new features and service including HD video, instant messaging and presence. Core to the companys strategy will be working with unified communications solutions providers to offer the benefits of federations within UC environments. And it will use its Enum registry technology to extend the benefits of UC from intraenterprise to inter-enterprise. n

Connect is the global leader of federation-based interconnection and peering services. Through its Interconnect 2.0 suite of services, the company solves the challenges of next-generation interconnection (NGN) by enabling seamless interworking and interoperability between fixed, mobile and IP networks. Interconnect 2.0 is the most comprehensive suite of secure and scalable carrier-class Enum Registry and IPX hub interconnection services. It meets the need for interconnection of IP networks, to efficiently deliver new revenue-generating multimedia services on a cross network basis while increasing service quality and reducing costs. Xconnect operates the largest worldwide Enum-based IP peering federation, the Global Alliance, and the worlds first national VoIP/NGN interconnection federations in North America, Scandinavia, Korea and South Africa. Headquartered in London, with offices and points of presence in the US, Europe, Africa and Asia, XConnect provides services to over 100 service providers in more than 20 countries.

High-denition voice
In 2010, XConnect continued to enhance its position as the market leader for next-generation federation interconnection services. In January, the company announced the worlds first high definition (HD) voice peering federation, the HD Alliance. HD voice increasingly is being deployed by service providers to deliver clearer, higher quality voice calls than is possible on the PSTN. The HD Alliance interconnects HD enabled networks, preserving an all-IP call path, which allows HD calls to be delivered between networksan essential requirement for the mass adoption of the service. The HD Alliance launched with nine charter members and is backed by leading vendors Polycom, Dialogic and Broadsoft. As the explosive growth of IP continues globally, the need for interconnection between NGN/IP networks on a national level is paramount. In April, XConnect partnered with Multisource to launch a national federation in South Africa. The partnership, known as XConnect South Africa, will combine
www.totaltele.com November 2010

13

BOOK YOUR TABLE

The World Communication Awards The London Hilton on Park Lane 24 November 2010 To book your table, go to www.worldcommsawards.com

The feeling of

freedom

www.worldcommsawa

Sponsors:

Shortlisted for the World Communication Awards 2010

Best Brand
Etisalat Grameenphone Idea Cellular Telstra Enterprise & Government Turk Telekom Ufone Verizon Business

Best Mobile Operator

Bharti Airtel Maxis Orange Business Services Safaricom TMN

Team of the Year

Azercell Telecom Emtiac Mobile Solutions Orange Business Services Roshan Turk Telekom Turkcell

Best New Service

Avea Bharti Airtel MTN Uganda Orange Business Services Sebit Verizon Business

Best Content Service

Afghan Wireless Orange Business Services TE Data Turk Telekom Turkcell

The Alireza Mahmoodshahi Technology Foresight Award

Arieso Ltd BT Group Cambridge Broadband Networks Continuous Computing IPWireless Kineto Wireless SK Telecom Turkcell Technology

Best Customer Care

Bharti Airtel BT Etisalat Misr Global Crossing Orange Business Services Tata Communications TeliaSonera International Carrier

Best Operator in a Developing Market

Digicel Group Etisalat Misr Ezecom Gateway Communications Orange Business Services Africa Viettel Cambodia

The Green Award

Azercell Telecom Batelco BT Group Colt Orange Business Services Telefonica O2 UK

Best Global Operator

BT Global Services Hutchinson Global Communication Orange Business Services PCCW Global Virtela Technology Services Inc

Best Project Management

Bharti Airtel Orange Business Services Subex Tech Mahindra Telstra

Users Choice

Best Managed Service

BT Group Ericsson Interoute iPass Orange Business Services Tulip Telecom Virtela Technology Services Inc Vodafone

Best Regional Operator

China Telecom (Europe) Digicel Group GTS Central Europe Hutchison Global Communications Interoute Singapore Telecommunications Viettel

AT&T BT NTT Communications Orange Business Services Telefonica Verizon Business

CEO of the Year

Abdul Aziz Anil Sardana Ian Livingston Karel Pienaar Luca Luciani Mohammed Omran Paul Doany Saud Al Daweesh Sureyya Ciliv Wang Jianzhou

Best Wholesale Carrier

Bharti Airtel BICS BT Wholesale China Telecom (Europe) Colt Tata Communications TeliaSonera International Carrier

Best Mobile Device Strategy

Emtiac Mobile Solutions Novatel Wireless Turk Telekom

Winners will be announced at the gala dinner on Wednesday, 24 November 2010

ards.com

Organised by:

World Communication Awards For global communications providers

24 November 2010 The London Hilton on Park Lane
2010

GLOBAL 100

Chief executives and employees

Revenue Company name rank (rank in 2009) in 2010 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 AT&T (1) NTT (2) verizon (3) Deutsche Telekom (4) Telefnica (5) vodafone (7) China Mobile (8) France Telecom (6) Telecom Italia (9) KDDI (10) BT (12) Sprint (11) Softbank (13) China Telecom (14) Amrica Mvil (15) Telstra (17) China Unicom (16) KPN (18) SFR (19) Oi (41) BCE (21) Telenor (22) KT (Korea Telecom) (20) TeliaSonera (24) MTN (27) Saudi Telecom (25) SingTel (30) SK Telecom (36) Qwest Comms (23) Swisscom (26) Liberty Global (29) Comcast (34) Rogers (40) Hutchison Whampoa (28) MTS (31) Portugal Telecom (35) Bharti Airtel (45) Telus (43) Telmex (37) Svyazinvest (42) vimpelCom (32) Belgacom (39) OTE (38) BSNL (48) Etisalat (50) Wind/Infostrada (44) Zain (47) Bouygues Telecom (51) Turk Telekom (53) TDC (46) Current chief executive Randall L. Stephenson Satoshi Miura Ivan G. Seidenberg Ren Obermann Cesar Alierta Izuel vittorio Colao Wang Jianzhou Stphane Richard Franco Bernabe Tadashi Onodera Ian Livingston Daniel R. Hesse Masayoshi Son Wang Xiaochu Daniel Hajj Aboumrad David Thodey Chang Xiaobing Ad Scheepbouwer Frank Esser Luiz Eduardo Falco George Cope Jon Fredrik Baksaas Suk-Chae Lee Lars Nyberg Phuthuma Nhleko Chua Sock Koong Man Won Jung Edward A. Mueller Carsten Schloter Michael T. Fries Brian L. Roberts Alan D. Horn Canning Fok Mikhail v. Shamolin Zeinal Bava Manoj Kohli Darren Entwistle Hctor Slim Seade Evgeny Yurchenko Boris Nemsic Didier Bellens Panagis vourloumis Kuldeep Goyal Luigi Gubitosi Nabeel Bin Salamah Olivier Roussat Paul Doany Henrik Poulsen Employees 2009 282,720 195,000 222,900 259,920 257,426 85,000 145,954 181,000 69,964 18,301 97,800 40,000 21,885 312,520 53,661 45,220 321,772 34,925 9,945 12,372 50,662 40,300 30,841 29,734 17,509 23,000 10,714 30,138 19,479 23,000 107,000 28,985 220,000 36,136 37,021 18,354 36,400 52,946 NA 36,355 17,833 32,864 299,840 NA 6,915 13,000 9,018 34,086 13,042 Revenue Company name rank (rank in 2009) in 2010 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 Telekom Austria (49) PT Telkom Indonesia (58) Time Warner Cable (unranked) Brasil Telecom (62) Chunghwa Telecom (54) virgin Media (56) MegaFon (52) Telkom SA (68) CANTv (69) Tele 2 (61) Freenet/Mobilcom (67) Reliance Comms (63) Orascom Telecom (59) US Cellular/TDS (60) CenturyLink (81) Telecom NZ (72) LG Telecom (70) Turkcell (64) Maroc Telecom (71) C&W Comms (unranked) Level 3 (65) C&W Worldwide (unranked) Shaw (79) MetroPCS (80) MIC/Tigo (73) AOL (unranked) PCCW (66) Telecom Argentina (77) PLDT (76) Bezeq (74) Windstream (75) Iliad (91) TalkTalk (unranked) Fastweb (86) Eircom (78) Global Crossing (82) Intelsat (87) Telekom Malaysia (84) SES (89) Colt (88) Charter (94) Frontier (90) Elisa Corp (92) Cablevision (93) Telecom Egypt (96) Taiwan Mobile 99 MTS Allstream (98) Cellcom Israel (97) IDT (95) Inmarsat (unranked) Current chief executive Hannes Ametsreiter Rinaldi Firmansyah Glenn A. Britt Luiz Falco Shyue-Ching Lu Neil Berkett Sergey Soldatenkov Jeffrey Hedberg (acting) Socorro Hernandez Mats Granryd Christoph vilanek Anil D. Ambani Khaled Bichara LeRoy T. Carlson, Jr. Glen F. Post, III Paul Reynolds Lee Sang-Cheol Sureyya Ciliv Abdelslam Ahizoune Tony Rice James Q. Crowe Jim Marsh Jim Shaw Roger D Linquist Mikael Grahne Timothy M. Armstrong Alex Arena Franco Bertone Napoleon L. Nazareno Avi Gabbay Jeffery R. Gardner Maxime Lombardini Dido Harding Carsten Schloter Paul Donovan John J. Legere David McGlade Dato Sri Zamzamzairani Romain Bausch Rakesh Bhasin Michael J. Lovett Mary Agnes Wilderotter veli-Matti Mattila James L. Dolan Tarek Tantawy Richard Tsai Pierre Blouin Amos Shapira Howard S. Jonas Andrew Sukawaty Employees 2009 16,573 28,750 47,000 3,619 27,915 12,107 20,237 23,247 NA 6,684 4,394 37,150 17,213 12,400 20,200 8,629 NA 11,000 14,075 NA 5,200 6,575 10,000 3,600 7,789 6,700 18,200 15,300 29,035 7,364 7,385 4,052 4,572 3,440 4,559 5,235 1,111 24,744 1,585 4,777 16,700 5,400 3,331 NA NA 2,496 5,837 4,432 1,400 499

Saud bin Majed Al-Daweesh 21,190

Mohammed Khalfan Al Qamzi

Source: Company data/Diana Crossland 16 www.totaltele.com November 2010

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GLOBAL 100

return on revenue
Revenue rank in 2010 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Company name (rank in 2009) AT&T (1) NTT (2) verizon (3) Deutsche Telekom (4) Telefnica (5) vodafone (7) China Mobile (8) France Telecom (6) Telecom Italia (9) KDDI (10) BT (12) Sprint (11) Softbank (13) China Telecom (14) Amrica Mvil (15) Telstra (17) China Unicom (16) KPN (18) SFR (19) Oi (41) BCE (21) Telenor (22) KT (Korea Telecom) (20) TeliaSonera (24) MTN (MTN Group Ltd.) (27) Saudi Telecom Company (25) SingTel (30) SK Telecom (36) Qwest Communications (23) Swisscom (26) Liberty Global (29) Comcast (34) Rogers (40) Hutchison Whampoa (28) MTS (31) Portugal Telecom (35) Bharti Airtel (45) Telus (43) Telmex (37) Svyazinvest (42) vimpelCom Ltd (32) Belgacom (39) OTE (38) BSNL (48) Etisalat (50) Wind/Infostrada (44) Zain (47) Bouygues Telecom (51) Turk Telekom (53) TDC (46) Return on revenue 2009-2010 10.19% 4.83% 3.39% 0.55% 13.71% 19.38% 25.47% 6.52% 5.82% 6.18% 4.93% -4.33% 3.50% 6.89% 19.51% 15.74% 6.21% 16.10% 20.36% -1.46% 9.80% 10.35% 3.10% 19.49% 15.33% 21.39% 23.16% 7.25% 5.38% 16.04% 0.13% NA NA NA 10.22% 10.07% 23.48% 10.43% 17.19% 9.76% 12.87% 15.09% 6.18% 0.02% 28.66% 5.38% 9.10% 8.77% 17.34% 6.63% Revenue rank in 2010 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 Company name (rank in 2009) Telekom Austria (49) PT Telkom Indonesia (58) Time Warner Cable (unranked) Brasil Telecom (62) Chunghwa Telecom (54) virgin Media (56) MegaFon (52) Telkom SA (68) CANTv (61) Tele 2 (61) Freenet/Mobilcom (67) Reliance Communications (63) Orascom Telecom (59) US Cellular/TDS (60) CenturyLink (81) Telecom NZ (72) LG Telecom (70) Turkcell (64) Maroc Telecom (71) Cable&Wireless Comms (unranked) Level 3 (65) Cable&Wireless Worldwide (unranked) Shaw (79) MetroPCS (80) MIC/Tigo (73) AOL (unranked) PCCW (66) Telecom Argentina (77) PLDT (76) Bezeq (74) Windstream (75) Iliad (91) TalkTalk (unranked) Fastweb (86) Eircom (78) Global Crossing (82) Intelsat (87) Telekom Malaysia (84) SES (89) Colt (88) Charter (94) Frontier (90) Elisa Corporation (92) Cablevision (93) Telecom Egypt (96) Taiwan Mobile 99 MTS Allstream (98) Cellcom Israel (97) IDT (95) Inmarsat (unranked) Return on revenue 2009-2010 1.96% 17.54% NA 44.79% 22.43% -9.38% 24.91% 93.23% 11.60% 11.60% 7.01% 21.03% 7.48% 3.84% 10.27% 7.25% 6.23% 19.07% 31.07% 18.88% -16.43% 0.04% 15.78% 5.06% 25.21% 7.61% 7.16% 11.49% 27.09% 30.74% 11.15% 8.96% 0.95% -1.84% 5.14% -5.56% -31.08% 7.82% 28.04% 7.46% NA 5.67% 12.38% NA 29.29% 24.36% 5.58% 18.23% -10.08% 14.64% Source: Company data/Diana Crossland 18 www.totaltele.com November 2010

CONTACTS
EDITORIAL

METHODOLOGY/NOTES
Revenue and net income data
The current league table is based on the latest published revenue and net income figures for operators full financial years: predominantly ending 31 December 2009, but also ending 31 December 2008, 31 March 2009, 30 June 2009, 31 July 2009 and 31 March 2010. We strove to use audited consolidated revenue and net income data. Whenever available, we used revenue and net income figures as reported under I.F.R.S. (International Financial Reporting Standard). When I.F.R.S. reporting was unavailable, we strove to use data under US G.A.A.P. (United States Generally Accepted Accounting Principles). National reporting standards were used otherwise. effective on 26 March 2010 and resulted in the formation of the Carphone Warehouse Group plc and the TalkTalk Group plc. Neither company has issued an Annual Report for 09-10 but instead published a summary of financial information that showed what the results would have been if both companies had been operating separately. These separate results have been used in the rankings table. In April 2010, a new entity, VimpelCom Limited, completed a tender offer to exchange ownership of OJSC VimpelCom and Ukraines Kyivstar for shares in VimpelCom Limited. Qwest Communications and CenturyLink agreed in August 2010 to a merger between the two companies. It is anticipated the transaction will close in the first half of 2011.

4th Floor, Welken House, 10-11 Charterhouse Square, London EC1M 6EH +44 (0)20 7608 7030; ttmag@totaltele.com TOTAL TELECOM PLUS Ian Kemp Editor Michelle Young Art Editor TOTAL TELECOM Mary Lennighan Editor Nick Wood Assistant Editor Tim Charters Web Developer

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Latest data available

We strove to obtain the latest full-year figures for each ranked company, that is for calendar year 2009 and fiscal year 2009-2010. In a few cases however, the latest data was published for calendar year 2008 and for fiscal year 2008-2009. Despite the distortion induced by this difference in reporting, and in order to give the fairest view of companies operating in the various markets, we decided to include some of these companies, provided they were significant enough in the national market. This was the case for IDT (31 July 2009), Shaw Communications Inc. (31 August 2009), OJSC Svyazinvest (31 December 2008) and BSNL (31 March 2009).

Extraction of telecoms revenues

Double-counting

There is a degree of double-counting of revenue and net income in this league table, due to minority shareholdings associated with a degree of free floatation of remaining shares. Double-counting may arise from shareholdings by multiple parties into a company. France Telecoms reported figures exclude activities in the UK, which are no longer consolidated following the announcement in September 2009 of the merger of the Orange and T-Mobile operations in the UK. The UK segment is now treated as a discontinued operation in France Telecoms financial statements. LG Telecom has absorbed LG Dacom & LG Powercom as of Jan 1st 2010 and will be branded as LG Telecom. LG Telecom & LG Dacom are listed separately in this years rankings. Verizons Consolidated revenues in 2009 increased by $10,454 million, or 10.7%, compared to the similar period in 2008, primarily due to the inclusion of the operating results of Alltel in its Wireless segment. CenturyTel merged with Embarq on 1st July 2009 and was rebranded CenturyLink. The 2009 results for CenturyLink include six months operations from Embarq. Time Warner has been removed from the table since it separated from AOL in Dec 09 and Time Warner Cable (TMC) in March 09. AOL and TWC have been added to the rankings and rated as individual companies. Cable and Wireless separated its businesses Communications and Worldwide on 26 March 2010, creating two separately listed companies, Cable & Wireless Worldwide and Cable & Wireless Communications. These two companies have reported their results for 0910 separately, as is now shown in the rankings. The Demerger of Old Carphone Warehouse was

Some of the ranked companies activities span non-telecommunications industries. In these instances, we have endeavoured to extract telecommunicationsrelated revenue in order to not distort reporting, using segment information reported by these companies. Corresponding net income data by segment was, unfortunately, often unavailable. These companies include Hutchison Whampoa Ltd. (segments: Hutchison Telecommunications International Ltd., 3 Group), Comcast Corporation (High-speed data, telephone), Rogers Communications Inc. (Rogers Cable, Rogers Wireless), Time Warner Cable (high-speed data and voice only), Cablevision Systems Corp. (high-speed data services excluding video, voice, VoIP) and Charter Communications Inc. (high-speed data, telephone).

contributing editors Roy Rubenstein royruben@netvision.net.il Omer, Israel Ingrid Lunden ingridlunden@gmail.com London Ken Wieland ken2wieland@yahoo.co.uk London Craig Stephen ch.stephen@gmail.com Hong Kong +852 9048 1124 Jagdish Rattanani jagdish@mtnl.net.in Mumbai +91 22 287 55087

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Newcomers and drop-outs

Mergers & Separations

Some companies listed this year lacked a ranking in last years table, due either to the unavailability of company information or too low revenue figures at the time of data collection. Newcomers to the table are Time Warner Cable, Cable & Wireless Communications, Cable & Wireless Worldwide, AOL, TalkTalk Telecom Group and Inmarsat. Some companies dropped out of the league table, due either to consolidation by other companies or to revenue figures lower than those of the 100 players. These companies are TOT, Tata Communications (now separated out from Tata Indicom), The Carphone Warehouse Group (has separated from Talk Talk), Time Warner (sold AOL & TWC), Embarq (merged with CenturyLink) and Cable & Wireless (split into separate companies).

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MARKETING

Tally Judge Marketing Manager Charles Georgiou Marketing Executive

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SUBSCRIPTION/CUSTOMER SERvICES

Aleisha Bryant aleisha.bryant@terrapinn.com Customer Services Executive +44 (0) 7608 7042 or subscribe online at: www.subscription.co.uk/totaltelecom MANAGEMENT Rob Chambers Publisher Greg Hitchen Chief Executive Officer

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Exchange rates

We used historical mid-market rates at noon eastern time on the day of reporting, provided by http://www. xe.com. Mid-market rates are derived from mid-point between the buy and sell rates of large-value transactions in the global currency markets. As our analysis does not use consistent exchange rate comparisons, some companies may benefit and others lose from a conversion of their revenue and net income figures into euros. Conversion into euros is indicative and provides no like-for-like comparison. Companies whose figures were not available for 20092010 have had the exchange rate for the period ending 20092010 applied, rather than the applicable exchange rate in 20082010. This is to ensure there is not an unfair advantage due to a better exchange rate.

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www.totaltele.com November 2010