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Global100

www.totaltele.com Business analysis for telecoms professionals November 2010

Rise and fall


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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 profit 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 profile
Brazilian operator TIM sets out its strategy for expansion in Latam’s biggest market

13 Contributed profile
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 3


GLOBAL 100

overview

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

A
s we went to press with this year’s Global the number 61 spot, one place lower than Zain.
100, the eyes of the telecoms world were Meanwhile, Zain’s former African operations
not on the top of the table—the top five should also provide new owner Bharti Airtel with
all retained their places, while there was just one a boost in the 2011 ranking. The Indian operator
new entrant in the top 20—but rather on the was one of the biggest winners in this year’s
middle of the rankings, where one company’s table, rising eight places to number 37; that is 20
position belies the state of flux it finds itself in. places higher than it reached just two years ago.
Just three years ago Kuwaiti telecoms group The addition of Zain’s African operations could
Zain set out its aim to establish itself as a top 10 have pushed Bharti Airtel into the top 30.
global operator by 2011. Its lofty ambitions helped Bharti Airtel is the highest ranking as well as
push it into 47th place in the revenue rankings in the fastest rising of India’s representatives in the
Mary Lennighan 2009, from 60th the year before, a position it has Global 100, but other telcos from the country
Editor retained this year. But as that 2011 deadline also fared well, despite having a difficult time in
Total Telecom approaches, a change in strategy threatens to 2009 as intense competition in the mobile space
push Zain out of the Global 100 altogether. pushed ARPUs down. State-owned operator
At the start of this year there were already Bharat Sanchar Nigam Ltd (BSNL) rose four
signs that Zain was set to break up rather than places to 44th in this year’s ranking, while
expand its operations. By June the telco had Reliance Communications was up one to 62nd.
concluded the sale of its African assets to India’s India’s Tata Group does not feature in the Global
Bharti Airtel for US$10.7 billion. Looking at the 100 this year because its various telecoms busi-
operator’s service revenue figures for each of its nesses—Tata Communications, Tata Teleservices
separate country business units, which the and Tata Teleservices Maharashtra—are separate
company splits out in dollar terms only, the 15 legal entities, none of which individually made the
businesses divested accounted for 41.4% of Zain’s cut. However, the IT and communications
revenues in 2009. Without those operations, Zain segment contributed 525 billion rupees (€8.63
would likely have been in the bottom quarter of billion) to Tata Group’s revenues in the 2009-10
the table this year. financial year, which would have put the company
Further developments mean Zain is unlikely to as a whole in the top 30.
feature at all in the 2011 rankings. In early The biggest advances in the Global 100 ranking
November United Arab Emirates incumbent came in Latin America, with a Brazilian company
Etisalat confirmed that it has made an offer to making it into the top 20 for the first time. Oi,
acquire 51% of Zain, subject to certain condi- which provides fixed and mobile services in
tions that include the sale of Zain’s fourth-largest Brazil, advanced 21 places to take the number 20
revenue-generating unit, Saudi Arabia. The deal position, largely due to the fact that Brasil
is valued at around US$11.7 billion. Telecom was included in its results for the first
The offer remains conditional, pending the time. We left Brasil Telecom in the rankings this
completion of due diligence, but on the day it was year—it rose eight places to number 54—but it
announced Etisalat chairman Mohammed will drop out of the top 100 next year: the Global
Omran was already talking about “unifying our 100 is based on annual financial figures, predom-
resources and integrating our networks”. Zain’s inantly to the end of December or March (see
lifespan as a standalone entity in the Global 100 methodology/notes p.19).
could prove to be short—just three years. Oi needs an injection of cash to allow it pay
Etisalat, as a result, is likely to continue to down debt and fund further expansion, but help
move up the rankings in 2011, from its position at is on the way. In October Brazilian regulator
number 45 this year. Zain’s top two revenue- Anatel gave the go-ahead for Portugal Telecom
generating businesses (excluding the divested to acquire a stake in Oi once the latter has cleared
African operations) in 2009 were Iraq and Kuwait, its 74 million-real (about €30 million) debt with
which together contributed $2.56 billion to turn- the government. Portugal Telecom in July
over. Etisalat rose five places in this year’s ranking revealed that through a partnership with Oi it
from 50th in 2009, having the previous year held will take a combined direct and indirect stake in

4 www.totaltele.com November 2010


GLOBAL 100

Oi of 22.38% in return for a maximum invest-


ToP TeN: ranking winners
ment of 8.4 billion reals (about €3.5 billion).
Revenue Revenue rank Company name Revenue in
Portugal Telecom fell by one place to number
Rank 2010 change y-o-y (rank in 2009) euros (m) 09-10
36 in our rankings and could slide further next
20 21 Oi (41) 11,948
year, because its acquisition of Oi is unlikely to
65 16 CenturyLink (81) 3,470
offset the loss of its stake in rival Brazilian opera-
58 10 Telkom South Africa (68) 3,863
tor Vivo; the Portuguese incumbent finalised the
59 10 CANTv (69) 3,831
sale of its 50% stake in Brasilcel, the holding
82 9 Iliad (91) 1,954
company for Vivo, to its equal partner in the
28 8 SK Telecom (36) 8,674
venture Telefonica in September for $9.8 billion.
37 8 Bharti Airtel (45) 6,515
Because both Telefonica and Portugal Telecom
54 8 Brasil Telecom (62) 4,358
generated more than €3 billion in revenues from
33 7 Rogers (40) 7,060
Vivo in 2009, the deal should give the Spanish
52 6 Telkom Indonesia (58) 4,783
operator a significant boost in our rankings next
Source: Company data/Diana Crossland
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, ToP TeN: ranking Losers
Germany’s Deutsche Telekom. Revenue Revenue rank Company name Revenue in
As has been the case for the past few years, Rank 2010 change y-o-y (rank in 2009) euros (m) 09-10
there was little change at the top end of the 77 -11 PCCW (66) 2,256
ranking by revenues: the top five remain in the 41 -9 vimpelcom (32) 6,076
same order as 2009. Last year we predicted that 85 -7 Eircom (78) 1,828
Verizon Communications “could well be pushing 29 -6 Qwest Communications (23) 8,588
NTT for second spot” this year, following the 34 -6 Hutchison Whampoa (28) 6,997
inclusion in its results of Alltel, the smaller 71 -6 Level 3 (65) 2,624
mobile rival acquired by Verizon Wireless in 80 -6 Bezeq (74) 2,121
early 2009. 81 -6 Windstream (75) 2,090
Verizon did indeed narrow the gap on NTT 43 -5 OTE (38) 5,984
Communications, but only to €5.37 billion this 57 -5 Megafon (52) 4,185
year compared to €9.30 billion last year. In local Source: Company data/Diana Crossland
currency terms, Verizon reported 10.7% growth
from 2008 to 2009, while NTT saw revenues
decline by 2.3% in its equivalent financial year
top half place, falling 20 places to 48th, while
China Unicom, which ranked 7th in 2009, slid 22
The top 10
ended 31 March. places to 29th. companies
Moving down the list, France Telecom’s slip to Unicom’s domestic rival China Telecom was
eighth place from sixth in the revenues league the second highest riser in the profits league, accounted
triggered the only changes in the top 10, lifting
Vodafone and China Mobile to sixth and seventh
going up 56 places in the ranking to number 22
and recording profits of €1.47 billion. It was
for more
respectively. Indeed, all three of China’s opera- pipped only by UK incumbent BT, which rose 60 than half
tors made the top 20, generating over €83 billion places to 26th position, recording a net profit of
in revenues between them, almost €5 billion €1.15 billion. of total
more than they reported last year.
The top 25 players each generated revenues in
The top of the profits table made for familiar
reading, with China Mobile hanging on to its
revenues
excess of €10 billion, and the top 10 alone number one spot with net income of €11.8 billion
accounted for more than half of the €1.1 trillion and AT&T and Telefonica slipping just one place
revenues recorded by all the companies in the each to third and fourth respectively with income
Global 100. of €8.74 billion and €7.78 billion. Vodafone mean-
Meanwhile the net profit recorded by the top while climbed to number two from eighth last
100 telcos exceeded the €100 billion mark, and year, posting net income of €9.67 billion. The
these rankings changed more dramatically year- biggest change at the top saw South Africa’s
on-year than on the revenue side (see p.8). Telkom grab seventh place, up from 54, with
Although fourth in revenue terms, Deutsche income of €3.60 billion.
Telekom ranked as low as 59th by net profit, Languishing at the wrong end of the profits
making it the biggest rank loser with a slip of 40 table, Sprint made a loss of €975 million on top of
places compared to last year. Similarly, Brazilian its €2.0 billion loss last year. And Level 3 and
high flyer Oi dropped 38 places year-on-year in Virgin Media posted losses of €431 million and
the net profit table to 90th. Zain just held on to a €403 million respectively. n

www.totaltele.com November 2010 5


GLOBAL 100

revenues
Revenue Company name Revenue Accounting Revenue Company name Revenue Accounting
rank in (rank in 2009) euros (m) standard rank in (rank in 2009) euros (m) standard
2010 2009-2010 2010 2009-2010

1 AT&T (1) 85,813 US GAAP 51 Telekom Austria (49) 4,801 IFRS


2 NTT (2) 80,571 US GAAP 52 PT Telkom Indonesia (58) 4,783 Indonesian GAAP
3 verizon (3) 75,203 US GAAP 53 Time Warner Cable (unranked) 4,469 US GAAP
4 Deutsche Telekom (4) 64,602 IFRS 54 Brasil Telecom (62) 4,358 US GAAP
5 Telefónica (5) 56,731 IFRS 55 Chunghwa Telecom (54) 4,331 ROC GAAP
6 vodafone (7) 49,918 IFRS 56 virgin Media (56) 4,291 US GAAP
7 China Mobile (8) 46,188 IFRS 57 MegaFon (52) 4,185 US GAAP
8 France Telecom (6) 45,944 IFRS 58 Telkom (South Africa) (68) 3,863 IFRS
9 Telecom Italia (9) 27,445 IFRS 59 CANTv (69) 3,831 IASB
10 KDDI (10) 27,240 Japanese GAAP 60 Tele 2 (61) 3,828 IFRS
11 BT (12) 23,413 IFRS 61 Freenet/Mobilcom (67) 3,650 IFRS
12 Sprint (11) 22,503 US GAAP 62 Reliance Communications (63) 3,640 Indian GAAP
13 Softbank (13) 21,869 Japanese GAAP 63 Orascom Telecom (59) 3,533 IFRS
14 China Telecom (14) 21,390 IFRS 64 US Cellular/TDS (60) 3,502 US GAAP
15 América Móvil (15) 21,079 Mexican FRS 65 CenturyLink (81) 3,470 US GAAP
16 Telstra (17) 17,266 AAS 66 Telecom New Zealand (72) 2,959 IFRS
17 China Unicom (16) 15,727 IFRS 67 LG Telecom (70) 2,949 Korean GAAP
18 KPN (18) 13,509 IFRS 68 Turkcell (64) 2,702 IFRS
19 SFR (19) 12,425 IFRS 69 Maroc Telecom (71) 2,683 IFRS
20 Oi (41) 11,948 Brazilian GAAP 70 C&W Communications (unranked) 2,633 EUR
21 BCE (21) 11,809 Canadian GAAP 71 Level 3 (65) 2,624 US GAAP
22 Telenor (22) 11,757 IFRS 72 C&W Worldwide (unranked) 2,542 IFRS
23 KT (Korea Telecom) (20) 11,710 Korean GAAP 73 Shaw (79) 2,506 Canadian GAAP
24 TeliaSonera (24) 10,644 IFRS 74 MetroPCS (80) 2,428 US GAAP
25 MTN (27) 10,578 IFRS 75 MIC/Tigo (73) 2,352 IFRS
26 Saudi Telecom Company (25) 9,444 Saudi Arabian GAAP 76 AOL (unranked) 2,272 US GAAP
27 SingTel (30) 8,919 Singapore FRS 77 PCCW (66) 2,256 Hong Kong FRSs
28 SK Telecom (36) 8,674 Korean GAAP 78 Telecom Argentina (77) 2,245 Argentine GAAP
29 Qwest Communications (23) 8,588 FASB 79 PLDT (76) 2,222 IFRS
30 Swisscom (26) 8,086 IFRS 80 Bezeq (74) 2,121 IFRS
31 Liberty Global (29) 7,729 FASB 81 Windstream (75) 2,090 US GAAP
32 Comcast (34) 7,686 US GAAP 82 Iliad (91) 1,954 IFRS
33 Rogers (40) 7,060 Canadian GAAP 83 TalkTalk (unranked) 1,892 IFRS
34 Hutchison Whampoa (28) 6,997 HKFRS 84 FastWeb (86) 1,852 IFRS
35 MTS (31) 6,852 US GAAP 85 Eircom (78) 1,828 IFRS
36 Portugal Telecom (35) 6,784 IFRS 86 Global Crossing (82) 1,769 US GAAP
37 Bharti Airtel (45) 6,515 US GAAP 87 Intelsat (87) 1,753 US GAAP
38 Telus (43) 6,396 Canadian GAAP 88 Telekom Malaysia (84) 1,752 FRS
39 Telmex (37) 6,360 Mexican FRS 89 SES (89) 1,701 IFRS
40 Svyazinvest (42) 6,086 IFRS 90 Colt Telecom (88) 1,622 IFRS
41 vimpelCom (32) 6,076 US GAAP 91 Charter Communications (94) 1,527 US GAAP
42 Belgacom (39) 5,990 IFRS 92 Frontier Communications (90) 1,477 US GAAP
43 OTE (Hellenic Telecommunications) (38) 5,984 IFRS 93 Elisa Corporation (92) 1,430 IFRS
44 BSNL (48) 5,889 Indian GAAP 94 Cablevision (93) 1,338 US GAAP
45 Etisalat (50) 5,855 IFRS 95 Telecom Egypt (96) 1,269 IFRS
46 Wind/Infostrada (44) 5,726 IFRS 96 Taiwan Mobile 99 1,245 SFAS
47 Zain (47) 5,634 IFRS 97 MTS Allstream (98) 1,205 Canadian GAAP
48 Bouygues Telecom (51) 5,368 IFRS 98 Cellcom Israel (97) 1,194 IFRS
49 Turk Telekom (53) 4,932 Turkey FRS 99 IDT (95) 1,179 US GAAP
50 TDC (46) 4,829 IFRS 100 Inmarsat (unranked) 1,171 IFRS

Source: Company data/Diana Crossland

6 www.totaltele.com November 2010


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GLOBAL 100

Net income (profits)


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

Source: Company data/Diana Crossland

8 www.totaltele.com November 2010


GLOBAL 100

A N A L Y S T VIEW P OI N T

DIGITAL TRANSFORMATION
Colin Brereton, global communications leader at PricewaterhouseCoopers,
outlines five strategic imperatives for success in the fast-moving digital marketplace

H
aving weathered the recent economic The rise of data-hungry smartphones also
storm telecoms operators now find means that operators are supporting consumers’
themselves confronting new, and argua- insatiable appetite for bandwidth without being
bly equally testing, challenges arising from a able to charge appropriately. The most enthusias-
rapidly-changing digital marketplace. Operators tic users of digital services are often the least
are seeing their traditional sources of revenue profitable for the networks: One estimate from
squeezed by intense competition, while new the US suggests that just 3% of smartphone users
market entrants capture the lion’s share of value consume 40% of all network traffic.
from new services, applications and content. As a In response, some operators are already charg-
result, operators have found that their previously ing more to higher users of data services. To make
very firm grip on the digital consumer is being these changes palatable to consumers, network
Colin Brereton loosened at bewildering speed. operators may have to re-educate them about the
global comms leader, To reassert themselves, operators need to value of connectivity and stress the benefits of
PricewaterhouseCoopers address some critical strategic challenges. If they differentiated pricing to lower users.
do this successfully, they will be able to reclaim Responding to consumer demands has left
their position as a powerful and indispensable many operators with a legacy of complex, frag-
link in the digital value chain. But if they fail, mented and expensive systems and operating
they face a future of declining revenues and models. This could prevent rapid strategic execu-
narrowing margins, while others continue to reap tion in the future, so simplification is critical.
the massive rewards on offer. Customer data is also fragmented and held in
Operators must tackle five strategic challenges: silos: sometimes the same customer has accounts
owning and understanding the consumer; mone- across multiple products, yet there is no common
tising new services; driving an economic return access to that information across the enterprise.
from rising data traffic; achieving operational Unifying customer data in one place can
simplicity and efficiency; and creating value greatly enhance the ability to manage customer
through consolidation. loyalty and drive lifetime value. And simplicity
The first challenge arises from major changes of operations will provide the ability to compete,
in consumer behaviour. These are highlighted as agility and responsiveness become the key
particularly by the way that consumers use smart- qualities required for success in a fast-changing
phones to access content and services. As a result, digital market.
the digital value chain is fashioning itself into Consolidation is also driving change. Just a few
fresh combinations, with new entrants’ ability to years ago, operators from developed economies
build their services around the consumer enabling were busy expanding in emerging markets, but
them to capture most of the value on offer. now service providers from those fast-growing
Getting to the heart of the way customers use economies are eyeing up assets in mature markets
services and data is the key to success in the (read Total Telecom Plus, November). But consol-
future. Customers’ loyalty and brand trust have idation has not always generated the shareholder
shifted from networks to devices. Operators need value promised. Delivering value in the future
to better understand their customers to rebuild will require a new approach from service provid-
stronger relationships, ensuring that offerings ers that recognises the differences between
are tailored flexibly to meet diverse requirements. consumer markets through distinct targeted
A one-size-fits-all approach will no longer work. branding and pricing, while achieving cost and
In order to monetise new services effectively, operational benefits from centralised operations
customers must perceive value over and above the and infrastructure.
charges they pay for network access. The most The disruptive effects of digital transforma-
dramatic illustration of this trend is the rapid tion, pervasive as they are, are far from finished.
growth in application stores offered by handset Operators are still very much in the game; but in
manufacturers. These now generate more than order to maintain their chances of victory, they
US$6 billion in annual revenues, with the total will need to respond quickly and decisively to the
predicted to hit US$29 billion by 2013. new rules of play. n

www.totaltele.com November 2010 9


GLOBAL 100

Complete ranking table


Rank Company name Revenue in Revenue Net income/ Net profit/ net Country of Financial year
in 2010 (rank in 2009) euros (m) in reporting net loss in loss in reporting reporting
2009-2010 currency (m) euros (m) currency (m)

1 AT&T (1) 85,813 123,018 USD 8,744 12,535 USA ended 31 Dec 09
2 NTT (2) 80,571 10,181,376 JPY 3,896 492,266 Japan ended 31 Mar 10
3 verizon (3) 75,203 107,808 USD 2,547 3,651 USA ended 31 Dec 09
4 Deutsche Telekom (4) 64,602 64,602 EUR 353 353 Germany ended 31 Dec 09
5 Telefónica (5) 56,731 56,731 EUR 7,776 7,776 Spain ended 31 Dec 09
6 vodafone (7) 49,918 44,472 GBP 9,673 8,618 UK ended 31 Mar 10
7 China Mobile (8) 46,188 452,103 CNY 11,766 115,166 Hong Kong ended 31 Dec 09
8 France Telecom (6) 45,944 45,944 EUR 2,997 2,997 France ended 31 Dec 09
9 Telecom Italia (9) 27,445 27,445 EUR 1,596 1,596 Italy ended 31 Dec 09
10 KDDI (10) 27,240 3,442,147 JPY 1,684 212,764 Japan ended 31 Mar 10
11 BT (12) 23,413 20,859 GBP 1,155 1,029 UK ended 31 Mar 10
12 Sprint (11) 22,503 32,260 USD -975 -1,398 USA ended 31 Dec 09
13 Softbank (13) 21,869 2,763,406 JPY 765 96,716 Japan ended 31 Mar 10
14 China Telecom (14) 21,390 209,370 CNY 1,473 14,422 China ended 31 Dec 09
15 América Móvil (15) 21,079 394,711 MXN 4,112 76,998 Mexico ended 31 Dec 09
16 Telstra (17) 17,266 25,029 AUD 2,718 3,940 Australia ended 30 Jun 10
17 China Unicom (16) 15,727 153,945 CNY 976 9,556 Hong Kong ended 31 Dec 09
18 KPN (18) 13,509 13,509 EUR 2,175 2,175 The Netherlands ended 31 Dec 09
19 SFR (19) 12,425 12,425 EUR 2,530 2,530 France ended 31 Dec 09
20 Oi (41) 11,948 29,881. BRL -174 -436 Brazil ended 31 Dec 09
21 BCE (21) 11,809 17,735 CAD 1,157 1,738 Canada ended 31 Dec 09
22 Telenor (22) 11,757 97,650 NOK 1,217 10,104 Norway ended 31 Dec 09
23 KT (Korea Telecom) (20) 11,710 19,649,120 KRW 363 609,695 Korea ended 31 Dec 09
24 TeliaSonera (24) 10,644 109,161 SEK 2,075 21,280 Sweden ended 31 Dec 09
25 MTN (27) 10,578 111,947 ZAR 1,622 17,161 South Africa ended 31 Dec 09
26 Saudi Telecom Company (25) 9,444 50,780 SAR 2,020 10,863 Saudi Arabia ended 31 Dec 09
27 SingTel (30) 8,919 16,871 SGD 2,066 3,907 Singapore ended 31 Mar 10
28 SK Telecom (36) 8,674 14,555,465 KRW 629 1,055,606 Republic of Korea ended 31 Dec 09
29 Qwest Communications (23) 8,588 12,311 USD 462 662 USA ended 31 Dec 09
30 Swisscom (26) 8,086 12,001 CHF 1,297 1,925 Switzerland ended 31 Dec 09
31 Liberty Global (29) 7,729 11,080 USD 10 14 USA ended 31 Dec 09
32 Comcast (34) 7,686 11,019 USD NA NA USA ended 31 Dec 09
33 Rogers (40) 7,060 10,602 CAD NA NA Canada ended 31 Dec 09
34 Hutchison Whampoa (28) 6,997 77,784 HKD NA NA Hong Kong ended 31 Dec 09
35 MTS (31) 6,852 9,823 USD 700 1,004 Russian Federation ended 31 Dec 09
36 Portugal Telecom (35) 6,784 6,784 EUR 683 683 Portugal ended 31 Dec 09
37 Bharti Airtel (45) 6,515 396,150 INR 1,530 93,019 India ended 31 Mar 10
38 Telus (43) 6,396 9,606 CAD 667 1,002 Canada ended 31 Dec 09
39 Telmex (37) 6,360 119,100 MXN 1,093 20,469 Mexico ended 31 Dec 09
40 Svyazinvest (42) 6,086 264,413 RUB 594 25,797 Russian Federation ended 31 Dec 08
41 vimpelCom (32) 6,076 8,710 USD 782 1,121 Russian Federation ended 31 Dec 09
42 Belgacom (39) 5,990 5,990 EUR 904 904 Belgium ended 31 Dec 09
43 OTE (38) 5,984 5,984 EUR 370 370 Greece ended 31 Dec 09
44 BSNL (48) 5,889 358,119 INR 1 57 India ended 31 Mar 09
45 Etisalat (50) 5,855 30,831 AED 1,678 8,836 UAE ended 31 Dec 09
46 Wind/Infostrada (44) 5,726 5,726 EUR 308 308 Italy ended 31 Dec 09
47 Zain (47) 5,634 2,318 KWD 513 211 Kuwait ended 31 Dec 09
48 Bouygues Telecom (51) 5,368 5,368 EUR 471 471 France ended 31 Dec 09
49 Turk Telekom (53) 4,932 10,568 TRY 855 1,832 Turkey ended 31 Dec 09
50 TDC (46) 4,829 35,939 DKK 320 2,383 Denmark ended 31 Dec 09

10 www.totaltele.com November 2010


GLOBAL 100

Complete ranking table


Rank Company name Revenue in Revenue Net income/ Net profit/ net Country of Financial year
in 2010 (rank in 2009) euros (m) in reporting net loss in loss in reporting reporting
2009-2010 currency (m) euros (m) currency (m)

51 Telekom Austria (49) 4,801 4,801 EUR 94 94 Austria ended 31 Dec 09


52 PT Telkom Indonesia (58) 4,783 64,596,635 IDR 839 11,332,140 Indonesia ended 31 Dec 09
53 Time Warner Cable (unranked) 4,469 6,406 USD NA NA USA ended 31 Dec 09
54 Brasil Telecom (62) 4,358 10,898 BRL 1,952 4,881 Brazil ended 31 Dec 09
55 Chunghwa Telecom (54) 4,331 198,361 TWD 971 44,495 Taiwan ended 31 Dec 09
56 virgin Media (56) 4,291 3,804 GBP -403 -357 UK ended 31 Dec 09
57 MegaFon (52) 4,185 181,833 RUB 1,042 45,289 Russian Federation ended 31 Dec 09
58 Telkom (South Africa) (68) 3,863 38,305 ZAR 3,601 35,712 South Africa ended 31 Mar 10
59 CANTv (69) 3,831 11,807,789 vEF 691 2,129,693 venezuela ended 31 Dec 09
60 Tele 2 (61) 3,828 39,265 SEK 444 4,555 Sweden ended 31 Dec 09
61 Freenet/Mobilcom (67) 3,650 3,650 EUR 256 256 Germany ended 31 Dec 09
62 Reliance Communications (63) 3,640 221,323 INR 766 46,550 India ended 31 Mar 10
63 Orascom Telecom (59) 3,533 5,065 USD 264 379 Egypt ended 31 Dec 09
64 US Cellular/TDS (60) 3,502 5,020 USD 135 193 USA ended 31 Dec 09
65 CenturyLink (81) 3,470 4,974 USD 356 511 USA ended 31 Dec 09
66 Telecom NZ (72) 2,959 5,271 NZD 214 382 New Zealand ended 30 Jun 10
67 LG Telecom (70) 2,949 4,949,119 KRW 184 308,124 Korea ended 31 Dec 09
68 Turkcell (64) 2,702 5,789 USD 515 1,104 Turkey ended 31 Dec 09
69 Maroc Telecom (71) 2,683 30,339 MAD 833 9,425 Morocco ended 31 Dec 09
70 Cable&Wireless Comms (unranked) 2,633 2,346 USD 497 443 UK ended 31 Mar 10
71 Level 3 (65) 2,624 3,762 USD -431 -618 USA ended 31 Dec 09
72 Cable&Wireless Worldwide (unranked) 2,542 2,265 GBP 1 1 UK ended 31 Mar 10
73 Shaw (79) 2,506 3,390 CAD 396 535 Canada ended 31 Aug 09
74 MetroPCS (80) 2,428 3,480 USD 123 176 USA ended 31 Dec 09
75 MIC/Tigo (73) 2,352 3,372 USD 593 850 Luxembourg ended 31 Dec 09
76 AOL (unranked) 2,272 3,257 USD 173 248 USA ended 31 Dec 09
77 PCCW (66) 2,256 25,077 HKD 161 1,795 Hong Kong ended 31 Dec 09
78 Telecom Argentina (77) 2,245 12,226 ARS 258 1,405 Argentina ended 31 Dec 09
79 PLDT (76) 2,222 147,993 PHP 602 40,095 Philippines ended 31 Dec 09
80 Bezeq (74) 2,121 11,519 ILS 652 3,541 Israel ended 31 Dec 09
81 Windstream (75) 2,090 2,996 USD 233 334 USA ended 31 Dec 09
82 Iliad (91) 1,954 1,954 EUR 175 175 France ended 31 Dec 09
83 TalkTalk (unranked) 1,892 1,686 GBP 18 16 UK ended 31 Mar 10
84 FastWeb (86) 1,852 1,852 EUR -34 -34 Italy ended 31 Dec 09
85 Eircom (78) 1,828 1,828 EUR 94 94 Cayman Islands ended 30 Jun 10
86 Global Crossing (82) 1,769 2,536 USD -98 -141 Bermuda ended 31 Dec 09
87 Intelsat (87) 1,753 2,513 USD -545 -781 Bermuda ended 31 Dec 09
88 Telekom Malaysia (84) 1,752 8,608 MYR 137 673 Malaysia ended 31 Dec 09
89 SES (89) 1,701 1,701 EUR 477 477 Luxembourg ended 31 Dec 09
90 Colt (88) 1,622 1,622 EUR 121 121 UK ended 31 Dec 09
91 Charter Communications (94) 1,527 2,189 USD NA NA USA ended 31 Dec 09
92 Frontier Communications (90) 1,477 2,117 USD 84 120 USA ended 31 Dec 09
93 Elisa Corporation (92) 1,430 1,430 EUR 177 177 Finland ended 31 Dec 09
94 Cablevision (93) 1,338 1,918 USD NA NA USA ended 31 Dec 09
95 Telecom Egypt (96) 1,269 9,960 EGP 372 2,917 Egypt ended 31 Dec 09
96 Taiwan Mobile (99) 1,245 57,015 TWD 303 13,888 Taiwan ended 31 Dec 09
97 MTS Allstream (98) 1,205 1,809 CAD 67 101 Canada ended 31 Dec 09
98 Cellcom Israel (97) 1,194 6,483 ILS 218 1,182 Israel ended 31 Dec 09
99 IDT (95) 1,179 1,538 USD -119 -155 USA ended 31 Jul 09
100 Inmarsat (unranked) 1,171 1,038 USD 171 152 UK ended 31 Dec 09

Source: Company data/Diana Crossland

www.totaltele.com November 2010 11


CONTRIBUTED PROFILE

TiM BrASiL

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) voice central to growth


Net Revenue R$3.6 billion (3Q10)
As the sole pure-play mobile company in Brazil, TIM sees voice
CEO Luca Luciani
services as the central element of its strategy: more than 85% of
Headquarters Rio de Janeiro, Brazil
the operator’s revenues come from voice services. In turn, the
Employees 9,231
Brazilian telecoms market is worth around R$100 billion per
Subscribers 47 million (39.7 million prepaid); (7.2 million postpaid)
year, and the largest part of that comes from voice services.
ARPU R$23.4
According to analyst company Hot Telecom, 80.3% of all teleph-
MOU 123 minutes/customer/month
ony subscribers in Brazil were mobile users in 2009, and that
Market Capitalisation R$15.0 billion (Sept 2010)
proportion is set to rise to 83.5% in 2013.
With that in mind, TIM’s strategy is focused firmly on stimu-
lating higher minutes of use from its customers, and on

T
his year turned out to be an exciting one for telecoms fixed-to-mobile substitution. In the second quarter, TIM’s
services in Brazil, with a spate of M&A activity. Latin outgoing traffic more than doubled to 12.2 billion minutes
America’s biggest market is also its fiercest battleground compared to the previous year, and average minutes per
(see article in Total Telecom Plus, June), and competition in customer reached 110 minutes per month compared to 73
Brazil is set to intensify further as the regulator opens up the minutes a year earlier (that has now risen to 123 minutes).
market to MVNOs and more 3G spectrum is auctioned, and as When looking at the long distance business, traffic increased-
operators seek to integrate their fixed and mobile services. fifteen-fold compared to a year earlier and put the company in a
Telecom Italia-owned TIM Brasil (TIM Participacoes) is one leadership position in a competitive domestic sector with some
operator well positioned to expand in the market, with a very 40% market share.
clear mobile-focused strategy and a solid infrastructure. For the
past two years the company has focused on maintaining a Unlocking data value
balance between growth and financial returns, and now is set TIM’s network supports the fast-growing data traffic of its
for new challenges. customers. In the post-paid segment the company in July
TIM plans to make 3G services available to around 60% of the launched TIM Web, a transparent data card plan based on
population by 2012, and is investing about 2.5 billion reais (about charging according to time spent rather than megabytes used.
$1 billion) this year. Over the past 18 months the operator has In the pre-paid segment the company is pursuing the as-yet
carried out a turn-around strategy, and although not complete unexploited market of internet cafés for lower social classes.
posted net revenues of 3.6 billion reais (about $1.5 billion) in the TIM offers, via customized smartphones, a substitute option for
third quarter, up 6.1% from 3.44 billion reais in the same period internet cafés enabling connectivity to social networks such as
a year earlier. Ebitda rose 19.6% to BRL924 million in the third facebook and twitter for a pre-paid daily charge. Infinity Web,
quarter, and the Ebitda margin was 25.3%, up from 22.5% in the launched in August, provides internet access for lower income
third quarter of 2009. customers for the cost of 0.50 reais per day.
As well as substantial improvements in financial results, there During the past 18 months 28 million users have joined the
is other evidence of a successful turn-around. Sound results can company’s Infinity and Liberty plans. In 2011, the company
be seen in terms of improvement in network quality metrics, plans to also concentrate on sales of Blackberry and iPhone
skyrocketing total minutes of traffic and subscriber growth. handsets and services, with updated Internet navigation and
Subscribers grew 18.5% year-on-year to 46.9 million at the end other applications. n
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 per-
call 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 company’s CEO.

12 www.totaltele.com November 2010


CONTRIBUTED PROFILE

XCoNNeCT

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 Multisource’s extensive market knowledge and network capabil-
Founded 2004
ity with XConnect’s expertise in providing multimedia
CEO Eli Katz
interconnection and carrier Enum registry services.
Headquarters London
The full suite of XConnect’s Interconnect 2.0 services will be
Services Multimedia interconnect and IP peering
deployed, enabling South African operators to interconnect
Customers Over 100 service providers in 20 countries
their networks and route calls seamlessly and efficiently through
POPs US, Europe, Africa, Asia
a scalable, multilateral interconnection hub.
Global Alliance Enum-based IP peering federation
HD Alliance High-definition voice peering federation
Next-generation networks
XConnect further enhanced its market leading position by
announcing the first IP eXchange (IPX) platform to offer seam-

X
Connect is the global leader of federation-based inter- less integration with PathFinder, the GSMA’s Number
connection and peering services. Through its Translation Service, enabling interoperability and convergence
Interconnect 2.0 suite of services, the company solves between fixed and mobile networks.
the challenges of next-generation interconnection (NGN) by Based on standards and specifications developed by the GSMA,
enabling seamless interworking and interoperability between the XConnect IPX platform enables network operators to opti-
fixed, mobile and IP networks. mise routing and signalling and deliver new IP services via a
Interconnect 2.0 is the most comprehensive suite of secure high-quality, secure, managed IP connection with support for
and scalable carrier-class Enum Registry and IPX hub intercon- multiple commercial models.
nection services. It meets the need for interconnection of IP A full suite of IPX services is available within XConnect’s
networks, to efficiently deliver new revenue-generating multi- national federation environments in North America, Korea,
media services on a cross network basis while increasing service Europe and South Africa, as well as accessible from XConnect’s
quality and reducing costs. points of presence globally.
Xconnect operates the largest worldwide Enum-based IP XConnect’s strategy and focus for 2011 remains on utilising
peering federation, the Global Alliance, and the world’s first its industry leading technology, capability and experience to
national VoIP/NGN interconnection federations in North capitalise on emerging next-generation network opportunities
America, Scandinavia, Korea and South Africa. Headquartered as adoption of IP networks continues. This includes increasing
in London, with offices and points of presence in the US, deployments of national federation hubs in partnership with
Europe, Africa and Asia, XConnect provides services to over 100 established in-country partners, continued growth of Global
service providers in more than 20 countries. Alliance members, product innovation and development to
introduce new features and service including HD video, instant
High-definition voice messaging and presence.
In 2010, XConnect continued to enhance its position as the Core to the company’s strategy will be working with unified
market leader for next-generation federation interconnection communications solutions providers to offer the benefits of
services. In January, the company announced the world’s first federations within UC environments. And it will use its Enum
high definition (HD) voice peering federation, the HD Alliance. registry technology to extend the benefits of UC from intra-
HD voice increasingly is being deployed by service providers to enterprise to inter-enterprise. n
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 deliv-
ered between networks—an 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 partner-
ship, 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 Best Mobile Operator Team of the Year
• Etisalat • Bharti Airtel • Azercell Telecom
• Grameenphone • Maxis • Emtiac Mobile Solutions
• Idea Cellular • Orange Business Services • Orange Business Services
• Telstra Enterprise & Government • Safaricom • Roshan
• Turk Telekom • TMN • Turk Telekom
• Ufone • Turkcell
• Verizon Business Best New Service
• Avea The Alireza Mahmoodshahi
Best Content Service • Bharti Airtel Technology Foresight Award
• Afghan Wireless • MTN Uganda • Arieso Ltd
• Orange Business Services • Orange Business Services • BT Group
• TE Data • Sebit • Cambridge Broadband Networks
• Turk Telekom • Verizon Business • Continuous Computing
• Turkcell • IPWireless
Best Operator in a • Kineto Wireless
Best Customer Care Developing Market • SK Telecom
• Bharti Airtel • Digicel Group • Turkcell Technology
• BT • Etisalat Misr
• Etisalat Misr • Ezecom The Green Award
• Global Crossing • Gateway Communications • Azercell Telecom
• Orange Business Services • Orange Business Services Africa • Batelco
• Tata Communications • Viettel Cambodia • BT Group
• TeliaSonera International Carrier • Colt
Best Project Management • Orange Business Services
Best Global Operator • Bharti Airtel • Telefonica O2 UK
• BT Global Services • Orange Business Services
• Hutchinson Global Communication • Subex Users’ Choice
• Orange Business Services • Tech Mahindra • AT&T
• PCCW Global • Telstra • BT
• Virtela Technology Services Inc • NTT Communications
Best Regional Operator • Orange Business Services
• Telefonica
Best Managed Service • China Telecom (Europe)
• Verizon Business
• BT Group • Digicel Group
• Ericsson • GTS Central Europe
CEO of the Year
• Interoute • Hutchison Global Communications
• Abdul Aziz
• iPass • Interoute
• Anil Sardana
• Orange Business Services • Singapore Telecommunications
• Ian Livingston
• Tulip Telecom • Viettel
• Karel Pienaar
• Virtela Technology Services Inc • Luca Luciani
• Vodafone Best Wholesale Carrier • Mohammed Omran

m
• Bharti Airtel • Paul Doany
Best Mobile Device Strategy • BICS • Saud Al Daweesh
• Emtiac Mobile Solutions • BT Wholesale • Sureyya Ciliv
• Novatel Wireless • China Telecom (Europe) • Wang Jianzhou
• Turk Telekom • Colt
• Tata Communications
• TeliaSonera International Carrier

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 Current Employees Revenue Company name Current Employees
rank (rank in 2009) chief executive 2009 rank (rank in 2009) chief executive 2009
in 2010 in 2010

1 AT&T (1) Randall L. Stephenson 282,720 51 Telekom Austria (49) Hannes Ametsreiter 16,573
2 NTT (2) Satoshi Miura 195,000 52 PT Telkom Indonesia (58) Rinaldi Firmansyah 28,750
3 verizon (3) Ivan G. Seidenberg 222,900 53 Time Warner Cable (unranked) Glenn A. Britt 47,000
4 Deutsche Telekom (4) René Obermann 259,920 54 Brasil Telecom (62) Luiz Falco 3,619
5 Telefónica (5) Cesar Alierta Izuel 257,426 55 Chunghwa Telecom (54) Shyue-Ching Lu 27,915
6 vodafone (7) vittorio Colao 85,000 56 virgin Media (56) Neil Berkett 12,107
7 China Mobile (8) Wang Jianzhou 145,954 57 MegaFon (52) Sergey Soldatenkov 20,237
8 France Telecom (6) Stéphane Richard 181,000 58 Telkom SA (68) Jeffrey Hedberg (acting) 23,247
9 Telecom Italia (9) Franco Bernabe 69,964 59 CANTv (69) Socorro Hernandez NA
10 KDDI (10) Tadashi Onodera 18,301 60 Tele 2 (61) Mats Granryd 6,684
11 BT (12) Ian Livingston 97,800 61 Freenet/Mobilcom (67) Christoph vilanek 4,394
12 Sprint (11) Daniel R. Hesse 40,000 62 Reliance Comms (63) Anil D. Ambani 37,150
13 Softbank (13) Masayoshi Son 21,885 63 Orascom Telecom (59) Khaled Bichara 17,213
14 China Telecom (14) Wang Xiaochu 312,520 64 US Cellular/TDS (60) LeRoy T. Carlson, Jr. 12,400
15 América Móvil (15) Daniel Hajj Aboumrad 53,661 65 CenturyLink (81) Glen F. Post, III 20,200
16 Telstra (17) David Thodey 45,220 66 Telecom NZ (72) Paul Reynolds 8,629
17 China Unicom (16) Chang Xiaobing 321,772 67 LG Telecom (70) Lee Sang-Cheol NA
18 KPN (18) Ad Scheepbouwer 34,925 68 Turkcell (64) Sureyya Ciliv 11,000
19 SFR (19) Frank Esser 9,945 69 Maroc Telecom (71) Abdelslam Ahizoune 14,075
20 Oi (41) Luiz Eduardo Falco 12,372 70 C&W Comms (unranked) Tony Rice NA
21 BCE (21) George Cope 50,662 71 Level 3 (65) James Q. Crowe 5,200
22 Telenor (22) Jon Fredrik Baksaas 40,300 72 C&W Worldwide (unranked) Jim Marsh 6,575
23 KT (Korea Telecom) (20) Suk-Chae Lee 30,841 73 Shaw (79) Jim Shaw 10,000
24 TeliaSonera (24) Lars Nyberg 29,734 74 MetroPCS (80) Roger D Linquist 3,600
25 MTN (27) Phuthuma Nhleko 17,509 75 MIC/Tigo (73) Mikael Grahne 7,789
26 Saudi Telecom (25) Saud bin Majed Al-Daweesh 21,190 76 AOL (unranked) Timothy M. Armstrong 6,700
27 SingTel (30) Chua Sock Koong 23,000 77 PCCW (66) Alex Arena 18,200
28 SK Telecom (36) Man Won Jung 10,714 78 Telecom Argentina (77) Franco Bertone 15,300
29 Qwest Comms (23) Edward A. Mueller 30,138 79 PLDT (76) Napoleon L. Nazareno 29,035
30 Swisscom (26) Carsten Schloter 19,479 80 Bezeq (74) Avi Gabbay 7,364
31 Liberty Global (29) Michael T. Fries 23,000 81 Windstream (75) Jeffery R. Gardner 7,385
32 Comcast (34) Brian L. Roberts 107,000 82 Iliad (91) Maxime Lombardini 4,052
33 Rogers (40) Alan D. Horn 28,985 83 TalkTalk (unranked) Dido Harding 4,572
34 Hutchison Whampoa (28) Canning Fok 220,000 84 Fastweb (86) Carsten Schloter 3,440
35 MTS (31) Mikhail v. Shamolin 36,136 85 Eircom (78) Paul Donovan 4,559
36 Portugal Telecom (35) Zeinal Bava 37,021 86 Global Crossing (82) John J. Legere 5,235
37 Bharti Airtel (45) Manoj Kohli 18,354 87 Intelsat (87) David McGlade 1,111
38 Telus (43) Darren Entwistle 36,400 88 Telekom Malaysia (84) Dato’ Sri Zamzamzairani 24,744
39 Telmex (37) Héctor Slim Seade 52,946 89 SES (89) Romain Bausch 1,585
40 Svyazinvest (42) Evgeny Yurchenko NA 90 Colt (88) Rakesh Bhasin 4,777
41 vimpelCom (32) Boris Nemsic 36,355 91 Charter (94) Michael J. Lovett 16,700
42 Belgacom (39) Didier Bellens 17,833 92 Frontier (90) Mary Agnes Wilderotter 5,400
43 OTE (38) Panagis vourloumis 32,864 93 Elisa Corp (92) veli-Matti Mattila 3,331
44 BSNL (48) Kuldeep Goyal 299,840 94 Cablevision (93) James L. Dolan NA
45 Etisalat (50) Mohammed Khalfan Al Qamzi NA 95 Telecom Egypt (96) Tarek Tantawy NA
46 Wind/Infostrada (44) Luigi Gubitosi 6,915 96 Taiwan Mobile 99 Richard Tsai 2,496
47 Zain (47) Nabeel Bin Salamah 13,000 97 MTS Allstream (98) Pierre Blouin 5,837
48 Bouygues Telecom (51) Olivier Roussat 9,018 98 Cellcom Israel (97) Amos Shapira 4,432
49 Turk Telekom (53) Paul Doany 34,086 99 IDT (95) Howard S. Jonas 1,400
50 TDC (46) Henrik Poulsen 13,042 100 Inmarsat (unranked) Andrew Sukawaty 499

Source: Company data/Diana Crossland

16 www.totaltele.com November 2010


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GLOBAL 100

return on revenue
Revenue Company name Return on revenue Revenue Company name Return on revenue
rank in (rank in 2009) 2009-2010 rank in (rank in 2009) 2009-2010
2010 2010

1 AT&T (1) 10.19% 51 Telekom Austria (49) 1.96%


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

Source: Company data/Diana Crossland

18 www.totaltele.com November 2010


contacts

EDITORIAL

METHODOLOGY/NOTES
4th Floor, Welken House,
10-11 Charterhouse Square, London EC1M 6EH
+44 (0)20 7608 7030; ttmag@totaltele.com

TOTAL TELECOM PLUS


Ian Kemp ian.kemp@totaltele.com
Revenue and net income data effective on 26 March 2010 and resulted in the Editor +44 (0)1626 835 703
The current league table is based on the latest formation of the Carphone Warehouse Group plc and Michelle Young m7chelle@gmail.com
published revenue and net income figures for the TalkTalk Group plc. Neither company has issued Art Editor
operators’ full financial years: predominantly ending an Annual Report for 09-10 but instead published a
summary of financial information that showed what TOTAL TELECOM
31 December 2009, but also ending 31 December 2008,
Mary Lennighan mary.lennighan@totaltele.com
31 March 2009, 30 June 2009, 31 July 2009 and 31 March the results would have been if both companies had Editor +44 (0)20 7608 7069
2010. We strove to use audited consolidated revenue been operating separately. These separate results have Nick Wood nick.wood@totaltele.com
and net income data. been used in the rankings table. Assistant Editor +44 (0)20 7608 7046
Whenever available, we used revenue and net In April 2010, a new entity, VimpelCom Limited, Tim Charters tim.charters@terrapinn.com
Web Developer +44 (0)20 7608 7073
income figures as reported under I.F.R.S. (Interna- completed a tender offer to exchange ownership of
tional Financial Reporting Standard). When I.F.R.S. OJSC VimpelCom and Ukraine’s Kyivstar for shares contributing editors
reporting was unavailable, we strove to use data under in VimpelCom Limited. Roy Rubenstein royruben@netvision.net.il
US G.A.A.P. (United States Generally Accepted Qwest Communications and CenturyLink agreed in Omer, Israel
Accounting Principles). National reporting standards August 2010 to a merger between the two companies. Ingrid Lunden ingridlunden@gmail.com
London
were used otherwise. It is anticipated the transaction will close in the first Ken Wieland ken2wieland@yahoo.co.uk
half of 2011. London
Latest data available Craig Stephen ch.stephen@gmail.com
We strove to obtain the latest full-year figures for each Extraction of telecoms revenues Hong Kong +852 9048 1124
Some of the ranked companies’ activities span Jagdish Rattanani jagdish@mtnl.net.in
ranked company, that is for calendar year 2009 and fiscal Mumbai +91 22 287 55087
year 2009-2010. In a few cases however, the latest data non-telecommunications industries. In these instances,
was published for calendar year 2008 and for fiscal year we have endeavoured to extract telecommunications- advertising
2008-2009. Despite the distortion induced by this related revenue in order to not distort reporting, using Head office, london, UK
difference in reporting, and in order to give the fairest segment information reported by these companies. Nick Carter nick.carter@totaltele.com
Sales Manager +44 (0)20 7608 7065
view of companies operating in the various markets, we Corresponding net income data by segment was,
Gordon White gordon.white@totaltele.com
decided to include some of these companies, provided unfortunately, often unavailable. These companies Sales Manager +44 (0)20 7608 7041
they were significant enough in the national market. include Hutchison Whampoa Ltd. (segments:
This was the case for IDT (31 July 2009), Shaw Hutchison Telecommunications International Ltd., United States and Canada
3 Group), Comcast Corporation (High-speed data, tele- KCS International
Communications Inc. (31 August 2009), OJSC Svyazin-
T +1 717 397 7100 F +1 717 397 7800
vest (31 December 2008) and BSNL (31 March 2009). phone), Rogers Communications Inc. (Rogers Cable, Karen C Smith-Kernc – East KarenKCS@aol.com
Rogers Wireless), Time Warner Cable (high-speed data Alan Kernc – West & Canada AlanKCS@aol.com
Double-counting and voice only), Cablevision Systems Corp. (high-speed
There is a degree of double-counting of revenue and net data services excluding video, voice, VoIP) and Charter Japan
Communications Inc. (high-speed data, telephone). Hiroko Kujime kujime-pbi@gol.com
income in this league table, due to minority sharehold- Pacific Business T +81-3-3661-6138 F
ings associated with a degree of free floatation of +81-3-3661-6139
remaining shares. Double-counting may arise from Newcomers and drop-outs
shareholdings by multiple parties into a company. Some companies listed this year lacked a ranking advertising production
in last year’s table, due either to the unavailability Please forward all advertising material directly to:
ads@totaltele.com +44 (0)20 7827 4151
Mergers & Separations of company information or too low revenue figures
France Telecom’s reported figures exclude activities in at the time of data collection. Newcomers to the marketing
the UK, which are no longer consolidated following table are Time Warner Cable, Cable & Wireless Tally Judge tally.judge@totaltele.com
the announcement in September 2009 of the merger Communications, Cable & Wireless Worldwide, AOL, Marketing Manager +44 (0)20 7608 7076
TalkTalk Telecom Group and Inmarsat. Charles Georgiou charles.georgiou@totaltele.com
of the Orange and T-Mobile operations in the UK.
Marketing Executive +44 (0)20 7608 7071
The UK segment is now treated as a discontinued Some companies dropped out of the league table,
operation in France Telecom’s financial statements. due either to consolidation by other companies or to subscription/customer services
LG Telecom has absorbed LG Dacom & LG revenue figures lower than those of the 100 players. Aleisha Bryant aleisha.bryant@terrapinn.com
Powercom as of Jan 1st 2010 and will be branded as These companies are TOT, Tata Communications Customer Services Executive +44 (0) 7608 7042
or subscribe online at: www.subscription.co.uk/totaltelecom
LG Telecom. LG Telecom & LG Dacom are listed (now separated out from Tata Indicom), The Carphone
separately in this years rankings. Warehouse Group (has separated from Talk Talk), MANAGEMENT
Verizon’s Consolidated revenues in 2009 increased Time Warner (sold AOL & TWC), Embarq (merged Rob Chambers rob.chambers@totaltele.com
by $10,454 million, or 10.7%, compared to the similar with CenturyLink) and Cable & Wireless (split into Publisher +44 (0)20 7608 7077
period in 2008, primarily due to the inclusion of the separate companies). Greg Hitchen  greg.hitchen@terrapinn.com
Chief Executive Officer
operating results of Alltel in its Wireless segment.
CenturyTel merged with Embarq on 1st July 2009 Exchange rates other publications
and was rebranded CenturyLink. The 2009 results We used historical mid-market rates at noon eastern Online: www.totaltele.com
for CenturyLink include six months’ operations time on the day of reporting, provided by http://www. Television: www.totaltele.tv
from Embarq. xe.com. Mid-market rates are derived from mid-point
Total Telecom Events
Time Warner has been removed from the table between the buy and sell rates of large-value transac- World Communication Awards
since it separated from AOL in Dec 09 and Time tions in the global currency markets. As our analysis www.worldcommsawards.com
Warner Cable (TMC) in March 09. AOL and TWC does not use consistent exchange rate comparisons, World Vendor Awards
have been added to the rankings and rated as some companies may benefit and others lose from a www.worldvendorawards.com
World Telecoms Council
individual companies. conversion of their revenue and net income figures
www.worldtelecomscouncil.com
Cable and Wireless separated its businesses into euros. Conversion into euros is indicative and
Communications and Worldwide on 26 March provides no like-for-like comparison. Companies Total Telecom Plus is published by
2010, creating two separately listed companies, Cable whose figures were not available for 2009–2010 have
& Wireless Worldwide and Cable & Wireless had the exchange rate for the period ending 2009–2010
Communications. These two companies have reported applied, rather than the applicable exchange rate in
their results for 09–10 separately, as is now shown 2008–2010. This is to ensure there is not an unfair
in the rankings. advantage due to a better exchange rate. © 2010. All rights reserved.
The Demerger of Old Carphone Warehouse was Terrapinn Holdings Ltd registered office:
4th Floor Welken House, 10-11 Charterhouse
Square, London EC1M 6EH

www.totaltele.com November 2010 19