ranking the world`s biggest network operators

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
Mary Lennighan
Editor
Total Telecom
4
s we went to press with this year’s Global
100, the eyes of the telecoms world were
not on the top of the table—the top five
all retained their places, while there was just one
new entrant in the top 20—but rather on the
middle of the rankings, where one company’s
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 India’s
Bharti Airtel for US$10.7 billion. Looking at the
operator’s 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 Zain’s
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 Zain’s 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”. Zain’s
lifespan as a standalone entity in the Global 100
could prove to be short—just 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. Zain’s 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 year’s ranking
from 50th in 2009, having the previous year held
the number 61 spot, one place lower than Zain.
Meanwhile, Zain’s 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 year’s
table, rising eight places to number 37; that is 20
places higher than it reached just two years ago.
The addition of Zain’s African operations could
have pushed Bharti Airtel into the top 30.
Bharti Airtel is the highest ranking as well as
the fastest rising of India’s 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 year’s ranking, while
Reliance Communications was up one to 62nd.
India’s Tata Group does not feature in the Global
100 this year because its various telecoms businesses—Tata Communications, Tata Teleservices
and Tata Teleservices Maharashtra—are 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 Group’s 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
year—it rose eight places to number 54—but 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,
Germany’s 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 Telecom’s 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 China’s 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
Revenue rank
Company name
Rank 2010
20
change y-o-y
21
(rank in 2009)
Oi (41)
Revenue in
euros (m) 09-10
11,948
65
16
CenturyLink (81)
3,470
58
10
Telkom South Africa (68)
3,863
59
10
CANTv (69)
3,831
82
9
Iliad (91)
1,954
28
8
SK Telecom (36)
8,674
37
8
Bharti Airtel (45)
6,515
54
8
Brasil Telecom (62)
4,358
33
7
Rogers (40)
7,060
52
6
Telkom Indonesia (58)
4,783
Source: Company data/Diana Crossland
ToP TeN: ranking Losers
Revenue
Revenue rank
Company name
Rank 2010
77
change y-o-y
-11
(rank in 2009)
PCCW (66)
Revenue in
41
-9
vimpelcom (32)
6,076
85
-7
Eircom (78)
1,828
29
-6
Qwest Communications (23)
8,588
34
-6
Hutchison Whampoa (28)
6,997
71
-6
Level 3 (65)
2,624
80
-6
Bezeq (74)
2,121
81
-6
Windstream (75)
2,090
43
-5
OTE (38)
5,984
57
-5
Megafon (52)
euros (m) 09-10
2,256
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.
Unicom’s 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 Africa’s
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
5
GLOBAL 100
revenues
Revenue Company name
rank in (rank in 2009)
2010
Revenue
euros (m)
2009-2010
Accounting
standard
Revenue Company name
rank in (rank in 2009)
2010
Revenue
euros (m)
2009-2010
Accounting
standard
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
US GAAP
3
verizon (3)
75,203
US GAAP
53
Time Warner Cable (unranked)
4,469
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
US GAAP
24
TeliaSonera (24)
10,644
IFRS
74
MetroPCS (80)
2,428
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
US GAAP
37
Bharti Airtel (45)
6,515
US GAAP
87
Intelsat (87)
1,753
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
US GAAP
42
Belgacom (39)
5,990
IFRS
92
Frontier Communications (90)
1,477
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
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GLOBAL 100
Net income (profits)
Net income Net income Company name
rank
rank change (net income rank
in 2010
Y-o-Y
in 2009)
Financial
Net income/
year
loss in euro (m)
2009-2010
Net income Net income Company name
rank
rank change (net income rank
in 2010
Y-o-Y
in 2009)
Financial
Net income/
year
loss in euro (m)
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
363
7
47
Telkom SA (54)
ended 31 Mar 10
3,601
57
1
KT (Korea Telecom) (58)
ended 31 Dec 09
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
214
18
-2
Etisalat (16)
ended 31 Dec 09
1,678
68
-1
Telecom NZ (67)
ended 30 Jun 10
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
-34
37
18
Softbank (55)
ended 31 Mar 10
765
87
-3
FastWeb (84)
ended 31 Dec 09
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)
50
-3
C&W Comms
ended 31 Mar 10
497
NA
NA
Charter
ended 31 Dec 09
NA
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
Colin Brereton
global comms leader,
PricewaterhouseCoopers
www.totaltele.com November 2010
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 lion’s 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.
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
GLOBAL 100
Complete ranking table
Rank
Company name
in 2010 (rank in 2009)
Revenue in
euros (m)
2009-2010
Revenue
in reporting
currency (m)
Net income/ Net profit/ net
net loss in loss in reporting
euros (m)
currency (m)
Country of
reporting
Financial year
ended 31 Dec 09
1
AT&T (1)
85,813
123,018 USD
8,744
12,535
USA
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
in 2010 (rank in 2009)
Revenue in
euros (m)
2009-2010
Revenue
in reporting
currency (m)
Net income/ Net profit/ net
net loss in loss in reporting
euros (m)
currency (m)
Country of
reporting
Financial year
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)
Net Revenue
R$3.6 billion (3Q10)
CEO
Luca Luciani
Headquarters
Rio de Janeiro, Brazil
Employees
9,231
Subscribers
47 million (39.7 million prepaid); (7.2 million postpaid)
ARPU
R$23.4
MOU
123 minutes/customer/month
Market Capitalisation
R$15.0 billion (Sept 2010)
T
his year turned out to be an exciting one for telecoms
services in Brazil, with a spate of M&A activity. Latin
America’s 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 company’s CEO.
12
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 operator’s 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, TIM’s strategy is focused firmly on stimulating higher minutes of use from its customers, and on
fixed-to-mobile substitution. In the second quarter, TIM’s
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.
Unlocking data value
TIM’s 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 cafés for lower social classes.
TIM offers, via customized smartphones, a substitute option for
internet cafés 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
company’s 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
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
Founded
2004
CEO
Eli Katz
Headquarters
London
Services
Multimedia interconnect and IP peering
Customers
Over 100 service providers in 20 countries
POPs
US, Europe, Africa, Asia
Global Alliance
Enum-based IP peering federation
HD Alliance
High-definition voice peering federation
X
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 world’s 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-definition 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 world’s 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 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 partnership, known as XConnect South Africa, will combine
www.totaltele.com November 2010
Multisource’s extensive market knowledge and network capability with XConnect’s expertise in providing multimedia
interconnection and carrier Enum registry services.
The full suite of XConnect’s 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 GSMA’s 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 XConnect’s
national federation environments in North America, Korea,
Europe and South Africa, as well as accessible from XConnect’s
points of presence globally.
XConnect’s 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 company’s 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
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
freedom
The feeling of
www.worldcommsawa
Sponsors:
m
Shortlisted for the World Communication Awards 2010
Best Brand
Best Mobile Operator
Team of the Year
• Etisalat
• Grameenphone
• Idea Cellular
• Telstra Enterprise & Government
• Turk Telekom
• Ufone
• Verizon Business
• Bharti Airtel
• Maxis
• Orange Business Services
• Safaricom
• TMN
• Azercell Telecom
• Emtiac Mobile Solutions
• Orange Business Services
• Roshan
• Turk Telekom
• Turkcell
Best Content Service
• Afghan Wireless
• Orange Business Services
• TE Data
• Turk Telekom
• Turkcell
Best Customer Care
• Bharti Airtel
• BT
• Etisalat Misr
• Global Crossing
• Orange Business Services
• Tata Communications
• TeliaSonera International Carrier
Best Global Operator
• BT Global Services
• Hutchinson Global Communication
• Orange Business Services
• PCCW Global
• Virtela Technology Services Inc
Best Managed Service
• BT Group
• Ericsson
• Interoute
• iPass
• Orange Business Services
• Tulip Telecom
• Virtela Technology Services Inc
• Vodafone
Best Mobile Device Strategy
• Emtiac Mobile Solutions
• Novatel Wireless
• Turk Telekom
Best New Service
• Avea
• Bharti Airtel
• MTN Uganda
• Orange Business Services
• Sebit
• Verizon Business
Best Operator in a
Developing Market
• Digicel Group
• Etisalat Misr
• Ezecom
• Gateway Communications
• Orange Business Services Africa
• Viettel Cambodia
Best Project Management
• Bharti Airtel
• Orange Business Services
• Subex
• Tech Mahindra
• Telstra
Best Regional Operator
• China Telecom (Europe)
• Digicel Group
• GTS Central Europe
• Hutchison Global Communications
• Interoute
• Singapore Telecommunications
• Viettel
Best Wholesale Carrier
• Bharti Airtel
• BICS
• BT Wholesale
• China Telecom (Europe)
• Colt
• Tata Communications
• TeliaSonera International Carrier
The Alireza Mahmoodshahi
Technology Foresight Award
• Arieso Ltd
• BT Group
• Cambridge Broadband Networks
• Continuous Computing
• IPWireless
• Kineto Wireless
• SK Telecom
• Turkcell Technology
The Green Award
• Azercell Telecom
• Batelco
• BT Group
• Colt
• Orange Business Services
• Telefonica O2 UK
Users’ Choice
• 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
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
Current
chief executive
Employees
2009
Revenue Company name
rank
(rank in 2009)
in 2010
Current
chief executive
Employees
2009
1
AT&T (1)
Randall L. Stephenson
282,720
51
Telekom Austria (49)
Hannes Ametsreiter
2
NTT (2)
Satoshi Miura
195,000
52
PT Telkom Indonesia (58)
Rinaldi Firmansyah
16,573
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
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
10
KDDI (10)
Tadashi Onodera
18,301
60
Tele 2 (61)
Mats Granryd
11
BT (12)
Ian Livingston
97,800
61
Freenet/Mobilcom (67)
Christoph vilanek
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
8,629
17
China Unicom (16)
Chang Xiaobing
18
KPN (18)
Ad Scheepbouwer
19
SFR (19)
Frank Esser
20
Oi (41)
Luiz Eduardo Falco
21
BCE (21)
George Cope
22
Telenor (22)
23
KT (Korea Telecom) (20)
24
25
3,619
NA
6,684
4,394
45,220
66
Telecom NZ (72)
Paul Reynolds
321,772
67
LG Telecom (70)
Lee Sang-Cheol
34,925
68
Turkcell (64)
Sureyya Ciliv
11,000
9,945
69
Maroc Telecom (71)
Abdelslam Ahizoune
14,075
12,372
70
C&W Comms (unranked)
Tony Rice
50,662
71
Level 3 (65)
James Q. Crowe
Jon Fredrik Baksaas
40,300
72
C&W Worldwide (unranked)
Jim Marsh
6,575
Suk-Chae Lee
30,841
73
Shaw (79)
Jim Shaw
10,000
TeliaSonera (24)
Lars Nyberg
29,734
74
MetroPCS (80)
Roger D Linquist
3,600
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
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
38
Telus (43)
Darren Entwistle
36,400
88
Telekom Malaysia (84)
Dato’ Sri Zamzamzairani
39
Telmex (37)
Héctor Slim Seade
52,946
89
SES (89)
Romain Bausch
40
Svyazinvest (42)
Evgeny Yurchenko
NA
90
Colt (88)
Rakesh Bhasin
41
vimpelCom (32)
Boris Nemsic
36,355
91
Charter (94)
Michael J. Lovett
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
45
Etisalat (50)
Mohammed Khalfan Al Qamzi
46
Wind/Infostrada (44)
Luigi Gubitosi
47
Zain (47)
Nabeel Bin Salamah
48
Bouygues Telecom (51)
Olivier Roussat
49
Turk Telekom (53)
50
TDC (46)
NA
NA
5,200
6,700
1,111
24,744
1,585
4,777
16,700
94
Cablevision (93)
James L. Dolan
NA
95
Telecom Egypt (96)
Tarek Tantawy
NA
6,915
96
Taiwan Mobile 99
Richard Tsai
2,496
13,000
97
MTS Allstream (98)
Pierre Blouin
5,837
9,018
98
Cellcom Israel (97)
Amos Shapira
4,432
Paul Doany
34,086
99
IDT (95)
Howard S. Jonas
1,400
Henrik Poulsen
13,042
100
Inmarsat (unranked)
Andrew Sukawaty
NA
499
Source: Company data/Diana Crossland
16
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GLOBAL 100
return on revenue
Revenue
rank in
2010
Company name
(rank in 2009)
Return on revenue
2009-2010
Revenue
rank in
2010
Company name
(rank in 2009)
Return on revenue
2009-2010
1
AT&T (1)
10.19%
51
Telekom Austria (49)
2
NTT (2)
4.83%
52
PT Telkom Indonesia (58)
1.96%
3
verizon (3)
3.39%
53
Time Warner Cable (unranked)
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)
12
Sprint (11)
-4.33%
62
Reliance Communications (63)
13
Softbank (13)
3.50%
63
Orascom Telecom (59)
14
China Telecom (14)
6.89%
64
US Cellular/TDS (60)
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)
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)
21
BCE (21)
9.80%
71
Level 3 (65)
22
Telenor (22)
10.35%
72
Cable&Wireless Worldwide (unranked)
23
KT (Korea Telecom) (20)
3.10%
73
Shaw (79)
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)
27
SingTel (30)
23.16%
77
PCCW (66)
28
SK Telecom (36)
7.25%
78
Telecom Argentina (77)
11.49%
29
Qwest Communications (23)
30
Swisscom (26)
31
Liberty Global (29)
32
17.54%
NA
7.01%
21.03%
7.48%
3.84%
6.23%
18.88%
-16.43%
0.04%
15.78%
7.61%
7.16%
5.38%
79
PLDT (76)
27.09%
16.04%
80
Bezeq (74)
30.74%
0.13%
81
Windstream (75)
11.15%
Comcast (34)
NA
82
Iliad (91)
33
Rogers (40)
NA
83
TalkTalk (unranked)
34
Hutchison Whampoa (28)
NA
84
Fastweb (86)
35
MTS (31)
10.22%
85
Eircom (78)
36
Portugal Telecom (35)
10.07%
86
Global Crossing (82)
37
Bharti Airtel (45)
23.48%
87
Intelsat (87)
38
Telus (43)
10.43%
88
Telekom Malaysia (84)
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)
44
BSNL (48)
0.02%
94
Cablevision (93)
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)
50
TDC (46)
17.34%
99
IDT (95)
6.63%
100
Inmarsat (unranked)
8.96%
0.95%
-1.84%
5.14%
-5.56%
-31.08%
7.82%
12.38%
NA
-10.08%
14.64%
Source: Company data/Diana Crossland
18
www.totaltele.com November 2010
contacts
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.
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).
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.
Mergers & Separations
France Telecom’s 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 Telecom’s 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.
Verizon’s 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 09–10 separately, as is now shown
in the rankings.
The Demerger of Old Carphone Warehouse was
www.totaltele.com November 2010
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 Ukraine’s 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.
Extraction of telecoms revenues
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).
Newcomers and drop-outs
Some companies listed this year lacked a ranking
in last year’s 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).
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 2009–2010 have
had the exchange rate for the period ending 2009–2010
applied, rather than the applicable exchange rate in
2008–2010. This is to ensure there is not an unfair
advantage due to a better exchange rate.
EDITORIAL
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contributing editors
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Omer, Israel
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London
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