mobile network operator groups 2011
DESCRIPTION
MNO Group Structures 2011 Profiles and KPIs of the top 30 mobile operator groups worldwide This useful report comprehensively analyses the Top 30 MNO Groups Worldwide (as determined by proportionate subscriber bases at end-2010). Over 123 pages, with 109 supporting Figures and Tables, this great-value, text-light study delivers solid insight and data about these global leaders, and reappraises their success using differing KPIs - to see how rankings alter. The report also features detailed profiles of these 30 MNO Groups, with data points on: Total Revenue, Mobile Revenue, Net Profit, Employees, Key Interests, Brand Names, Ownership, Subscribers, Proportionate Subscribers, Market Share, Technology Deployments, Planned Upgrades, Recent Mergers, Acquisitions and Partnership Deals.TRANSCRIPT
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Mobile Network Operator Groups 2011
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Mobile Network Operator Groups 2011
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Mobile Network Operator Groups 2011
Contents Worldwide Mobile Market ........................................................................................................ 8 Top 30 MNO Groups Worldwide ...........................................................................................12
Top 30 MNO Groups Worldwide – Proportionate Subscriber Base ................................................... 12 KPI 1 – MNO Groups by Total Revenue ......................................................................................... 14 KPI 2 – MNO Groups by Revenue from Mobile Operations ............................................................ 16 KPI 3 – MNO Groups by Net Profit .................................................................................................. 19 KPI 4 – MNO Groups by Core Brands............................................................................................. 21
MNO Brands by Region ..................................................................................................................... 23 Asia Pacific – Top Core Brands ...................................................................................................... 23 Europe – Top Core Brands ............................................................................................................. 23 North America – Top Core Brands .................................................................................................. 24 Latin America – Top Core Brands ................................................................................................... 24 Africa and Middle East – Top Core Brands ..................................................................................... 25
MNO Group Profiles ...............................................................................................................26 America Movil .................................................................................................................................... 27 AT&T .................................................................................................................................................. 30 Axiata ................................................................................................................................................. 33 Bharat Sanchar Nigam Limited .......................................................................................................... 36 Bharti Airtel ........................................................................................................................................ 37 China Mobile Communications Corporation ....................................................................................... 40 China Telecom Corporation Limited (China Telecom) ....................................................................... 42 China Unicom .................................................................................................................................... 43 Deutsche Telekom ............................................................................................................................. 45 France Telecom ................................................................................................................................. 48 Idea Cellular ....................................................................................................................................... 52 Maxis Communications ...................................................................................................................... 54 MegaFon ............................................................................................................................................ 56 Mobile TeleSystems (MTS) ................................................................................................................ 58 MTN Group Limited (MTN Group)...................................................................................................... 60 NTT DOCOMO Group ....................................................................................................................... 63 Orascom Telecom Holding (OTH)...................................................................................................... 65 Reliance Communications Limited (Reliance Communications) ........................................................ 68 SingTel (Singapore Telecom) ............................................................................................................ 69 Smart Communications ...................................................................................................................... 71 Sprint Nextel ...................................................................................................................................... 72 Tata Teleservices............................................................................................................................... 74 Telecom Italia Group .......................................................................................................................... 76 Telefonica .......................................................................................................................................... 78 Telenor ............................................................................................................................................... 82 TeliaSonera ....................................................................................................................................... 85 Telkomsel .......................................................................................................................................... 89 Verizon Communications ................................................................................................................... 90 VimpelCom Limited ............................................................................................................................ 92 Vodafone Group................................................................................................................................. 95
Appendices ...........................................................................................................................100 Glossary ........................................................................................................................................ 101 Portio Research Classifications ..................................................................................................... 111 Companies Mentioned in this Report ............................................................................................ 112 About the Authors.......................................................................................................................... 121
Also available from Portio Research Limited ................................................................................... 122
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Mobile Network Operator Groups 2011
List of Figures Figure 1: Mobile Subscriber Base – Worldwide (In Million, 2008 – 2015F) ........................................ 8Figure 2: Mobile Subscriber Base – Regional (In Million, 2008 – 2015F) ........................................... 9Figure 3: Worldwide Subscriber Base – Regional Contribution (In Percent, 2010) .......................... 10Figure 4: Worldwide Subscriber Base – Regional Contribution (In Percent, 2015F) ........................ 10Figure 5: Regional Break-out of the Top 30 MNO Groups Worldwide (End-2010) ........................... 14
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Mobile Network Operator Groups 2011
List of Tables Table 1: Mobile Subscribers – Regional (In Million, 2008 – 2015F) .................................................. 9Table 2: Top 30 MNO Groups Worldwide – Proportionate Subscribers (In Million, End-2010) ....... 13Table 3: MNO Groups Worldwide – Total Revenue (In USD Million, January 2010 – December
2010) ............................................................................................................................... 15Table 4: MNO Groups Worldwide – Revenue from Mobile Operations (In USD Million, January
2010 – December 2010) .................................................................................................. 17Table 5: MNO Groups Worldwide – Net Profit (In USD Million, January 2010 – December 2010) 19Table 6: MNO Groups Worldwide – Core Brand Subscriber Base (In Million, 2010) ...................... 21Table 7: Top 5 MNO Brands by Proportionate Subscribers – Asia Pacific (In Million, 2010) .......... 23Table 8: Top 5 MNO Brands by Proportionate Subscribers – Europe (In Million, 2010) ................. 23Table 9: Top 5 MNO Brands by Proportionate Subscribers – North America (In Million, 2010) ...... 24Table 10: Top 5 MNO Brands by Proportionate Subscribers – Latin America (In Million, 2010) ....... 24Table 11: Top 5 MNO Brands by Proportionate Subscribers – Africa and Middle East (In Million,
2010) ................................................................................................................................ 25Table 12: KPIs of America Movil Group (2009 & 2010) .................................................................... 27Table 13: Details of America Movil’s Key Interests .......................................................................... 28Table 14: America Movil’s Technology Deployments and Planned Upgrades .................................. 29Table 15: KPIs of AT&T Group (2009 & 2010) ................................................................................. 30Table 16: Details of AT&T Group’s Key Interests ............................................................................. 30Table 17: Details of AT&T Group’s Associated Companies .............................................................. 31Table 18: AT&T Group’s Technology Deployments and Planned Upgrades .................................... 32Table 19: KPIs of Axiata Group (2009 & 2010) ................................................................................. 33Table 20: Details of Axiata Group’s Key Interests ............................................................................ 34Table 21: Axiata Group’s Technology Deployments and Planned Upgrades ................................... 35Table 22: KPIs of Bharat Sanchar Nigam Limited (2009 & 2010) ..................................................... 36Table 23: Details of Bharat Sanchar Nigam Limited’s Key Interests, Technology Deployed and
Planned Upgrades ............................................................................................................ 36Table 24: KPIs of Bharti Airtel Group (2009 & 2010) ........................................................................ 37Table 25: Details of Bharti Airtel Group’s Key Interests .................................................................... 38Table 26: Bharti Airtel Group’s Technology Deployments and Planned Upgrades ........................... 39Table 27: KPIs of China Mobile Communications Corporation (2009 & 2010) ................................. 40Table 28: Details of China Mobile Communications Corporation’s Key Interests ............................. 40Table 29: China Mobile Communications Corporation’s Technology Deployments and Planned
Upgrades .......................................................................................................................... 41Table 30: KPIs of China Telecom (2009 & 2010) ............................................................................. 42Table 31: Details of China Telecom’s Key Interests, Technology Deployed and Planned Upgrades
...
..................................................................................................................................... 42Table 32: KPIs of China Unicom (2009 & 2010) ............................................................................... 43Table 33: Details of China Unicom’s Key Interests, Technology Deployed and Planned Upgrades . 43Table 34: Details of China Unicom’s Associated Companies ........................................................... 44Table 35: KPIs of Deutsche Telekom Group (2009 & 2010) ............................................................. 45Table 36: Details of Deutsche Telekom Group’s Key Interests ......................................................... 46Table 37: Deutsche Telekom Group’s Technology Deployments and Planned Upgrades ............... 47Table 38: KPIs of France Telecom Group (2009 & 2010) ................................................................. 48Table 39: Details of France Telecom Group’s Key Interests ............................................................. 49Table 40: France Telecom Group’s Technology Deployments and Planned Upgrades ................... 50Table 41: Idea Cellular’s Shareholders ............................................................................................. 52Table 42: KPIs of Idea Cellular (2009 & 2010) ................................................................................. 52Table 43: Details of Idea Cellular’s Key Interests, Technology Deployed and Planned Upgrades ... 53Table 44: KPIs of Maxis Communications (2009 & 2010) ................................................................. 54Table 45: Details of Maxis Communications’ Key Interests .............................................................. 55Table 46: Maxis Communications’ Technology Deployments and Planned Upgrades ..................... 55Table 47: KPIs of MegaFon (2009 & 2010) ...................................................................................... 56Table 48: Details of MegaFon’s Key Interests .................................................................................. 56Table 49: MegaFon’s Technology Deployments and Planned Upgrades ......................................... 57Table 50: KPIs of MTS Group (2009 & 2010) ................................................................................... 58
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Mobile Network Operator Groups 2011
Table 51: Details of MTS Group’s Key Interests ............................................................................... 58Table 52: MTS Group’s Technology Deployments and Planned Upgrades ...................................... 59Table 53: KPIs of MTN Group (2009 & 2010) ................................................................................... 60Table 54: Details of MTN Group’s Key Interests ............................................................................... 61Table 55: MTN Group’s Technology Deployments and Planned Upgrades ...................................... 62Table 56: KPIs of NTT DOCOMO Group (2009 & 2010) .................................................................. 63Table 57: Details of NTT DOCOMO Group’s Key Interests .............................................................. 63Table 58: Details of NTT DOCOMO Group’s Associated Companies .............................................. 64Table 59: NTT DOCOMO Group’s Technology Deployments and Planned Upgrades ..................... 64Table 60: KPIs of Orascom Telecom Holding (2009 & 2010) ........................................................... 65Table 61: Details of Orascom Telecom Holding’s Key Interests ....................................................... 66Table 62: Orascom Telecom Holding’s Technology Deployments and Planned Upgrades .............. 67Table 63: KPIs of Reliance Communications (2009 & 2010) ............................................................ 68Table 64: Details of Reliance Communications’ Key Interests, Technology Deployed and Planned
Upgrades .......................................................................................................................... 68Table 65: KPIs of SingTel Group (2009 & 2010) .............................................................................. 69Table 66: Details of SingTel Group’s Key Interests .......................................................................... 69Table 67: Details of SingTel Group’s Associated Companies ........................................................... 70Table 68: SingTel Group’s Technology Deployments and Planned Upgrades ................................. 70Table 69: KPIs of Smart Communications (2009 & 2010) ................................................................ 71Table 70: Details of Smart Communications’ Key Interests, Technology Deployed and Planned
Upgrades .......................................................................................................................... 71Table 71: KPIs of Sprint Nextel (2009 & 2010) ................................................................................. 72Table 72: Details of Sprint Nextel’s Key Interests ............................................................................. 72Table 73: Sprint Nextel’s Technology Deployments and Planned Upgrades .................................... 73Table 74: Details of Tata Teleservices Key Interests, Technology Deployed and Planned Upgrades
..
..................................................................................................................................... 74Table 75: Telecom Italia Group’s Shareholders ................................................................................ 76Table 76: KPIs of Telecom Italia Group (2009 & 2010) .................................................................... 76Table 77: Details of Telecom Italia Group’s Key Interests ................................................................ 77Table 78: Details of Telecom Italia Group’s Associated Companies ................................................ 77Table 79: Telecom Italia Group’s Technology Deployments and Planned Upgrades ....................... 77Table 80: KPIs of Telefonica Group (2009 & 2010) .......................................................................... 78Table 81: Details of Telefonica Group’s Key Interests ...................................................................... 79Table 82: Details of Telefonica Group’s Associated Companies ...................................................... 80Table 83: Telefonica Group’s Technology Deployments and Planned Upgrades ............................. 81Table 84: Telenor Group’s Shareholders .......................................................................................... 82Table 85: KPIs of Telenor Group (2009 & 2010) .............................................................................. 82Table 86: Details of Telenor Group’s Key Interests .......................................................................... 83Table 87: Details of Telenor Group’s Associated Companies ........................................................... 83Table 88: Telenor Group’s Technology Deployments and Planned Upgrades ................................. 84Table 89: KPIs of TeliaSonera Group (2009 & 2010) ....................................................................... 85Table 90: Details of TeliaSonera Group’s Key Interests ................................................................... 86Table 91: Details of TeliaSonera Group’s Associated Companies ................................................... 87Table 92: TeliaSonera Group’s Technology Deployments and Planned Upgrades .......................... 88Table 93: KPIs of Telkomsel (2009 & 2010) ..................................................................................... 89Table 94: Details of Telkomsel’s Key Interests, Technology Upgrades and Planned Upgrades ....... 89Table 95: KPIs of Verizon Communications (2009 & 2010) .............................................................. 90Table 96: Details of Verizon Communications’ Key Interests ........................................................... 90Table 97: Verizon Communications’ Technology Deployments and Planned Upgrades .................. 91Table 98: KPIs of VimpelCom Limited (2009 & 2010) ...................................................................... 92Table 99: Details of VimpelCom Limited’s Key Interests ................................................................. 93Table 100: VimpelCom Limited’s Technology Deployments and Planned Upgrades ......................... 94Table 101: KPIs of Vodafone Group (2009 & 2010) ........................................................................... 95Table 102: Details of Vodafone Group’s Key Interests ....................................................................... 96Table 103: Details of Vodafone Group’s Associated Companies ....................................................... 97Table 104: Vodafone Group’s Technology Deployments and Planned Upgrades .............................. 98
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Mobile Network Operator Groups 2011
Chapter 1 Worldwide Mobile Market
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Mobile Network Operator Groups 2011
Worldwide Mobile Market The worldwide mobile industry continues to grow at a significant rate. Since inception, this industry’s prolific growth rate has perpetually amazed all, including experts themselves, and will be strengthened further with the ongoing convergence of services with mobile communications, and initiatives by Mobile Network Operators (MNOs). At end-2010, worldwide mobile subscribers stood at nearly 5.3 billion. This subscriber base is projected to grow at a Compound Annual Growth Rate (CAGR) of 6.9 percent between 2010 and 2015, and is expected to reach nearly 7.4 billion by end-2015. The figure below highlights the growth in worldwide mobile subscriber base during 2008-2015. Please note that in 2010 (when these subscriber projections were cast), our data collection saw extended coverage of markets in the Africa and Middle East (AME) region. With these additional countries, the subscriber base extrapolation for the region, in accordance with our assumptions and model, yielded 570.1 million for 2008 (which is higher than our earlier stated 2008 AME subscriber base figure of 505 million). This change in subscriber base data for the AME region has translated into the revision of the 2008 worldwide mobile subscriber base figure below.
Figure 1: Mobile Subscriber Base – Worldwide (In Million, 2008 – 2015F)1
Source: Portio Research Ltd.
F – Forecasted
Asia Pacific is the largest mobile market worldwide. At end-2010, the region’s mobile subscriber base stood at over 2.5 billion and is forecast to surpass 3.8 billion by end-2015 – growing at a CAGR of 8.8 percent during 2010-2015. Europe is the second-largest region worldwide in terms of subscribers and had close to 1.1 billion subscribers at end-2010. The next table highlights regional mobile subscriber levels during 2008-2015.
1 Note: These forecasts were prepared in 2010. As such, quoted full year 2010 subscriber base figures throughout
this chapter use data collected from the first three quarters of 2010 and estimations for the fourth then unavailable quarter.
4,044.84,655.8
5,254.65,787.1
6,262.56,675.1
7,037.97,351.5
0
2,000
4,000
6,000
8,000
2008 2009 2010 2011F 2012F 2013F 2014F 2015F
Mob
ile S
ubsc
riber
Bas
e
(In
Mill
ion)
Year
© 2011, Portio Research. All Rights Reserved 9
Mobile Network Operator Groups 2011
Table 1: Mobile Subscribers – Regional (In Million, 2008 – 2015F)2
Region Mobile Subscribers (In Million)
2008 2009 2010 2011F 2012F 2013F 2014F 2015F
Europe 999.7 1,038.3 1,078.6 1,115.1 1,141.3 1,162.4 1,179.4 1,193.1
Asia Pacific 1,733.8 2,132.1 2,521.2 2,856.5 3,156.4 3,416.5 3,643.9 3,838.1
North America 291.9 313.5 334.6 352.1 368.0 382.2 395.0 406.3
Latin America 449.5 494.0 534.8 574.4 608.1 637.9 663.9 686.5
Africa and Middle East 570.1 677.9 785.4 889.0 988.8 1,076.1 1,155.7 1,227.5
Total 4,044.8 4,655.8 5,254.6 5,787.1 6,262.5 6,675.1 7,037.9 7,351.5
Source: Portio Research Ltd. The figure below is the graphical representation of Table 1 above.
Figure 2: Mobile Subscriber Base – Regional (In Million, 2008 – 2015F)
Source: Portio Research Ltd.
F – Forecasted
2 Note: Sum of regional numbers may not equal total due to rounding off errors.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2008 2009 2010 2011F 2012F 2013F 2014F 2015F
Mob
ile S
ubsc
riber
s (I
n M
illio
n)
Europe Asia Pacific North America Latin America Africa and Middle East
10 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Asia Pacific’s subscribers constituted 48 percent of the worldwide mobile subscriber base in 2010, while the second largest contribution was Europe with 20.5 percent. The figure below depicts regional contribution to the worldwide mobile subscriber base in 2010.
Between 2010 and 2015, the percentage contribution of the Asia Pacific and AME regions to the worldwide subscriber base is expected to increase at the expense of the remaining regions, which will see declines during the same period. Asia Pacific will continue to dominate the worldwide mobile market, and in 2015 over 52 percent of worldwide mobile subscribers will originate from this region. The increase in subscriber base share for the Asia Pacific and AME regions can be ascribed to the strong subscriber base growth in the emerging markets.
3 Note: The percentages do not add up to 100 percent because of rounding off errors.
Figure 3: Worldwide Subscriber Base – Regional Contribution (In Percent, 2010)
Source: Portio Research Ltd.
Figure 4: Worldwide Subscriber Base – Regional Contribution (In Percent, 2015F)3
Source: Portio Research Ltd.
F – Forecasted
20.5%
48.0% 6.4%
10.2%
14.9%
Europe Asia Pacific North America Latin America Africa and Middle East
16.2%
52.2% 5.5%
9.3%
16.7%
Europe Asia Pacific North America Latin America Africa and Middle East
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Mobile Network Operator Groups 2011
Chapter 2 Top 30 MNO Groups Worldwide
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Mobile Network Operator Groups 2011
Top 30 MNO Groups Worldwide As noted, the worldwide mobile industry continues to see impressive growth. Penetration levels have multiplied significantly, not only because of increased affordability, but also because of intensified efforts by Mobile Network Operators (MNOs). While developed countries are going through a consolidation phase, developing economies are clocking steep net subscriber additions. Increased competition in the mobile space has led to a decline in Average Revenue Per User (ARPU), and to counter this MNOs are trying to acquire more customers to increase net revenues.
Top 30 MNO Groups Worldwide – Proportionate Subscriber Base
An MNO Group’s proportionate subscriber base is based on its equity stake in its subsidiaries, joint ventures and associated companies. Where an MNO is operational in only one country, its proportionate subscriber figure is the same as its total customer base. The size of an MNO Group’s subscriber base highlights the popularity and perception of its brand in the minds of users in a given market, and illustrates the extent of its hold over, and strength within, this wireless market. However, subscriber base has a huge dependence on the population of a country, amply demonstrated by the fact that the Top 30 MNO Groups listed in the table below include three Chinese and five Indian Groups/MNOs. The following table ranks the Top 30 MNO Groups worldwide on the basis of proportionate subscriber base.
Our Top 30 MNO Group Rankings Explained In the following section we rank the Top 30 “MNO Groups” Worldwide by their Proportionate Subscriber Base. In later sections we then reappraise these same thirty “MNO Groups” by differing KPIs, and re-order them according to their success under these varying criteria. These subsequent Top 30 and Top 5 “MNO Group” rankings are subsets of our initial assessment of the Top 30 by proportionate subscriber base, and should therefore please be read in that context. Please also note that this collection of 30 “MNO Groups” – drawn from worldwide proportionate subscriber bases – actually includes 8 stand-alone “MNOs”. These are included in the “Group” rankings due to the sheer scale of their customer bases. We have endeavoured to clearly communicate this MNO Group/MNO distinction wherever practical throughout the report, but for readability there may remain instances where we say “MNO Groups” and yet some of the featured companies are technically stand-alone “MNOs”. For clarity, the 8 stand-alone MNOs are: Bharat Sanchar Nigam Limited, China Telecom Corporation Limited (China Telecom), China Unicom, Idea Cellular, Reliance Communications Limited, Smart Communications, Tata Teleservices, and Telkomsel.
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Mobile Network Operator Groups 2011
Table 2: Top 30 MNO Groups Worldwide – Proportionate Subscribers (In Million, End-2010)
Rank MNO Group/MNO Proportionate Subscribers
(In Million, 2010) Headquarter
1 China Mobile Communications Corporation 594.21 China
2 Vodafone Group 338.93 The UK
3 America Movil 224.40 Mexico
4 Telefonica 216.93 Spain
5 Bharti Airtel 199.19 India
6 China Unicom 169.34 China
7 AT&T 148.77 The US
8 Singapore Telecom (SingTel) 133.90 Singapore
9 France Telecom 129.49 France
10 Reliance Communications 125.65 India
11 Deutsche Telekom 119.28 Germany
12 Telenor 118.36 Norway
13 Mobile TeleSystems (MTS) 111.39 Russia
14 Verizon Communications 107.68 The US
15 MTN Group Limited 107.03 South Africa
16 Telkomsel 94.01 Indonesia
17 VimpelCom Limited 91.56 Russia
18 China Telecom 90.52 China
19 Bharat Sanchar Nigam Limited 86.71 India
20 Telecom Italia Group 84.59 Italy
21 Tata Teleservices 84.23 India
22 Orascom Telecom Holding 83.57 Egypt
23 NTT DOCOMO 82.53 Japan
24 Idea Cellular 81.78 India
25 TeliaSonera 76.44 Sweden
26 Axiata 69.66 Malaysia
27 MegaFon 57.58 Russia
28 Maxis Communications 51.23 Malaysia
29 Sprint Nextel 50.28 The US
30 Smart Communications 45.64 The Philippines
Source: Portio Research Ltd.
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Mobile Network Operator Groups 2011
Taking into consideration the region in which an MNO Group is headquartered, the figure below represents the regional break-out of the 30 MNO Groups listed in the above Table.
The Top 30 list features 14 MNO Groups/MNOs from Asia Pacific, primarily due to the large population of countries in the region. Europe, with its high mobile penetration, has 10 MNO Groups/MNOs featuring in the Top 30. Emerging markets in Asia Pacific, especially China and India, have surpassed Europe and North America in terms of subscriber base. In order to increase their subscriber base, MNO Groups have been widening their presence worldwide and expanding their operations to emerging markets. MNO Groups have aggressively acquired and merged with different MNOs in developing mobile markets. For example, Vodafone has successfully entered the Indian mobile market by acquiring a majority stake in Hutchison Essar. The following sub-sections reappraise these same 30 MNO Groups using differing key performance indicators (KPIs), and re-order them accordingly. These MNO Groups/MNOs are then profiled in Chapter Three. KPI 1 – MNO Groups by Total Revenue The revenue generated by an operator gives an indication of the success of the business model deployed to drive revenues. In 2010, AT&T generated the highest revenue among MNO Groups. The following table highlights how the aforementioned Top 30 MNO Groups –as originally determined by proportionate subscriber base – performed in terms of total revenue (including mobile, wireline and Internet services) in 2010. For ranking purposes, total revenue presented in the following table has been calculated for the full year January 2010 - December 2010, instead of a company’s financial year.
Figure 5: Regional Break-out of the Top 30 MNO Groups Worldwide (End-2010)
Source: Portio Research Ltd.
10
14
3
1
2
Europe Asia Pacific North America Latin America Africa and Middle East
© 2011, Portio Research. All Rights Reserved 15
Mobile Network Operator Groups 2011
Table 3: MNO Groups Worldwide – Total Revenue (In USD Million, January 2010 – December 2010)4 5
Rank MNO Group/MNO Total Revenue (In USD Million, 2010)
1 AT&T 124,280.0
2 Verizon Communications 106,565.0
3 Deutsche Telekom 82,795.2
4 Telefonica 80,561.6
5 China Mobile Communications Corporation 71,571.6
6 Vodafone Group 70,561.5
7 France Telecom 60,355.2
8 NTT DOCOMO 48,462.5
9 America Movil 48,081.3
10 Telecom Italia 36,570.2
11 Sprint Nextel 32,563.0
12 China Telecom Corporation 32,429.9
13 China Unicom 25,266.5
14 Telenor 15,687.1
15 MTN Group 15,195.6
16 TeliaSonera 14,495.2
17 Singapore Telecom (SingTel) 13,130.5
18 Bharti Airtel 11,761.3
19 Mobile TeleSystems (MTS) 11,293.2
20 VimpelCom Limited 10,512.7
4 Note: For ranking purposes, total revenue presented in the table has been calculated for the full year January
2010 - December 2010, instead of a company’s financial year. 5 Note: Tata Teleservices and Bharat Sanchar Nigam Limited (BSNL) have been excluded from the table due to the
unavailability of total revenue figures for the specified 2010 period.
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Mobile Network Operator Groups 2011
Rank MNO Group/MNO Total Revenue (In USD Million, 2010)
21 MegaFon 7,090.4
22 Axiata 4,842.5
23 Reliance Communications 4,430.7
24 Telkomsel*6 3,373.8
25 Idea Cellular 3,186.3
26 Orascom Telecom* 3,121.9
27 Maxis Communications 2,749.4
28 Smart Communications 2,103.6
Source: Portio Research Ltd.
KPI 2 – MNO Groups by Revenue from Mobile Operations Revenue generated from mobile operations includes two components – service revenue and equipment (or handset) revenue. Service revenue is further divided into two segments – voice services and data services. The revenue from mobile operations is primarily driven by growing the subscriber base and increasing data ARPU, as voice ARPU has been witnessing a decline for the past few years. As a result, MNO Groups are focusing more on subscriber acquisition and non-voice services. MNO Groups are making huge investments in advanced and high-speed network technologies to enhance the user experience and push the uptake of data services. The following table highlights how the Top 30 MNO Groups performed in terms of revenue generated from mobile operations in 2010. For ranking purposes, revenue generated from mobile operations in the table below has been calculated for the full year January 2010 - December 2010, instead of a company’s financial year.
* Note: The total revenue figure is as of end-September 2010.
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Mobile Network Operator Groups 2011
Table 4: MNO Groups Worldwide – Revenue from Mobile Operations (In USD Million, January 2010 – December 2010)7 8
Rank MNO Group/MNO Revenue from Mobile
Operations (In USD Million, 2010)
Mobile Revenue as a Percentage of Total Revenue
(In Percent, 2010)
1 China Mobile
Communications Corporation
71,571.6 100.0
2 Verizon Communications 63,407.0 59.5
3 Vodafone Group 60,779.7 86.1
4 AT&T 58,500.0 47.1
5 Telefonica 52,729.1 65.5
6 NTT DOCOMO 48,462.5 100.0
7 Deutsche Telekom 45,694.5 55.2
8 America Movil 29,940.4 62.3
9 France Telecom 29,718.0 49.2
10 Sprint Nextel 28,597.0 87.8
11 Telecom Italia 18,425.0 50.4
12 MTN Group 15,195.6 100.0
13 China Unicom 13,238.9 52.4
14 Bharti Airtel 9,590.6 81.5
7 Note: For ranking purposes, revenue generated from mobile operations in the table below has been calculated for
the full year January 2010 - December 2010, instead of a company’s financial year. 8 Note: Tata Teleservices and Bharat Sanchar Nigam Limited (BSNL) have been excluded from the table due to the
unavailability of revenue from mobile operations data for the specified 2010 period.
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Mobile Network Operator Groups 2011
Rank MNO Group/MNO Revenue from Mobile
Operations (In USD Million, 2010)
Mobile Revenue as a Percentage of Total Revenue
(In Percent, 2010)
15 Telenor 11,667.3 74.4
16 Mobile TeleSystems (MTS) 9,606.4 85.1
17 Singapore Telecom
(SingTel) 9,206.6 70.1
18 VimpelCom Limited 9,116.5 86.7
19 TeliaSonera 9,063.0 62.5
20 China Telecom Corporation 7,958.1 24.5
21 MegaFon 6,855.7 96.7
22 Axiata 4,842.5 100.0
23 Reliance Communications 3,590.1 81.0
24 Telkomsel*9 3,373.8 100.0
25 Idea Cellular 3,186.3 100.0
26 Orascom Telecom* 3,121.9 100.0
27 Maxis Communications 2,566.5 93.3
28 Smart Communications 2,103.6 100.0
Source: Portio Research Ltd. China Mobile Communications Corporation generated the highest mobile revenue in 2010, even though its ARPU is lower compared to European and North American operators. This can be attributed to its huge subscriber base which outnumbers the combined subscriber base of Vodafone Group and America Movil. The two US groups, Verizon Communications and AT&T made the top five in terms of mobile revenues, even though they stood at ranks 7 and 14 respectively based on their proportionate subscriber bases at end-December 2010. This is primarily due to high ARPU.
* Note: The revenue figure is as of end-September 2010.
© 2011, Portio Research. All Rights Reserved 19
Mobile Network Operator Groups 2011
KPI 3 – MNO Groups by Net Profit Net profit is another indication of the success of an MNO Group, and is a primary point of interest for stakeholders. AT&T, in terms of net profit, topped the 2010 rankings, beating out China Mobile Communications Corporation, Telefonica and Verizon Communications to pole position. The table below highlights how the Top 30 MNO Groups Worldwide performed in terms of net profit in 2010. For ranking purposes, net profit from mobile operations in the table below has been calculated for the full year January 2010 - December 2010, instead of a company’s financial year. Table 5: MNO Groups Worldwide – Net Profit (In USD Million, January 2010 – December
2010)10 11
Rank MNO Group/MNO Net Profit (In USD Million, 2010)
1 AT&T 19,864.0
2 China Mobile Communications Corporation 17,646.9
3 Telefonica 13,485.5
4 Verizon Communications 10,217.0
5 America Movil 7,184.0
6 France Telecom 6,468.9
7 NTT DOCOMO 5,921.2
8 Telecom Italia 4,139.7
9 TeliaSonera 3,204.4
10 Singapore Telecom (SingTel) 2,823.5
11 Telenor 2,449.3
12 Deutsche Telekom 2,334.5
10 Note: For ranking purposes, net profit from mobile operations in the table below has been calculated for the full
year January 2010 - December 2010, instead of a company’s financial year. 11 Note: Vodafone, Tata Teleservices and Bharat Sanchar Nigam Limited (BSNL) have been excluded from the
table due to the unavailability of net profit figures for 2010.
20 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Rank MNO Group/MNO Net Profit (In USD Million, 2010)
13 China Telecom Corporation 2,324.5
14 MTN Group 2,229.6
15 VimpelCom Limited 1,673.3
16 MegaFon 1,617.8
17 Bharti Airtel 1,458.5
18 Mobile TeleSystems (MTS) 1,380.6
19 Orascom Telecom*12 951.0
20 Telkomsel* 918.9
21 Smart Communications 781.8
22 Maxis Communications 711.5
23 China Unicom 568.0
24 Axiata 548.7
25 Reliance Communications (RCOM) 522.5
26 Idea Cellular 194.2
27 Sprint Nextel -595.0
Source: Portio Research Ltd.
* Note: The net profit figure is as of end-September 2010.
© 2011, Portio Research. All Rights Reserved 21
Mobile Network Operator Groups 2011
KPI 4 – MNO Groups by Core Brands MNO Groups launch their services in various countries under different brand names. The strength or popularity of an MNO among consumers can be gauged from the size of the subscriber base under these respective brands. One MNO Group may use a single brand name, while another may use several. The table below ranks the core brands of the Top 30 MNO Groups Worldwide by proportionate subscriber base.
Table 6: MNO Groups Worldwide – Core Brand Subscriber Base (In Million, 2010)
Rank Brand MNO Group/MNO Proportionate Subscribers (In Million, 2010)
1 China Mobile China Mobile
Communications Corporation
584.02
2 Vodafone Vodafone Group 258.72
3 Airtel Bharti Airtel 199.19
4 China Unicom China Unicom 167.43
5 Reliance Communications Reliance Communications
Limited 125.65
6 Movistar Telefonica 112.99
7 MTS Mobile TeleSystems 105.17
8 Claro America Movil 102.90
9 Verizon Wireless Verizon Communications 102.25
10 AT&T Mobility AT&T 95.50
11 Telkomsel Telkomsel 94.01
12 China Telecom China Telecom
Corporation Limited 90.52
13 MTN MTN Group Limited 90.38
14 T-Mobile Deutsche Telekom 85.88
15 Orange France Telecom 78.86
22 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Rank Brand MNO Group/MNO Proportionate Subscribers (In Million, 2010)
16 Telcel America Movil 64.14
17 MegaFon MegaFon 57.48
18 NTT NTT DOCOMO Group 57.21
19 VimpelCom VimpelCom Limited 52.02
20 TIM Brasil Telecom Italia 51.03
21 Sprint Nextel Sprint Nextel 50.28
22 Telefonica O2 Telefonica 45.20
23 Telenor Telenor 38.27
24 Aircel Maxis Communications 37.12
25 Vivo Telefonica 35.81
26 Mobilink Orascom Telecom
Holding 31.79
27 Telecom Italia Telecom Italia 31.02
28 Mobinil France Telecom 30.23
29 Comcel America Movil 29.30
30 Everything Everywhere France Telecom and Deutsche Telekom
27.98
Source: Portio Research Ltd. Brand popularity depends on the number of countries of operation, population and mobile penetration in the country, competition in the market, marketing efforts undertaken by an MNO and the Quality of Service (QoS) offered by the MNO under a specific brand name. For example, China Mobile tops the list with an enormous subscriber base of 584.02 million followed by Vodafone with approximately 44 percent of China Mobile’s subscriber base –258.72 million. China Mobile is the biggest brand in the world as measured by proportionate subscriber numbers, and this is down to a number of factors: China is one of the largest countries in the world, has the largest population in the world, and China Mobile faces very few competitors in its huge domestic market. Similarly, Telefonica’s two brands, Movistar and Telefonica O2, feature in the list but are widely separated in their ranks. This is primarily because Movistar operations are spread across 13 countries while Telefonica O2 operations are limited to only five countries.
© 2011, Portio Research. All Rights Reserved 23
Mobile Network Operator Groups 2011
MNO Brands by Region
Asia Pacific – Top Core Brands The table below lists the Top 5 MNO brands in Asia Pacific in terms of proportionate subscribers.
Table 7: Top 5 MNO Brands by Proportionate Subscribers – Asia Pacific (In Million, 2010)
Rank Brand MNO Group/MNO Proportionate Subscribers
(In Million, 2010)
1 China Mobile China Mobile Communications
Corporation 584.02
2 China Unicom China Unicom 167.43
3 Airtel Bharti Airtel 157.07
4 Reliance Communications Reliance Communications
Limited 125.65
5 Telkomsel Telkomsel 94.01
Source: Portio Research Ltd. Four out of the top five brands in Asia Pacific are from China and India. Apart from Airtel, all brands operate in just one country. Despite this, these brands enjoy high subscriber bases due to the large target populations in their country of operation.
Europe – Top Core Brands The table below lists the Top 5 MNO brands in Europe in terms of proportionate subscribers.
Table 8: Top 5 MNO Brands by Proportionate Subscribers – Europe (In Million, 2010)
Rank Brand MNO Group/MNO Proportionate Subscribers
(In Million, 2010)
1 Vodafone Vodafone Group 150.96
2 MTS MTS Group Limited 93.96
3 Orange France Telecom 63.13
4 MegaFon MegaFon 57.20
5 T-Mobile Deutsche Telekom 52.15
Source: Portio Research Ltd. All brands featuring in this list are operational in more than four countries except MegaFon, which is operational in just one. Vodafone leads the list with its operations in 14 European countries and significant market shares in each.
24 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
North America – Top Core Brands The table below lists the Top 5 MNO brands in North America in terms of proportionate subscribers.
Table 9: Top 5 MNO Brands by Proportionate Subscribers – North America (In Million, 2010)
Rank Brand MNO Group/MNO Proportionate Subscribers
(In Million, 2010)
1 Verizon Wireless Verizon Communications 102.25
2 AT&T Mobility AT&T 95.50
3 Sprint Nextel Sprint Nextel 49.91
4 T-Mobile Deutsche Telekom 33.73
5 Tracfone America Movil 17.43
Source: Portio Research Ltd. All brands present in this Top 5 are only operational in the US. Latin America – Top Core Brands The table below lists the Top 5 MNO brands in Latin America in terms of proportionate subscribers.
Table 10: Top 5 MNO Brands by Proportionate Subscribers – Latin America (In Million, 2010)
Rank Brand MNO Group/MNO Proportionate Subscribers
(In Million, 2010)
1 Claro America Movil 102.90
2 Movistar Telefonica 88.68
3 Telcel America Movil 64.14
4 TIM Brasil Telecom Italia 51.03
5 Vivo Telefonica 35.81
Source: Portio Research Ltd. America Movil’s brand Claro tops the list with operations in 14 countries, followed by Telefonica’s Movistar, which is active in 12 Latin American countries. The remaining three brands’ operations are limited to a single country: Telcel in Mexico, TIM in Brazil, and Vivo in Brazil also.
© 2011, Portio Research. All Rights Reserved 25
Mobile Network Operator Groups 2011
Africa and Middle East – Top Core Brands The table below lists the Top 5 MNO brands by proportionate subscribers in Africa and Middle East (AME).
Table 11: Top 5 MNO Brands by Proportionate Subscribers – Africa and Middle East (In Million, 2010)
Rank Brand MNO Group/MNO Proportionate Subscribers
(In Million, 2010)
1 MTN MTN Group Limited 86.58
2 Airtel Bharti Airtel 42.12
3 Mobinil France Telecom 30.23
4 Vodacom Vodafone Group 27.03
5 Vodafone Vodafone Group 20.12
Source: Portio Research Ltd. MTN’s brand operates across 20 countries; India-based Airtel operates in 16 AME markets. In the next chapter, we have profiled (in alphabetical order) the leading MNO Groups/MNOs (listed in Table 2). The profiles typically include the following information:
1. An overview of the Ownership Structure of the MNO Group/MNO 2. The operator’s Key Performance Indicators (KPIs) for 2009 and 2010 – Total
Revenue, Revenue from Mobile Operations, Net Profit and Employee Strength 3. A brief overview of all the telecom companies (Subsidiaries, Joint Ventures,
Associated Companies) in which the profiled MNO Group/MNO holds a stake 4. Recent Mergers, Acquisitions and Partnerships 5. Details of Deployed Technologies and Planned Upgrades
26 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Chapter 3 MNO Group Profiles
© 2011, Portio Research. All Rights Reserved 27
Mobile Network Operator Groups 2011
America Movil
Introduction
America Movil, Latin America’s largest wireless provider, has its headquarters in Mexico. It was established in September 2000 as a spin-off from Telmex, the dominant telephone company in Mexico. The group’s major shareholding structure as of April 2010 is explained below:
1. Control Trust: Control Trust is a Mexican trust which holds a 46.5 percent share on behalf of the Slim family, including Carlos Slim Helu.
2. AT&T Group: 24.5 percent 3. Inmobiliaria Carso: Inmobiliaria Carso is a real estate holding company controlled by
the Slim family. It owns a 5.9 percent share. 4. Remaining shares are in free float
America Movil has a strong presence in South America, Central America, the Caribbean and North America. With operations in 18 countries, America Movil served more than 224 million mobile subscribers at end-2010. Group KPIs
Table 12: KPIs of America Movil Group (2009 & 2010)13
Group Financial Period Total Revenue
(In USD Million) Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
America Movil
January 2009 – December 2009 41,967.1 22,251.2 6,867.5 53,661
January 2010 – December 2010 48,081.3 29,940.4 7,184.0 -
13 Note: With reference to our report ‘Worldwide Mobile Industry Handbook 2011-2015’, America Movil has changed
the reporting standards for financial statements. Beginning in January 2010, America Movil’s financial statements are presented in accordance with International Financial Reporting Standards (IFRS) and thus the 2009 revenue figures differ between the two reports.
28 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Global Presence
Table 13: Details of America Movil’s Key Interests14 15
Country Brand Name
Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent, 2010)
Mexico Telcel 100.0 64.14 64.14 71.0
Brazil Claro 99.4 51.64 51.33 25.4
Colombia Comcel 99.4 29.41 29.41
61.0
Panama Claro 100.0 63.0
Argentina Claro 100.0
19.64 19.64
35.4
Paraguay Claro 100.0 9.0
Uruguay Claro 100.0 19.2
The US Tracfone 98.2 17.75 17.43 5.6
Guatemala Claro 100.0
10.78 10.78
38.7
El Salvador Claro 100.0 26.0
Nicaragua Claro 99.5 62.5
Honduras Claro 100.0 22.8
Ecuador Porta 100.0 10.62 10.62 70.0
Peru Claro 100.0 9.69 9.69 41.5
Puerto Rico Claro 100.0
6.49 6.49
43.0
Dominican Republic
Claro 100.0 56.3
Jamaica Claro 100.0 18.6
Chile Claro 100.0 4.87 4.87 22.0
Total 225.03 224.40
Source: Portio Research Ltd. Recent Mergers, Acquisitions and Partnership Deals16
• In May 2010, Carlos Slim, the CEO of America Movil and the wealthiest person in the world (2010)
17
14 Note: In this report, Key Interests include the MNO Group’s direct and indirect subsidiaries and joint ventures. 15 Note: America Movil reports subscriber base figures for combined operations in Central America (Guatemala, El
Salvador, Nicaragua and Honduras), the Caribbean (Puerto Rico, Dominican Republic, Jamaica), Colombia and Panama, and Argentina, Paraguay and Uruguay. The data has been presented in a similar way.
16 Note: The mergers, acquisitions and partnership deals mentioned in this report are based on available data from January 2010 to mid March 2011.
, merged his fixed-line (Embratel) and mobile (Claro) operations in Latin America, in order to reduce operating costs and improve profitability. This will include the merger of Claro and Embratel in Brazil.
17 Source: http://www.forbes.com/wealth/billionaires
© 2011, Portio Research. All Rights Reserved 29
Mobile Network Operator Groups 2011
• In June 2010, America Movil increased its stake in Telmex Internacional to 93.56 percent by acquiring an additional 32.86 percent share
• In June 2010, America Movil acquired a 99.44 percent stake in Carso Global Telecom for over USD 17.6 million. Carso Global Telecom controls Mexican fixed-line service provider, Telefonos de Mexico (Telmex18
• In March 2011, America Movil entered into an agreement with Digicel Group Limited and its affiliates. Under the agreement, America Movil will fully acquire Digicel’s operations in Honduras and El Salvador, while selling its business in Jamaica to Digicel.
).
Technology Deployments and Planned Upgrades Table 14: America Movil’s Technology Deployments and Planned Upgrades19
Country Brand Name Technology Deployments Planned Upgrades
Mexico Telcel GSM, W-CDMA, HSDPA E-UTRA in 2011
Brazil Claro GSM, W-CDMA, HSDPA E-UTRA in Q4 2012
Colombia Comcel GSM, W-CDMA, HSDPA –
Panama Claro GSM, W-CDMA, HSDPA –
Argentina Claro GSM, CDMA, W-CDMA, HSDPA –
Paraguay Claro GSM, W-CDMA, HSDPA –
Uruguay Claro GSM, W-CDMA, HSDPA –
The US Tracfone – –
Guatemala Claro GSM, CDMA, W-CDMA, HSDPA –
El Salvador Claro GSM, W-CDMA, HSDPA –
Nicaragua Claro GSM, W-CDMA, HSDPA –
Honduras Claro GSM, W-CDMA –
Ecuador Porta GSM, W-CDMA, HSDPA –
Peru Claro GSM, W-CDMA, HSDPA –
Puerto Rico Claro GSM, CDMA, W-CDMA, HSDPA E-UTRA in Q4 2012
Dominican Republic
Claro GSM, CDMA2000, W-CDMA –
Jamaica Claro GSM, W-CDMA, HSDPA,
CDMA2000 –
Chile Claro GSM, CDMA, W-CDMA, HSDPA E-UTRA in Q3 2011
Source: Portio Research Ltd.
18 Note: Telmex and Telmex Internacional are two independent companies. 19 Note: Planned Upgrades mentioned in this report are based on available data as of mid March 2011.
30 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
AT&T
Introduction
AT&T Group generates the highest revenue among MNO groups/MNOs worldwide. With a market share of 30 percent as of December 2010, AT&T Mobility is the second largest mobile operator in the US after Verizon Wireless. AT&T offers a wide spectrum of services including wireline and wireless voice and data, TV, broadband and messaging services to millions of subscribers. In 2010, AT&T aggressively invested in network capabilities with acquisitions and spectrum purchases in its wireless and wireline networks. Group KPIs
Table 15: KPIs of AT&T Group (2009 & 2010)
Group Financial Period Total Revenue
(In USD Million) Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
AT&T
January 2009 – December 2009 122,513.0 53,597.0 12,138.0 282,720
January 2010 – December 2010 124,280.0 58,500.0 19,864.0 266,590
Global Presence
Table 16: Details of AT&T Group’s Key Interests
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers20
(In Million, 2010)
Market Share (In Percent, 2010)
The US AT&T Mobility 100.0 95.50 95.50 30.0
Puerto Rico AT&T 100.0 0.76 0.76 26.0
Total 96.26 96.26
Source: Portio Research Ltd.
The table on the next page provides AT&T Group’s proportionate subscriber base in America Movil owing to its 23.4 percent stake in the company.
20 Note: The proportionate subscriber base in the group’s home country has been estimated at 100 percent.
© 2011, Portio Research. All Rights Reserved 31
Mobile Network Operator Groups 2011
Table 17: Details of AT&T Group’s Associated Companies21
Company Region Ownership (In Percent)
Proportionate Subscribers (In Million, 2010)
America Movil South America, Central America, the Caribbean and North America
23.4 52.51
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
• In June 2010, AT&T acquired wireless properties including FCC licenses and network assets from Verizon Wireless for USD 2.376 billion. These assets served approximately 1.6 million subscribers in 79 service areas (primarily rural) across 18 US states.
• In August 2010, AT&T sold its subsidiary Sterling Commerce Inc (Sterling) to IBM for approximately USD 1.4 billion
• In December 2010, AT&T completed the acquisition of Centennial Communications to support growing demand for mobile broadband
• AT&T Mobility, Verizon Wireless and T-Mobile US announced the formation of a joint venture, ‘ISIS’, in November 2010. This will focus on building a mobile payment network which will utilise smartphone and Near Field Communication (NFC) technology and provide value to users across key geographic markets in the US.
• In December 2010, AT&T agreed to purchase spectrum licenses in the lower 700 MHz frequency band from Qualcomm for USD 1.925 billion. This move will deliver substantial capacity gains and will enhance AT&T’s capability to provide an advanced 4G mobile broadband to its users.
21 Note: Associated Company is defined as a company in which the MNO Group/MNO has a stake of less than 51
percent but does not consolidate the associate’s financial statements. However, in Key Interests tables within this report we can find companies in which an MNO Group has less than a 51 percent stake. This is because of one or more of the following reasons:
1. The MNO Group has a managerial controlling stake in the company 2. The company is a subsidiary of the MNO Group’s wholly-owned subsidiary 3. The MNO Group is the sole telecom operator having a stake in the company
AT&T and Deutsche Telekom Deal In a USD 39 billion deal announced in March 2011, Deutsche Telekom has agreed to hand over 100 percent ownership of T-Mobile US to AT&T. AT&T will pay USD 25 billion in cash to Deutsche Telekom along with AT&T shares worth USD 14 billion translating into an 8 percent stake in AT&T. The transaction is expected to be complete by H1 2012. If the deal is approved by the US regulator, AT&T will become the largest telecom operator in the US market in terms of subscriber base.
32 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Technology Deployments and Planned Upgrades
Table 18: AT&T Group’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
The US AT&T Mobility GSM, EDGE, W-CDMA,
HSDPA, HSUPA, HSPA+ E-UTRA in 2011
Puerto Rico AT&T GSM, EDGE, W-CDMA, HSDPA E-UTRA in 2012
Source: Portio Research Ltd.
© 2011, Portio Research. All Rights Reserved 33
Mobile Network Operator Groups 2011
Axiata
Introduction
Incorporated in June 1992, Axiata Group Berhad is headquartered in Kuala Lumpur, Malaysia. Axiata Group, formerly known as TM International, is now one of the largest network operator groups, catering to over 155 million subscribers (proportionate subscribers: 69.7 million). Its mobile operations are spread across eight countries. With controlling stakes in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia, along with significant shares in India, Singapore and Iran, its focus on emerging telecom markets of Asia Pacific is evident. Group KPIs
Table 19: KPIs of Axiata Group (2009 & 2010)
Group Financial Period Total Revenue
(In USD Million) Mobile Revenue (In USD Million)
Net Profit (In USD Million) Employees
Axiata
January 2009 – December 2009 3,768.6 3,768.6 468.0 25,000
January 2010 – December 2010 4,842.5 4,842.5 548.7 -
34 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Global Presence
Table 20: Details of Axiata Group’s Key Interests 22
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent, 2010)
Indonesia PT XL Axiata Tbk 66.7 40.35 26.91 20.6
India Idea Cellular Ltd 19.1 81.78 15.62 10.9
Malaysia Celcom Axiata Berhad
100.0 11.19 11.19 33.0
Bangladesh Robi Axiata Limited 70.0 12.37 8.66 18.0
Sri Lanka Dialog Axiata PLC 85.0 6.83 5.80 37.2
Cambodia Hello Axiata
Company Ltd 100.0 0.90 0.90 9.4
Singapore M1 Limited 29.6 1.91 0.57 26.2
Iran Mobile
Telecommunication Company of Esfahan
49.0 0.02 0.01 0.02
Total 155.35 69.66
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
• In April 2010, Indonesia’s Indocel reduced its shareholding in XL to 66.69 percent through the exercise of an international private placement of 19.8 percent in XL in order to increase the public shareholding spread of XL shares
• In November 2010, Axiata entered into a five year strategic framework agreement with Ericsson. The agreement aims at increasing business efficiencies and establishing a streamlined procurement platform.
• In December 2010, Axiata sold back its shares in Samart Corporations in Thailand for USD 33 million
• In January 2011, Axiata signed an agreement with Motricity. Under the agreement, Motricity will deploy its mCore Platform and end-to-end Mobile-as-a-Service offering at XL Axiata, in Indonesia. This will deliver customised mobile data services and enhance the mobile Internet experience for Axiata's subscribers.
22 Note: The total number may not add up to the sum of operator numbers because of rounding-off errors.
© 2011, Portio Research. All Rights Reserved 35
Mobile Network Operator Groups 2011
Technology Deployments and Planned Upgrades
Table 21: Axiata Group’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
Indonesia PT XL Axiata Tbk GSM, W-CDMA E-UTRA planned in Q4 2013
India Idea Cellular Ltd GSM, GPRS, EDGE –
Malaysia Celcom Axiata Berhad GSM, GPRS, EDGE, HSDPA E-UTRA technical trials in
progress
Bangladesh Robi Axiata Limited GSM, GPRS, EDGE –
Sri Lanka Dialog Axiata PLC GSM, GPRS, EDGE, 3G, HSDPA, Wi-Fi, W-CDMA
-
Cambodia Hello Axiata Company
Ltd GSM, GPRS, EDGE -
Singapore M1 Limited GSM, GPRS, W-CDMA, HSDPA E-UTRA in Q2 2012
Iran Mobile
Telecommunication Company of Esfahan
GSM -
Source: Portio Research Ltd.
36 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Bharat Sanchar Nigam Limited
Introduction
Bharat Sanchar Nigam Limited (BSNL) is the oldest communication service provider in India. BSNL is wholly state-owned and has operational footprints in all regions of India except New Delhi and Mumbai, which are catered to by Mahanagar Telephone Nigam Limited (MTNL). Despite its late entrance into cellular operations in 2001, BSNL is India’s fourth largest MNO in terms of subscriber base as of December 2010. MNO KPIs
Table 22: KPIs of Bharat Sanchar Nigam Limited (2009 & 2010)23
Group Financial Period Total Revenue (In USD Million)
Mobile Revenue (In USD Million)
Net Profit (In USD Million) Employees
Bharat Sanchar
Nigam Limited April 2009 – March 2010 6,729.5 2,406.4 -382.824 292,100
Global Presence Table 23: Details of Bharat Sanchar Nigam Limited’s Key Interests, Technology Deployed and
Planned Upgrades
Country Brand Name Subscribers
(In Million, 2010) Market Share
(In Percent, 2010) Technology Deployed
Planned Upgrades
India Bharat Sanchar Nigam Limited
86.71 11.53 GSM, GPRS, EDGE,
CDMA 2000, W-CDMA, HSDPA
-
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
• In September 2010, BSNL selected ZTE to supply WiMAX equipment in a deal worth USD 63.75 million
23 Note: Bharat Sanchar Nigam Limited only reports financial results annually. 24 Note: BSNL incurred a loss of USD 382.8 million during financial year 2009-2010 due to an increase in
expenditure attributed to wage revisions and a fall in service revenue because of stiff competition in the mobile market. Other factors contributing to the loss were the phasing out of an access deficit charge, non reimbursement of license fee and spectrum charges, and withdrawal of an interest-waiver on a government loan.
© 2011, Portio Research. All Rights Reserved 37
Mobile Network Operator Groups 2011
Bharti Airtel
Introduction
Bharti Airtel was established as a Public Limited Company in July 1995. The group’s major shareholding structure as of December 2010 is explained below:
1. Indian Promoter/Promoter Group: 45.48 percent 2. Foreign Promoter/Promoter Group: 22.72 percent 3. Public Shareholding: 31.80 percent
Singapore Telecom (SingTel) has a 32.15 percent indirect equity interest in Bharti Airtel through publically floated shares and a foreign promoter group Paktel Limited. Paktel Limited is a wholly owned subsidiary of SingTel and owns a 15.57 percent stake in Bharti Airtel. The group has operations in 19 countries across Asia Pacific and Africa. With a market share of 20.3 percent at end-2010, Airtel is the largest mobile operator in India in terms of subscriber base. Group KPIs
Table 24: KPIs of Bharti Airtel Group (2009 & 2010)
Group Financial Period Total Revenue
(In USD Million) Mobile Revenue (In USD Million)
Net Profit (In USD Million) Employees
Bharti Airtel
April 2009 – March 2010 9,271.0 7,774.3 1,989.0 18,791
April 2010 – December 2010 9,528.0 7,868.2 1,022.0 24,501
38 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Global Presence
Table 25: Details of Bharti Airtel Group’s Key Interests
Country Brand Name Ownership (In Percent)
Subscribers25 (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent, 2010)
India Airtel 45.4 152.50 152.50 20.27
Burkina Faso Airtel 100.0
– 42.12
35.4
Chad Airtel 100.0 51.1
Congo Brazzaville
Airtel 90.0 44.7
Democratic Republic of
Congo Airtel 98.5 39.5
Gabon Airtel 90.0 52.5
Ghana Airtel 75.0 10.3
Kenya Airtel 60.0 13.1
Madagascar Airtel 100.0 29.0
Malawi Airtel 100.0 67.6
Niger Airtel 90.0 56.8
Nigeria Airtel 65.0 17.8
Seychelles Airtel 100.0 56.1
Sierra Leone Airtel 100.0 24.1
Tanzania Airtel 60.0 29.5
Uganda Airtel 89.5 19.6
Zambia Airtel 78.0 60.1
Bangladesh Airtel (Warid) 70.0 3.96 2.77 5.8
Sri Lanka Airtel 100.0 1.80 1.80 15.2
Total – 199.19
Source: Portio Research Ltd. 25 Note: Bharti Airtel only reports proportionate subscribers for African countries. So for these countries the number
of total subscribers is unknown. Hence Airtel’s “Total” subscriber figure at the foot of the table has been left blank.
© 2011, Portio Research. All Rights Reserved 39
Mobile Network Operator Groups 2011
Recent Mergers, Acquisitions and Partnership Deals
• In June 2010, Bharti Airtel acquired Zain Telecom’s Africa operations in 16 countries for USD 10.7 billion (INR 48,000 crores).
Technology Deployments and Planned Upgrades Table 26: Bharti Airtel Group’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
India Airtel GSM, GPRS, HSPA –
Burkina Faso Airtel GSM, GPRS, EDGE –
Chad Airtel GSM –
Congo Brazzaville
Airtel GSM, EDGE –
Democratic Republic of
Congo Airtel GSM, EDGE –
Gabon Airtel GSM, GPRS, EDGE –
Ghana Airtel GSM, W-CDMA, HSDPA –
Kenya Airtel GSM, GPRS, EDGE W-CDMA in Q2 2011
Madagascar Airtel GSM, GPRS –
Malawi Airtel GSM, W-CDMA, HSDPA –
Niger Airtel GSM, GPRS –
Nigeria Airtel GSM, GPRS, W-CDMA –
Seychelles Airtel GSM, EDGE, W-CDMA, HSDPA –
Sierra Leone Airtel GSM, GPRS, EDGE –
Tanzania Airtel GSM, EDGE, W-CDMA, HSDPA –
Uganda Airtel GSM, GPRS –
Zambia Airtel GSM, GPRS, EDGE –
Bangladesh Airtel (Warid) GSM, GPRS, EDGE –
Sri Lanka Airtel GSM, W-CDMA, HSDPA –
Source: Portio Research Ltd.
40 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
China Mobile Communications Corporation
Introduction
Headquartered in Beijing (China), China Mobile Communications Corporation was incorporated in April 2000. With over 594 million subscribers at end-2010, this telecom group is the largest mobile group worldwide in terms of subscriber base. China Mobile Communications Corporation has a presence in China, Hong Kong and Pakistan – the latter two being through wholly owned subsidiaries. Group KPIs
Table 27: KPIs of China Mobile Communications Corporation (2009 & 2010)26
Group Financial Period Total Revenue
(In USD Million)
Mobile Revenue (In USD Million)
Net Profit
(In USD Million)
Employees
China Mobile Communications
Corporation
January 2009 – December 2009 66,282.8 66,282.8 16,922.2 145,954
January 2010 – December 2010 71,571.6 71,571.6 17,646.9 -
Global Presence
Table 28: Details of China Mobile Communications Corporation’s Key Interests
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers27
(In Million, 2010)
Market Share (In Percent, 2010)
China China Mobile Limited
74.328 584.02 584.02 69.4
Pakistan Zong (CMPak) 100.0 8.50 8.50 8.2
Hong Kong Peoples 100.0 1.69 1.69 15.6
Total 594.21 594.21
Source: Portio Research Ltd.
26 Note: For the period January 2010 – June 2010, employees stood at 153,098. 27 Note: The proportionate subscriber base in the group’s home country has been estimated at 100 percent. 28 Note: The group has an equity stake of 74.3 percent in China Mobile Limited; the remaining stake totalling 25.7
percent lies with public investors.
© 2011, Portio Research. All Rights Reserved 41
Mobile Network Operator Groups 2011
Recent Mergers, Acquisitions and Partnership Deals
• In October 2010, China Mobile completed its acquisition of a 20 percent stake in Shanghai Pudong Development Bank in a USD 5.8 billion deal. The deal will primarily focus on the development of mobile finance and mobile e-commerce businesses.
Technology Deployments and Planned Upgrades Table 29: China Mobile Communications Corporation’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
China China Mobile Limited GSM, GPRS, EDGE,
TD-SCDMA E-UTRA in Q2 2012
Pakistan Zong (CMPak) GSM, EDGE -
Hong Kong Peoples GSM, EDGE E-UTRA in Q1 2012
Source: Portio Research Ltd.
42 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
China Telecom Corporation Limited (China Telecom)
Introduction
China Telecom Corporation Limited (China Telecom) is a state-owned telecom operator with coverage across 31 provinces of China. China Telecom’s major shareholding structure as of end-December 2010 is explained below:
1. China Telecommunications Corporation (wholly state-owned company): 70.89 percent 2. Public Shareholders: 17.15 percent 3. Guangdong Rising Assets Management Co: 6.94 percent 4. Zhejiang Financial Development Company: 2.64 percent 5. Fujian State Owned Assets Investment Holdings Co: 1.2 percent 6. Jiangsu Guoxin Investment Group Co: 1.18 percent
In October 2008, China Telecom acquired China Unicom’s CDMA network, which led to its entry in to the wireless market. China Telecom provides fixed-line, mobile, Internet and applications services. As of December 2010, China Telecom recorded 90.52 mobile subscribers. MNO KPIs
Table 30: KPIs of China Telecom (2009 & 2010)
Company Financial Period Total Revenue
(In USD Million) Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
China Telecom
January 2009 – December 2009 30,695.7 5,222.2 2,114.4 312,520
January 2010 – December 2010 32,429.9 7,958.1 2,324.5 –
Global Presence
Table 31: Details of China Telecom’s Key Interests, Technology Deployed and Planned Upgrades
Country Brand Name Subscribers (In Million, 2010)
Market Share (In Percent, 2010)
Technology Deployed Planned Upgrades
China China Telecom 90.52 10.8 CDMA,
CDMA2000 E-UTRA in Q4 2012
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
No such activity occurred in the last 12 months.
© 2011, Portio Research. All Rights Reserved 43
Mobile Network Operator Groups 2011
China Unicom
Introduction
In January 2009, the former China Unicom (established in July 1994) and China Netcom merged together to form China United Network Communications Group Co. Ltd. (still referred to as China Unicom). The merger created opportunities across fixed-line, wireless and broadband sectors and enhanced the scalability of the newly-formed China Unicom.
As of end 2010, China Unicom’s shareholding structure is as follows:
1. Unicom Group owns a 57.81 percent stake in China Unicom through China Netcom Group Corporation (BVI) Limited and China Unicom (BVI) Limited.
2. Public Investors own a 13.2 percent stake 3. Telefonica International owns an 8.4 percent stake 4. Investors on the Hong Kong and New York stock exchanges own a 20.6 percent stake
MNO KPIs
Table 32: KPIs of China Unicom (2009 & 2010)
Company Financial Period Total Revenue (In USD Million)
Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
China Unicom
January 2009 – December 2009 22,569.9 10,228.8 1,401.6 216,830
January 2010 – December 2010 25,266.5 13,238.9 568.0 215,600
Global Presence
Table 33: Details of China Unicom’s Key Interests, Technology Deployed and Planned Upgrades
Country Brand Name Subscribers
(In Million, 2010) Market Share
(In Percent, 2010) Technology Deployed
Planned Upgrades
China China Unicom 167.43 19.9 GSM, GPRS, W-CDMA, HSDPA
HSPA+ in 2011
Source: Portio Research Ltd.
China Unicom has a strategic alliance with Telefonica, under which China Unicom owns a 0.88 percent stake in the Telefonica Group. The table on the next page provides China Unicom’s proportionate subscribers in Telefonica Group.
44 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Table 34: Details of China Unicom’s Associated Companies
Company Region Ownership (In Percent)
Proportionate Subscribers (In Million, 2010)
Telefonica Group Europe and Latin
America 0.88 1.91
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
• In January 2011, Telefonica and China Unicom agreed to enhance their existing strategic alliance. According to the agreement, Telefonica will increase its stakeholding in China Unicom from 8.4 percent to 9.7 percent, and China Unicom will increase its stake holding in Telefonica from 0.88 percent to 1.37 percent.
© 2011, Portio Research. All Rights Reserved 45
Mobile Network Operator Groups 2011
Deutsche Telekom
Introduction
In 1996, the privatisation of state-owned company Deutsche Bundespost Telekom led to the formation of Deutsche Telekom. Deutsche Telekom Group has its headquarters in Bonn, Germany and is present in several mobile markets across Europe, and the US. As of end-2010, Deutsche Telekom Group’s shareholding structure is as follows:
1. Free Float: 68.3 percent 2. Federal Republic of Germany: 14.8 percent 3. KfW Banking Group: 16.9 percent
Group KPIs
Table 35: KPIs of Deutsche Telekom Group (2009 & 2010)29
Group Financial Period Total Revenue
(In USD Million) Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
Deutsche Telekom
January 2009 – December 2009 90,095.9 47,602.9 1,217.5 258,000
January 2010 – December 2010 82,795.2 45,694.5 2,334.5 252,494
29 Note: The group’s total revenue and mobile revenue does not include revenue generated from Everything
Everywhere, The UK.
46 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Global Presence
Table 36: Details of Deutsche Telekom Group’s Key Interests 30
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent, 2010)
Germany T-Mobile 100.0 34.69 34.69 31.9
The US T-Mobile 100.0 33.73 33.73 10.6
The UK Everything
Everywhere 50.0 27.98 13.99 36.8
Poland PTC 100.0 13.26 13.26 28.5
The Netherlands
T-Mobile 100.0 4.53 4.53 23.6
Austria T-Mobile 100.0 3.78 3.78 31.2
Czech Republic T-Mobile 60.8 5.50 3.34 40.3
Hungary T-Mobile 59.5 5.21 3.10 46.0
Greece Cosmote 30.0 7.99 2.40 50.7
Croatia T-Mobile 51 2.90 1.48 45.4
Romania Cosmote, Zapp 21.0 6.85 1.44 23.431
Slovakia T-Mobile 51.0 2.41 1.23 39.1
Others32 – – 7.70 2.31
Total 156.54 119.28
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
• On 1 July 2010, T-Mobile UK and Orange UK entered into 50:50 joint venture to form a new operator ‘Everything Everywhere’.
• AT&T Mobility, Verizon Wireless and T-Mobile US announced the formation of a joint venture, ‘ISIS’, in November 2010. This will focus on building a mobile payment network which will utilise smartphone and Near Field Communication (NFC) technology and provide value to users across key geographic markets in the US.
30 Note: The total number may not add up to the sum of operator numbers because of rounding-off errors. 31 Note: This is the combined market share for Cosmote and Zapp in Romania. 32 Note: Others include Deutsche Telekom Group’s holding companies in Bulgaria, Albania, Macedonia and
Montenegro. The proportionate subscriber base has been calculated at 30 percent equity stake because the group holds a 30 percent stake in Hellenic Telecommunications Organisation (OTE) and OTE is active in Albania, Bulgaria, Macedonia and Montenegro through its subsidiaries.
© 2011, Portio Research. All Rights Reserved 47
Mobile Network Operator Groups 2011
Technology Deployments and Planned Upgrades
Table 37: Deutsche Telekom Group’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
Germany T-Mobile GSM, W-CDMA, HSDPA,
HSUPA E-UTRA in Q4 2011
The US T-Mobile GSM, W-CDMA, HSDPA,
HSPA+ –
The UK Everything Everywhere GSM, W-CDMA, HSDPA,
HSUPA –
Poland PTC GSM, W-CDMA, HSDPA,
HSPA+ –
The Netherlands
T-Mobile GSM, W-CDMA, HSDPA,
HSUPA –
Austria T-Mobile GSM, W-CDMA, HSDPA,
E-UTRA –
Czech Republic T-Mobile GSM, W-CDMA, HSDPA,
HSUPA –
Hungary T-Mobile GSM, W-CDMA, HSDPA –
Greece Cosmote GSM, W-CDMA, HSDPA,
HSUPA, HSPA+ –
Croatia T-Mobile GSM, GPRS, EDGE, W-CDMA,
HSDPA –
Romania Cosmote, Zapp
Cosmote: GSM, W-CDMA, HSPA+, EDGE ZAPP: W-CDMA, HSPA+, HSDPA, CDMA2000
–
Slovakia T-Mobile GSM, W-CDMA, HSDPA,
HSUPA –
Source: Portio Research Ltd.
48 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
France Telecom
Introduction
France Telecom was incorporated in December 1996 as French Limited Company. The state holding company ERAP has a 26.97 percent stake in the group and the remaining stake is distributed among employees, individual shareholders, institutional shareholders and treasury stocks. France Telecom is among the top 10 telecom groups worldwide in terms of both end-2010 subscriber base and revenue figures. Orange is the key brand of France Telecom. Group KPIs
Table 38: KPIs of France Telecom Group (2009 & 2010)
Group Financial Period Total Revenue33 (In USD Million)
Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees34
France Telecom
January 2009 – December 2009 62,542.2 29,640.1 4,744.5 164,651
January 2010 – December 2010 60,355.2 29,718.0 6,468.9 168,694
Global Presence The group has a presence in 29 countries – predominantly across Europe and Africa. The table on the next page provides details about the key Interests of France Telecom Group.
33 Note: With reference to our report ‘Worldwide Mobile Industry Handbook 2011-2015’, 2009 revenue has been
revised because of the subsequent changes in the group’s accounting methods. 34 Note: With reference to our report ‘Worldwide Mobile Industry Handbook 2011-2015’, the employee count for
2009 has been revised because the group has since excluded all the associates from total employee count.
© 2011, Portio Research. All Rights Reserved 49
Mobile Network Operator Groups 2011
Table 39: Details of France Telecom Group’s Key Interests 35
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent, 2010)
Egypt Mobinil 100.0 30.23 30.23 43.9
France Orange 100.0 26.93 26.93 43.1
The UK Everything
Everywhere 50.0 27.98 13.99 36.8
Spain Orange 100.0 11.94 11.94 21.3
Romania Orange 96.8 10.46 10.13 35.8
Poland Orange 50.0 14.33 7.17 30.8
Morocco Meditel 40.0 10.79 4.32 33.7
Cameroon Orange 100.0 3.57 3.57 42.5
Dominican Republic
Orange 100.0 2.89 2.89 32.0
Slovakia Orange 100.0 2.87 2.87 46.6
Senegal Orange 42.3 5.09 2.15 60.6
Belgium Mobistar 52.9 3.95 2.09 30.4
Moldova Orange 94.3 1.72 1.63 63.1
Switzerland Orange 100.0 1.57 1.57 16.8
Madagascar Orange 65.3 2.15 1.41 39.6
Mali Orange 29.6 4.72 1.40 68.6
Jordan Orange 51.0 2.15 1.10 31.9
Niger Orange 89.6 0.92 0.82 28.6
Armenia Orange 100.0 0.56 0.56 16.5
Botswana Orange 53.7 0.79 0.43 31.5
Kenya Orange 40.0 1.06 0.42 4.6
Tunisia Orange 49.0 0.75 0.37 6.0
Guinea Orange 38.7 0.91 0.35 23.9
Uganda Orange 53.0 0.61 0.32 4.4
Mauritius Orange 40.0 0.68 0.27 53.3
Austria Orange 35.0 0.77 0.27 18.2
Equatorial Guinea
Orange 40.0 0.40 0.16 100.0
Guinea-Bissau Orange 42.3 0.19 0.08 24.1
Luxembourg Orange 90.0 0.09 0.08 14.4
Total 170.07 129.49
Source: Portio Research Ltd.
35 Note: The total number may not add up to the sum of operator numbers because of rounding-off errors.
50 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Recent Mergers, Acquisitions and Partnership Deals
• On 1 July 2010, T-Mobile UK and Orange UK entered into 50:50 joint venture to form a new operator ‘Everything Everywhere’.
• In December 2010, France Telecom completed its acquisition of a 40 percent stake in Moroccan operator Meditel.
• In March 2011, France Telecom entered into a joint venture with logistics company and investment partner Agility, and acquired a 44 percent stake in Iraqi mobile operator Korek Telecom. France Telecom will own 46 percent of the joint venture, and will pay USD 245 million for the equity stake in Korek along with a four year shareholder loan worth USD 185 million to Korek Telecom.
Technology Deployments and Planned Upgrades
Table 40: France Telecom Group’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
Egypt Mobinil GSM, W-CDMA, EDGE –
France Orange GSM, W-CDMA, HSDPA,
HSUPA HSPA+ and E-UTRA in 2011
The UK Everything Everywhere GSM, W-CDMA, HSDPA,
HSUPA –
Spain Orange GSM, W-CDMA, HSDPA,
HSUPA –
Romania Orange GSM, W-CDMA, HSDPA,
HSUPA –
Poland Orange GSM, W-CDMA, HSDPA,
HSPA+, CDMA2000 –
Morocco Meditel GSM, W-CDMA, HSDPA –
Cameroon Orange GSM, GPRS, EDGE –
Dominican Republic
Orange GSM, EDGE, HSDPA –
Slovakia Orange GSM, W-CDMA, HSDPA,
HSUPA HSPA+ in Q2 2011
Senegal Orange GSM, GPRS E-UTRA in Q4 2013
Belgium Mobistar GSM, W-CDMA, HSDPA,
HSUPA HSPA+ in 2011
Moldova Orange GSM, EDGE, W-CDMA, HSDPA –
Switzerland Orange GSM, W-CDMA, HSDPA,
HSUPA –
Madagascar Orange GSM, GPRS –
Mali Orange GSM, GPRS, EDGE –
Jordan Orange GSM, EDGE, W-CDMA, HSPA+ –
© 2011, Portio Research. All Rights Reserved 51
Mobile Network Operator Groups 2011
Country Brand Name Technology Deployments Planned Upgrades
Niger Orange GSM –
Armenia Orange GSM, W-CDMA, HSUPA –
Botswana Orange GSM, EDGE, W-CDMA –
Kenya Orange GSM, EDGE, CDMA2000 –
Tunisia Orange GSM, W-CDMA, HSDPA –
Guinea Orange GSM –
Uganda Orange GSM, W-CDMA, HSDPA,
HSUPA –
Mauritius Orange GSM, W-CDMA, HSDPA –
Austria Orange GSM, W-CDMA, HSDPA,
HSUPA E-UTRA in Q4 2011
Equatorial Guinea
Orange GSM, GPRS, EDGE –
Guinea-Bissau Orange GSM –
Luxembourg Orange GSM, EDGE, W-CDMA –
Source: Portio Research Ltd.
52 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Idea Cellular
Introduction
Idea Cellular commenced operations in 1997 and has now become the sixth largest mobile operator in India – accounting for 10.9 percent of the country’s mobile subscriber base at end-2010. It was established by three major investors – Aditya Birla Group, Tata Group and AT&T Mobility36
Table 41: Idea Cellular’s Shareholders
(then called AT&T Wireless) – and was initially known as Birla Tata AT&T Communications. In 2002, the company was renamed as Idea Cellular. The company’s shareholding structure is shown in the table below:
Shareholder Shareholding (In Percent)
Aditya Birla group 46.96
TMI Mauritius Ltd 14.08
P5 Asia Investments (Mauritius) Ltd 10.00
TMI India Ltd 5.02
Monet Limited 2.71
Bajaj Allianz Life Insurance Company Ltd 1.80
LIC of India Money Plus 1.34
LIC of India - Market Plus 1.28
Others 16.81
MNO KPIs
Table 42: KPIs of Idea Cellular (2009 & 2010)
Group Financial Period Total Revenue (In USD Million)
Mobile Revenue (In USD Million)
Net Profit (In USD Million) Employees
Idea Cellular
April 2009 – March 2010 2,603.6 2,603.6 200.3 130,000
April 2010 – December 2010 2,456.5 2,456.5 136.1 130,600
36 Note: In 2005, AT&T Mobility sold its stake in Idea Cellular and exited the Indian market.
© 2011, Portio Research. All Rights Reserved 53
Mobile Network Operator Groups 2011
Global Presence Table 43: Details of Idea Cellular’s Key Interests, Technology Deployed and Planned Upgrades
Country Brand Name Subscribers
(In Million, 2010) Market Share
(In Percent, 2010) Technology Deployed
Planned Upgrades
India Idea Cellular 81.78 10.9 GSM, GPRS,
EDGE -
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
• In December 2010, Idea awarded a contract to Nokia Siemens Networks (NSN) to supply equipment, build and manage HSPA networks in four of Idea’s eleven licensed telecom Circles37
.
37 Note: Telecom Circle is a mobile service area in India which is classified depending on its revenue and subscriber
base potential. India is divided into 22 telecom Circles which are grouped into 4 categories - Metro, A, B and C (please refer to the Glossary for further details).
54 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Maxis Communications
Introduction
Maxis Communications was established in 1993 and was listed on the Kuala Lumpur Stock Exchange (KLSE) in 2002. It has operations in Malaysia and India, and was one of the first operators worldwide to launch HSPA+ – in Malaysia – as an upgrade to a 3G network. Maxis Communications’ shareholding as of December 2010 is detailed below:
1. Bumiputera Foundations, Usaha Tegas Group and affiliates, and Saudi Telecom Company jointly hold a 70 percent stake through Maxis Communications Berhad
2. 2.8 percent is held by Retail Investors 3. Global Institutional Investors have an 8.3 percent holding 4. 7 percent is held by Malaysian institutions 5. 11.9 percent is held by Bumiputera investors and Malaysian government agencies –
including Permodalan Nasional Berhad, Kumpulan Wang Persaraan and Kumpulan Simpanan Wang Pekerja
Group KPIs
Table 44: KPIs of Maxis Communications (2009 & 2010)38
Group Financial Period
Total Revenue (In USD Million)
Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
Maxis Communications
January 2009 – December 2009 2,438.6 2,266.4 632.1 -
January 2010 – December 2010 2,749.4 2,566.5 711.5 -
38 Note: Financial results published by Maxis Communications do not include India operations. Hence, Aircel’s
contribution to MNO KPIs is not included.
© 2011, Portio Research. All Rights Reserved 55
Mobile Network Operator Groups 2011
Global Presence
Table 45: Details of Maxis Communications’ Key Interests39
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent, 2010)
India Aircel 74.0 50.17 37.12 6.7
Malaysia Maxis 100.0 14.10 14.10 39.7
Total 64.27 51.23
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
No such activity occurred in the last 12 months.
Technology Deployments and Planned Upgrades Table 46: Maxis Communications’ Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
India Aircel GSM, GPRS, EDGE, W-CDMA -
Malaysia Maxis GSM, GPRS, EDGE, W-CDMA,
HSDPA, HSPA+ E-UTRA is under trial
Source: Portio Research Ltd.
39 Note: The total number may not add up to the sum of operator numbers because of rounding-off errors.
56 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
MegaFon
Introduction
The company was founded in June 1993 as ‘North-West GSM’ and in 1995 launched its first GSM network. In 2002, the company changed its name to ‘MegaFon’. MegaFon’s major shareholding structure at end-2010 is explained below:
1. TeliaSonera: 35.6 percent 2. Telecominvest: 31.3 percent 3. Russian businessman Alisher Usmanov: 8.0 percent 4. Alfa Group’s telecom arm, Altimo: 25.1 percent
Telecominvest in turn is owned by TeliaSonera (26.1 percent) and Alisher Usmanov (73.9 percent) giving TeliaSonera and Alisher Usmanov a combined direct and indirect stake of 43.8 percent and 31.3 percent respectively. Group KPIs
Table 47: KPIs of MegaFon (2009 & 2010)
Group Financial Period Total Revenue (In USD Million)
Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
MegaFon
January 2009 – December 2009 5,747.5 5,720.6 1,431.1 20,237
January 2010 – December 2010 7,090.4 6,855.7 1,617.8 —
Global Presence
Table 48: Details of MegaFon’s Key Interests
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers40
(In Million, 2010)
Market Share (In Percent, 2010)
Russia MegaFon 100.0 57.20 57.20 26.3
Tajikistan MegaFon 75.0 0.38 0.28 7.5
Georgia Aquafon GSM 51.0 0.19 0.10 3.8
Total 57.77 57.58
Source: Portio Research Ltd.
40 Note: The proportionate subscriber base in the group’s home country has been estimated at 100 percent.
© 2011, Portio Research. All Rights Reserved 57
Mobile Network Operator Groups 2011
Recent Mergers, Acquisitions and Partnership Deals
• In June 2010, MegaFon acquired 100 percent of Russian wireline service provider Synterra for USD 745 million
• In October 2010, MegaFon completed the acquisition of a 100 percent stake in another wireline operator, Metrocom. Metrocom offers wireline services in St. Petersburg.
• In March 2011, the top three mobile operators in Russia – MTS, VimpelCom and MegaFon – signed a deal with Scartel (formerly Yota) for the rollout of a national Long Term Evolution (LTE) network by 2014
Technology Deployments and Planned Upgrades
Table 49: MegaFon’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
Russia MegaFon GSM, EDGE, W-CDMA, HSDPA E-UTRA in 2011
Tajikistan MegaFon GSM, W-CDMA, HSDPA –
Georgia Aquafon GSM GSM, W-CDMA, HSDPA E-UTRA in 2011
Source: Portio Research Ltd.
58 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Mobile TeleSystems (MTS)
Introduction
Mobile TeleSystems (MTS) was established by Moscow City Telephone Network, T-Mobile Deutschland, Siemens AG and several other shareholders in October 1993. Sistema Group had a majority share from 1996 until December 2010 when MTS brought back its ownership. MTS has a presence in seven mobile markets. Group KPIs
Table 50: KPIs of MTS Group (2009 & 2010)41
Group Financial Period Total Revenue (In USD Million)
Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
MTS
January 2009-December 2009 9,867.3 8,371.5 1,014.2 36,136
January 2010-December 2010 11,293.2 9,606.4 1,380.6 –
Global Presence
Table 51: Details of MTS Group’s Key Interests
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent, 2010)
Russia MTS 100.0 71.44 71.44 33.0
Ukraine MTS 100.0 18.24 18.24 35.0
Uzbekistan MTS 100.0 8.79 8.79 42.0
India Sistema Shyam
TeleServices Ltd.
73.7 8.43 6.22 1.1
Turkmenistan MTS 100.0 2.42 2.42 78.0
Belarus MTS 49.0 4.72 2.31 45.0
Armenia MTS 80.0 2.46 1.97 69.0
Total 116.50 111.39
Source: Portio Research Ltd.
41 Note: MTS Group KPIs do not include India’s operations as it only came under MTS Group in December 2010.
© 2011, Portio Research. All Rights Reserved 59
Mobile Network Operator Groups 2011
Recent Mergers, Acquisitions and Partnership Deals
• In April 2010, MTS Russia outsourced the daily operation and maintenance of its entire mobile network across Central Russia to Nokia Siemens Networks (NSN) under a five-year managed service deal
• In November 2010, MTS announced plans to share 3G infrastructure with Comstar in Moscow
• In December 2010, MTS fully acquired Sistema Telecom from its parent company, Russian conglomerate Sistema, for USD 375.5 million
• In March 2011, MTS Russia, VimpelCom and MegaFon signed a deal with Scartel (formerly Yota) for the rollout of a national Long Term Evolution (LTE) network across 180 cities by 2014
Technology Deployments and Planned Upgrades
Table 52: MTS Group’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
Russia MTS Russia GSM, GPRS, EDGE, W-CDMA,
HSDPA E-UTRA in 2011
Ukraine MTS Ukraine GSM, GPRS, EDGE, CDMA
2000 E-UTRA in Q1 2011
Uzbekistan MTS Uzbekistan GSM, GPRS, W-CDMA, E-UTRA -
India Sistema Shyam
TeleServices Ltd. India CDMA, CDMA 2000 -
Turkmenistan MTS Turkmenistan AMPS, GSM, GPRS, EDGE -
Belarus MTS Belarus GSM, GPRS, EDGE, W-CDMA,
HSDPA, HSPA+ -
Armenia MTS Armenia GSM, GPRS, EDGE, W-CDMA,
HSDPA, HSUPA E-UTRA in Q1 2011
Source: Portio Research Ltd.
60 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
MTN Group Limited (MTN Group)
Introduction
MTN Group Limited (MTN Group) was incorporated in South Africa in 1994. MTN Group is a multinational telecommunication group and has operations spread across 21 countries in Africa and Middle East. The group divides its operations in to the following three geographic regions:
1. South Africa and East Africa: This region is comprised of South Africa, Swaziland, Zambia, Uganda, Rwanda and Botswana. As of December 2010, South Africa and East Africa contributed 22.5 percent to the total subscriber base of the group.
2. West Africa and Central Africa: This region is comprised of Nigeria, Cameroon, Congo – Brazzaville, Cote d'Ivoire, Benin, Ghana, Guinea Bissau, Guinea, and Liberia. As of December 2010, West Africa and Central Africa contributed 45.5 percent to the total subscriber base of the group.
3. Middle East and North Africa: This region is comprised of Iran, Afghanistan, Cyprus, Sudan, Syria, and Yemen. As of December 2010, Middle East and North Africa contributed 32 percent to the total subscriber base of the group.
Group KPIs
Table 53: KPIs of MTN Group (2009 & 2010)
Group Financial Period Total Revenue (In USD Million)
Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
MTN
January 2009 – December 2009 13,433.6 13,433.6 2,059.3 17,509
January 2010 – December 2010 15,195.6 15,195.6 2,229.6 –
Global Presence The group has a presence in 21 countries. The table on the next page provides details about the companies in which MTN Group has a stake.
© 2011, Portio Research. All Rights Reserved 61
Mobile Network Operator Groups 2011
Table 54: Details of MTN Group’s Key Interests 42
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent, 2010)
Nigeria MTN 76.1 38.67 29.42 44.3
South Africa MTN 100.0 18.84 18.84 36.4
Iran MTN Irancell 49.0 29.74 14.57 45.3
Ghana MTN 98.0 8.72 8.55 51.2
Uganda MTN 97.0 6.46 6.27 47.2
Afghanistan MTN 90.9 4.05 3.68 23.8
Syria MTN 75.0 4.90 3.67 44.0
Cote d'Ivoire MTN 64.7 5.38 3.48 30.6
Cameroon MTN 70.0 4.79 3.35 57.5
Sudan MTN 85.0 3.48 2.95 16.7
Yemen MTN 85.0 2.86 2.43 32.4
Zambia MTN 90.0 1.90 1.71 34.4
Congo - Brazzaville
MTN 100.0 1.67 1.67 47.2
Benin MTN 75.0 2.14 1.61 34.4
Rwanda MTN 55.0 2.55 1.40 74.2
Guinea Areeba 75.0 1.76 1.32 44.4
Botswana Mascom Wireless
53.0 1.41 0.75 55.4
Guinea-Bissau MTN 100.0 0.57 0.57 64.1
Liberia Lonestar Cell 60.0 0.75 0.45 47.8
Swaziland MTN 30.0 0.73 0.22 100.0
Cyprus MTN 50.0 0.24 0.12 21.3
Total 141.60 107.03
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
• In June 2010, MTN Group reduced its shareholding in MTN Zambia from 97.8 percent to 90.0 percent
• In June 2010, MTN Group reduced its shareholding in MTN Afghanistan from 100 percent to 90.9 percent
• In November 2010, MTN Group reduced its shareholding in MTN Cyprus from 51 percent to 50 percent
42 Note: The total number may not add up to the sum of operator numbers because of rounding-off errors.
62 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
• In December 2010, MTN Group and American Tower Corporation entered into a newly-formed joint venture in Ghana called TowerCo Ghana, in which American Tower Corporation holds a 51 percent stake and MTN Group holds 49 percent. Headquartered in Boston, Massachusetts, American Tower Corporation is a leading provider of wireless and broadcast towers worldwide.
Technology Deployments and Planned Upgrades
Table 55: MTN Group’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
Nigeria MTN GSM, GPRS, W-CDMA, HSDPA –
South Africa MTN GSM, EDGE, W-CDMA, HSDPA,
HSUPA, HSPA+ –
Iran MTN Irancell GSM, GPRS –
Ghana MTN GSM, EDGE, W-CDMA, HSDPA –
Uganda MTN GSM, GPRS, W-CDMA, HSDPA –
Afghanistan MTN GSM –
Syria MTN GSM, EDGE, W-CDMA, HSDPA –
Cote d'Ivoire MTN GSM, GPRS –
Cameroon MTN GSM, EDGE –
Sudan MTN GSM, W-CDMA –
Yemen MTN GSM, GPRS –
Zambia MTN GSM, GPRS, EDGE –
Congo - Brazzaville
MTN GSM –
Benin MTN GSM, GPRS –
Rwanda MTN GSM, GPRS W-CDMA in 2011
Guinea Areeba GSM, EDGE –
Botswana Mascom Wireless GSM, EDGE, W-CDMA, HSDPA –
Guinea Bissau MTN GSM –
Liberia Lonestar Cell GSM, GPRS –
Swaziland MTN GSM –
Cyprus MTN GSM, EDGE, W-CDMA, HSDPA –
Source: Portio Research Ltd.
© 2011, Portio Research. All Rights Reserved 63
Mobile Network Operator Groups 2011
NTT DOCOMO Group
Introduction NTT DOCOMO Group was established in August 1991. Headquartered in Tokyo, NTT DOCOMO is the leading mobile operator in Japan with a 48.9 percent market share at end-2010. NTT Corporation owns a 63.1 percent stake in NTT DOCOMO, while the remaining stake is comprised of 29.1 percent in free float and 7.8 percent held by institutional investors. In October 2001, it launched the world’s first 3G mobile service based on the W-CDMA mobile standard. The MNO offers a wide variety of advanced mobile multimedia services, including its proprietary e-mail/Internet service platform i-mode and a range of credit card and other e-wallet functions. Group KPIs
Table 56: KPIs of NTT DOCOMO Group (2009 & 2010)
Group Financial Period Total Revenue (In USD Million)
Mobile Revenue (In USD Million)
Net Profit (In USD Million) Employees
NTT DOCOMO
April 2009 – March 2010 46,271.5 46,271.5 5,342.8 22, 297
April 2010 – December 2010 36,904.7 36,904.7 5,106.0 23,409
Global Presence
Table 57: Details of NTT DOCOMO Group’s Key Interests
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers43
(In Million, 2010)
Market Share (In Percent, 2010)
Japan NTT DOCOMO 63.1 57.21 57.21 48.9
India Tata DOCOMO 26.0 42.34 11.01 5.6
Bangladesh Axiata (Robi) 30.0 12.37 3.71 18.0
Total 111.92 71.93
Source: Portio Research Ltd.
43 Note: The proportionate subscriber base in the group’s home country has been estimated at 100 percent.
64 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
NTT DOCOMO also has a stake in the following companies: 1. 3, Hong Kong 2. Far EasTone (FET), Taiwan 3. PLDT, the Philippines: PLDT wholly owns the wireless operator Smart
Communications The table below details NTT DOCOMO Group’s proportionate subscribers in associated companies.
Table 58: Details of NTT DOCOMO Group’s Associated Companies
Company Country Ownership (In Percent)
Proportionate Subscribers (In Million, 2010)
Smart Communications The Philippines 20.8 9.49
3 Hong Kong 24.1 0.81
Far EasTone Taiwan 4.7 0.30
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
• In January 2011, NTT DOCOMO formed a business alliance with China Mobile (China) and KT Corporation (South Korea). The three operators will work together in areas such as international roaming, enterprise services, LTE and other network technologies, and smartphones.
Technology Deployments and Planned Upgrades Table 59: NTT DOCOMO Group’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
Japan NTT DOCOMO W-CDMA, HSDPA, HSUPA,
HSPA+, E-UTRA –
India Tata DOCOMO GSM, W-CDMA –
Bangladesh Axiata (Robi) GSM, GPRS, EDGE –
Source: Portio Research Ltd.
© 2011, Portio Research. All Rights Reserved 65
Mobile Network Operator Groups 2011
Orascom Telecom Holding (OTH)
Introduction
Orascom Telecom Holding (OTH) was established in 1998 and entered into GSM operations by acquiring a stake in Egyptian Company for Mobile Services (ECMS), which offers services under the brand name ‘Mobinil’. In the following years, OTH expanded its mobile operations in other countries through a series of acquisitions. OTH is a part of the Orascom Group of companies and is 51.7 percent owned by Wind Telecom S.p.A (formerly known as Weather Investments, an Egyptian investment company). Group KPIs
Table 60: KPIs of Orascom Telecom Holding (2009 & 2010)
Group Financial Period Total Revenue
(In USD Million) Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
Orascom Telecom Holding
January 2009 – December 2009 5,064.8 5,064.8 379.5 17,213
January 2010 – September 2010 3,121.9 3,121.9 951.0 –
Global Presence Orascom Telecom Holding operates in 11 countries, and as of December 2010 was the market leader in all but one (Bangladesh). In Bangladesh, its brand Banglalink is the second largest MNO after Grameenphone in subscriber base terms. The table on the next page provides details about the companies in which Orascom Telecom Holding has a stake.
66 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Table 61: Details of Orascom Telecom Holding’s Key Interests 44
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent,
2010)
Pakistan Mobilink 100.0 31.79 31.79 30.8
Bangladesh Banglalink 100.0 19.33 19.33 28.2
Algeria Djezzy 96.8 15.00 14.52 43.8
Egypt Mobinil 34.7 30.23 10.48 43.9
Tunisia45 Orascom Telecom
50.0 5.93 2.96 45.6
Zimbabwe, Namibia, Burundi46
Telecel Globe 100.0 2.70 2.70 –
Lebanon Alfa47 – 1.30 1.30 46.4
North Korea Koryolink 75.0 0.42 0.32 100.0
Canada Wind Mobile 65.0 0.25 0.16 1.0
Total 106.95 83.57
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
• In October 2010, Weather Investments S.p.A, the (then so-named) parent company of Orascom Telecom Holding (OTH) signed an agreement with VimpelCom Limited to combine the two groups. In March 2011, the transaction got approved by the minority stakeholders of VimpelCom Limited despite opposition from Telenor, which has a 39.6 percent stake in VimpelCom Limited. (Please see the later VimpelCom profile for further details relating to this deal).
• Effective from 30 December 2010, the company Weather investments S.p.A has been renamed Wind Telecom S.p.A.
• In January 2011, Orascom Telecom Holding sold its entire shareholding in Orascom Tunisia Holding Ltd (OTuH) and Carthage Consortium Ltd (Carthage), two companies through which OTH owns 50 percent of Orascom Telecom Tunisie (Tunisiana), to Qatar Telecom (Qtel).
44 Note: The total number may not add up to the sum of operator numbers because of rounding-off errors. 45 Note: In January 2011, Orascom Telecom Holding sold its stake in Orascom Telecom Tunisia. However, the
Tunisian subsidiary has been included because proportionate subscribers have been reported for end-December 2010.
46 Note: Telecel Globe is a majority-owned subsidiary of Orascom Telecom Holding. Telecel Globe manages Telecel Zimbabwe, Leo Namibia and U-Com Burundi.
47 Note: Since February 2009, Orascom Telecom has been managing Alfa on behalf of the Lebanese Government.
© 2011, Portio Research. All Rights Reserved 67
Mobile Network Operator Groups 2011
Technology Deployments and Planned Upgrades
Table 62: Orascom Telecom Holding’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
Pakistan Mobilink GSM, GPRS –
Bangladesh Banglalink GSM, GPRS, EDGE –
Algeria Djezzy GSM, GPRS, EDGE –
Egypt Mobinil GSM, GPRS, EDGE, W-CDMA –
Tunisia Orascom Telecom GSM, GPRS, EDGE –
Lebanon Alfa GSM, GPRS –
North Korea Koryolink W-CDMA –
Canada Wind Mobile W-CDMA, HSDPA E-UTRA in Q4 2011
Source: Portio Research Ltd.
68 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Reliance Communications Limited (Reliance Communications)
Introduction
Reliance Communications offers a wide range of wireless, wireline and broadband services across India. The company is organised into three business units – Wireless, Global and Broadband – with the Wireless unit offering both GSM and CDMA-based services, including mobile and fixed wireless voice, data and value-added services, to its subscribers. As of December 2010, the company provided CDMA-based wireless services in 20 telecom Circles48
Table 63: KPIs of Reliance Communications (2009 & 2010)
and GSM-based wireless services in 14 telecom Circles. Reliance Communications is 67.51 percent owned by India's Reliance Anil Dhirubhai Ambani Group. MNO KPIs
Group Financial Period Total Revenue (In USD Million)
Mobile Revenue
(In USD Million)
Net Profit (In USD Million)
Employees
Reliance Communications
April 2009 – March 2010 4,647.8 3,494.3 977.6 30,974
April 2010 – December 2010 3,320.5 2,698.5 256.6 –
Global Presence
Table 64: Details of Reliance Communications’ Key Interests, Technology Deployed and Planned Upgrades
Country Brand Name Subscribers
(In Million, 2010) Market Share
(In Percent, 2010) Technology Deployed
Planned Upgrades
India Reliance Communications
125.65 16.7 GSM,
CDMA2000 –
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
No such activity occurred in the last 12 months.
48 Note: Telecom Circle is a mobile service area in India which is classified depending on its revenue and subscriber
base potential. India is divided into 22 telecom Circles which are grouped into 4 categories - Metro, A, B and C (please refer to the Glossary for further details).
© 2011, Portio Research. All Rights Reserved 69
Mobile Network Operator Groups 2011
SingTel (Singapore Telecom)
Introduction
The SingTel Group offers a diverse range of communication services to its subscribers, and has subsidiaries in Singapore and Australia. In addition, the SingTel Group has investments in six mobile operators – Bharti Airtel, Telkomsel, Globe, AIS, Warid Pakistan and PBTL – details of which are given on the next page. The group is majority owned by state-owned holding company Temasek Holdings (54.4 percent), with the remaining stake in free float. Group KPIs
Table 65: KPIs of SingTel Group (2009 & 2010)
Group Financial Period Total Revenue (In USD Million)
Mobile Revenue (In USD Million)
Net Profit (In USD Million) Employees
SingTel
April 2009 – March 2010 11,831.6 8,169.2 2,742.1 23,000
April 2010 – December 2010 9,950.1 7026.2 2,100.0 –
Global Presence
Table 66: Details of SingTel Group’s Key Interests 49
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent, 2010)
Australia Optus 100.0 8.97 8.97 28.3
Singapore SingTel Mobile 100.0 3.23 3.23 44.3
Total 12.19 12.19
Source: Portio Research Ltd.
SingTel also has stake in the following MNO groups/MNOs: 1. Bharti Airtel, India, Africa, Bangladesh and Sri Lanka 2. Telkomsel, Indonesia 3. Globe, the Philippines 4. Advanced Info Service (AIS), Thailand 5. Warid, Pakistan 6. PBTL, Bangladesh
49 Note: The total number may not add up to the sum of operator numbers because of rounding-off errors.
70 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
The table below provides SingTel Group’s proportionate subscribers in these associated companies.
Table 67: Details of SingTel Group’s Associated Companies
Company Country Ownership (In Percent)
Proportionate Subscribers (In Million, 2010)
Bharti Airtel India, Africa,
Bangladesh, Sri Lanka 32.0 63.57
Telkomsel Indonesia 35.0 32.90
Globe The Philippines 47.3 12.52
AIS Thailand 21.3 6.65
Warid Pakistan 30.0 5.26
PBTL Bangladesh 45.0 0.81
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
No such activity occurred in the last 12 months. Technology Deployments and Planned Upgrades
Table 68: SingTel Group’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
Australia Optus GSM, W-CDMA, HSDPA –
Singapore SingTel Mobile GSM, W-CDMA, HSDPA,
HSUPA E-UTRA in Q1 2012
Source: Portio Research Ltd.
© 2011, Portio Research. All Rights Reserved 71
Mobile Network Operator Groups 2011
Smart Communications
Introduction
Smart Communications is a wholly owned subsidiary of the Philippine Long Distance Telephone Company (PLDT). It provides mobile and Internet services throughout the Philippines. It launched GSM services in 1999 and has been consistently upgrading and developing its network. It is headquartered at Makiti City, the Philippines. MNO KPIs
Table 69: KPIs of Smart Communications (2009 & 2010)50
Group Financial Period Total Revenue
(In USD Million)
Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
Smart Communications
January 2009 – December 2009 2,048.0 2,048.0 708.3 5,454
January 2010 – December 2010 2,103.6 2,103.6 781.8 5,165
Global Presence
Table 70: Details of Smart Communications’ Key Interests, Technology Deployed and Planned Upgrades
Country Brand Name Subscribers
(In Million, 2010) Market Share
(In Percent, 2010) Technology Deployed
Planned Upgrades
The Philippines
Smart Communications
45.64 51.5
GSM, GPRS, EDGE, W-CDMA, HSDPA, HSUPA,
HSPA+
E-UTRA in Q4 2013
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
• In February 2010, Smart Communications contracted Nokia Siemens Networks for a unified charging and billing solution
50 Note: The KPIs are the financial results of the Philippine Long Distance Telephone Company’s wireless business
segment
72 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Sprint Nextel
Introduction
Sprint Corporation and Nextel Communications publicly announced their merger plan in December 2004, which was officially completed on 12th August 2005 with the formation of Sprint Nextel Corporation. Sprint Nextel is headquartered in Kansas, the US. With a market share of 15.7 percent as of end-December 2010, Sprint Nextel is the third largest MNO in the US after Verizon Wireless and AT&T Mobility. Group KPIs
Table 71: KPIs of Sprint Nextel (2009 & 2010)
Group Financial Period Total Revenue (In USD Million)
Mobile Revenue (In USD Million)
Net Profit51 (In USD Million)
Employees
Sprint Nextel
January 2009 – December 2009 32,260.0 27,786.0 -1,398.0 40,000
January 2010 – December 2010 32,563.0 28,597.0 -595.0 40,000
Global Presence
Table 72: Details of Sprint Nextel’s Key Interests
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers (In Million, 2010)
Market Share (In Percent, 2010)
The US Sprint Nextel 100.0 49.91 49.91 15.7
Puerto Rico Sprint Nextel 100.0 0.37 0.37 12.7
Total 50.28 50.28
Source: Portio Research Ltd.
51 Note; Sprint Nextel incurred losses in 2009 and 2010 due to high churn of postpaid subscribers and intense
competition in the market.
© 2011, Portio Research. All Rights Reserved 73
Mobile Network Operator Groups 2011
Recent Mergers, Acquisitions and Partnership Deals
• In December 2010, Sprint Nextel awarded contracts to three equipment vendors – Alcatel-Lucent, Ericsson and Samsung – to help develop and upgrade its network to further enhance voice quality and data speeds for customers across the US. Sprint Nextel plans to spend as much as USD 5 billion on this project over the next five years. The project aims at consolidating multiple network technologies into one seamless infrastructure by implementing multi-mode technology. Each vendor will be responsible for a specific set of geographical locations.
Technology Deployments and Planned Upgrades
Table 73: Sprint Nextel’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
The US Sprint Nextel CDMA, CDMA2000 –
Puerto Rico Sprint Nextel CDMA, CDMA2000 –
Source: Portio Research Ltd.
74 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Tata Teleservices
Introduction
Incorporated in 1996, Tata Teleservices is majority owned by the Tata Group. The company is the pioneer of the CDMA 1x technology platform in India. In January 2005, Tata Teleservices launched mobile operations in India under the brand name Tata Indicom. Tata Indicom has a presence in all of India’s 22 telecom Circles52
Table 74: Details of Tata Teleservices Key Interests, Technology Deployed and Planned Upgrades
. In 2009, Tata Teleservices entered the GSM space through a joint venture with Japan’s leading operator NTT DOCOMO. The company introduced GSM services under the Tata DOCOMO brand in Tamil Nadu in June 2009. In less than two years, Tata DOCOMO rolled out its services in 19 telecom Circles in India. In November 2010, Tata Teleservices launched 3G services in nine telecom Circles including Maharashtra, Gujarat, Karnataka, Kerala, Punjab, Haryana, Uttar Pradesh (West), Rajasthan and Madhya Pradesh. The company also became the first Indian private telecom operator to launch 3G services in India in November 2010. The Tata Group does not report the financials for the Tata Teleservices Company. Global Presence
Country Brand Name Subscribers53 (In Million, 2010)
Market Share (In Percent, 2010)
Technology Deployed
Planned Upgrades
India Tata Teleservices 84.23 11.2 CDMA, CDMA2000,
W-CDMA —
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
• In February 2010, Tata Teleservices entered into an agreement with Future Group to offer GSM mobile services under the T24 brand in India. Under the agreement, Future Group will sell Tata Teleservices’ T24 GSM connections through its retail outlets across the country. Both companies have agreed to promote each other’s products and services. This agreement acted as an opportunity for Tata Teleservices to explore the marketing alliance between a retailer and telecom operator. T24 was commercially launched in June 2010 in Hyderabad. T24’s GSM services have now been launched in Kolkata, Bhubaneswar, Lucknow and Ahmedabad.
52 Note: Telecom Circle is a mobile service area in India which is classified depending on its revenue and subscriber
base potential. India is divided into 22 telecom Circles which are grouped into 4 categories - Metro, A, B and C (please refer to the Glossary for further details).
53 Note: As noted, The Tata Group does not report the financials for the Tata Teleservices Company. The subscriber base mentioned in the table includes the subscriber base of Tata Teleservices Limited and Tata Teleservices Maharashtra Limited.
© 2011, Portio Research. All Rights Reserved 75
Mobile Network Operator Groups 2011
• In August 2010, Tata Teleservices awarded a contract to Nokia Siemens Networks (NSN) to supply its technology and services for the roll-out of 3G services in India. Under the agreement, NSN will supply its Long Term Evolution (LTE)-ready Flexi Multiradio Base Stations and provide network implementation and managed services.
• In September 2010, Tata Teleservices awarded a contract to Chinese hardware vendor Huawei to supply the equipment for 3G services in five telecom Circles (Maharashtra, Gujarat, Rajasthan, Kerala and Madhya Pradesh).
76 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Telecom Italia Group
Introduction
Founded in 1994, Telecom Italia is the largest Italian telecommunication company. It also has operations in media and manufacturing. The company has four business units:
1. Domestic: It caters to the wireline, mobile and broadband operations in Italy 2. TIM Brasil: It is the third largest mobile operator in Brazil 3. TI Media: TV and Media company in Italy 4. Olivetti: Digital printing systems and manufacturer of office products
The company’s shareholding details as of 30 September 2010 are given below:
Table 75: Telecom Italia Group’s Shareholders
Shareholder Shareholding (In Percent)
Telco S.p.A 22.40
Telecom Italia Group 1.21
Italian institutional investors 11.48
Foreign institutional investors 38.31
Italian companies 1.03
Foreign companies 4.13
Other Italian shareholders 21.21
Other foreign shareholders 0.23
Group KPIs
Table 76: KPIs of Telecom Italia Group (2009 & 2010)
Group Financial Period Total Revenue
(In USD Million) Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
Telecom Italia
January 2009 – December 2009 37,507.2 18,618.3 2,204.9 71,384
January 2010 – December 2010 36,570.2 18,425.0 4,139.7 –
© 2011, Portio Research. All Rights Reserved 77
Mobile Network Operator Groups 2011
Global Presence
Table 77: Details of Telecom Italia Group’s Key Interests
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent, 2010)
Brazil TIM Brasil 100.0 51.03 51.03 25.14
Italy Telecom Italia 100.0 31.02 31.02 34.20
Total 82.05 82.05
Source: Portio Research Ltd. Telecom Italia has an indirect stake in Telecom Argentina which manages Telecom Personal Argentina and Telecom Personal Paraguay. The table below provides Telecom Italia Group’s proportionate subscribers in these associated companies.
Table 78: Details of Telecom Italia Group’s Associated Companies
Company Country Ownership (In Percent)
Proportionate Subscribers (In Million, 2010)
Telecom Personal Argentina 14.0 2.28
Telecom Personal Paraguay 14.0 0.26
Source: Portio Research Ltd. Recent Mergers, Acquisitions and Partnership Deals
• In February 2010, Telecom Italia signed a cooperation agreement with Alcatel-Lucent for a new technology development program that includes LTE trials ahead of deployments
• In November 2010, Telecom Italia and six other Italian telecom operators (Vodafone Italy, Wind, FastWeb, Tiscali, BT Italia, 3 Italia) signed a Memorandum of Understanding (MoU) to create a new company. The new company will monitor and coordinate infrastructure investments made by the seven operators for a high-speed fibre-optic broadband network, to avoid any duplicate network installations.
Technology Deployments and Planned Upgrades
Table 79: Telecom Italia Group’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
Brazil TIM Brasil TDMA, GSM, GPRS, EDGE, W-
CDMA, HSDPA, HSPA+ E-UTRA in Q4 2012
Italy Telecom Italia GSM, GPRS, EDGE, W-CDMA,
HSUPA, HSDPA, HSPA+ E-UTRA in Q2 2011
Source: Portio Research Ltd.
78 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Telefonica
Introduction
The Telefonica Group started its journey in April 1924 as CTNE, Compania Telefonica Nacional de Espana (National Telephone Company of Spain). As of December 2010, the group stood at the fourth position among worldwide mobile operators in subscriber base terms. Group operations are organised into three geographical regions – Spain, Europe and Latin America. In 2010, Telefonica Europe and Latin America together contributed 68 percent to total Group revenue.
Group KPIs
Table 80: KPIs of Telefonica Group (2009 & 2010)
Group Financial Period Total Revenue (In USD Million)
Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
Telefonica
January 2009 – December 2009 79,118.8 37,722.6 10,844.6 257,000
January 2010 – December 2010 80,561.6 52,729.1 13,485.5 269,047
Global Presence With its headquarters in Madrid (Spain), the Group has its operations predominantly in Europe and Latin America under the brand names Telefonica, O2 and Movistar. The table on the next page provides details about the key interests of Telefonica Group.
© 2011, Portio Research. All Rights Reserved 79
Mobile Network Operator Groups 2011
Table 81: Details of Telefonica Group’s Key Interests 54
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent, 2010)
Brazil Vivo 59.4 60.29 35.81 29.7
Spain Movistar 100.0 24.31 24.31 43.4
The UK Telefonica O2 100.0 22.21 22.21 29.2
Mexico Movistar 100.0 19.66 19.66 21.8
Germany Telefonica O2 100.0 17.05 17.05 15.7
Argentina Movistar 100.0 16.15 16.15 31.0
Peru Movistar 98.2 12.51 12.28 53.6
Colombia Movistar 100.0 10.00 10.00 27.3
Venezuela Movistar 100.0 9.51 9.51 32.3
Chile Movistar 100.0 8.79 8.79 39.7
El Salvador Movistar 99.1
6.40 6.34
24.4
Guatemala Movistar 100.0 25.8
Nicaragua Movistar 100.0 37.5
Panama Movistar 100.0 37.4
Ecuador Movistar 100.0 4.22 4.22 27.8
Czech Republic Telefonica O2 69.4 4.84 3.36 35.5
Uruguay Movistar 100.0 1.71 1.71 37.7
Ireland Telefonica O2 100.0 1.70 1.70 30.5
Slovakia Telefonica O2 100.0 0.88 0.88 14.3
Total 220.24 194.00
Source: Portio Research Ltd.
54 Note: The total number may not add up to the sum of operator numbers because of rounding-off errors.
80 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Telefonica also has a stake in the following MNO groups/MNOs: 1. China Unicom, China 2. Telecom Italia, Italy 3. Portugal Telecom, Portugal
The table below provides Telefonica Group’s proportionate subscribers in these associated companies.
Table 82: Details of Telefonica Group’s Associated Companies
Company Country Ownership (In Percent)
Proportionate Subscribers (In Million, 2010)
China Unicom China 8.4 14.01
Telecom Italia Italy 10.4 8.77
Portugal Telecom Portugal 2.0 0.15
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
• In June 2010, the Telefonica Group reduced its stake in Portugal Telecom by 7.98 percent and is left with only a two percent stake in the company
• In June 2010, Telefonica sold its wholly-owned subsidiary Manx Telecom to Hg Capital and CPS Partners for GBP 158.8 million (approximately USD 234.1 million). Manx Telecom is the Isle of Man’s largest telecommunications and Internet provider, offering a full range of fixed-line, mobile and data services to consumers and businesses.
• In July 2010, Telefonica purchased 50 percent stake of Brasilcel (the controlling stakeholder of Vivo Brazil) from Portugal Telecom for EUR 7.5 billion (approximately USD 9.6 billion) and thus gained control of Vivo Brazil.
• In January 2011, Telefonica and China Unicom agreed to enhance their existing strategic alliance. Under the agreement, Telefonica will increase its stakeholding in China Unicom from 8.4 percent to 9.7 percent, and China Unicom will increase its stakeholding in Telefonica from 0.88 percent to 1.37 percent.
• In March 2011, Telefonica announced plans to invest USD 14.6 billion on network capabilities in Brazil during 2011-2014
© 2011, Portio Research. All Rights Reserved 81
Mobile Network Operator Groups 2011
Technology Deployments and Planned Upgrades
Table 83: Telefonica Group’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
Brazil Vivo GSM, W-CDMA, HSDPA,
HSUPA E-UTRA in Q4 2012
Spain Movistar GSM, W-CDMA, HSDPA,
HSUPA, HSPA+ E-UTRA in 2011
The UK Telefonica O2 GSM, W-CDMA, HSDPA HSUPA in 2011
Mexico Movistar GSM, W-CDMA, HSDPA E-UTRA in 2011
Germany Telefonica O2 GSM, W-CDMA, HSDPA,
HSUPA E-UTRA in 2011
Argentina Movistar GSM, W-CDMA, HSDPA, E-UTRA in Q4 2012
Peru Movistar GSM, W-CDMA, CDMA2000 E-UTRA in 2011
Colombia Movistar GSM, W-CDMA, HSDPA –
Venezuela Movistar GSM, W-CDMA, HSDPA,
HSUPA E-UTRA in 2012
Chile Movistar GSM, W-CDMA, HSDPA,
HSPA+ E-UTRA in Q4 2012
El Salvador Movistar GSM, GPRS –
Guatemala Movistar GSM, CDMA2000 –
Nicaragua Movistar GSM, W-CDMA, HSDPA –
Panama Movistar GSM, W-CDMA –
Ecuador Movistar GSM, W-CDMA, HSDPA –
Czech Republic Telefonica O2 GSM, W-CDMA, HSDPA E-UTRA in Q2 2011
Uruguay Movistar GSM, W-CDMA, HSDPA –
Ireland Telefonica O2 GSM, W-CDMA, HSDPA,
HSUPA –
Slovakia Telefonica O2 GSM, UMTS E-UTRA in 2011
Source: Portio Research Ltd.
82 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Telenor
Introduction
Established in November 1994, Telenor Group has become one of the largest mobile operators in Europe. It operates in 11 countries across Europe and Asia Pacific through its subsidiaries, and the group also has a presence in 10 additional countries through its 39.6 percent stake in VimpelCom Limited. The group is majority owned by the Kingdom of Norway, which holds an equity stake of 53.97 percent. The details of its shareholdings as of March 2011 are shown below:
Table 84: Telenor Group’s Shareholders
Shareholder Shareholding (In Percent)
The Kingdom of Norway, via the Ministry of Trade and Industry 53.97
Folketrygdfondet 4.46
JPMorgan Chase Bank Nordea Treaty 1.98
Clearstream Banking 1.69
State Street Bank & A/C Client Omnibus 1.65
Bank of New York Mel S/A Mellow Nominee 1.58
State Street Bank & A/C Client Fund Numb 1.53
Telenor ASA “Share Buy Back” 1.50
Others 31.64
Group KPIs
Table 85: KPIs of Telenor Group (2009 & 2010)
Group Financial Period Total Revenue (In USD Million)
Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
Telenor
January 2009-December 2009 14,501.5 10,534.8 1,614.6 40,300
January 2010-December 2010 15,687.1 11,667.3 2,449.3 33,200
© 2011, Portio Research. All Rights Reserved 83
Mobile Network Operator Groups 2011
Global Presence
Table 86: Details of Telenor Group’s Key Interests 55
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent, 2010)
Pakistan Telenor 100.0 24.69 24.69 23.9
Bangladesh Grameenphone 55.8 29.97 16.72 43.7
Thailand Dtac 65.5 21.62 14.16 30.1
India Uninor 67.3 12.26 8.24 2.5
Malaysia Digi 49.0 8.77 4.29 25.0
Hungary Telenor 100.0 3.43 3.43 30.3
Norway Telenor 100.0 3.06 3.06 59.3
Serbia Telenor 100.0 3.01 3.01 28.3
Sweden Telenor 100.0 2.06 2.06 16.0
Denmark Telenor 100.0 2.01 2.01 29.0
Montenegro ProMonte 100.0 0.47 0.47 38.3
Total 111.35 82.16
Source: Portio Research Ltd.
Telenor has a stake in VimpelCom Limited. The table below provides Telenor Group’s proportionate subscribers in VimpelCom Limited.
Table 87: Details of Telenor Group’s Associated Companies56
Company Country Ownership (In Percent)
Proportionate Subscribers (In Million, 2010)
VimpelCom Limited - 39.6 36.2
Source: Portio Research Ltd.
55 Note: The total number may not add up to the sum of operator numbers because of rounding-off errors. 56 Note: For the details regarding VimpelCom Limited’s subsidiaries and countries of operation, please refer to
VimpelCom Limited's profile.
84 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Recent Mergers, Acquisitions and Partnership Deals
• In September 2010, Telenor Norway selected Ericsson to upgrade its infrastructure to a single IP-based converged network
• In September 2010, Telenor Group and Telefonica Group entered into a partner agreement to support each others’ multinational customer requirements across their 22 countries of operation
• In September 2010, Telenor signed an agreement with Norway Post for providing telephony and mobile data services
• In October 2010, Telenor and PayEx entered into a partnership to establish a new company, Valuecodes, to enter the digital market for coupons, gift vouchers and tickets
Technology Deployments and Planned Upgrades
Table 88: Telenor Group’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
Pakistan Telenor GSM, GPRS, EDGE -
Bangladesh Grameenphone GSM, GPRS, EDGE -
Thailand Dtac AMPS, GSM, GPRS, EDGE, W-
CDMA, HSDPA HSDPA in Q2 2011 (2100 MHz
frequency)
India Uninor GSM, GPRS -
Malaysia Digi GSM, GPRS, EDGE, W-CDMA,
HSDPA -
Hungary Telenor GSM, GPRS, EDGE, W-CDMA,
HSDPA E-UTRA in 2012
Norway Telenor GSM, GPRS, EDGE, W-CDMA,
HSDPA, HSUPA E-UTRA in Q1 2011
Serbia Telenor GSM, GPRS, EDGE, W-CDMA,
HSDPA -
Sweden Telenor GSM, GPRS, EDGE, W-CDMA,
HSDPA, HSUPA, HSPA+, E-UTRA -
Denmark Telenor GSM, GPRS, EDGE, W-CDMA,
HSDPA, HSUPA, HSPA+ -
Montenegro ProMonte GSM, GPRS, EDGE, W-CDMA,
HSDPA E-UTRA in 2012
Source: Portio Research Ltd.
© 2011, Portio Research. All Rights Reserved 85
Mobile Network Operator Groups 2011
TeliaSonera
Introduction
TeliaSonera was established in 2002 by the merger of Swedish telecommunications company Telia and Finnish telecommunications company Sonera. TeliaSonera has a presence in more than 20 countries through direct and indirect stakeholdings. TeliaSonera’s largest shareholder is the Swedish Government with a 37.3 percent stake; the Finnish Government holds 13.7 percent. Country-wise, Swedish investors have a majority stake amounting to 63.1 percent, while Finnish investors hold 19.3 percent. 17.6 percent of the shareholding rests with investors outside of these two countries. Group KPIs
Table 89: KPIs of TeliaSonera Group (2009 & 2010)
Group Financial Period Total Revenue
(In USD Million) Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
TeliaSonera
January 2009 - December 2009 14,374.7 8,614.2 2,798.3 29,734
January 2010 - December 2010 14,495.2 9,063.0 3,204.4 28,945
86 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Global Presence
Table 90: Details of TeliaSonera Group’s Key Interests
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent, 2010)
Uzbekistan Ucell 94.0 6.83 6.42 33.20
Sweden Telia 100.0 5.87 5.87 45.5
Kazakhstan K'cell 37.7 8.92 3.37 50.0
Finland TeliaSonera 100.0 3.24 3.24 37.1
Azerbaijan Azercell 74.0 3.99 2.96 55.0
Nepal Ncell 60.4 4.08 2.47 44.4
Lithuania Omnitel 100.0 2.00 2.00 42.3
Spain Yoigo 76.6 2.28 1.75 4.1
Norway Netcom 100.0 1.68 1.68 30.7
Georgia Geocell 74.0 2.04 1.51 44.0
Denmark Telia 100.0 1.45 1.45 20.9
Tajikistan Tcell 60.0 1.72 1.03 34.4
Estonia Eesti Mobiiltelefon
(EMT) 100.0 0.80 0.80 46.5
Moldova Moldcell 74.0 0.91 0.67 32.0
Latvia Latvijas Mobilais Telefons (LMT)
60.3 1.07 0.64 42.0
Cambodia Applifone 75.5 0.52 0.39 5.8
Total 47.41 36.25
Source: Portio Research Ltd.
TeliaSonera has a presence in other mobile markets through its stake in Turkcell and MegaFon Russia. The table below depicts TeliaSonera’s ownership in these associated companies.
© 2011, Portio Research. All Rights Reserved 87
Mobile Network Operator Groups 2011
Table 91: Details of TeliaSonera Group’s Associated Companies
Company Country Ownership (In Percent)
Proportionate Subscribers (In Million, 2010)
MegaFon Russia 43.8 25.05
Turkcell Turkey 38.0 12.73
Life Ukraine 20.9 2.05
Life Belarus 30.4 0.36
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
• In January 2010, TeliaSonera selected Ericsson and NSN for its E-UTRA infrastructure rollout across Sweden and Norway
• In February 2010, TeliaSonera increased its stake in Uzbekistan’s UCell from 74 percent to 94 percent at a cost of USD 220 million
• In July 2010, TeliaSonera sold its Danish subsidiary Stofa to private equity company Ratos for USD 186 million
• In December 2010, TeliaSonera increased its stake in Ncell and Applifone (now Smart Mobile57
) by increasing its stake in TeliaSonera Asia Holding from 51 percent to 75.45 percent. The deal was valued at USD 160 million.
57 Note: In January 2011, Applifone was officially merged with Smart Mobile under the Smart Mobile brand.
88 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Technology Deployments and Planned Upgrades
Table 92: TeliaSonera Group’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
Uzbekistan Ucell GSM, GPRS, EDGE, W-CDMA,
HSDPA, E-UTRA -
Sweden Telia GSM, GPRS, EDGE, W-CDMA,
HSDPA, HSUPA, E-UTRA -
Kazakhstan K'cell GSM, GPRS, EDGE, CDMA2000 -
Finland TeliaSonera GSM, GPRS, EDGE, W-CDMA,
HSDPA, HSUPA, E-UTRA -
Azerbaijan Azercell GSM, GPRS, EDGE W-CDMA in 2011
Nepal Ncell GSM, GPRS, W-CDMA -
Lithuania Omnitel GSM, GPRS, EDGE, W-CDMA,
HSDPA, HSUPA E-UTRA in Q4 2011
Spain Yoigo W-CDMA, HSDPA -
Norway Netcom GSM, GPRS, EDGE, W-CDMA,
HSDPA, HSUPA, E-UTRA -
Georgia Geocell GSM, GPRS, EDGE, W-CDMA,
HSDPA -
Denmark Telia GSM, GPRS, EDGE, W-CDMA,
HSDPA, HSUPA, E-UTRA -
Tajikistan Tcell GSM, GPRS, EDGE, W-CDMA,
HSDPA E-UTRA in 2011
Estonia Eesti Mobiiltelefon
(EMT) GSM, GPRS, EDGE, W-CDMA,
HSDPA, HSUPA -
Moldova Moldcell GSM, GPRS, EDGE, W-CDMA,
HSDPA -
Latvia Latvijas Mobilais Telefons (LMT)
GSM, GPRS, EDGE, W-CDMA, HSDPA
-
Cambodia Applifone GSM, EDGE -
Source: Portio Research Ltd.
© 2011, Portio Research. All Rights Reserved 89
Mobile Network Operator Groups 2011
Telkomsel
Introduction
Founded in 1995, Telkomsel is a subsidiary of Indonesian fixed-line operator Telkom Indonesia. Its 65 percent ownership lies with Telkom Indonesia while the remainder is held by a wholly owned subsidiary of Singapore Telecommunications, SingTel Mobile. Headquartered in Jakarta, the MNO has maintained its leading position with the highest market share among Indonesian mobile operators (at end-2010). MNO KPIs
Table 93: KPIs of Telkomsel (2009 & 2010)
Company Financial Period Total Revenue
(In USD Million) Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
Telkomsel
January 2009 – December 2009 4,158.2 4,158.2 1,316.0 4,210
January 2010 – September 2010 3,373.8 3,373.8 918.9 4,354
Global Presence
Table 94: Details of Telkomsel’s Key Interests, Technology Upgrades and Planned Upgrades
Country Brand Name Subscribers (In Million, 2010)
Market Share (In Percent, 2010)
Technology Deployed
Planned Upgrades
Indonesia Telkomsel 94.01 44.80 GSM, GPRS,
EDGE, W-CDMA, HSDPA, HSUPA
E-UTRA in Q4 2013
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
• In July 2010, Telkomsel awarded Ericsson an order for data traffic management services to ensure a seamless experience to its prioritised customers for data usage
• In September 2010, Telecom Italia won Telkomsel’s international tender for its five-year technology plan, which includes the development of its network infrastructure and service platforms
• In September 2010, Telkomsel selected ZTE Corporation to facilitate its LTE trial network
90 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Verizon Communications
Introduction
Verizon Communications Inc. was formed in June 2000 with the merger of Bell Atlantic Corporation and General Telephone and Electronics Corporation. It has its headquarters in New York and delivers broadband, wireless and wireline communication services to mass markets, wholesale, government and business customers. Verizon Communications offers wireless services through its 55 percent stake in Verizon Wireless. Vodafone Group holds the remaining 45 percent stake in Verizon Wireless. Group KPIs
Table 95: KPIs of Verizon Communications (2009 & 2010)
Group Financial Period Total Revenue
(In USD Million)
Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
Verizon Communications
January 2009 – December 2009 107,808.0 60,325.0 11,601.0 222,900
January 2010 – December 2010 106,565.0 63,407.0 10,217.0 194,400
Global Presence
Table 96: Details of Verizon Communications’ Key Interests
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent, 2010)
The US Verizon Wireless 55.0 102.25 102.25 31.9
Italy Vodafone 23.1 23.51 5.43 33.8
Total 125.76 107.68
Source: Portio Research Ltd.
© 2011, Portio Research. All Rights Reserved 91
Mobile Network Operator Groups 2011
Recent Mergers, Acquisitions and Partnership Deals
• In April 2010, Verizon Wireless sold certain former Alltel wireless assets to Atlantic Tele-Network for USD 223 million
• AT&T Mobility, Verizon Wireless and T-Mobile US announced the formation of a joint venture, ISIS, in November 2010. This will focus on building a mobile payment network which will utilise smartphone and Near Field Communication (NFC) technology and provide value to users across key geographic markets in the US.
• In February 2011, Verizon Wireless selected Tektronix Communications’ Iris suite of solutions to support the monitoring of its LTE services
• In March 2011, Verizon Wireless and Lextech Labs signed a business service agreement under which Lextech Labs’ iRa C3 product users can view live and recorded video surveillance feeds on smartphones and tablets running on Verizon Wireless networks
Technology Deployments and Planned Upgrades
Table 97: Verizon Communications’ Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
The US Verizon Wireless CDMA, CDMA2000, E-UTRA -
Italy Vodafone GSM, GPRS, W-CDMA, HSDPA -
Source: Portio Research Ltd.
92 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
VimpelCom Limited
Introduction
VimpelCom Limited was incorporated in 1992 in Amsterdam, the Netherlands. VimpelCom Limited is divided into four business units – Russia, Ukraine, the Commonwealth of Independent States (CIS), and International – all of which are direct subordinates to the headquarters in Amsterdam. VimpelCom provides voice and data services through a range of wireless, fixed, and broadband technologies under the Beeline, Kyivstar, and djuice brands. The group’s shareholding structure as of September 2010 is explained below:
1. Telenor: 39.58 percent 2. Alfa Group’s telecom arm, Altimo: 39.19 percent 3. Minority Shareholders: 21.23 percent
Group KPIs
Table 98: KPIs of VimpelCom Limited (2009 & 2010)58
Group Financial Period Total Revenue (In USD Million)
Mobile Revenue
(In USD Million)
Net Profit (In USD Million)
Employees
VimpelCom Limited
January 2009 – December 2009 8,702.9 7,287.0 1,121.4 36,355
January 2010 – December 2010 10,512.7 9,116.5 1,673.3 –
Global Presence
VimpelCom Limited has a strong presence in Russia, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Georgia, Armenia, Kyrgyzstan, Vietnam and Cambodia. The table on the next page presents details about these key interests.
58 Note: For the period January 2010 – June 2010, employees stood at 42,000.
© 2011, Portio Research. All Rights Reserved 93
Mobile Network Operator Groups 2011
Table 99: Details of VimpelCom Limited’s Key Interests59 60
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent, 2010)
Russia VimpelCom 100.0 52.02 52.02 23.4
Ukraine Kyivstar, Beeline 100.0 24.39 24.39 44.661
Kazakhstan Beeline (KaR-Tel) 75.0 6.87 5.15 41.1
Uzbekistan Beeline (Unitel) 100.0 4.82 4.82 23.3
Kyrgyzstan Beeline (Sky Mobile) 50.1 1.90 1.90 40.5
Vietnam Beeline 40.0 2.75 1.10 2.2
Armenia Beeline 100.0 0.67 0.67 17.4
Tajikistan Beeline 80.0 0.79 0.63 15.4
Cambodia Beeline (Sotelco) 90.0 0.65 0.59 5.7
Georgia Beeline 51.0 0.56 0.29 10.8
Total 95.42 91.56
Source: Portio Research Ltd.
Recent Mergers, Acquisitions and Partnership Deals
• In July 2010, VimpelCom acquired Russian fixed-line operator, Foratec Communication, for USD 46.43 million
• In August 2010, VimpelCom acquired all the shares of OJSC VimpelCom, including those represented by American Depositary Shares (ADS), from minority shareholders through a mandatory squeeze-out process
• In October 2010, Weather Investments S.p.A, the (then so-named) parent company of Orascom Telecom Holding (OTH) signed an agreement with VimpelCom Limited to combine the two groups. The transaction was approved by the minority shareholders of VimpelCom Limited in March 2011.
• In March 2011, the top three mobile operators of Russia – MTS, VimpelCom and MegaFon – signed a deal with Scartel (formerly Yota) for the rollout of a national Long Term Evolution (LTE) network by 2014
• In March 2011, VimpelCom completed its acquisition of a 78 percent stake in Laotian mobile operator Millicom Holding Laos B.V. VimpelCom paid USD 65 million for an equity stake in the operator and USD 23 million to repay Millicom’s debt, shareholder loan and intra-group indebtedness.
59 Note: This report was written in the first quarter of 2011. As such, quoted full year 2010 subscriber figures for
VimpelCom group use data collected from the first three quarters of 2010 and estimations for the fourth unavailable quarter.
60 Note: The total number may not add up to the sum of operator numbers because of rounding-off errors. 61 Note: This is the combined market share for Kyivstar and Beeline in Ukraine.
94 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Technology Deployments and Planned Upgrades Table 100: VimpelCom Limited’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
Russia VimpelCom GSM, EDGE, W-CDMA, HSDPA –
Ukraine Kyivstar, Beeline GSM, EDGE –
Kazakhstan Beeline (KaR-Tel) GSM, W-CDMA E-UTRA in 2011
Uzbekistan Beeline (Unitel) GSM, EDGE, W-CDMA –
Kyrgyzstan Beeline (Sky Mobile) GSM, W-CDMA -
Vietnam Beeline GSM –
Armenia Beeline GSM, W-CDMA, HSDPA,
HSUPA E-UTRA in 2011
Tajikistan Beeline GSM, W-CDMA, HSDPA –
Cambodia Beeline (Sotelco) GSM, GPRS –
Georgia Beeline GSM, EDGE –
Source: Portio Research Ltd.
VimpelCom Limited and Wind Telecom S.p.A. (Weather Investments S.p.A) Deal VimpelCom Limited and Weather Investments S.p.A, the (then so-named) parent company of Orascom Telecom Holding (OTH) initiated an agreement in October 2010 which gained approval in March 2011. The following are the main points covered as part of this transaction: • VimpelCom Limited will own, through Weather Investments, 51.7 percent of Orascom Telecom
Holding (OTH) and 100 percent of Telecomunicazioni S.p.A. (Wind Italy) • Weather Investments will receive USD 1.8 billion in cash and assets that will be demerged
from Orascom Telecom and Wind Italy. It will have a 20 percent economic interest and 18.5 percent voting interest in the new VimpelCom Group.
• Telenor, through its subsidiaries, will have 31.7 percent of economic rights and 29.3 percent of voting rights
• Altimo Holdings and Investments Limited will have 31.4 percent of economic rights and 36.4 percent of voting rights
• Minority Stakeholders will have 17 percent of economic rights and 15.7 percent of voting rights Deal completion is subject to the receipt of funds financing the deal, and is expected to be completed in H1 2011. The demergers will be over by Q3 2011.
© 2011, Portio Research. All Rights Reserved 95
Mobile Network Operator Groups 2011
Vodafone Group
Introduction
Vodafone, headquartered in the UK, was formed in 1984. It has grown over the years to become the second largest mobile network operator group worldwide in terms of subscriber base, after China Mobile. It has a significant presence in Europe, Asia Pacific, and Africa and Middle East, as well as in the US through its subsidiaries and associated companies. At end-2010, Vodafone Group recorded nearly 339 million subscribers (proportionate). Group KPIs
Table 101: KPIs of Vodafone Group (2009 & 2010)
Group Financial Period Total Revenue (In USD Million)
Mobile Revenue (In USD Million)
Net Profit (In USD Million)
Employees
Vodafone
April 2009 – March 2010 70,992.4 61,347.3 13,757.3 85,000
April 2010 – December 2010 53,159.9 45,712.2 - -
Global Presence Vodafone Group has a presence in more than 40 countries through its subsidiaries, joint ventures, associated companies and partner networks. Partner networks enable Vodafone to provide seamless services to its travelling customers even in the countries where the group does not hold any equity stake. Vodafone Group has subsidiaries and joint ventures in 22 countries. The table on the next page presents details about the group’s various key interests worldwide.
96 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Table 102: Details of Vodafone Group’s Key Interests62
Country Brand Name Ownership (In Percent)
Subscribers (In Million, 2010)
Proportionate Subscribers
(In Million, 2010)
Market Share (In Percent, 2010)
India Vodafone 66.98 124.26 83.23 16.5
Germany Vodafone 100.00 36.68 36.68 33.7
South Africa Vodacom63 65.00 41.59 27.03 48.9
Italy Vodafone 87.3064 23.51 20.53 34.1
The UK Vodafone 100.00 19.17 19.17 25.2
Spain Vodafone 100.00 17.48 17.48 31.2
Egypt Vodafone 54.93 31.27 17.18 45.4
Turkey Vodafone 100.00 16.68 16.68 27.0
Romania Vodafone 100.00 9.80 9.80 33.6
Portugal Vodafone 100.00 6.12 6.12 35.8
The Netherlands
Vodafone 99.90 4.94 4.93 25.7
Greece Vodafone 99.88 4.14 4.13 26.2
Czech Republic
Vodafone 100.00 3.17 3.17 23.3
Ghana Vodafone 100.00 2.78 2.78 16.3
Hungary Vodafone 100.00 2.69 2.69 23.7
New Zealand Vodafone 100.00 2.47 2.47 47.8
Ireland Vodafone 100.00 2.22 2.22 39.8
Australia Vodafone 50.00 3.62 1.81 11.4
Albania Vodafone 99.70 1.68 1.67 38.0
Malta Vodafone 100.00 0.26 0.26 100.0
Qatar Vodafone 22.95 0.71 0.16 22.9
Fiji Vodafone 49.00 0.30 0.15 90.3
Total 355.51 280.32
Source: Portio Research Ltd.
62 Note: The total number may not add up to the sum of operator numbers because of rounding-off errors. 63 Note: Vodacom refers to the group’s interest in Vodacom Group and its subsidiaries, including those located
outside South Africa. 64 Note: Vodafone Italy is owned by Vodafone Group (76.9 percent) and Verizon Wireless (23.1 percent). Vodafone
Group also has a 45 percent stake in Verizon Wireless, which in turn results in Vodafone having ownership of 87.3 percent in Vodafone Italy.
© 2011, Portio Research. All Rights Reserved 97
Mobile Network Operator Groups 2011
Vodafone also has a stake in the following MNO groups/MNOs: 1. Verizon Wireless, US 2. Plus, Poland 3. SFR, France
The table below provides Vodafone’s proportionate subscribers in these associated companies.
Table 103: Details of Vodafone Group’s Associated Companies
Company Country Ownership (In Percent)
Proportionate Subscribers (In Million, 2010)
Verizon Wireless The US 45.0
58.61 Plus Poland 24.4
SFR France 43.9
Source: Portio Research Ltd. Recent Mergers, Acquisitions and Partnership Deals
• In September 2010, Vodafone Group divested its 3.2 percent stake in China Mobile Limited for USD 6.5 billion
• In November 2010, Vodafone offloaded its stake in Japan-based operator Softbank Corporation for GBP 3.1 billion (USD 5 billion)
These divestments were made in order to dispose of minority holdings in foreign companies and increase the focus on its assets in core markets in Europe, Asia Pacific, and Africa and Middle East. In addition, Vodafone has now begun the process of the sale of its entire stake in SFR to Vivendi for EUR 7.95 billion (USD 11.31 billion). Vodafone will receive EUR 7.75 billion (USD 11.03 billion) in cash from Vivendi and a final dividend of EUR 200 million (USD 284.56 million) from SFR on completion of the deal. Furthermore, the group plans to offload its stake in other overseas interests such as Verizon Wireless and Plus in the coming years.
Vodafone and Essar Deal In March 2011, Vodafone Group announced plans to buy an additional 33 percent stake in Vodafone India from Essar Group in a deal worth USD 5 billion. The deal will give Vodafone a direct ownership of over 75 percent in the Indian subsidiary, with the remaining stake owned by Vodafone’s partners in India. As local rules restrict the group from owning more than 74 percent directly, Vodafone will be required to divest the excess stake either through an initial public offering (IPO) or a tie-up with a strategic investor.
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Technology Deployments and Planned Upgrades
Table 104: Vodafone Group’s Technology Deployments and Planned Upgrades
Country Brand Name Technology Deployments Planned Upgrades
India Vodafone GSM, W-CDMA, EDGE HSPA+ in 2011
Germany Vodafone HSDPA, HSUPA, E-UTRA -
South Africa Vodacom GSM, W-CDMA, HSDPA,
HSUPA E-UTRA in 2011
Italy Vodafone GSM, W-CDMA, HSDPA -
The UK Vodafone GSM, W-CDMA, HSDPA,
HSUPA -
Spain Vodafone GSM, W-CDMA, HSDPA,
HSUPA, HSPA+ -
Egypt Vodafone GSM, W-CDMA -
Turkey Vodafone GSM, W-CDMA, HSPA+,
HSDPA -
Romania Vodafone GSM, W-CDMA, HSDPA,
HSUPA -
Portugal Vodafone GSM, W-CDMA, HSUPA,
HSDPA, HSPA+ E-UTRA planned in Q4 2011
The Netherlands
Vodafone GSM, W-CDMA, HSUPA,
HSDPA, HSPA+ -
Greece Vodafone GSM, W-CDMA, HSUPA,
HSDPA, HSPA+ -
Czech Republic Vodafone GSM, W-CDMA, EDGE E-UTRA in 2013
Ghana Vodafone GSM, W-CDMA, EDGE -
Hungary Vodafone GSM, W-CDMA, HSDPA -
New Zealand Vodafone GSM, W-CDMA, HSDPA E-UTRA in 2012
Ireland Vodafone GSM, W-CDMA, HSDPA,
HSUPA -
Australia Vodafone GSM, W-CDMA, HSDPA -
Albania Vodafone GSM, W-CDMA -
Malta Vodafone W-CDMA, HSDPA -
Qatar Vodafone GSM, W-CDMA, HSDPA,
HSUPA HSPA+ in 2011
Fiji Vodafone GSM, W-CDMA, HSDPA -
Source: Portio Research Ltd.
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Chapter 4 Appendices
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Appendices This market study has been written in a way that avoids excessive use of market acronyms (except where appropriate) and industry technical talk, as we have tried to keep the text open to all readers, not just those with in-depth knowledge of the world’s mobile markets. Because this study covers all geographical regions and many emerging markets, a great deal of the data contained within this study will potentially be of interest to investors, financial analysts, consultants, venture capitalists and others all around the world who do not work within the mobile industry itself every day of their lives. To many of these people, some of the industry technical talk and acronyms may be confusing, so we have attempted to write this study in a self explanatory way that assumes little prior knowledge, but in doing this, some of the speech chosen may seem somewhat "obvious" to our more knowledgeable readers. We hope this offers the best possible solution to everyone, and we hope this does not cause any confusion or inconvenience. Where we have used technical terms or acronyms, we offer an explanation of those expressions below.
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Glossary
2G or Second Generation Packet Data Networks The second-generation packet networks recently introduced consist of combined voice and packet data networks based on global standards.
2.5G 2.5G describes the state of wireless technology and capability usually associated with General Packet Radio Services (GPRS) - that is, between the second and third generations of wireless technology. The second generation or 2G-level of wireless is usually identified as Global System for Mobile (GSM) service and the third generation or 3G-level is usually identified as Universal Mobile Telecommunication Service (UMTS). Each generation provides a higher data rate and additional capabilities. There is also a fourth generation (4G) of technology in the planning and research stages. 2.5G protocols extend 2G systems to provide additional features such as packet-switched connection (GPRS) and enhanced data rates (HSCSD, EDGE).
3G or third generation 3G is an International Telecommunication Union (ITU) specification for the third generation (analog cellular was the first generation and digital PCS65
Third generation Wireless Wide Area Networks (WWAN) communication systems are characterised by high-speed data rates (144 Kbps
was the second generation) of mobile communication technology.
66 to 2+ Mbps67) suitable for multimedia content. 3G technologies typically are packet-switched and use Code Division Multiple Access (CDMA) technology to communicate. Examples of 3G include EDGE68, 1xRTT, HDR and W-CDMA.69
3G as a Percentage
3G protocols in mobile telephony support higher data transmission rates, measured in Mbps, intended for applications other than voice. 3G support broadband and bandwidth applications, such as full-motion video, video conferencing and Internet access.
3G as a percentage refers to 3G subscribers as a percentage of total active mobile subscribers in a country. This represents the proportion of 3G subscribers in the total mobile subscriber base of a country.
3G Penetration 3G penetration refers to 3G subscribers as a percentage of total population of the country. This is similar to the term ‘mobile penetration’, which means total number of active mobile subscribers in a country as a percentage of total population of the country.
4G or fourth generation 4G or fourth generation WWAN communication systems are characterised by high-speed data rates at 20+ Mbps, suitable for high-resolution movies and television. The initial deployment of 4G communication systems is expected in 2006-2010. The proposed features of these systems include 100 Mbps speed, location sensing and self-tailoring to user needs.
Associated Companies Associated Company is defined as a company in which the MNO Group/MNO has a stake of less than 51 percent but does not consolidate the associate’s financial statements.
65 Personal Communications Service (PCS) 66 Kilobits per second (Kbps) 67 Megabits per second (Mbps) 68 Enhanced Data for Global Evolution (EDGE) 69 Wideband Code Division Multiple Access (W-CDMA)
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Average Revenue per User (ARPU) Measures the average monthly revenue generated for each customer unit, such as a handset or pager that an operator has in operation.
Backhaul It refers to the process of transmitting voice and data traffic from a remote site to a central site.
BREW Binary Runtime Environment for Wireless: It is an application development platform developed by Qualcomm. It enables wireless users to download and run applications, such as enhanced e-mail, location positioning, games, etc., to BREW-enabled handset. BREW was first introduced and developed for CDMA handsets, but it now supports GSM/GPRS and UMTS handsets as well.
BTS Base Transceiver Station: It is the equipment that facilitates the wireless communication between user equipment such as mobile handsets, computers etc., and the mobile network.
Broadcast Technologies for Mobile TV Some of the broadcast technologies for mobile TV worldwide are: DVB-H70 (Digital Video Broadcast – Handheld): DVB-H technology allows simultaneous broadcast of television, video and radio channels on mobile, and helps operators to preserve network bandwidth for other data and voice services. It has been accepted as the standard by the European Telecommunications Standards Institute (ETSI). ISDB-T (Integrated Services Digital Broadcast – Terrestrial): It is the transmission standard that has been developed in Japan to help the radio and television stations support digital content. DMB (Digital Media Broadcast): It is a transmission standard, which transmits video feed via satellite (S-DMB) or terrestrial (T-DMB) mode. The standard is currently deployed in Korea and is being increasingly used in other parts of Asia as well as Europe. MBMS (Multimedia Broadcast/Multicast Service)
BWA
: This standard allows the transmission of multimedia content over the UMTS and GSM network.
Broadband Wireless Access: It is a form of fixed wireless access system.
Byte Byte is a collection of bits in which each bit can take a value of either 1 or 0. Kbps, Mbps and Gbps denote the number of bytes transferred per second; Kbps, Mbps and Gbps translate to 103, 106 and 109 bytes per second respectively.
CAPEX Capital Expenditure: It refers to the cost of developing a product or system.
CDMA Code Division Multiple Access: In a CDMA system, each voice circuit is labelled with a unique code and transmitted on a single channel simultaneously along with many other coded voice circuits. The receiver uses the same code to recover the signal from the noise.
70 Source: http://www.strategiy.com/inews.asp?id=20041127000355
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CDMA2000 1x CDMA2000 1x: This is regarded as the first phase of CDMA2000 technology used for providing voice and data services over mobile networks. Data speeds of 307kbps are using a single channel while with two channels speeds of 614kbps are possible.
Churn Rate It is the rate at which the subscribers cancel their subscription with the existing operator and sign up with another operator.
Cloud Computing Cloud computing is a technology involved in delivering hosted services on the Internet. It is based on client-server architecture, which includes user device with applications (such as Web browsers) to access the back end (various components, such as data storage devices, servers, etc.). The back end components perform specific tasks and interact with each other through standard application programming interfaces.
Dongle Dongle is a portable device which is connected to a laptop or desktop and resembles a USB flash drive. It is widely used as a wireless broadband adapter.
DSL Digital Subscriber Loop: It is a technology that provides digital data transmission over the copper lines of a PSTN network. Dumb Pipes Dumb pipe refers to a mobile operator’s wireless network being used only to transfer data/bytes between the Internet and the user’s device. For an operator being a dumb pipe, there is a potential loss of revenue for the operator, since the operator is generating revenue only for the network data access and is not receiving any significant share in data/content service revenue. E-UTRA Evolved Universal Terrestrial Radio Access (E-UTRA) was used in the 3rd Generation Partnership Project’s (3GPP) early drafts of LTE specification for Evolved UMTS Terrestrial Radio Access Network (eUTRAN). It is the air interface of the LTE network which will replace the earlier technologies like UMTS, HSDPA, HSUPA for radio access network. It uses orthogonal frequency-division multiplexing (OFDM), multiple-input multiple-output (MIMO) antenna technology for downlink to support more users, higher data transfer rates and lower power requirement for the handsets. For uplink, OFDM and Single Carrier Frequency Division Multiple Access (SC-FDMA) is used depending on the channel to compensate for high peak to average power ratio associated with normal OFDM. This facilitates the key features of high data transfer rates, low latency and optimisation for packet data.
EDGE Enhanced Data rates for Global Evolution: An enhanced modulation technique designed to increase network capacity and data rates in GSM networks. EDGE should provide data rates up to 384 Kbps. EDGE will let operators without a 3G license compete with 3G networks offering similar data services.
EV-DO Evolution Data Only, Evolution Data Optimised: It is a wireless radio broadband data protocol being adopted by many CDMA operators. It is being used as a part of CDMA2000 networks in Japan, Korea, the United States and Canada. It provides better data speeds in comparison to GSM technologies such as GPRS and EDGE.
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FDMA Frequency Division Multiple Access is a channel access protocol that allows a user dedicated allocation to single or multiple frequency bands.
Feature Phone Feature phones are handsets with browsers (primarily based on embedded J2ME and BREW platforms) to enable access to web based e-mail, and sometimes have embedded applications for social networking, instant messaging (IM) and mobile banking. These phones often come with high resolution cameras, GPS and innovative multimedia features. The major differentiating factor between a smartphone and a feature phone is that feature phones do not have an open Operating System (OS). The OS present in smartphones, through its Application Programming Interface (API), enables subscribers to install and remove third-party applications. Smartphones are better integrated with the handset's User Interface than Java applications.
Free Float Free Float refers to the shares of a company that are available to the investing public and are freely traded in the market. It excludes shares held by founders, directors, acquirers, bodies with a controlling interest, promoters’ holding and government holding.
Gbps Please see “Byte”.
GPRS General Packet Radio Service (GPRS) is a packet-based standard for mobile communication, which runs at speeds up to 115 kilobits per second, compared with GSM systems' 9.6 kilobits per second. GPRS supports a wide range of bandwidths and makes efficient use of limited bandwidth. It is particularly suited for sending and receiving small bursts of data, such as e-mail and web browsing, as well as large volumes of data. Applications for GPRS may include any of the following: chat, text and visual information, still images, moving images, web browsing, document sharing/collaborative working, audio, job dispatch, corporate e-mail, Internet e-mail, vehicle positioning, remote Local Area Network (LAN) access, file transfer or home automation.
GSM Global System for Mobile communications, the most widely used digital mobile phone system and the mobile telephone standard in Europe. It was originally defined as a pan-European open standard for a digital cellular telephone network to support voice, data, text messaging and cross-border roaming. GSM is now one of the world's main 2G digital wireless standards. GSM is present in more than 160 countries and according to the GSM Association, accounts for approximately 70 percent of the total digital cellular wireless market. GSM is a time division multiplex (TDM) system. Implemented on 800, 900, 1800 and 1900 MHz frequency bands.
HARQ Hybrid Automatic Repeat Request is a process of ensuring data transmission even in poor signal conditions with an adverse effect of lowering the throughput in better signal conditions. It does so by error-correction in addition to error detection in the transmitting bits.
HSPA High Speed Packet Access comprises two mobile protocols: High Speed Downlink Packet Access (HSDPA) and High Speed Uplink Packet Access (HSUPA). These protocols enhance the performance of W-CDMA protocols.
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i-mode i-mode is a proprietary packet-based information service for mobile handsets. It delivers information (such as mobile banking, and train timetable) to handsets and enables exchange of e-mail from mobile handsets on the PDC-P network. Launched in 1999 by NTT DOCOMO, i-mode is very popular in Japan (especially for e-mail and transfer of icons).
IMPS IMPS (Instant Messaging and Presence Service) is an instant messaging system designed for mobile environments. Presence refers to the availability of a user for communication.
IMS IMS IP Multimedia Subsystem is an extension of the GSM / 3GPP GPRS core Network. It uses SIP (Session Initiation Protocol) to set up, maintain and terminate packet-switched voice and multimedia sessions.
Interoperability This is defined as the ability of a network to operate with other networks, such as two systems based on different protocols or technologies.
Integrated Mobile Broadcast (IMB) It is a 3GPP Release 8 Standard that empowers MNOs to offer Multimedia Broadcast Multicast Services in a spectrally efficient manner in the 3G TDD bands. It is deployed existing 3G FDD unicast technology.
Intranet The intranet is a private network inside a company or an organisation, and uses software similar to that used on the Internet. Companies use intranets to manage projects, provide employee information, distribute data and information, etc.
Java A simple platform-independent object-oriented programming language used for writing applets that are downloaded from the World Wide Web by a client and run on the client's machine.
Kbps Please see “Byte”.
Key Interests In this report, Key Interests include the MNO Group’s direct and indirect subsidiaries and joint ventures.
KPI Key Performance Indicator (KPI) is a term used to indicate the key indicators to measure the business and operational performance of the companies in order to evaluate success and competitive position in the market. In the case of mobile companies, we use commonly used KPIs, such as Subscriber Addition, Market Share, ARPU, Churn Rate, etc. In addition, Revenue, Operating Profit and Number of Employees are other KPIs generally used to benchmark different companies.
LTE Long-Term Evolution (LTE) is the standard being developed by 3GPP to achieve download rates of 100Mbps, and upload rates of 50Mbps for every 20MHz of spectrum and is termed as a 4G standard. LTE has support for bandwidths ranging from 1.25MHz to 20MHz. (See also E-UTRA)
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MAN Metropolitan Area Network is a computer network that normally encompasses a city or a big premise. It is formed by connecting several local area networks.
Mbps Please see “Byte”. MiFi MiFi is a collection of wireless routers that are used as mobile Wi-Fi hotspots. The technology is developed by Novatel Wireless. MIMO Multiple-Input and Multiple-Output refers to the use of more than one antenna at the transmitter and receiver end to enhance the communication process. MNO Mobile Network Operator.
Modem A modem is a device which modulates and demodulates analogue and digital signals for the transmission of signals over different carriers.
MVNO Mobile Virtual Network Operator: Term used for a mobile operator who does not own its own spectrum and usually does not have its own network infrastructure. Instead, MVNOs have business arrangements with traditional mobile operators to buy minutes of use (MOU) for sale to their own customers.
Near Field Communication Near Field Communication (NFC) is a wireless communication technology which uses short-range high frequency to enable the exchange of data between devices in proximity with each other. The distance between the communicating devices has to be less than 10 centimetres. NFC-capable devices can communicate with smartcard readers as well as other NFC-capable devices.
Node - B It is a term used in Universal Mobile Telecommunications System (UMTS) to refer to the Base Transceiver Station (BTS).
ODM An original design manufacturer (ODM) is a firm involved in designing and manufacturing a product according to specifications provided by another firm. The products are sold under the brand of the firm which gives the manufacturing contract to the ODM.
OEM An original equipment manufacturer (OEM) is a firm which acquires a product (or a component) for reuse or incorporation into the products branded under its name.
OFDMA Orthogonal Frequency Division Multiple Access is an advancement of Orthogonal Frequency Division Multiplexing to support mobile networks with more flexibility. Subsets of the subcarriers are assigned to individual users to facilitate multiple access.
OMA-IMPS Open Mobile Alliance-Instant Messaging and Presence Service: It is an open mobile alliance enabler for instant messaging and presence. The first cut of this specification was developed by the Wireless Village consortium.
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OPEX Operating Expenditure: It refers to the ongoing costs for running or operating a product or system.
OPhone OPhone is a mobile operating system developed by China Mobile. It runs on Linux kernel and is based on Google Android’s Open Mobile System (OMS) operating system.
Over-the-Top Services Over-the-top services refer to those services which are available to users over mobile networks without MNOs being involved in planning, provisioning and selling them.
Packet Data Packet data is a method of transmitting information in small packets each containing a certain amount of the information. Packet data networks allow transmission of high-speed data to and from devices connected to the network. Packet Data is similar to dial-up Internet access available in homes or in businesses with cable modems, ADSL71
Proportionate Subscribers
lines, etc.
An MNO Group’s proportionate subscriber base is based on its equity stake in its subsidiaries, joint ventures and associated companies. In the case of an MNO being operational in only one country, its proportionate subscriber figure is the same as its total customer base.
QoS QoS stands for quality of service.
RAN Radio Access Network: It is a component that exists between the mobile handset and the core network. It performs the radio functionality of the network and provides connection to the core network.
RFID Radio frequency identification (RFID) denotes a system employed to convey a unique serial number using radio waves. It does not require contact or line of sight for communication. An example of the deployment of this technology is in electronic toll collection using RFID tags.
SC-FDMA Single-carrier frequency-division multiple access (SC-FDMA) facilitates multiple access schemes and is used for assigning multiple users to a shared communication resource. While in OFDMA, subsets of the subcarriers are assigned to individual users to assist multiple access schemes, SC-FDMA enables a single-carrier transmission scheme.
Service Revenue Service revenues are the revenues earned by MNOs through the provision of services only, i.e. revenues after deducting revenues earned from sales of equipment/products.
SIM card It is a smart card that gives GSM handset its user identity. The card is inserted into a GSM/TDMA or GSM-only mobile handset containing subscriber-related data. The card contains 18 digits code for GSM markets and 20 digits code for TDMA markets.
SIM Toolkit Subscriber Identity Module Application Toolkit: It is used by network operators to provide a user friendly interface on a subscribers’ handset to access value-added services provided by
71 Asymmetric Digital Subscriber Line (ADSL)
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them. These applications also provide a mechanism for storing and using any service specific parameters. These applications are built within a SIM card by mobile network operators.
SIMPLE SIMPLE (Session Initiation Protocol for Instant Messaging and Presence Leveraging Extensions) is an open standard instant messaging (IM) protocol.
SIP Session Initiation Protocol or SIP is a standard multimedia and telephony protocol for initiating an interactive user session over mobile networks. The services under SIP may include call forwarding, number delivery, authentication and other telecoms applications.
Smartphone A smartphone is a mobile handset which runs on operating system (OS) software and offers some of the capabilities of a PC. It provides a standardised interface and platform for application developers and is enabled with advanced features, such as e-mail, Internet and an e-book reader. Some of the other features expected from a smartphone include built-in full keyboard/external USB keyboard, powerful microprocessors, memory, built-in modem and large screens. The major differentiating factor between a smartphone and a feature phone is that an open Operating System (OS) is present in a smartphone. The OS, through its Application Programming Interface (API), enables subscribers to install and remove third-party applications. Smartphones are better integrated with the handset's User Interface than Java applications.
SMSC Short Message Service Centre (SMSC) provides the routing of all SMS or text messages in any mobile network. Similar to e-mail server, the SMSC handles large volumes of messages sent between two mobile handsets or a mobile handset and a software application.
Spectrum Allocation The use of radio frequency electromagnetic spectrum in a country is regulated by government bodies who then allocate spectrum to telecom companies. The license for using a particular spectrum is typically awarded following a bidding process. There are certain guidelines for using the allocated spectrum which service providers must adhere to —including a minimum quality of service, and roll-out timelines for the services for which the license has been issued.
SS7 SS7 is a global standard for telecommunications defined by ITU Telecommunication Standardisation Sector (ITU-T). The standard defines the procedures and protocol by which network elements in the public switched telephone network (PSTN) exchange information over a digital signalling network to effect mobile (cellular) and wire-line call setup, routing and control.
TDD Time Division Multiplex: This is a scheme for allowing simultaneous transmission and receiving of data at the same frequency, but with the different time slots allocated to them.
TDMA Time Division Multiple Access: A TDMA channel is a single FDMA channel divided up in time into multiple time slots. TDMA system is able to transmit multiple voice circuits per channel. Three users can take it in turn to share one radio channel. The channels can vary in bandwidth and depending on the type of system, the time slots can transmit all or part of a voice circuit. Each user's speech is stored, compressed and transmitted as a quick packet, using controlled time slots to distinguish them-hence the phrase 'time division'. It uses 30 KHz channels and a vocoder rate of 8 Kbits/sec. At the receiver, the packet is de-compressed.
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TD-SCDMA Time Division Synchronous Code Division Multiple Access: It is an air interface used in UMTS mobile telecommunications networks. It has been deployed in China to replace W-CDMA technology.
Telecom Circle A telecom Circle is a mobile service area in India which is classified depending on its revenue and subscriber base potential. India is divided into 22 telecom Circles which are grouped into 4 categories - Metro, A, B and C Metro
Thin Client
: Delhi, Mumbai, Kolkatta and Chennai A: Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu B: Kerala, Punjab, Haryana, Uttar Pradesh (East), Uttar Pradesh (West), Rajasthan
and Madhya Pradesh C: Himachal Pradesh, Bihar, Orissa, Jammu and Kashmir, Assam, and North-East
Thin Client refers to a client computer or client software in client-server architecture networks. The primary purpose of Thin Client is to convey input and output between the user and the remote server.
UMTS Universal Mobile Telecommunications System: This is the future transmission network for third generation mobile telephones, as defined by the International Telecommunications Union (ITU). In time, UMTS could reach transmission capacities of 2 Mbits/sec. (compared to 9.6 Kbits/sec. for GSM). Initially UMTS will offer rates of 144 to 384 Kbits/sec. This standard will make the development of new multimedia services having very wide bands and new uses, notably in the transmission of video, images and sound possible.
UMTS FDD Universal Mobile Telecommunication System (UMTS) Frequency Division Duplex (FDD): It is designed to generate typical data transfer rates of up to 384 Kbps and is suitable for wide area coverage due to potentially high reach.
UMTS TDD Universal Mobile Telecommunication System (UMTS) Time-Division-Depleting (TDD): UMTS TDD Mobile Broadband technology is a packet data implementation of the international 3GPP UMTS standard and is designed to work in a single unpaired frequency band. It is designed to generate typical data transfer rates of up to 2 Mbps.
USB Universal Serial Bus is a specification used to initiate data transfer between devices and a host controller.
USSD Unstructured Supplementary Service Data (USSD) is a standard for transmitting information over GSM networks. It is primarily used to access the information on prepaid balances and similar details. UTRA-FDD Universal terrestrial radio access–frequency division duplex (FDD) refers to paired frequencies in which the transmitter and receiver operate simultaneously but at different frequencies
UTRA-TDD Time division duplex (TDD) refers to unpaired frequency which is shared between uplink and downlink data rates
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VAS Mobile operators offer various services which are not part of the basic voice offer. These services are availed off separately by the mobile subscribers. It includes services such as SMS, MMS, mobile e-mail, mobile games, mobile music etc. These also include services such as WAP, voicemail, call diversion, etc.
WAP Wireless Advance Protocol: WAP is a specification for a set of communication protocols to standardise the way mobile devices, such as handsets and radio transceivers, can be used for Internet access. The WAP standard is based on Internet standards (HTML, XML and TCP/IP). It consists of a Wireless Markup Language (WML) specification, a WMLScript specification, and a Wireless Telephony Application Interface (WTAI) specification. The WAP protocol is the leading standard for information services on wireless terminals such as digital handsets. Some examples of WAP for accessing information include the following: checking train timings, purchasing tickets, flight check-in, viewing traffic information, checking weather conditions, looking up stock values, looking up phone numbers, looking up addresses or looking up sport results, and there are countless more.
W-CDMA Wideband Code Division Multiple Access: The third generation standard offered to the International Telecommunication Union by GSM proponents. This is a 3G technology that increases data transmission rates in GSM systems by using CDMA instead of TDMA.
W-CDMA has become the Direct Sequence mode in the ITU's 3G specification which includes the 1x Multi-Carrier mode (1x MC) and 3x Multi-Carrier mode (3x MC). 1x MC (formerly known as cdma2000) and 3x MC comprise the 3G upgrade paths for operators already using CDMA.
WiBro Wireless Broadband: The technology was formulated by South Korean telecom industry as an equivalent to mobile WiMAX international standard.
Wi-Fi Wireless Fidelity: It is used to provide wireless local area network through enhanced interoperability of the network. Services such as Internet, VoIP phone access, and gaming, etc., can be provided using Wi-Fi.
WiMAX Worldwide Interoperability for Microwave Access: It is a telecommunication technology used for wireless data transfer over long distances through point-to-point links as well as mobile cellular type access. It is based on standards that are useful in wireless broadband access.
Wireless MAN Wireless Metropolitan Area Network: The technology is used to provide wireless network over a larger area as compared to local area network.
WLL Wireless Local Loop: It refers to the wireless devices that are situated in fixed locations. The signal transmissions occur through the air and it provides connectivity to the users in remote and isolated areas without the need for laying new cables.
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Portio Research Classifications
Geographical Regions: There is sometimes a difference in the way research firms classify the major geographical territories. At Portio Research, we follow 'obvious' geographical lines, but for the record, here are the regional definitions we follow, unless otherwise stated in the report: Western Europe: Standard classification includes Iceland and various islands Central and Eastern Europe: Includes standard list of Central and Eastern European countries, and the Baltic states, Balkans, Russia, Greece and Turkey Asia Pacific: Includes Australasia, the Indian Sub-Continent, Pakistan, Afghanistan, Sri Lanka, Maldives and the Former Soviet Union Central Asian republics North America: Standard classification, including Hawaii and islands to the North Latin America: Includes all South and Central American countries including Mexico, The Caribbean and The West Indies Middle East: Includes Israel and all Middle Eastern countries East of Egypt, South of Turkey and West of Afghanistan Africa: Standard classification includes territories in Western Indian Ocean
Mobile Subscribers Generally, we count active SIMs, and we consider active as being used within 3 months, but, of course there is some room for variance, depending on what figures operators themselves publish or report to us when we interview them. When running spot-checks on operator numbers, we are governed by the figures they give us, and as we are all aware, many individuals and companies around the world count their subscribers/subscriptions by a number of different criteria. We refer to "total subscribers" for a network/country or globally, as a count of the total number of active subscriptions those networks have, and as such this can cause a slight distortion of any country-penetration rate.
Currency and Monetary Values All monetary values quoted in this report are in US Dollars as the most widely recognised benchmark internationally. The currency conversion has been done on the year average basis. Whilst researching global mobile markets, we use http://www.oanda.com/ for all currency conversion calculations.
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Companies Mentioned in this Report
Company Website
3 Italia www.tre.it
Aditya Birla Group www.adityabirla.com
Agility www.agilitylogistics.com
Aircel www.aircel.com
Airtel (Warid) Bangladesh www.waridtel.com.bd
Airtel Africa africa.airtel.com
Airtel India www.airtel.in
Airtel Sri Lanka www.airtel.lk
AIS Thailand www.ais.co.th
Alcatel-Lucent www.alcatel-lucent.com
Alfa Group www.alfagroup.org
Alfa Lebanon www.alfa.com.lb
Alltel www.alltel.com
Altimo altimo.org
America Movil www.americamovil.com
American Tower Corporation www.americantower.com
Anil Dhirubhai Ambani Group www.relianceadagroup.com
Aquafon GSM Georgia www.aquafon.com
AT&T www.att.com
AT&T Mobility US www.wireless.att.com
Atlantic Tele-Network www.atni.com
Axiata www.axiata.com
Bajaj Allianz Life Insurance Company Ltd www.bajajallianz.com
Banglalink Bangladesh www.banglalinkgsm.com
Beeline Armenia www.beeline.am
Beeline (Sotelco) Cambodia www.beeline.com.kh
Beeline Georgia www.beeline.ge
Beeline (KaR-Tel) Kazakhstan www.beeline.kz
Beeline Kyrgyzstan www.beeline.kg
Beeline Tajikistan www.beeline.tj
Beeline (Unitel) Uzbekistan www.beeline.uz
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Company Website
Beeline Vietnam www.beeline.vn
Bharat Sanchar Nigam Limited www.bsnl.co.in
Bharti Airtel www.airtel.com
BT Italia www.italia.bt.com
Carso Global Telecom www.cgtelecom.com.mx
Celcom Axiata Berhad Malaysia www.celcom.com.my
China Mobile Communications Corporation 10086.cn
China Telecom www.chinatelecom-h.com
China Unicom www.chinaunicom.com.hk
Claro Argentina www.claro.com.ar
Claro Brazil www.claro.com.br
Claro Chile www.clarochile.cl
Claro Dominican Republic www.claro.com.do
Claro El Salvador www.claro.com.sv
Claro Guatemala www.claro.com.gt
Claro Honduras www.claro.com.hn
Claro Jamaica www.claro.com.jm
Claro Nicaragua www.claro.com.ni
Claro Panama www.claro.com.pa
Claro Paraguay www.claro.com.py
Claro Peru www.claro.com.pe
Claro Puerto Rico www.claropr.com
Claro Uruguay www.claro.com.uy
Clearstream banking www.clearstream.com
Comcel Colombia www.comcel.com
Comstar www.comstar-uts.ru
Cosmote Greece www.cosmote.gr
Cosmote Romania www.cosmote.ro
CPS Partners www.cpspartners.com
Deutsche Telekom www.telekom.com
Dialog Axiata PLC Sri Lanka www.dialog.lk
Digi Malaysia www.digi.com.my
114 © 2011, Portio Research. All Rights Reserved
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Company Website
Djezzy Algeria www.djezzygsm.com
Dtac Thailand www.dtac.co.th
Eesti Mobiiltelefon (EMT) Estonia www.emt.ee
Embratel www.embratel.com.br
Ericsson www.ericsson.com
Everything Everywhere UK everythingeverywhere.com
Far EasTone www.fetnet.net
FastWeb www.fastweb.it
Fintur Holding www.finturholdings.com
Foratec Communication foratec-com.ru
France Telecom www.francetelecom.com
Future Group www.futuregroup.in
Globe Philippines www.globe.com.ph
Grameenphone Bangladesh www.grameenphone.com
Hello Axiata Company Ltd Cambodia www.hello.com.kh
Hg Capital www.hgcapital.com
Huawei www.huawei.com
IBM www.ibm.com
Idea Cellular www.ideacellular.com
Inmobiliaria Carso www.carlosslim.com
JPMorgan www.jpmorgan.com
KfW Banking group www.kfw.de
Korek Telecom www.korektel.com
KT Corporation www.kt.com
Kyivstar Ukraine www.kyivstar.ua
Latvijas Mobilais Telefons (LMT) Latvia www.lmt.lv
Lextech Labs www.lextechlabs.com
LIC India www.licindia.in
M1 Limited Singapore www.m1.com.sg
Mahanagar Telephone Nigam Limited (MTNL) www.mtnl.net.in
Manx Telecom www.manxtelecom.com
Mascom Wireless Botswana www.mascom.bw
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Company Website
Maxis Communications www.maxis.com.my
Meditel Morocco www.meditelecom.ma
MegaFon www.megafon.ru
MegaFon Tajikistan www.megafon.tj
Millicom www.millicom.com
Mobile TeleSystems (MTS) www.mtsgsm.com
Mobilink Pakistan www.mobilinkgsm.com
Mobinil Egypt www.mobinil.com
Mobistar Belgium www.mobistar.be
Monet Limited www.monnetgroup.com
Motricity www.motricity.com
Movistar Argentina www.movistar.com.ar
Movistar Chile www.movistar.cl
Movistar Colombia www.movistar.com.co
Movistar Ecuador www.movistar.com.ec
Movistar El Salvador www.movistar.com.sv
Movistar Guatemala www.movistar.com.gt
Movistar Mexico www.movistar.com.mx
Movistar Nicaragua www.movistar.com.ni
Movistar Panama www.movistar.com.pa
Movistar Peru www.movistar.com.pe
Movistar Spain www.movistar.es
Movistar Uruguay www.movistar.com.uy
Movistar Venezuela www.movistar.com.ve
MTN Afghanistan www.mtn.com.af
MTN Benin www.mtn.bj
MTN Cameroon www.mtncameroon.net
MTN Congo - Brazzaville www.mtncongo.net
MTN Cote d'Ivoire www.mtn.ci
MTN Cyprus www.mtn.com.cy
MTN Ghana www.mtn.com.gh
MTN Group Limited www.mtn.com
116 © 2011, Portio Research. All Rights Reserved
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Company Website
MTN Guinea-Bissau www.mtn-bissau.com
MTN Irancell www.irancell.ir
MTN (Lonestar Cell) Liberia www.lonestarcell.com
MTN Nigeria www.mtnonline.com
MTN Rwanda www.mtn.co.rw
MTN South Africa www.mtn.co.za
MTN Sudan www.mtn.sd
MTN Swaziland www.mtn.co.sz
MTN Syria www.spacetelsyria.com
MTN Uganda www.mtn.co.ug
MTN Yemen www.mtn.com.ye
MTN Zambia www.mtnzambia.co.zm
MTS Armenia www.mts.am
MTS Belarus www.mts.by
MTS Turkmenistan www.mts.tm
MTS Ukraine www.mts.com.ua
MTS Uzbekistan www.mts.uz
Ncell Nepal www.ncell.com.np
Netcom Norway www.netcom.no
Nokia Siemens Networks www.nokiasiemensnetworks.com
Norway Post www.norwaypost.no
NTT DOCOMO www.nttdocomo.com
Olivetti www.olivetti.com
Omnitel Lithuania www.omnitel.lt
Optus Australia www.optus.com.au
Orange Armenia www.orangearmenia.am
Orange Austria www.orange.at
Orange Botswana www.orange.co.bw
Orange Cameroon www.orange.cm
Orange Dominican Republic www.orange.com.do
Orange Guinea www.orange.gq
Orange Jordan www.orange.jo
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Company Website
Orange Kenya www.orange.co.ke
Orange Luxembourg www.orange.lu
Orange Madagascar www.orange.mg
Orange Mali www.orangemali.com
Orange Mauritius www.orange.mu
Orange Moldova www.orange.md
Orange Niger www.orange.ne
Orange Poland www.orange.pl
Orange Romania www.orange.ro
Orange Senegal www.orange.sn
Orange Slovakia www.orange.sk
Orange Spain www.orange.es
Orange Switzerland www.orange.ch
Orange Tunisia www.orange.tn
Orange Uganda www.orange.ug
Orascom Telecom Holding www.orascomtelecom.com
PayEx payex.com
PBTL Bangladesh www.citycell.com
Peoples Hongkong www.peoples.com.hk
PLDT, Philippines www.pldt.com.ph
Plus www.plus.pl
Porta Ecuador www.porta.net
Portugal Telecom www.telecom.pt
Promonte Montenegro www.promonte.com
PTC Poland www.era.pl
Qatar Telecom www.qtel.com.qa
Qualcomm www.qualcomm.com
Reliance Communications www.rcom.co.in
Robi Axiata Limited Bangladesh www.robi.com.bd
Samsung www.samsung.com
Saudi Telecom Company www.stc.com.sa
Scartel www.yota.ru
118 © 2011, Portio Research. All Rights Reserved
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Company Website
SFR France www.sfr.fr
Siemens AG www.siemens.com
Singapore Telecom (SingTel) www.singtel.com
Sistema Group www.sistema.com
Smart Communications smart.com.ph
Smart Mobile www.smart.com.kh
Softbank Corporation www.softbank.co.jp
Sprint Nextel www.sprint.com
State Street Bank www.statestreet.com
Sterling Commerce Inc www.sterlingcommerce.com
Stofa www.stofa.dk
Synterra www.synterra.ru
T24 www.t24mobile.com
Tata DOCOMO www.tatadocomo.com
Tata Group www.tata.com
Tata Indicom www.tataindicom.com
Tata Teleservices www.tatateleservices.com
Tcell Tajikistan www.tcell.tj
Tektronix Communications www.tektronixcommunications.com
Telcel Mexico www.telcel.com
Telecominvest www.telecominvest.com
Telecom Italia Group www.telecomitalia.com
Telecom Personal Argentina www.personal.com.ar
Telecom Personal Paraguay www.personal.com.py
Telefonica www.telefonica.com
Telefonica O2 Czech Republic www.o2.cz
Telefonica O2 Germany www.o2online.de
Telefonica O2 Ireland www.o2online.ie
Telefonica O2 Slovakia www.sk.o2.com
Telefonica O2 UK www.o2.co.uk
Telenor www.telenor.com
Telenor Denmark www.telenor.dk
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Company Website
Telenor Hungary www.telenor.hu
Telenor Pakistan www.telenor.com.pk
Telenor Serbia www.telenor.rs
Telenor Sweden www.telenor.se
Telia Denmark www.telia.dk
Telia Sweden www.telia.se
TeliaSonera www.teliasonera.com
TeliaSonera Finland www.sonera.fi
Telkom Indonesia www.telkom.co.id
Telkomsel www.telkomsel.com
Telmex www.telmex.com
TI Media www.telecomitaliamedia.it
TIM Brazil www.tim.com.br
Tiscali www.tiscali.it
TMI India Ltd www.tmiindia.com
T-Mobile Austria www.t-mobile.at
T-Mobile Croatia www.t-mobile.hr
T-Mobile Czech Republic www.t-mobile.cz
T-Mobile Hungary www.t-mobile.hu
T-Mobile Netherlands www.t-mobile.nl
T-Mobile Slovakia www.t-mobile.sk
T-Mobile US www.t-mobile.com
Tracfone US www.tracfone.com
TurkCell www.turkcell.com.tr
Ucell Uzbekistan www.ucell.uz
Uninor India www.uninor.in
Verizon Communications www.verizon.com
Verizon Wireless www.verizonwireless.com
VimpelCom Limited www.vimpelcom.com
Vivo Brazil www.vivo.com.br
Vodacom South Africa www.vodacom.co.za
Vodafone Albania www.vodafone.al
120 © 2011, Portio Research. All Rights Reserved
Mobile Network Operator Groups 2011
Company Website
Vodafone Australia www.vodafone.com.au
Vodafone Czech Republic www.vodafone.cz
Vodafone Egypt www.vodafone.com.eg
Vodafone Fiji www.vodafone.com.fj
Vodafone Germany www.vodafone.de
Vodafone Ghana www.vodafone.com.gh
Vodafone Greece www.vodafone.gr
Vodafone Group www.vodafone.com
Vodafone Hungary www.vodafone.hu
Vodafone India www.vodafone.in
Vodafone Ireland www.vodafone.ie
Vodafone Italy www.vodafone.it
Vodafone Malta www.vodafone.com.mt
Vodafone Netherlands www.vodafone.nl
Vodafone New Zealand www.vodafone.co.nz
Vodafone Portugal www.vodafone.pt
Vodafone Qatar www.vodafone.com.qa
Vodafone Romania www.vodafone.ro
Vodafone Spain www.vodafone.es
Vodafone Turkey www.vodafone.com.tr
Vodafone UK www.vodafone.co.uk
Warid Pakistan www.waridtel.com
Wind Mobile Canada www.windmobile.ca
Wind Telecom S.p.A www.wind.it
XL Axiata Indonesia www.xl.co.id
Yoigo Spain www.yoigo.com
Zain Telecom www.zain.com
Zapp Romania www.zapp.ro
Zong Pakistan www.zong.com.pk
ZTE Corporation www.zte.com.cn
© 2011, Portio Research. All Rights Reserved 121
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About the Authors Purnadeep Chakraborty Purnadeep Chakraborty is working as a Manager with Portio Research and Evalueserve. Over the past six years, he has worked on various projects in the telecom domain. He graduated from Gauhati University, Guwahati, India. He has been working with Portio Research and Evalueserve since December 2004. Sudhir Kumar Sudhir Kumar is working as a Senior Business Analyst with Portio Research and Evalueserve. He graduated from NIT Jalandhar, India. He has been working with Portio Research and Evalueserve since April 2010. Radhika Goel Radhika Goel is working as a Senior Business Analyst with Portio Research and Evalueserve. She post-graduated in Business Management from IMI, India. She has been working with Portio Research and Evalueserve since April 2010. John White John White has been Editor and contributing author for this report. John is Business Development Director for Portio Research and has over 18 years experience in the technical publishing industry. Working in the IT sector previously and in the telecoms industry for the last 11 years, John has extensive experience in the mobile sector.
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Mobile Network Operator Groups 2011
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