telecommunications equipment global carrier capex--credit suis--20080718

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16 July 2008Americas/United States

Equity ResearchTelecommunications Equipment (Communications

Infrastructure/Telecommunications Equipment) / MARKET

Global Carrier Capex QUARTERLY

Updated Outlook We present our outlook for communications infrastructure suppliers that derive significant revenues from communication service providers. This is based on our analysis of global carrier capital expenditures broken down by wireline and wireless technology markets and by developed and emerging geographic markets.

Our key take-aways are as follows:

■ The outlook for capital expenditures by carriers—and therefore for revenue growth for carrier-focused communications equipment suppliers—continues to best be characterized as a shifting rather than rising tide given the projected deceleration in carrier capex growth rates for aggregate global, developed, emerging, wireline, and wireless markets. This general growth outlook applies to near-, intermediate-, and longer-term trends.

■ Certain carrier product markets should maintain significantly higher growth relative to the aggregate capex growth rates. These markets are routers and Ethernet switches, Voice over IP platforms, next-generation optical infrastructure, and FTTX (Fiber-to-the-X) broadband access systems.

■ We believe that one or more major carriers will reduce their planned capital expenditures for the balance of calendar 2008. We are most concerned regarding AT&T. Given our recent industry checks, we believe a meaningful reduction in planned capex is likely. Virtually every supplier to carriers of communications equipment has exposure to AT&T. Nor do we believe the risk of capex reductions is limited to AT&T.

■ Accordingly, we reduced our revenue and EPS estimates for the following suppliers in our coverage universe (see notes published concurrently with this report): ADC Telecommunications (ADCT), Adtran (ADTN), Ciena (CIEN), Cisco (CSCO), Juniper (JNPR), Nortel (NT), Optium (OPTM), and Sonus (SONS). In addition, we downgraded the following stocks:

o ADTN: To Underperform from Neutral o ADCT: To Neutral from Outperform

o CIEN: To Underperform from Outperform o CSCO: To Neutral from Outperform o OPTM: To Neutral from Outperform

Research Analysts

Paul Silverstein 212 325 5290

[email protected]

16 July 2008

Global Carrier Capex 2

Table of Contents Executive Summary 3

Methodology 9 Shifting Rather than Rising Tide 10

2008 Capital Expenditure Outlook: Meaningful Deceleration 10 Second through Fourth Quarter Calendar 2008 Outlook: Even Worse 11 Long-Term Outlook: More of the Same for 2008-2010 12

Capex-to-Revenue Ratios 15 Supplier Implications 17

Supplier Exposure 17 AT&T Exposure 21

Carrier Capex versus Supplier Revenue Outlook—Where Has All the Capex Gone? 22 Currency Impact on Global Capex 25 Huawei 27 Shifting Tide 29 Profitability Headwinds: Emerging versus Developed Markets 30

Second through Fourth Quarter Calendar 2008 Emerging/Developed Market Capex Outlook 32 Wireline versu.Wireless 35 Markets and Technology 38

Carrier Consolidation: Capex Concentration 42 Regional Capex Analysis 44

United States 44 Europe 48 China 51 Japan 52 Asia-Pacific 54 India 57 Latin America 59 Korea 61 Canada 63 Middle East 65 Africa 67 Scandinavia 69 Russia 71

Detailed Carrier Capital Expenditure 73 Detailed Carrier Capex Quarter-over-Quarter Growth 77 Detailed Carrier Capex Year-over-Year Growth 83 Detailed Carrier Capex Seasonality 89

16 July 2008


Executive Summary 2008 Outlook In this report we present our outlook for service provider-focused suppliers of communications infrastructure based on our analysis of global carrier wireline and wireless capital expenditures. Our key takeaways are as follows:

■ The outlook for capital expenditures by carriers—and therefore for revenue growth for carrier-focused suppliers of communications equipment—remains best characterized as a shifting rather than rising tide. In fact, this trend is perhaps more accurately characterized as a receding, but shifting, tide given the projected deceleration in carrier capex growth rates for aggregate global, developed, emerging, wireline, and wireless markets.

■ This general growth outlook applies to near-, intermediate-, and longer-term trends.

■ We believe that one or more major carriers will reduce their planned capital expenditures for the balance of calendar 2008. We are most concerned regarding AT&T, which accounts for 28% of aggregate U.S. capital expenditures and 7% of aggregate global capital expenditures. Given our recent industry checks and the reduced capex outlook noted by Credit Suisse’s service provider analyst, Chris Larsen, we believe a meaningful reduction in planned capex exceeding 10% is likely. Virtually every supplier to carriers of communications equipment has exposure to AT&T. A number of suppliers have significant exposure in terms of both absolute dollars and percentage of revenue. But we do not believe the risk of capex reductions is limited to AT&T.

■ Accordingly, we reduced our revenue and EPS estimates for the following suppliers: ADCT, ADTN, CIEN, CSCO, JNPR, NT, OPTM, and SONS. In addition, we downgraded the following stocks:

o ADTN: To Underperform from Neutral.

o ADCT: To Neutral from Outperform.

o CIEN: To Underperform from Outperform.

o CSCO: To Neutral from Outperform.

o OPTM: To Neutral from Outperform.

We continue to rate JNPR Neutral and SONS Outperform, although we note that each of these suppliers has meaningful exposure to AT&T. We estimate that AT&T represents approximately 5% of JNPR’s current revenues. AT&T generated 32% of SONS’s revenues in calendar 2007.

While ours is not the only capex model, we believe our model is differentiated in three significant respects: it is comprehensive, tracking almost 200 service providers throughout the world; it is detailed, with quarterly and annual regional, developed/emerging and wireline/wireless market breakdowns; and it is objective in that it is based on the carriers’ own forecasts. In addition, we track and analyze service provider capital expenditures over near-, intermediate-, and longer-term time horizons. More specifically, in addition to examining the outlook for calendar 2008, we also look at the nearer second quarter and second through fourth quarter of calendar 2008 and the longer-term calendar 2008-2010.

Over each of these periods, the growth outlook for carrier-focused suppliers of communications infrastructure appears to be challenging. Continuing a five year-trend, in the aggregate, current carrier 2008 forecasts project yet another year of declining capex growth. And they forecast further deceleration in capex growth through calendar 2010.

Moreover, we are concerned that the near-term outlook for carrier-focused communication infrastructure suppliers will further deteriorate, as we believe that there is a meaningful risk

16 July 2008


that a number of Tier 1 service providers in developed markets will reduce their calendar 2008 capex budgets. Given the service provider capex forecasts and our concerns regarding potential capex reductions, we reduced our forecasts and changed our ratings on a number of stocks in our coverage universe. We are most concerned regarding the prospect of meaningful capex reductions by AT&T and Verizon given what appears to be a deteriorating outlook for each of these service providers. Credit Suisse’s service provider team recently reduced its revenue and earnings forecasts for both AT&T and Verizon. This reduced outlook is consistent with historical patterns; service providers typically have lagged in feeling the impact and reacting to a deteriorating macro-economic environment. During these periods where their business models have been under pressure, carriers have typically reacted by reducing planned capital expenditures in order to improve cash flows. Since the U.S. economy started to decelerate in the fourth quarter of 2007, we see heightened risk of capex reductions. Nor do we believe the risk is limited to capex in the United States, but also see similar risk for capex reductions by European service providers. While the macroeconomic downturn in Europe was later, it appears to be accelerating and becoming increasingly severe.

We set forth below a summary of the calendar 2008 outlook for service provider capital expenditures, as further illustrated in Exhibit 1.

Global aggregate capital expenditure. Based on the projections of 151 carriers representing 97.0% of the aggregate global capital expenditure tracked by our database, the outlook for aggregate worldwide capital expenditure by service providers is an increase of 10.9%, or $27.3 billion, in 2008 versus a 13.7% increase in 2007 and a 15.3% average increase over the past five years. On a geographic basis, the 2008 outlook, which is the lowest growth rate in the past five years, is primarily driven by a sizeable deceleration in emerging market capex growth. On a wireline and wireless capex basis, the deceleration in aggregate global capex growth is primarily driven by a substantial deceleration in wireline capex growth, which in turn is being driven by a deceleration in wireline capex by service providers in developed markets.

Developed market capital expenditure. Based on the projections of 91 carriers representing 97.3% of the aggregate capital expenditure in developed markets tracked by our database, the outlook for aggregate capital expenditure in developed markets by service providers is an increase of 7.5%, or $12.6 billion, in 2008 versus an 8.4% increase in 2007 and a 12.2% average increase over the past five years. The 2008 outlook, which is the lowest growth rate in the past five years. On a wireline and wireless capex basis, a significant deceleration in wireline capex growth more than offsets a significant acceleration in wireless growth. Notably, the outlook for wireless capex in developed markets is significantly improved from last year—8.6% growth versus a (1.0%) outright decline, which represents a favorable swing of almost ten percentage points.

Emerging market capital expenditure. Based on the projections of 60 carriers representing 91.8% of the aggregate capital expenditure in emerging markets tracked by our database, the outlook for aggregate capital expenditure in emerging markets by service providers is an increase of 17.8%, or $14.6 billion, in 2008 versus a 26.4% increase in 2007 and a 23.8% average increase over the past five years. The 2008 outlook, which is the second lowest growth rate in the past five years, is primarily driven by a dramatic deceleration in wireless capex growth, which more than offsets an acceleration in wireline capex growth, and drives much of the deceleration in the emerging market growth rate.

Global wireline capital expenditure. Based on the projections of 112 carriers representing 93.4% of the aggregate wireline capital expenditure tracked by our database, the outlook for aggregate worldwide wireline capital expenditure by service providers is an increase of 8.4%, or $10.8 billion, in 2008 versus a 15.1% increase in 2007 and a 13.4% average increase over the past five years. The 2008 outlook, which is the lowest growth rate in the past five years, is primarily driven by a significant deceleration in developed market wireline capex growth, which offsets an acceleration in emerging market wireline capex growth.

16 July 2008


Wireline developed market capital expenditure. In the aggregate, service providers project an increase of 6.7%, or $6.8 billion, for wireline capital expenditure in developed markets in 2008 versus a 15.9% increase in 2007 and a 13.3% average increase over the past five years. The 2008 outlook is the lowest growth rate in the past five years and is just over half the 15.9% growth rate in 2007.

Wireline emerging market capital expenditure. In the aggregate, service providers project an increase of 14.4%, or $4.0 billion, for wireline capital expenditure in emerging markets in 2008 versus a 12.3% increase in 2007 and a 14.7% average increase over the past five years, while 25 percentage points lower than the 39.3% growth rate posted in 2003, the 2008 outlook is 2.1 percentage points higher than the 2007 growth rate and marks a third straight year of accelerating growth in wireline capex in emerging markets.

Global wireless capital expenditure. Based on the projections of 80 carriers representing 97.7% of the aggregate wireless capital expenditure tracked by our database, the outlook for aggregate worldwide wireless capital expenditure by service providers is an increase of 13.4%, or $16.5 billion, in 2008 versus a 12.3% increase in 2007 and a 17.6% average increase over the past five years. While the second lowest in the past five years, the 2008 outlook marks a 1.1 percentage point increase over the 2007 growth rate. A significant acceleration in wireless capex growth in developed markets more than offsets a dramatic deceleration in wireless capex growth in emerging markets.

Wireless developed market capital expenditure. In the aggregate, service providers project an increase of 8.6%, or $5.9 billion, for wireless capital expenditure in developed markets in 2008 versus a (1.0%) decrease in 2007 and an 11.0% average increase over the past five years. While the outlook marks the second lowest increase in the past five years, it represents a dramatic reversal from the outright decline in 2007 in capital expenditures by wireless service providers in developed markets.

Wireless emerging market capital expenditure. In the aggregate, service providers project an increase of 19.6%, or $10.6 billion, for wireless capital expenditure in emerging markets in 2008 versus a 35.1% increase in 2007 and a 30.8% average increase over the past five years. The 2008 outlook is the lowest growth rate in the past five years and is approximately half the 35.1% increase in 2007.

16 July 2008


Exhibit 1: Annual Capex Trends, 2003–08E Global Capex - Annual 2003 2004 2005 2006 2007 2008E$ USD millionsAGGREGATE CAPEX 142,045 168,518 191,487 221,015 251,246 278,513

- 0.0% 0.0% 0.0% 0.0% 0.0%Developed Markets 106,813 121,268 134,951 156,068 169,146 181,783

Wireline 61,113 66,320 75,338 86,830 100,601 107,364 Wireless 45,700 54,948 59,613 69,238 68,545 74,419

Emerging Markets 35,232 47,250 56,536 64,947 82,100 96,730 Wireline 16,612 23,133 23,667 24,824 27,880 31,897 Wireless 18,620 24,117 32,869 40,123 54,220 64,833

Wireline 77,725 89,454 99,005 111,654 128,481 139,261 Developed Markets 61,113 66,320 75,338 86,830 100,601 107,364 Emerging Markets 16,612 23,133 23,667 24,824 27,880 31,897

- Wireless 64,320 79,065 92,482 109,362 122,765 139,253

Developed Markets 45,700 54,948 59,613 69,238 68,545 74,419 Emerging Markets 18,620 24,117 32,869 40,123 54,220 64,833

Global Capex - Y/Y Growth 2004 2005 2006 2007 2008EAGGREGATE CAPEX 18.6% 13.6% 15.4% 13.7% 10.9%

Developed Markets 13.5% 11.3% 15.6% 8.4% 7.5%Wireline 8.5% 13.6% 15.3% 15.9% 6.7%Wireless 20.2% 8.5% 16.1% -1.0% 8.6%

Emerging Markets 34.1% 19.7% 14.9% 26.4% 17.8%Wireline 39.3% 2.3% 4.9% 12.3% 14.4%Wireless 29.5% 36.3% 22.1% 35.1% 19.6%

Wireline 15.1% 10.7% 12.8% 15.1% 8.4%Developed Markets 8.5% 13.6% 15.3% 15.9% 6.7%Emerging Markets 39.3% 2.3% 4.9% 12.3% 14.4%

Wireless 22.9% 17.0% 18.3% 12.3% 13.4%Developed Markets 20.2% 8.5% 16.1% -1.0% 8.6%Emerging Markets 29.5% 36.3% 22.1% 35.1% 19.6%

Segment CapEx as a % of Aggregate CapEx2003 2004 2005 2006 2007 2008E

AGGREGATE CAPEX 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Developed Markets 75.2% 72.0% 70.5% 70.6% 67.3% 65.3%Wireline 43.0% 39.4% 39.3% 39.3% 40.0% 38.5%Wireless 32.2% 32.6% 31.1% 31.3% 27.3% 26.7%

Emerging Markets 24.8% 28.0% 29.5% 29.4% 32.7% 34.7%Wireline 11.7% 13.7% 12.4% 11.2% 11.1% 11.5%Wireless 13.1% 14.3% 17.2% 18.2% 21.6% 23.3%

Wireline 54.7% 53.1% 51.7% 50.5% 51.1% 50.0%Developed Markets 43.0% 39.4% 39.3% 39.3% 40.0% 38.5%Emerging Markets 11.7% 13.7% 12.4% 11.2% 11.1% 11.5%

Wireless 45.3% 46.9% 48.3% 49.5% 48.9% 50.0%Developed Markets 32.2% 32.6% 31.1% 31.3% 27.3% 26.7%Emerging Markets 13.1% 14.3% 17.2% 18.2% 21.6% 23.3%

Source: Company data.

16 July 2008


Exhibit 2: Annual Global Capex

18.6%

13.6%

15.4%13.7%

10.9%

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2003 2004 2005 2006 2007 2008E

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Total Capital Ex penditure ($) Total Capex Y/Y Grow th Rate

Source: Company data, Credit Suisse estimates.

Exhibit 3: Annual Global Capex—Developed Markets Exhibit 4: Annual Global Capex—Emerging Markets

13.5%

11.3%

15.6%

8.4%7.5%

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

2004 2005 2006 2007 2008E

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Dev eloped Market Capital Ex penditure ($) Dev eloped Market Capex Y/Y Grow th Rate

34.1%

19.7%

14.9%

26.4%

17.8%

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2004 2005 2006 2007 2008E

0%

5%

10%

15%

20%

25%

30%

35%

40%

Emerging Market Capital Ex penditure ($) Emerging Market Capex Y/Y Grow th Rate

Source: Company data, Credit Suisse estimates. Source: Company data, Credit Suisse estimates.

Exhibit 5: Annual Global Capex—Wireline Exhibit 6: Annual Global Capex—Wireless

15.1%

10.7%

12.8%

15.1%

8.4%

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

2004 2005 2006 2007 2008E

0%

2%

4%

6%

8%

10%

12%

14%

16%

Wireline Capital Ex penditure ($) Wireline Y/Y Grow th Rate

22.9%

17.0%18.3%

12.3%13.4%

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

2004 2005 2006 2007 2008E

0%

5%

10%

15%

20%

25%

Wireless Capital Ex penditure ($) Wireless Y/Y Grow th Rate


16 July 2008


Exhibit 7: Annual Global Capex—Wireline/Developed Exhibit 8: Annual Global Capex—Wireless/Developed

8.5%

13.6%

15.3% 15.9%

6.7%

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

2004 2005 2006 2007 2008E

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Wireline Dev eloped Capex ($) Wireline Dev eloped Capex Y/Y Grow th Rate

20.2%

8.5%

-1.0%

8.6%

16.1%

$0

$20,000

$40,000

$60,000

$80,000

2004 2005 2006 2007 2008E

-5%

0%

5%

10%

15%

20%

25%

Wireless Dev eloped Capex ($) Wireless Dev eloped Capex Y/Y Grow th Rate


Exhibit 9: Annual Global Capex—Wireline/Emerging Exhibit 10: Annual Global Capex—Wireless/Emerging

39.3%

2.3%

14.4%

4.9% 12.3%

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

2004 2005 2006 2007 2008E

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Wireline Emerging Capex ($) Wireline Emerging Capex Y/Y Grow th Rate

29.5%

36.3% 35.1%

19.6%22.1%

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

2004 2005 2006 2007 2008E

0%

5%

10%

15%

20%

25%

30%

35%

40%

Wireless Emerging Capex ($) Wireless Emerging Capex Y/Y Grow th Rate


16 July 2008


Methodology In this report we provide our outlook for service provider-focused suppliers of communications infrastructure for calendar 2008 based on our analysis of global carrier wireline and wireless capital expenditures by over 150 carriers across 13 different regions, with quarterly and annual regional, developed/emerging market and wireline/wireless market breakdowns. We also examine both the more immediate capex outlook for the balance of the calendar 2008 and the longer-term 2008-2010 outlook based on guidance provided by a subsets of our larger database that accounts for 41% and 32%, respectively, of the 2008 capex outlook.

With limited exceptions, the historical quarterly and annual capital expenditure numbers are the actual capital expenditures reported by the carriers and the respective calendar 2008 and 2008-2010 capital expenditure projections are the forecasts provided by the carriers themselves. We in turn derive the outlook for capex over the balance of 2008 from the carriers’ full year calendar 2008 capex projections less the capex they reported in the first quarter of calendar 2008.

In our analysis, we have broken out wireline and wireless capex for those carriers that operate in both the wireline and the wireless markets. Accordingly, aggregate wireline capex consists of capex reported by dedicated wireline carriers plus the wireline portion of aggregate capex reported by service providers operating in both markets (e.g., AT&T, Verizon, Deutsche Telekom, France Telecom, Telstra). Similarly, aggregate wireless capex consists of capex reported by dedicated wireless carriers plus the wireless portion of aggregate capex reported by service providers operating in both markets.

The wireless and wireline breakdowns are based, with limited exception, on carrier data via actual wireless/wireline capex breakdowns reported by each of the carriers. Where it is not otherwise broken out by those carriers that provide both wireline and wireless services, we estimated the split between wireless and wireline capital expenditures to be the same as such carriers’ wireless/wireline revenue mix.

For the developed and emerging market breakdowns, we started by dividing the world as follows: developed markets comprise the United States, Canada, Europe, Scandinavia, Japan, and Korea; emerging markets consist of India, China, Asia-Pacific (excluding Japan and Korea), Russia, Latin America, Africa, and the Middle East. For carriers that provide services in more than one region (e.g., Deutsche Telekom, Telefonica, Telecom Italia), either directly or via operating subsidiaries, we have disaggregated them into each applicable region the reported capex for each such carrier based on the available reported disclosure. For example, T-Mobile USA capex is included in the U.S. region and is not included in our calculation for Europe’s aggregate capex. Additionally, for those companies that report in currencies other than U.S. dollars we have applied the applicable exchange rates that prevailed during the respective reporting calendar quarters and years.

16 July 2008


Shifting Rather than Rising Tide 2008 Capital Expenditure Outlook: Meaningful Deceleration Based on our bottom-up model, the calendar 2008 outlook for global carrier capital expenditure supports the view that the trend of capital expenditures by service providers remains most accurately characterized as a shifting rather than a rising tide. In fact, this trend is perhaps more accurately characterized as a receding, but shifting, tide given the projected deceleration in carrier capex growth rates for aggregate global, developed, emerging, wireline and wireless markets. As illustrated in Exhibit 11, at present, based on the projections of carriers representing approximately 97.0% of the global capital expenditures tracked by our database, the calendar 2008 10.9% growth outlook for aggregate global capital expenditure represents a meaningful deceleration from both the 13.7% increase in calendar 2007 and the 15.3% average growth rate during 2003-07 and is also the lowest growth rate in the past five years. Notably, this deceleration appears to be driven by decreasing capital expenditures by wireline service providers in developed countries and wireless service providers in emerging countries, both of which after sustaining sizable increases from 2004 to 2007, appear to be markedly ratcheting down the growth rate of their capital expenditures in calendar 2008. This overall trend of decelerating growth in global capital expenditures is consistent with the longer-term outlook for service provider global capex, which we detail in the “Longer-Term Outlook” section below. In summary, a subset of 23 carriers that account for $114.6 billion, or 41%, of the aggregate calendar 2008 global capital expenditure forecast tracked by our database is projecting an outright (0.2%) decline in 2009 from their 2008 forecasted capex and a subset of 17 carriers that have provided capital expenditure guidance out to 2010 and beyond, which account for $88.7 billion, or 32%, of the aggregate calendar 2008 global capital expenditure forecast tracked by our database, is projecting a 0.3% year-over-year growth rate for 2009 and an outright (3.0%) decline for 2010.

While the overall carrier market opportunity remains constrained for communication infrastructure suppliers, as we discuss below, not all product markets have equal exposure to this larger trend. Creating opportunities for certain suppliers and risks for others, carriers continue to shift their capital expenditures to next-generation infrastructure and technologies that offer the proposition of driving revenue growth (such as FTTx initiatives) or of lowering operating and capital expenditures by virtue of faster and more flexible service provisioning and decreased operations, administration and maintenance spending.

Of course, carrier capex is not a perfect forecast tool with respect to supplier revenues. Needless to say, any one or more suppliers could buck the overall carrier capex trend. In addition, historically, approximately 40-50% of capex has been spent on communications infrastructure. A positive shift in this percentage would benefit supplier revenues while a decrease in this percentage would result in less capex translating into revenues. Finally, there is always the prospect that carriers spend meaningfully less or more than what they forecast. While we believe that in a low revenue growth environment—which is what most carriers throughout the world currently find themselves in—carriers in the aggregate are unlikely to meaningfully spend more than their current forecasts, a small number of carriers have demonstrated a historic penchant for spending more than their capex forecasts for the calendar year.

16 July 2008


Exhibit 11: Annual Global Capex and Year-over-Year Growth

18.6%

13.6%

15.4%13.7%

10.9%

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2003 2004 2005 2006 2007 2008E

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Total Capital Ex penditure Total Y/Y Grow th


Second through Fourth Quarter 2008 Outlook: Even Worse Based on a subset of 131 of 151 service providers in our global proprietary capex databases that have both reported first quarter 2008 capex and provided 2008 capex guidance, we examine the outlook for global capex spending for the remaining three quarters of calendar 2008.

Based on this subset, subtracting the reported capital expenditure for the calendar first quarter from the service providers’ capital expenditure projections for the calendar year, the outlook for the three remaining quarters of calendar 2008 is for an aggregate increase in capital expenditure of $10.8 billion, or 6.7%, over the comparable year-ago period. This 6.7% growth rate compares to a 10.9% year-over-year increase for the same period in calendar 2007 and is the lowest year-over-year growth rate for the second through fourth calendar quarters in the past five years.

Compared to the first quarter of calendar 2008, the outlook for the second through fourth quarters of 2008 translates to an average of $57.4 billion per quarter of aggregate global capital expenditure, which represents an increase of 12.5% over the first quarter of calendar 2008 versus an 18.8% comparable increase last year and an average 21.9% increase over the past five years. Viewed another way, the $51.0 billion of capital expenditure in the first quarter represents an above average 22.9% of the projected 2008 annual capital expenditure by the service providers in our database and correspondingly the outlook for capital expenditure over the balance of 2008 is for a subseasonal 77.1% of the $223.1 billion 2008 projection versus the 77.5-78.8% that characterized the four preceding years.

16 July 2008


Exhibit 12: Global Capex—First Quarter versus Second through Fourth Quarter Average Global Capex - 1Q v. 2Q-4Q

1Q 2Q-4Q 1Q 2Q-4Q 1Q 2Q-4Q 1Q 2Q-4Q 1Q 2Q-4QETOTAL GLOBAL CAPEX 29,304 109,099 34,270 126,468 39,818 145,437 45,249 161,242 50,995 172,082Percentage of Annual 21.2% 78.8% 21.3% 78.7% 21.5% 78.5% 21.9% 78.1% 22.9% 77.1%

Avg 2Q-4Q v. 1Q 29,304 36,366 34,270 42,156 39,818 48,479 45,249 53,747 50,995 57,361 Y/Y Growth 16.9% 15.9% 16.2% 15.0% 13.6% 10.9% 12.7% 6.7%Avg 2Q-4Q v. 1Q Growth 24.1% 23.0% 21.8% 18.8% 12.5%

20082004 2005 2006 2007


Exhibit 13: Annual Global Capex and Year-over-Year

Growth

Exhibit 14: Global Capex Second through Fourth Quarter

Outlook and Year-over-Year Growth Reported Capex - Global Annual$ USD millions 2004 2005 2006 2007 2008ETOTAL GLOBAL CAPEX 138,403 160,738 185,255 206,491 223,078Y/Y Growth 16.1% 15.3% 11.5% 8.0%

Reported Capex - Outlook 2Q-4Q 2Q-4Q 2Q-4Q 2Q-4Q 2Q-4Q$ USD millions 2004 2005 2006 2007 2008ETOTAL GLOBAL CAPEX 109,099 126,468 145,437 161,242 172,082Y/Y Growth 15.9% 15.0% 10.9% 6.7%

16.1%15.3%

11.5%

8.0%

$0$20,000$40,000$60,000$80,000

$100,000$120,000$140,000$160,000$180,000$200,000$220,000$240,000

2004 2005 2006 2007 2008E

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Capital Ex penditure Y/Y Grow th

15.9%15.0%

10.9%

6.7%

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

2004 2005 2006 2007 2008E

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Capital Ex penditure Y/Y Grow th


Long-Term Outlook: More of the Same for 2008-2010 The challenging carrier capital expenditure outlook is not limited to the near term either. Based on carrier forecasts and historical trends, we expect growth to continue to trend lower for the foreseeable future. We expect aggregate global capex growth to significantly decelerate in calendar 2009 and 2010 as carriers in developed markets continue to find a challenging operating environment and capex growth in emerging markets naturally begins to slow due to a rising base.

As illustrated in Exhibit 15, a subset of the carriers in our database consisting of 23 carriers accounting for 41% of the aggregate 2008 forecast, project a calendar 2009 capex decline of (0.2)%, which represents a decline of (14.5) percentage points compared to their 14.3% aggregate forecast for calendar 2008. This subset consists of 8 of the top 10 and 11 of the top 25 service providers in the world as measured by capital expenditures.

Also illustrated in Exhibit 15, a further subset of 17 carriers accounting for 32% of the aggregate 2008 forecast project a calendar 2010 capex decline of (3.0%), which represents a decline of (3.3) percentage points compared to their 0.3% aggregate 2009 forecast and a decline of (17.4) percentage points compared to their 14.4% aggregate 2008 forecast. This subset consists of 6 of the top 10 and 9 of the top 25 service providers in the world as measured by capital expenditures.

The 2009 and 2010 datasets are particularly representative of capital expenditures in developed markets. The 2009 subset represents 44% of the aggregate 2008 forecast for carrier capex in developed markets and consists of 7 of the top 10 service providers in developed markets as measured by capital expenditures, with Verizon and BT being the most notable absences. The 2010 subset represents 30% of the aggregate 2008 forecast

16 July 2008


for carrier capex in developed markets and consists of 5 of the top 10 service providers in developed markets as measured by capital expenditures.

Exhibit 15: Calendar 2009–2012 Capex Outlook Global Capex - Annual$ USD millions 2003 2004 2005 2006 2007 2008E 2009E 2010E 2011E 2012EAT&T US 8,510 9,654 12,976 15,415 17,188 17,983 19,539 20,809 22,162 n/aChina Mobile China 5,977 6,939 8,086 10,943 13,828 17,135 16,030 15,207 n/a n/aVodafone Europe 7,972 8,680 7,027 7,541 9,384 11,452 11,422 n/a n/a n/aFrance Telecom Europe 5,801 5,507 7,467 8,491 9,609 10,128 11,151 11,374 n/a n/aDeutsche Telekom Europe 5,502 5,905 6,701 8,186 8,433 8,848 8,274 n/a n/a n/aTelefonica (ex-LatAm) Europe 3,421 3,645 5,572 6,557 6,441 7,830 6,185 6,185 n/a n/aTelecom Italia Europe 4,255 4,748 5,176 5,338 6,392 7,821 7,817 7,191 n/a n/aNTT DoCoMo Japan 6,954 8,536 7,451 7,945 6,319 6,834 6,888 6,706 n/a n/aBSNL India 52 1,544 1,480 1,338 2,853 4,700 4,983 4,983 n/a n/aTelefonica Latin America Latin Am 1,270 1,661 2,498 2,832 3,843 4,625 6,771 6,771 n/a n/aTelstra Asia Pacific 2,751 3,264 2,106 3,250 4,547 4,348 4,023 2,676 n/a n/aT-Mobile US 1,734 2,173 2,243 2,570 2,603 3,350 2,640 1,649 n/a n/aKPN Europe 1,586 2,104 1,707 2,083 2,291 2,897 2,897 n/a n/a n/aSouth Africa Telecom Africa 577 857 1,108 1,355 1,422 1,733 1,255 1,079 n/a n/aTIM Brasil Latin Am 175 234 293 733 1,023 864 432 432 n/a n/aCable & Wireless Europe 416 500 680 726 811 783 924 n/a n/a n/aOptus Asia Pacific 497 446 630 780 723 771 780 n/a n/a n/aLG Telecom Korea 388 297 327 410 641 594 436 n/a n/a n/aTelecom Argentina Latin Am 0 177 215 399 462 542 590 n/a n/a n/aTelekom Malaysia Asia Pacific 522 588 718 708 703 523 523 523 276 276 Tiscali Europe 86 150 201 225 275 314 255 255 n/a n/aSonaecom Europe 136 163 141 170 239 310 314 318 n/a n/aEmpresa de Telecom de Bogota (ETB) Latin Am n/a 55 48 131 206 150 150 150 150 150 CTI Group Asia Pacific 34 52 57 32 17 36 36 36 n/a n/a

Total CY 2009 Subset 58,616 67,878 74,906 88,158 100,252 114,571 114,316 Y/Y Growth 15.8% 10.4% 17.7% 13.7% 14.3% -0.2%

Total CY 2009 and CY 2010 Subset 42,255 49,769 57,620 68,034 77,507 88,684 88,993 86,346 Y/Y Growth 17.8% 15.8% 18.1% 13.9% 14.4% 0.3% -3.0%

Developed Market CY 2009 Subset 46,761 52,062 57,668 65,656 70,625 79,144 78,742 Y/Y Growth 11.3% 10.8% 13.9% 7.6% 12.1% -0.5%

Developed Market CY 2009 and CY 2010 Subset 30,897 34,576 41,226 46,711 49,065 54,570 54,789 54,488 Y/Y Growth 11.9% 19.2% 13.3% 5.0% 11.2% 0.4% -0.5%

Emerging Market CY 2009 Subset 11,855 15,816 17,238 22,501 29,627 35,427 35,573 Y/Y Growth 33.4% 9.0% 30.5% 31.7% 19.6% 0.4%

Emerging Market CY 2009 and CY 2010 Subset 11,358 15,193 16,393 21,323 28,442 34,114 34,204 31,858 Y/Y Growth 33.8% 7.9% 30.1% 33.4% 19.9% 0.3% -6.9%


While the datasets capture a much smaller slice of capex by carriers in emerging markets, we expect emerging market carrier capex growth will also decline, and likely at a faster pace than will capex in developed markets. This view is supported by historical trends. As can be seen in Exhibit 16, the growth rates of carrier capex in developed and emerging markets have been converging, with each decelerating, but capex in emerging markets decelerating more rapidly from a much higher base. This trend corresponds with what one would expect as fast-growing emerging markets—India especially—continue to mature. In addition, the “law of large numbers” also should play a role with naturally decelerating growth off of an increasing large capex base. As illustrated in Exhibit 17, these trends can be seen in the rate of historical capex increases by service providers in China.

As discussed at greater length below in the section titled “Carrier Consolidation: Capex Concentration,” we expect further consolidation among service providers to add to the challenging longer-term outlook for carrier-focused communications infrastructure suppliers.

16 July 2008


Exhibit 16: Annual Global Capex by Developed/Emerging Markets

13.5%11.3%

34.1%

19.7%15.6%

7.5%8.4%

17.8%26.4%

14.9%

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

2004 2005 2006 2007 2008E

0%

5%

10%

15%

20%

25%

30%

35%

40%

Dev eloped Capex ($) Emerging Capex ($)

Dev eloped Y/Y Grow th Rate Emerging Y/Y Grow th Rate


Exhibit 17: China Carriers’ Capex Trends, 2003–08E CHINA CARRIERS' CAPEX 2003 2004 2005 2006 2007 2008EIn millions of RMB

Total 99,878 150,784 157,742 178,279 197,052 222,750Wireline 34,888 83,563 81,429 75,559 66,242 64,600 Wireless 64,990 67,221 76,313 102,720 130,810 158,150

Total Y/Y Growth 51.0% 4.6% 13.0% 10.5% 13.0%Wireline Y/Y Growth 139.5% -2.6% -7.2% -12.3% -2.5%Wireless Y/Y Growth 3.4% 13.5% 34.6% 27.3% 20.9% Source: Company data, Credit Suisse estimates.

16 July 2008


Capex-to-Revenue Ratios In this section we analyze capex-to-revenue ratios using the same global, developed/emerging, wireline/wireless and regional breakdowns that we used for capital expenditures by dollars throughout this report. Encouraging for communication equipment suppliers, as illustrated in Exhibit 18, projected 2008 capex-to-revenue ratios generally do not appear to be inordinately high relative to their levels over the past five years. The two sub-markets where capex-to-revenue ratios appear to be high relative to historical trend levels are wireless capex by carriers in emerging markets and wireline capex by carriers in developed markets. While the relatively high capex to revenue ratio for wireless capex in emerging markets is not surprising given the significant growth of wireless telecommunications in these markets, as these markets eventually mature and revenue growth moderates we would expect capex to revenue ratios to decline to more sustainable levels.

Global aggregate capex-to-revenue ratio. Based on the projections provided by the service providers themselves, the outlook for global capital expenditures as percentage of revenues is 17.5% versus 18.2% in 2007 and a 17.9% five year average and is the lowest capex to revenue ratio since 2004.

Developed market capex-to-revenue ratio. Based on the projections provided by the service providers themselves, the outlook for developed market capital expenditures as percentage of revenues is 16.6% versus 17.2% in 2007 and a 17.0% five year average and is the lowest capex to revenue ratio since 2004. This 60-basis-point decline was driven by a more significant decrease in the wireless sector in developed markets with capital expenditures as a percentage of revenue declining 100 basis points to 15.5% versus the 40-basis-point decline to 17.4% in the wireline sector in developed markets.

Emerging market capex-to-revenue ratio. Based on the projections provided by the service providers themselves, the outlook for emerging market capital expenditures as percentage of revenues is 21.9% versus 23.6% in 2007 and a 23.4% five-year average and is the lowest capex ratio since 2004. This 170-basis-point decline was driven by a more significant decrease in the wireless sector in emerging markets with capital expenditures as a percentage of revenue declining 390 basis points to 24.4% versus the 100-basis-point decline to 17.4% in the wireline sector in emerging markets.

Global wireline capex-to-revenue ratio. Based on the projections provided by the service providers themselves, the outlook for wireline capital expenditures as percentage of revenues is 17.4% versus 17.6% in 2007 and a 16.6% five year average and although this ratio is lower than 2007, it represents the second highest capex ratio since 2004. This 20-basis-point decline was driven by a decrease in the wireline sector in developed markets with capital expenditures as a percentage of revenue declining 40 basis points to 17.4%, which offset the 100-basis-point increase to 17.4% in the wireline sector in emerging markets.

Global wireless capex to revenue ratio. Based on the projections provided by the service providers themselves, the outlook for wireless capital expenditures as percentage of revenues is 17.6% versus 19.0% in 2007 and a 19.7% five-year average and is the lowest capex to revenue ratio since 2004. This 140-basis-point decline was driven by a decrease in the wireless sector in emerging markets with capital expenditures as a percentage of revenue declining 390 basis points to 24.4% versus a 100-basis-point decline to 15.5% in the wireline sector in developed markets.

16 July 2008


Exhibit 18: Capex to Revenue Ratios, 2004–08E Global Capex to Revenue 2004 2005 2006 2007 2008ETOTAL GLOBAL CAPEX TO REV 17.2% 18.0% 18.5% 18.2% 17.5%

Developed Markets 16.3% 17.1% 17.6% 17.2% 16.6%Wireline 14.5% 16.1% 16.6% 17.8% 17.4%Wireless 19.5% 18.4% 19.2% 16.5% 15.5%



Wireless 20.9% 20.3% 20.9% 19.0% 17.6%Developed Markets 19.5% 18.4% 19.2% 16.5% 15.5%Emerging Markets 29.6% 28.8% 27.9% 28.3% 24.4%


Exhibit 19: Capex/Revenue Ratio by Region, 2004–08E Global Capex/ Revenue - AnnualCapex as % of Revenues 2004 2005 2006 2007 2008EUnited States 16.0% 16.8% 17.7% 17.2% 17.7%Europe 13.6% 13.4% 14.3% 14.3% 13.9%Asia-Pacific 19.7% 19.1% 20.0% 20.4% 30.8%Japan 15.9% 17.5% 17.2% 15.9% 26.5%Korea 15.7% 14.8% 17.8% 17.0% 25.8%China 31.1% 28.4% 29.1% 29.3% 51.6%Scandinivia 17.7% 19.6% 16.6% 17.5% 33.9%Russia 37.3% 35.9% 24.5% 20.3% 65.5%India 31.7% 32.8% 36.3% 51.6% 55.7%Middle East 31.7% 21.4% 16.3% 20.7% 40.4%Africa 21.0% 24.0% 26.1% 19.0% 72.9%Latin America 16.5% 15.8% 14.7% 14.2% 27.2%Canada 22.7% 23.3% 19.3% 19.5% 21.1%Total 17.0% 17.3% 17.7% 17.7% 21.7% Source: Company data, Credit Suisse estimates.

16 July 2008


Supplier Implications Supplier Exposure Exhibit 20 through Exhibit 22 provide insight as to the exposure of over 50 communication equipment suppliers to the carrier capex trends discussed in this report. The three exhibits focus on total carrier exposure, individual carrier, and geographic exposure customer exposure for each of these suppliers. More specifically, Exhibit 20 illustrates the percentage of revenue derived from all carriers by each of these equipment suppliers. details the percentage of revenue generated in different geographic regions by the listed suppliers. Exhibit 21 indicates any 10% carrier end-customers and their respective percentage contribution (in the most recent fiscal year) for each such supplier. And Exhibit 22 details the percentage of revenue generated in different geographic regions by the listed suppliers.

16 July 2008


Exhibit 20: Customer Segment Exposure

Supplier Ticker

% Revenues from Service

Providers% Revenues

from Enterprise

% Revenues from

Consumers3Com COMS 0.0% 100.0% 0.0%Acme Packet APKT 98.0% 2.0% 0.0%ADC Telecommunications ADCT 85.0% 15.0% 0.0%Adtran ADTN 91.5% 8.5% 0.0%ADVA Optical ADV-DE 100.0% 0.0% 0.0%Airspan AIRN 100.0% 0.0% 0.0%Airvana AIRV 100.0% 0.0% 0.0%Alcatel/Lucent ALU 89.3% 10.7% 0.0%Allot ALLT > 90% < 10% < 10%Alvarion ALVR 100.0% 0.0% 0.0%ARRIS ARRS 100.0% 0.0% 0.0%Aruba ARUN 0.0% 100.0% 0.0%AudioCodes AUDC 100.0% 0.0% 0.0%Aware AWRE N/A N/A N/ABigBand BBND 100.0% 0.0% 0.0%BlueCoat BCSI 0.0% 100.0% 0.0%Brocade BRCD 0.0% 100.0% 0.0%Ceragon CRNT 85.0% 15.0% 0.0%Ciena CIEN 90.0% 10.0% 0.0%Cisco CSCO 23.7% 67.6% 8.7%Commscope CTV 79.0% 21.0% 0.0%Ditech DITC 100.0% 0.0% 0.0%D-Link 625487 0.0% 69.6% 30.4%Echelon ELON 0.0% 100.0% 0.0%Ericsson ERIC 100.0% 0.0% 0.0%Extreme EXTR 16.3% 83.7% 0.0%F5 FFIV 19.0% 81.0% 0.0%Foundry FDRY 29.0% 71.0% 0.0%Harmonic HLIT 100.0% 0.0% 0.0%Huawei 94.4% 4.5% 1.1%Infinera INFN 100.0% 0.0% 0.0%Juniper Networks JNPR 77.2% 22.8% 0.0%Motorola MOT 65.9% 24.0% 10.1%Netgear NTGR 0.0% 56.4% 43.6%Nokia-Siemens Networks NOK 94.4% 5.1% 0.5%Nortel NT 72.2% 27.8% 0.0%Polycom PLCM 5.0% 95.0% 0.0%Radware RDWR 30.0% 70.0% 0.0%Riverbed RVBD 0.0% 100.0% 0.0%Sandvine SAND.L 100.0% 0.0% 0.0%Shoretel SHOR 0.0% 100.0% 0.0%Sonus SONS 100.0% 0.0% 0.0%Starent STAR 100.0% 0.0% 0.0%Sycamore SCMR 100.0% 0.0% 0.0%Tandberg TAA-NO 0.0% 100.0% 0.0%Tekelec TKLC 100.0% 0.0% 0.0%Tellabs TLAB 100.0% 0.0% 0.0%UTStarcom UTSI 100.0% 0.0% 0.0%Veraz VRAZ 100.0% 0.0% 0.0%Voltaire VOLT 0.0% 100.0% 0.0%Westell WSTL 0.0% 0.0% 100.0%Zhone Technologies ZHNE 100.0% 0.0% 0.0%ZTE B04KP8 95.7% 0.0% 4.3%Average 84.7% 12.2% 3.1% Source: Company data, Credit Suisse estimates.

16 July 2008


Exhibit 21: 10% Customer and Strategic Partner Exposure

Supplier 10% End-Customers (Last Fiscal Year) 10% Strategic Partner (Last Fiscal Year)

3Com Huawei (20%), Ingram Micro (11%)Acme Packet Sprint Nextel (13%) Alcatel Lucent (17%), Nokia Siemens Networks (15%), Ericsson (11%)

ADC Telecom Verizon (17.8%), AT&T (15.4%)Adtran AT&T (23%), Embarq (12%), Verizon (12%), Qwest (13%)ADVA Optical No 10% customers but BT and DT are the largest customersAirspan Axtel (15%), Yozan (12%), Deutsche Breitband Dienste GmbH

(10%)Airvana Alltel, Bell Mobility, Sprint Nextel, Telefonica, Telus and Verizon

Wireless are major customersNortel (99%)

Alcatel/Lucent No 10% customersAllot No 10% customersAlvarion Did not provideARRIS Comcast (39.8%), Time Warner Cable (10.7%)Aruba No 10% customersAudioCodes Nortel (17%)Aware Infineon (19%), Spirent (16%), Alcatel Lucent(10%)BigBand Cox(11%), Time Warner Cable (13%), Verizon (40%)BlueCoat Alternative Data Techology (12%) (distributor)Brocade EMC, Hewlett-Packard, IBMCeragon Nokia Siemens (10%)Ciena AT&T (25.3%), Sprint (12.8%)Cisco No 10% customersCommscope Anixter (25%), Alcatel Lucent (11%)Ditech Verizon Wireless (35%), Intercall/West (12%), Orascom (11%)D-Link Did not provideEchelon Telvent (28.2%), EBV (12.8%), ES (11.4%), Enel (10.3%)Ericsson Did not provideExtreme Tech Data (12%)F5 2 Domestic Distributors (11.6% and 13.2%)Foundry U.S. Government (>10%)Harmonic Comcast (16%), EchoStar (12%)Huawei No 10% customersInfinera No 10% customersJuniper Networks No 10% customers Nokia-Siemens Networks (>10%)Motorola No 10% customersNetgear Best Buy Co (19%), Ingram Micro (11%)Nokia-Siemens No 10% customersNortel Verizon (11%)Polycom No 10% customersRadware No 10% customersRiverbed No 10% customersSandvine N/AShoretel No 10% customersSonus AT&T (32%)Starent Sprint Nextel (15%), Verizon Wireless (15%) CTC (45%)Sycamore Sprint Nextel (53%), Vodafone Group PLC (16%) Tandberg Did not provideTekelec Carso Global Telecom (14%), AT&T (10%), Orange Group (10%)Tellabs Verizon (37%), AT&T (16%), Sprint Nextel (11%)UTStarcom Verizon (22%), T-Mobile USA (15 %), Sprint Spectrum L.P. (13%)

Veraz Belgacom (13%)Voltaire IBM (27%), HP (24%), Sun Microsystems (2%)Westell Verizon(34%), AT&T(19,8%)Zhone TechnologieNo 10% customersZTE N/A


16 July 2008


Exhibit 22: Carrier-Focused Equipment Suppliers’ Geographic Exposure

Total Revenues (million

USD)North America /

U.S.Non-North

America / U.S EMEA Japan Asia-Pacific Latin America

International (as reported by the

company)3Com COMS 336.4 12.7% 87.3% 22.4% 58.5% 6.3%Acme Packet APKT 31.7 55.0% 45.0% 45.0%ADC Telecommunications ADCT 338.5 58.5% 41.5% 25.4% 9.8% 6.3%Adtran ADTN 119.9 86.8% 13.2% 13.2%ADVA Optical ADV-DE 80.9 31.8% 68.2% 57.4% 10.8%Airspan AIRN 17.2 14.0% 86.0% 50.0% 12.0% 24.0%Airvana AIRV 37.7 98.0% 2.0% 2.0%Alcatel/Lucent ALU 5,783.9 32.8% 67.2% 41.4% 17.3% 8.5%Allot ALLT 8.3 32.0% 68.0% 37.0% 31.0% 0.0%Alvarion ALVR 67.2 9.0% 91.0% 53.0% 9.0% 29.0%ARRIS ARRS 273.5 69.0% 31.0% 11.4% 4.9% 14.7%Aruba ARUN 42.6 65.9% 34.1% 20.1% 10.3% 3.7%AudioCodes AUDC 43.7 57.0% 43.0% 31.0% 12.0%Aware AWRE 5.9 61.8% 38.2% 38.2%BigBand BBND 39.9 87.0% 13.0% 3.9% 3.8% 5.2%BlueCoat BCSI 88.2 46.6% 53.4% 37.3% 15.2% 0.9%Brocade BRCD 354.9 62.0% 38.0% 28.5% 9.4%Ceragon CRNT 47.2 11.0% 89.0% 37.0% 50.0% 2.0%Ciena CIEN 227.4 74.5% 25.5% 25.5%Cisco CSCO 9,791.0 52.2% 47.8% 21.9% 10.2% 10.6% 5.0%Commscope CTV 1,005.1 50.2% 49.8% 27.3% 15.0% 7.5%Ditech DITC 6.7 55.4% 44.6% 24.3% 15.7% 4.6%D-Link 625487 269.3 24.0% 76.0% 27.0% 49.0%Echelon ELON 35.6 39.1% 60.9% 44.8% 16.2%Ericsson ERICY 7,047.2 9.8% 90.8% 52.2% 29.2% 9.4%Extreme EXTR 82.0 36.7% 63.3% 46.6% 15.6% 1.1%F5 FFIV 159.1 57.0% 43.0% 21.0% 11.0% 11.0%Foundry FDRY 150.1 72.8% 27.2% 15.7% 7.6% 3.9%Harmonic HLIT 87.3 61.4% 38.6% 38.6%Infinera INFN 95.5 80.6% 19.4% 17.9% 1.5%Juniper Networks JNPR 822.9 51.0% 49.0% 29.0% 20.0%Motorola MOT 7,450.0 83.0% 17.0% 17.0%Netgear NTGR 198.2 40.0% 60.0% 50.0% 10.0%Nokia-Siemens NOK 19,316.0 3.5% 96.5% 50.5% 37.8% 8.2%Nortel NT 2,758.0 45.2% 54.8% 21.4% 28.5% 4.8%Packeteer PKTR 37.2 46.2% 53.8% 24.5% 29.4%Polycom PLCM 258.9 53.0% 47.0% 27.0% 17.0% 3.0%Radware RDWR 22.2 24.0% 76.0% 36.0% 40.0%Riverbed RVBD 73.0 55.0% 45.0% 45.0%Sandvine SAND.L 8.3 86.1% 12.4% 6.9% 5.5% 1.5%Shoretel SHOR 31.5 94.2% 5.8% 5.8%Sonus SONS 74.0 83.0% 17.0% 11.0% 4.0% 1.0% 1.0%Starent STAR 56.2 95.9% 4.1% 2.0% 1.7% 0.3%Sycamore SCMR 41.5 43.0% 57.0% 57.0%Tandberg TAA-NO 178.1 44.9% 55.1% 44.3% 10.7%Tekelec TKLC 118.2 53.0% 47.0% 47.0%Tellabs TLAB 464.0 75.3% 24.7% 24.7%UTStarcom UTSI 586.0 72.0% 28.0% 2.9% 2.2% 20.0% 2.9%Veraz VRAZ 27.9 16.0% 84.0% 84.0%Voltaire VOLT 16.6 53.0% 47.0% 36.0% 5.5% 5.5%Westell WSTL 44.7 94.4% 5.6% 5.6%Zhone Technologies ZHNE 43.0 45.9% 54.1% 24.0% 2.9% 27.2%ZTE B04KP8 1,208.0 26.2% 73.8% 73.8%Average 60,508.2 33.2% 66.9% 33.1% 1.7% 23.4% 5.9% 2.7%

Non-North America/U.S. Exposure Broken Down by Region


16 July 2008


AT&T Exposure Exhibit 23 sets forth the percentage of revenue generated from AT&T—in those cases in which AT&T is a disclosed 10% customer—for 14 communication equipment suppliers tracked by us and our estimate of AT&T’s percentage contribution to revenues for those suppliers in our coverage universe. The dataset is ordered by exposure to AT&T, ranked from highest to lowest. As evidenced in the exhibit, we believe that virtually all of our coverage companies have meaningful exposure to AT&T ranging from a few percentage points to as much as over 30% of total revenues. In absolute dollar terms, we believe that each of the following suppliers has meaningful direct or indirect exposure: ADC Telecommunications, Adtran, Alcatel Lucent, Ciena, Cisco, Ericsson, Nortel, and Sonus.

Exhibit 23: Suppliers with Exposure to AT&T

SupplierAT&T Exposure

(Last Fiscal Year)Sonus 32.0%Ciena 25.3%Adtran 23.0%Westell 19.8%Tellabs 16.0%ADC Telcommunications 15.4%Tekelec 10.0%Alcatel Lucent 6.0%Acme Packet < 5.0%Juniper 4 - 8%Ericsson 4.0%Nortel 3.0%Cisco 1.0 - 2.5%Veraz 0.0%


16 July 2008


Carrier Capex versus Supplier Revenue Outlook—Where Has All the Capex Gone? Exhibit 24 compares past and projected future carrier capex growth to past and projected future growth in the revenues of carrier-focused suppliers of communications infrastructure. As we have relied on it throughout this report, the capex projection is based on the aggregated forecasts of the carriers in our extensive database. The supplier revenue projections are simply the consensus forecasts of the sell-side analysts covering the respective carrier-focused communication infrastructure suppliers.

Based on Street consensus revenue forecasts for more than 50 equipment suppliers in our proprietary supplier revenue database, the current calendar 2008 detailed outlook is as follows:

Aggregate communication equipment supplier revenues. A forecast $13.0 billion, or 5.2%, year-over-year increase versus a 12.7% increase in calendar 2007 and a 14.5% average increase over the past three years.

Carrier-focused communication equipment supplier revenues. A forecast $6.8 billion, or 3.3%, year-over-year increase versus an 11.2% increase in calendar 2007 and a 13.9% average increase over the past three years.

Integrated communication equipment supplier revenues. A forecast $2.6 billion, or 1.4%, year-over-year increase versus an 11.2% increase in calendar 2007 and a 13.5% average increase over the past three years.

Enterprise and consumer communication equipment supplier revenues. A forecast $6.2 billion, or 13.5%, year-over-year increase versus a 20.2% increase in calendar 2007 and a 17.8% average increase over the past three years.

Aggregate global capex. A forecast $27.3 billion, or 10.9%, year-over-year increase versus a 13.4% increase in calendar 2007 and a 14.3% average increase over the past three years.

Exhibit 24: Comm Equipment Revenues versus Global Capex Communication Equipment Revenues and Global Capexin millions, USD 2004 2005 2006 2007 2008ETotal Equipment Revenues $167,340 $186,710 $222,663 $251,006 $264,029Y/Y Rev Growth 11.6% 19.3% 12.7% 5.2%

Carrier-Focused Suppliers Revenues $139,292 $156,173 $184,737 $205,410 $212,259Y/Y Rev Growth 12.1% 18.3% 11.2% 3.3%

Integrated Equipment Revenues $130,575 $144,718 $171,311 $190,444 $193,060Y/Y Rev Growth 10.8% 18.4% 11.2% 1.4%

Enterprise & Consumer Equipment Suppliers Revenues $28,048 $30,537 $37,926 $45,596 $51,770Y/Y Rev Growth 8.9% 24.2% 20.2% 13.5%

Global Capex 168,518 191,487 221,015 251,246 $278,513Y/Y Rev Growth 13.6% 15.4% 13.7% 10.9%


16 July 2008


Exhibit 25: Carrier-Focused Equipment Suppliers versus Global Capex

12.1%

18.3%

11.2%

3.3%

13.6%

15.4%13.7%

10.9%

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2004 2005 2006 2007 2008E($mln)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Carrier-Focused Suppliers Revenues Global Capex

Y/Y Rev Grow th Y/Y Rev Grow th


Exhibit 26: Integrated Equipment Suppliers versus Global Capex

1.4%

11.2%

18.4%

10.8%10.9%

13.7%15.4%

13.6%

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2004 2005 2006 2007 2008E($mln)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Integrated Equipment Revenues Global Capex

Y/Y Rev Grow th Y/Y Rev Grow th


As can be seen in Exhibit 25 and Exhibit 26, it appears that the current Street consensus for revenue growth for carrier-focused suppliers of communications equipment is directionally in-line with the outlook for decelerating global capital expenditure growth by service providers albeit the magnitude of the Street consensus’ forecasted supplier revenue growth deceleration is far more severe than service providers in the aggregate are forecasting for capital expenditures.

As one would expect, while the dataset is far from robust from a statistical perspective, growth in carrier-focused suppliers’ revenues has been highly correlated with growth in carrier capex as set forth in Exhibit 27. Notably, however, growth in suppliers’ revenues has significantly lagged growth in carrier capex in recent years.

16 July 2008


Exhibit 27: Correlation of Growth Rates Correlation to Global Capex Growth Rate2004 to 2008E CorrelationCarrier-Focused Suppliers Revenue Growth 0.95

Integrated Equipment Suppliers Revenue Growth 0.96


In fact, before contemplating the near-, intermediate-, or long-term implications for carrier-focused communication equipment suppliers of carriers’ capital expenditure plans for the coming calendar quarter, 2008, or 2008-2010, one of the first questions that arises when examining the carrier capex and supplier revenue data is, Where did the relatively healthy, albeit decelerating, increase in capital expenditures go in recent years? The increase does not appear to be reflected in the relatively anemic 2006 and 2007 growth rates for infrastructure-related revenues for Alcatel Lucent, Ericsson, Motorola, Nokia Siemens Networks, and Nortel.

We believe the following three factors explain most of the discrepancy:

■ The depreciation of the U.S. dollar against most currencies in recent years.

■ Dramatic market share gains by Huawei, which have come largely at the expense of wireless and (broadband access and optical) transport suppliers.

■ The “shifting tide” part of our thesis—i.e., carriers have increasingly shifted their capital expenditures from legacy projects to certain key “next-generation” product markets, as they seek to revamp their network architecture in order to survive in the 21st century.

In addition to the above factors, shifts in the percentage of capital expenditure devoted to communications infrastructure, as opposed to other capital projects, can attenuate the correlation between carrier capex and suppliers’ revenues. Exhibit 28 below suggests that such a shift may explain the significant gap between 2007 growth rates in carrier capex and supplier revenues as aggregate communication equipment revenues derived from carriers declined to 43% of aggregate global capex from 52% in the preceding year. On the other hand, the positive shift in this ratio from calendar 2005 to calendar 2006 should have enhanced supplier revenue growth rates in 2006. This impact, however, is hard to detect in the results for any of the major carrier-focused equipment suppliers.

Exhibit 28: Carrier-Focused Supplier Revenues as % of Carrier Capex

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

2004 2005 2006 2007

Percent of Carrier Capex spent on Comm Equipment Infrastructure


16 July 2008


Currency Impact on Global Capex The trend in carrier capital expenditure growth rates would be even worse without accelerating depreciation of the U.S. dollar over the past two to three years. Using the USDX index, which indicates the general international value of the U.S. dollar against six major world currencies, the U.S. dollar has depreciated 5.1% year to date for 2008 and depreciated 8.9% and 8.2% in 2007 and 2006, respectively. This depreciation has inflated the growth in global carrier capital expenditure reported in our model, since we convert into U.S. dollars all reported capital expenditures by non-U.S. service providers using the applicable exchange rates for the reported periods.

To gain a better perspective of “normalized” capital expenditures excluding the impact of a rapidly depreciating dollar, Exhibit 29 shows what the growth rate in aggregate global carrier capital expenditures would have looked like over the calendar 2003-08 periods if we fixed the U.S. dollar exchange rates for all such periods at prevailing calendar 2003 rates. The exhibit in turn sets forth the percentage point difference in capex growth from 2004 to 2008 owing to fluctuating currency exchange rates.

As illustrated in Exhibit 29, the growth in normalized aggregate global capex is lower for each year in 2003-08 compared to the growth rate using actual exchange rates. While the 2008 normalized growth rates for each of aggregate global, developed and emerging market carrier capex increase in 2008 from their 2007 growth rates, this reversal of the prevailing four year trend owes to the moderation in the depreciation of the dollar since the end of 2007. The normalized capex growth rate—i.e., using constant exchange rates fixed at 2003 levels—increased almost five percentage points less than actual capex in 2007 while the difference between normalized capex and actual capex in 2008 is less than one percentage point.

The depreciation of the U.S. dollar in 2007 helps to but albeit does not fully explain the rather dramatic gulf between global capex growth and the rather anemic growth in revenues for virtually all of the largest, integrated suppliers to carriers of communications infrastructure. The depreciating dollar meaningfully inflated 2007 growth rates by 3.4 to as much as 7.6 percentage points, or 16.7-61.5%, depending on which capex category is being analyzed. Most notably, aggregate global capital expenditures for calendar 2006 and 2007 were inflated by 2.5 percentage points and 4.9 percentage points, or 19% and 56%, respectively, due to significant dollar depreciation during this period.

Below we list a summary of the differences between the normalized capital expenditures fixed to 2003 exchange rates and the actual reported capital expenditures converted to U.S dollars at the prevailing exchange rates during the respective reporting periods, as further illustrated in Exhibit 29.

Aggregate global. Normalized capital expenditures increased 8.8%, a (4.9) percentage point decrease, versus the 13.7% growth in actual capital expenditures in our model and is projected to increase 10.1% in 2008. The 2007 growth rate is the lowest of the past five years and the 2008 growth rate is projected to be the second lowest rate in the past five years.

Developed markets. Normalized capital expenditures increased 4.0%, a 4.3-percentage-point decrease, versus the 8.4% growth in actual capital expenditures in our model and is projected to increase 4.9% in 2008.

Emerging markets. Normalized capital expenditures increased 20.1%, a 6.3-percentage-point decrease, versus the 26.4% increase in actual capital expenditures in our model and is projected to increase 20.7% in 2008.

Wireline. Normalized capital expenditures increased 10.7%, a 4.3-percentage-point decrease, versus the 15.1% increase in actual capital expenditures in our model and is projected to increase 6.3% in 2008.

16 July 2008


Wireless. Normalized capital expenditures increased 6.8%, a 5.4-percentage point decrease, versus the 12.3% increase in actual capital expenditures in our model and is projected to increase 14.1% in 2008.

Exhibit 29: Global Capex—Currency Impact, 2004–08E Global Capex - Y/Y GrowthNormalized to 2003 Exchange Rates 2004 2005 2006 2007 2008ETOTAL GLOBAL CAPEX 14.1% 13.1% 12.9% 8.8% 10.1%

Developed Markets 8.4% 11.2% 13.0% 4.0% 4.9%Wireline 3.8% 13.3% 13.1% 12.4% 3.8%Wireless 14.8% 8.5% 13.0% -6.5% 6.7%



Wireless 18.5% 16.8% 15.5% 6.8% 14.1%Developed Markets 14.8% 8.5% 13.0% -6.5% 6.7%Emerging Markets 27.6% 35.3% 19.9% 29.2% 23.1%

Global Capex - Percentage Point Difference (Actual Capex - Normalized Capex)2004 2005 2006 2007 2008E

TOTAL GLOBAL CAPEX 4.5 0.5 2.5 4.9 0.7

Developed Markets 5.1 0.1 2.6 4.3 2.6Wireline 4.7 0.3 2.1 3.4 2.9Wireless 5.5 0.0 3.1 5.5 1.9

Emerging Markets 2.8 1.5 2.3 6.3 -2.9Wireline 3.8 2.2 2.8 7.6 -1.3Wireless 1.9 1.0 2.2 5.9 -3.6

Wireline 4.6 0.8 2.3 4.3 2.1Developed Markets 4.7 0.3 2.1 3.4 2.9Emerging Markets 3.8 2.2 2.8 7.6 -1.3

Wireless 4.5 0.2 2.8 5.4 -0.7Developed Markets 5.5 0.0 3.1 5.5 1.9Emerging Markets 1.9 1.0 2.2 5.9 -3.6

Global Capex - Percent Difference (Percentage Point Difference/Actual Capex)2004 2005 2006 2007 2008E

TOTAL GLOBAL CAPEX 24.2% 3.8% 16.2% 35.7% 6.9%

Developed Markets 38.0% 1.0% 16.6% 51.8% 34.4%Wireline 55.7% 2.4% 13.9% 21.6% 43.6%Wireless 27.1% 0.4% 19.4% n/a 21.7%

Emerging Markets 8.2% 7.4% 15.7% 23.9% -16.2%Wireline 9.7% 94.3% 57.6% 61.5% -9.0%Wireless 6.4% 2.7% 9.9% 16.7% -18.2%

Wireline 30.2% 7.9% 17.8% 28.7% 25.2%Developed Markets 55.7% 2.4% 13.9% 21.6% 43.6%Emerging Markets 9.7% 94.3% 57.6% 61.5% -9.0%

Wireless 19.5% 1.1% 15.2% 44.4% -5.1%Developed Markets 27.1% 0.4% 19.4% n/a 21.7%Emerging Markets 6.4% 2.7% 9.9% 16.7% -18.2%


16 July 2008


Huawei The emergence of Huawei, which derives approximately 90% of its revenues from service providers, also helps explain the difference between the growth rate of global capital expenditures and the revenue growth rates for Alcatel Lucent, Ericsson, Motorola, Nokia Siemens Networks, and Nortel in recent years. As set forth in Exhibit 30 below, Huawei’s communications infrastructure revenues increased to over $10.7 billion in calendar 2007 from less than $2 billion in calendar 2000. In 2007 alone Huawei’s revenues increased by 47.3%, or $3.5 billion.

In the absence of Huawei, total revenues and revenue growth for the large, integrated Western suppliers of communications infrastructure would have been more robust. As evidenced in the exhibit, Huawei accounted for $3.5 billion, or 35%, of the $9.8 billion increase in 2007 in aggregate revenues for the carrier-focused group of integrated suppliers. Viewed another way, Huawei generated 2.8 percentage points of the 7.9 percentage point increase for this group of suppliers.

Exhibit 30: Huawei Impact Analysis, 1999–2007 Annual RevenuesCalendar Years 1999A 2000A 2001A 2002A 2003A 2004A 2005A 2006A 2007ACARRIER EQUIPMENT SUPPLIERS

Integrated Equipment SuppliersEricsson Infrastructure (ex. handsets) 17,873,739 21,287,957 19,910,720 15,594,710 14,735,199 18,050,158 20,293,145 24,215,202 27,944,240

Marconi (acq. by Ericsson) 4,657,445 8,981,270 8,208,586 3,613,162 2,605,127 2,440,773 1,716,609 - - Alcatel Lucent (incl. pension credit) 42,683,861 43,339,667 41,862,403 26,446,385 22,291,435 25,162,065 25,111,856 24,581,979 24,459,245 Nokia Siemens 23,873,750 23,316,699 23,360,216 20,855,097 19,958,339 23,217,371 22,862,840 22,847,953 21,636,100 Motorola (Wireless Infra & BB) 9,076,000 7,597,000 7,025,000 6,698,000 6,162,000 12,868,000 14,073,000 14,572,000 17,739,000 NEC (Comm Infra--i.e., Networks excl handsets) 10,706,221 9,489,164 10,286,584 7,060,519 7,475,315 8,583,286 8,784,233 9,058,179 8,859,140 Nortel 21,287,000 27,948,000 17,511,000 10,721,000 9,907,000 9,478,000 10,509,000 11,418,000 10,948,000 Huawei (ex. handsets) 1,500,000 1,933,000 2,290,000 2,128,000 2,667,000 3,495,000 5,066,100 7,304,000 10,760,356

Harbor Networks (acquired by Huawei June 06) - - - - 41,900 91,200 136,720 186,120 - ZTE 238,772 546,368 1,184,768 1,170,627 1,940,339 2,746,568 2,638,825 2,916,889 4,584,842 Fujitsu (Comm. Infra.) 6,150,913 6,257,913 5,823,251 3,671,498 3,387,361 3,708,639 3,389,402 3,138,438 2,737,435 Samsung (Comm. Infrastructer I.E. Telecom, ex. handsets) 1,450,000 2,016,191 1,519,438 1,435,428 1,140,717 1,054,497 1,025,825 1,107,600 1,336,176 UT Starcom (Infrastruture ex. mobile handsets) 187,517 368,646 626,840 981,806 1,941,221 2,407,380 2,397,637 2,063,050 2,232,503 LG Electronics (Infrastructure I.E. Mobile Infra., ex handsets) - - - - 1,627,668 995,900 998,380 738,848 640,690 Telent - - - - - - 415,711 548,863 631,064 Total Infrastructure 139,685,217 153,081,874 139,608,806 100,376,232 95,880,620 114,298,836 119,419,284 124,697,120 134,508,791 Incremental $ Infrastructure 13,396,657 (13,473,068) (39,232,574) (4,495,612) 18,418,216 5,120,448 5,277,836 9,811,670 Incremental $ Huawei 433,000 357,000 (162,000) 539,000 828,000 1,571,100 2,237,900 3,456,356 Incremental $ Huawei as % of Incremental $ Infrastructure 3.2% n/a 0.4% n/a 4.5% 30.7% 42.4% 35.2%

Infrastructure ex-Huawei 138,185,217 151,148,874 137,318,806 98,248,232 93,213,620 110,803,836 114,353,184 117,393,120 123,748,435 Incremental $ ex-Huawei 12,963,657 (13,830,068) (39,070,574) (5,034,612) 17,590,216 3,549,348 3,039,936 6,355,314

%Y/Y Growth Total Infrastructure 9.6% -8.8% -28.1% -4.5% 19.2% 4.5% 4.4% 7.9%% Y/Y Growth Infrastructure ex-Huawei 9.4% -9.1% -28.5% -5.1% 18.9% 3.2% 2.7% 5.4%% Y/Y Growth Huawei 28.9% 18.5% -7.1% 25.3% 31.0% 45.0% 44.2% 47.3%

Source: FactSet, Company data, Credit Suisse estimates.

Huawei continues to make significant inroads into regions outside of China. In 2007, Huawei generated over 70% of its revenues outside of China. And these gains have come in virtually every product and geographic market, with the exception of North America. In terms of products, as noted above, we estimate that approximately 90% of Huawei’s revenues derive from sales to service providers with wireless infrastructure accounting for over 40% of revenues followed by broadband access (over 15%) and optical infrastructure (over 15%) and services (approximately 18%).

Huawei has had an even more pronounced impact upon the pricing environment for—and thereby gross margins of—carrier-focused communication service providers.

Huawei also makes the point that consolidation among communication infrastructure suppliers has failed to keep pace with carrier consolidation. We believe that more such consolidation among communication equipment suppliers is necessary and inevitable. While Alcatel and Lucent came together in 2006 and shortly thereafter acquired Nortel’s UMTS wireless infrastructure business, thereby effectively reducing the number of UMTS wireless infrastructure suppliers by two, Huawei and ZTE increasingly have emerged to fill any void—or more accurately stated, breathing room—that would have otherwise been created in the competitive landscape. Exhibit 31 offers a more comprehensive look at consolidation among suppliers of communications infrastructure. From 1999 through calendar 2007, the total number of communication equipment suppliers declined by only three companies, to 84 from 87, a (3%) reduction. During this same period, carrier-focused

16 July 2008


suppliers decreased by five companies, to 55 from 60, an (8%) reduction. By comparison, using our capex database, global carrier capex increased during 2003-07 by only a 12.2% compound annual growth rate.

Exhibit 31: Communication Equipment Supplier Consolidation

Companies Revenues Companies Revenues CAGR (%)Integrated Equipment Suppliers 13 185,751,823 14 253,189,351 3.9%Service Provider L2-L7 Equipment Suppliers 7 2,063,726 8 3,518,050 6.9%Service Provider Transmission Equipment Suppliers 9 6,494,235 10 8,239,376 3.0%Service Provider Voice Equipment Suppliers 6 475,541 10 2,036,207 19.9%Wireline Broadband Access Equipment Suppliers 20 1,762,693 8 1,369,052 -3.1%Wireless Broadband Access Equipment Suppliers 5 281,599 5 1,167,131 19.4%Cable MSO Equipment Suppliers 7 2,963,031 4 1,756,742 -6.3%Enterprise & SOHO Switching & Routing 10 22,492,473 17 45,000,715 9.0%Storage Networking Equipment Suppliers 7 670,435 3 2,439,966 17.5%Voice (PBX and handset) 3 7,894,087 5 6,931,954 -1.6%Total 87 230,849,642$ 84 325,648,543$ 4.4%

1999 2007


16 July 2008


Shifting Tide Exhibit 32 sets forth the areas of growth as carriers have increasingly shifted their capital expenditures to “next-generation” product markets as they seek to revamp their network architecture in order to survive in the 21st century.

Service provider capex continues to shift toward a handful of growth pockets including routers and Ethernet switches, multiservice infrastructure (including voice over IP), next-generation optical infrastructure and FTTX (Fiber-to-the-X) broadband access systems.

Exhibit 32: Historical and Forecasted Growth Rates by Communications Equipment Sectors 5-Year

in USD millions CY2005 CY2006 CY2007 CY2008 CY2009 CY2010 5-Year Total CAGR

Total FTTH $568 $871 $1,345 $2,062 $3,223 $4,418 $15,950 38%

Growth NA 53% 54% 53% 56% 37%

PON Equipment $741 $1,114 $1,740 $2,370 $3,525 $4,831 $17,842 33%

Growth 18% 50% 56% 36% 49% 37%

IPTV Equipment $401 $1,005 $1,345 $1,720 $2,236 $2,767 $9,072 29%

Growth NA 150% 34% 28% 30% 24%

Service Provider VoIP and IMS Equipment $2,500 $3,304 $4,071 $4,927 $5,840 $6,929 $25,070 20%

Growth NA 32% 23% 21% 19% 19%

Metro Ethernet Equipment $3,723 $10,183 $12,980 $16,091 $18,889 $21,779 $93,395 16%

Growth 119% 173% 27% 24% 17% 15%

Service Provider Routers and Switches $7,332 $9,820 $10,861 $11,793 $12,840 $13,952 $59,267 9%

Growth NA 34% 11% 9% 9% 9%

Broadband CPE $5,195 $6,137 $6,405 $6,824 $7,294 $7,913 $34,574 7%

Growth NA 18% 4% 7% 7% 8%

Broadband Aggregation Equipment $7,277 $7,987 $8,118 $8,681 $9,235 $9,924 $43,946 6%

Growth NA 10% 2% 7% 6% 7%

Wireless Radio Access and Backhaul Equipmen $45,535 $45,829 $44,978 $45,102 $46,656 $46,832 $229,397 1%

Growth NA 1% -2% 0% 3% 0%

Optical Network Hardware $10,800 $11,954 $12,632 $12,540 $12,343 $12,191 $61,661 0%

Growth NA 11% 6% -1% -2% -1%

Forecast

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Pro

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Worldwide SP and Enterprise Telecom and Datacom Equipment Revenu

Source: Infonetics.

16 July 2008


Profitability Headwinds: Emerging versus Developed Markets Beyond the increasingly limited growth opportunity for carrier-focused equipment suppliers presented by the global capex outlook, the ongoing capex shift from developed markets to emerging markets continues to pose significant challenges for those suppliers that are highly leveraged to wireless and transport infrastructure markets. Such suppliers are faced with the Charybdis of pursuing incremental growth opportunities presented by emerging markets to offset the increasingly limited capex growth—and in some cases outright declining capex—opportunities presented by developed markets and the Scylla of lower profitability that at present, and for the foreseeable future, typically attends such emerging market opportunities.

As set forth in Exhibit 33, capex in emerging markets currently is increasing significantly faster than developed regions and these divergent growth rates have driven an approximate eight percentage point increase over the past four years in the aggregate capex contribution of emerging markets to approximately 33% of total global capex in 2007 from under 25% in 2003. At the same time, although emerging market service providers collectively project year-over-year growth of 17.8% for calendar 2008, this marks a significant decline from the 26.4% increase in calendar 2007. In comparison, service providers in the developed markets of the United States, Canada, Western Europe, Scandinavia, Japan and Korea in the aggregate project year-over-year growth of 7.5% for calendar 2008, which represents only a (90) basis point decrease from the 8.4% increase in calendar 2007, but marks the lowest growth rate of the past five years and is significantly lower than the 11.3% five year average.

16 July 2008


Exhibit 33: Annual Global Capex by Developed/Emerging Markets Global Capex - Annual Developed/Emerging Market Capex$ USD millions 2003 2004 2005 2006 2007 2008ETotal Global Capex 142,045 168,518 191,487 221,015 251,246 278,513 Y/Y Growth 18.6% 13.6% 15.4% 13.7% 10.9%

Developed Markets 106,813 121,268 134,951 156,068 169,146 181,783 Y/Y Growth 13.5% 11.3% 15.6% 8.4% 7.5%% of Total Global Capex 75.2% 72.0% 70.5% 70.6% 67.3% 65.3%

Emerging Markets 35,232 47,250 56,536 64,947 82,100 96,730 Y/Y Growth 34.1% 19.7% 14.9% 26.4% 17.8%% of Total Global Capex 24.8% 28.0% 29.5% 29.4% 32.7% 34.7%

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

2003 2004 2005 2006 2007 2008E($mln)

0%

5%

10%

15%

20%

25%

30%

35%

40%

Developed Mkt. Capex Emerging Mkt. Capex

Developed Mkt. y/y Grow th Emerging Mkt. y/y Grow th


We believe the impact of this ongoing divergence in capex growth rates and of the pricing disparity between developed and emerging markets will most acutely impact wireless infrastructure and transport (legacy optical and broadband access) infrastructure suppliers.

Supporting our belief, Exhibit 34 sets forth the quarterly gross margin over the past 16 quarters for the large integrated carrier-focused communications infrastructure suppliers that derive significant—in most cases the majority of—revenues from sales of wireless and transport infrastructure. Offering further support, over the past several quarters most of the large, integrated wireless infrastructure suppliers have noted the challenges posed by the increasing percentage of their revenues deriving from emerging markets. Notably, Nortel stands out as the only company in this group that is generating greater than 40% gross margin, which we attribute in part to the relatively lower percentage of revenue Nortel derives from emerging markets as compared to its peers.

Exhibit 34: Integrated Communications Equipment Supplier Gross Margin, 1Q04-1Q08 Calendar Quarters 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08Gross Margin %Ericsson Infrastructure (ex. handsets) 44.7% 47.8% 47.1% 45.6% 48.5% 45.9% 45.2% 44.2% 43.3% 42.0% 41.1% 41.8% 43.0% 43.0% 35.6% 36.1% 34.8%Alcatel Lucent (incl. pension credit) 41.9% 43.9% 39.2% 37.6% 38.6% 39.1% 39.0% 38.6% 38.0% 36.0% 37.4% 32.7% 29.2% 32.4% 34.3% 32.6% 36.3%Nokia 40.6% 39.4% 36.4% 36.8% 37.0% 35.8% 33.7% 34.1% 33.9% 33.0% 30.9% 32.4% 33.1% 34.8% 34.4% 36.5% 36.3%

Nokia Siemens (Comm Infra) - - - - - - - - 22.3% 26.0% 18.7% 20.0% 20.0% 28.9% 28.6% 30.3% 30.1%Siemens (Comm Infra incl. handsets) 28.6% 29.5% 28.9% 30.8% 28.9% 30.0% 28.4% 27.1% 27.8% 28.0% 27.8% 25.2% 26.4% - - - - Motorola 27.7% 30.9% 30.6% 30.2% 33.2% 32.8% 32.4% 31.6% 31.0% 30.9% 31.9% 26.1% 26.1% 28.4% 29.2% 26.3% 28.8%NEC (Networks--Comm Infra incl. handsets) 25.7% 25.7% 25.6% 25.3% 23.3% 26.9% 27.1% 28.9% 30.4% 29.2% 31.2% 32.0% 29.0% 32.4% 31.5% 32.8% 31.4%Nortel 41.5% 41.5% 41.5% 41.5% 41.9% 42.4% 38.2% 39.1% 38.1% 38.4% 38.4% 39.8% 40.4% 41.1% 43.0% 43.7% 41.6%ZTE 39.8% 35.4% 41.9% 32.7% 40.2% 35.8% 38.9% 29.2% 32.9% 37.8% 37.3% 29.8% 31.2% 39.9% 28.7% 34.1% 35.4%UT Starcom (Infrastructure ex. mobile handsets) 28.5% 25.8% 21.3% 20.0% 27.0% 15.2% 6.6% 9.5% 17.0% 16.3% 10.3% 9.2% 13.4% 12.5% 8.4% 10.7% 13.3%Huawei* - - - - 40.5% 40.5% 40.5% 40.5% 36.2% 36.2% 36.2% 36.2% 33.9% 33.9% 33.9% 33.9% -

Source: Company data

*Huawei reports financial data on an annual basis; the quarterly numbers reflect annual gross margin.

In contrast, the pricing disparity between developed and emerging markets for enterprise and carrier Ethernet switching and IP routing markets is much more modest.

16 July 2008


Cisco’s business model highlights the virtues of the enterprise and carrier Ethernet switching and IP routing markets. Cisco’s margins in emerging market regions, while lower than, are not dramatically different from its 65% gross margin generated in developed markets. The stability of this trend is evidenced in Exhibit 35 which sets forth Cisco’s reported gross margin, as disclosed in its quarterly press releases and Form 10-Qs, on sales in its Emerging Markets geographic theater, which comprises the Middle East, Africa, Russia, countries that formerly comprised the U.S.S.R., Eastern Europe, and Latin America. In addition, while not reported as part of its “Emerging Markets” geographic theater, Cisco has confirmed that its gross margin in India is also in line with—while its gross margin in China is slightly below—its corporate average gross margin.

Exhibit 35: Cisco Emerging Market Gross Margin: Oct FY1Q04 - Apr FY3Q08

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

Oct-04 Apr-05 Oct-05 Apr-06 Oct-06 Apr-07 Oct-07 Apr-08

CSCO Ov erall Gross Margin CSCO Emerging Mkt Gross Margin

Impact of Scientific Atlanta

Acquisition


Second Quarter through Fourth Quarter 2008 Emerging/Developed Market Capex Outlook Based on a subset of 131 of 151 service providers in our global proprietary capex database that have both reported first quarter 2008 capex and provided 2008 capex guidance, we examine the outlook for capex spending in developed and emerging markets for the remaining three quarters of the year.

Based on this subset, subtracting the reported capital expenditure for the calendar first quarter from the service providers’ capital expenditure projections for the calendar year, the outlook for developed markets for the three remaining quarters of calendar 2008 is for an aggregate increase in capital expenditure of $6.8 billion, or 5.4%, over the comparable year ago period. This 5.4% growth rate compares to a 7.0% year-over-year increase for the same period in calendar 2007and is the lowest year-over-year growth rate for the second through fourth calendar quarters in the past five years.

Compared to the first quarter of calendar 2008, the outlook for the second through fourth quarters of 2008 translates to an average of $45 billion per quarter of aggregate developed market capital expenditure, which represents an increase of 5.8% versus a 12.3% comparable increase last year and an average 13.3% increase over the past five years. Viewed another way, the $42 billion of capital expenditure in the first quarter represents an above average 24.0% of the projected 2008 annual capital expenditure by the service providers in our database and correspondingly the outlook for capital

16 July 2008


expenditure over the balance of 2008 is for a subseasonal 76.0% of the $175.9 billion 2008 projection versus the 77.1-78.1% that characterized the four preceding years.

The outlook for emerging markets for the three remaining quarters of calendar 2008 is for an aggregate increase in capital expenditure of $4.0 billion, or 11.8%, over the comparable year ago period. This 11.8% growth rate represent a significant deceleration from the 28.2% increase for the same period in calendar 2007 and is the second lowest year-over-year growth rate for the second through fourth calendar quarters in the past five years.

Compared to the first quarter of calendar 2008, the outlook for the second through fourth quarters of 2008 translates to an average of $12.8 billion per quarter of aggregate emerging market capital expenditure, which represents an increase of 44.1% versus a 51.0% comparable increase last year and an average 43.4% increase over the past five years. Viewed another way, the $8.9 billion of capital expenditure in the first quarter represents an above average 18.8% of the projected 2008 annual capital expenditure by the service providers in our database and correspondingly the outlook for capital expenditure over the balance of 2008 is for a subseasonal 81.2% of the $47.2 billion 2008 projection versus the 80.2-84.4% that characterized the four preceding years.

Exhibit 36: Second Quarter through Fourth Quarter Y/Y and versus First Quarter Developed/Emerging Market Capex Developed Market Capex - 1Q v. 2Q-4Q

1Q 2Q-4Q 1Q 2Q-4Q 1Q 2Q-4Q 1Q 2Q-4Q 1Q 2Q-4QETOTAL DEVELOPED MARKET CAPEX 25,992 91,128 28,943 102,462 33,197 118,659 37,672 126,923 42,123 133,729Percentage of Annual 22.2% 77.8% 22.0% 78.0% 21.9% 78.1% 22.9% 77.1% 24.0% 76.0%


Emerging Market Capex - 1Q v. 2Q-4Q1Q 2Q-4Q 1Q 2Q-4Q 1Q 2Q-4Q 1Q 2Q-4Q 1Q 2Q-4QE

TOTAL EMERGING MARKET CAPEX 3,312 17,971 5,327 24,005 6,621 26,778 7,577 34,319 8,872 38,353 Percentage of Annual 15.6% 84.4% 18.2% 81.8% 19.8% 80.2% 18.1% 81.9% 18.8% 81.2%


20082004 2005 2006 2007

2004 2005 2006 2007 2008


16 July 2008


Exhibit 37: 2Q-4Q Developed/Emerging Capex for Subset Exhibit 38: Annual Developed/Emerging Capex for SubsetReported Capex - Outlook 2Q-4Q 2Q-4Q 2Q-4Q 2Q-4Q 2Q-4Q$ USD millions 2004 2005 2006 2007 2008EGLOBAL CAPEX SUBSET 109,099 126,468 145,437 161,242 172,082Total Developed Markets Subset 91,128 102,462 118,659 126,923 133,729 Total Emerging Markets Subset 17,971 24,005 26,778 34,319 38,353

Reported Capex - Outlook 2Q-4Q 2Q-4Q 2Q-4Q 2Q-4Q 2Q-4QY/Y Growth 2004 2005 2006 2007 2008EGLOBAL CAPEX SUBSET 15.9% 15.0% 10.9% 6.7%Total Developed Markets Subset 12.4% 15.8% 7.0% 5.4%Total Emerging Markets Subset 33.6% 11.6% 28.2% 11.8%

Reported Capex - Global Annual$ USD millions 2004 2005 2006 2007 2008ETOTAL GLOBAL CAPEX 138,403 160,738 185,255 206,491 223,078Total Developed Markets Subset 117,120 131,405 151,856 164,595 175,853 Total Emerging Markets Subset 21,283 29,332 33,399 41,896 47,225

Reported Capex - Global AnnualY/Y Growth 2004 2005 2006 2007 2008ETOTAL GLOBAL CAPEX 16.1% 15.3% 11.5% 8.0%Total Developed Markets Subset 12.2% 15.6% 8.4% 6.8%Total Emerging Markets Subset 37.8% 13.9% 25.4% 12.7%

$0

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2Q-4Q Dev eloped Mkts Capex 2Q-4Q Emerging Mkts Capex

Y/Y 2Q-4Q Dev eloped Mkts Capex Grow th Y/Y 2Q-4Q Emerging Mkts Capex Grow th

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Annual Dev eloped Mkts Capex Annual Emerging Mkts Capex

Y/Y Dev eloped Mkts Capex Grow th Y/Y Emerging Mkts Capex Grow th


16 July 2008


Wireline versus Wireless Our shifting tide carrier capital expenditure thesis holds up when bifurcating capex into wireline and wireless infrastructure, which each respectively account for 50% of aggregate global capex.

For calendar 2008, global wireless and wireline capital expenditure growth rates are diverging, with a relatively unchanged rate of growth for wireless capex and a declining growth rate for wireline capex, but these rates do not deviate from the overall trend of decelerating growth in both wireline and wireless product markets over the past five years. Notably, a major subtrend underlying the deceleration of growth for capital expenditures within the product markets is the convergence of growth rates as wireless product market growth has decelerated at a faster rate than the deceleration in growth of wireline capex. Specifically, the difference in growth rates between wireless and wireline has declined to 320 basis points in 2007 from 680 basis points in 2003 and is based on carriers’ forecasts. Wireline capex growth actually exceeded wireless cape growth in 2007.

Wireless carriers currently forecast an aggregate 13.4% year-over-year capex increase for 2008, which is 0.7 percentage points higher than the 12.7% increase reported in calendar 2007 and represents the second lowest annual growth rate in the past five years while carriers offering wireline services currently project an 8.4% year-over-year increase in calendar 2008 capex, which marks a meaningful deceleration from the 15.1% year-over-year increase reported in calendar 2007 and represents the lowest annual growth rate in the past five years.

16 July 2008


Exhibit 39: Annual Global Capex by Wireline/Wireless Market Capex Global Capex - Annual Wireline/Wireless Capex$ USD millions 2003 2004 2005 2006 2007 2008ETotal Global Capex 142,045 168,518 191,487 221,015 251,246 278,513 Y/Y Growth 18.6% 13.6% 15.4% 13.7% 10.9%

Wireline Markets 77,725 89,454 99,005 111,654 128,481 139,261 Y/Y Growth 15.1% 10.7% 12.8% 15.1% 8.4%% of Total Global Capex 54.7% 53.1% 51.7% 50.5% 51.1% 50.0%

Wireless Markets 64,320 79,065 92,482 109,362 122,765 139,253 Y/Y Growth 22.9% 17.0% 18.3% 12.3% 13.4%% of Total Global Capex 45.3% 46.9% 48.3% 49.5% 48.9% 50.0%

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Wireline Capex Wireless Capex

Wireline y/y Grow th Wireless y/y Grow th


Second Quarter 2008 Wireless/Wireline Capex Outlook Based on a subset of 131 of 151 service providers in our global proprietary capex databases that have both reported first quarter 2008 capex and provided 2008 capex guidance, we examine the outlook for capex spending in wireless and wireline markets for the remaining three quarters of the year.

Based on this subset, subtracting the reported capital expenditure for the calendar first quarter from the service providers’ capital expenditure projections for the calendar year, the outlook for wireline markets for the three remaining quarters of calendar 2008 is for an aggregate increase in capital expenditure of $4.6 billion, or 5.3%, over the comparable year ago period. This 5.3% growth rate compares to a 15.8% year-over-year increase for the same period in calendar 2007 and is the lowest year-over-year growth rate for the second through fourth calendar quarters in the past five years.

Compared to the first quarter of calendar 2008, the outlook for the second through fourth quarters of 2008 translates to an average of $30.5 billion per quarter of aggregate wireline market capital expenditure, which represents an increase of 10.3% versus a 21.4% comparable increase last year and an average 22.9% increase over the past five years. Viewed another way, the $27.6 billion of capital expenditure in the first quarter represents an above average 23.2% of the projected 2008 annual capital expenditure by the service providers in our database and correspondingly the outlook for wireline capital expenditure

16 July 2008


over the balance of 2008 is for a subseasonal 76.8% of the $119.2 billion 2008 projection versus the 78.0-80.0% that characterized the four preceding years.

The outlook for wireless markets for the three remaining quarters of calendar 2008 is for an aggregate increase in capital expenditure of $8.2 billion, or 8.4%, over the comparable year ago period. This 8.4% growth rate compares to a 5.6% increase for the same period in calendar 2007 and although the growth rate has meaningfully improved over the previous year it is the second lowest growth rate for the second through fourth calendar quarters in the past five years.

Compared to the first quarter of calendar 2008, the outlook for the second through fourth quarters of 2008 translates to an average of $26.9 billion per quarter of aggregate wireless market capital expenditure, which represents an increase of 15.0% versus a 15.8% comparable increase last year and an average 21.1% increase over the past five years. Viewed another way, the $23.4 billion of capital expenditure in the first quarter represents an above-average 22.5% of the projected 2008 annual capital expenditure by the service providers in our database, and correspondingly the outlook for wireless capital expenditure over the balance of 2008 is for a subseasonal 77.5% of the $103.9 billion 2008 projection versus the 77.5 -79.5% that characterized the four preceding years.

Exhibit 40: Second Quarter through Fourth Quarter Year over Year versus First Quarter Wireline/Wíreless Capex Wireline Capex - 1Q v. 2Q-4Q

1Q 2Q-4Q 1Q 2Q-4Q 1Q 2Q-4Q 1Q 2Q-4Q 1Q 2Q-4QETOTAL WIRELINE MARKET CAPEX 14,656 58,694 18,481 65,393 21,068 75,016 23,849 86,886 27,643 91,509 Percentage of Annual 20.0% 80.0% 22.0% 78.0% 21.9% 78.1% 21.5% 78.5% 23.2% 76.8%


Wireless Capex - 1Q v. 2Q-4Q1Q 2Q-4Q 1Q 2Q-4Q 1Q 2Q-4Q 1Q 2Q-4Q 1Q 2Q-4QE

TOTAL WIRELESS MARKET CAPEX 14,648 50,405 15,790 61,074 18,750 70,421 21,400 74,356 23,352 80,574 Percentage of Annual 22.5% 77.5% 20.5% 79.5% 21.0% 79.0% 22.3% 77.7% 22.5% 77.5%


20082004 2005 2006 2007

2004 2005 2006 2007 2008


Exhibit 41: 2Q-4Q Wireline/Wireless Capex for Subset Exhibit 42: Annual Wireline/Wireless Capex for Subset Reported Capex - Outlook 2Q-4Q 2Q-4Q 2Q-4Q 2Q-4Q 2Q-4Q$ USD millions 2004 2005 2006 2007 2008EGLOBAL CAPEX SUBSET 109,099 126,468 145,437 161,242 172,082Total Wireline Subset 58,694 65,393 75,016 86,886 91,509 Total Wireless Subset 50,405 61,074 70,421 74,356 80,574

Reported Capex - Outlook 2Q-4Q 2Q-4Q 2Q-4Q 2Q-4Q 2Q-4QY/Y Growth 2004 2005 2006 2007 2008EGLOBAL CAPEX SUBSET 15.9% 15.0% 10.9% 6.7%Total Wireline Subset 11.4% 14.7% 15.8% 5.3%Total Wireless Subset 21.2% 15.3% 5.6% 8.4%

Reported Capex - Global Annual$ USD millions 2004 2005 2006 2007 2008EGLOBAL CAPEX SUBSET 138,403 160,738 185,255 206,491 223,078Total Wireline Subset 73,351 83,874 96,084 110,735 119,152 Total Wireless Subset 65,053 76,864 89,171 95,756 103,926

Reported Capex - Global AnnualY/Y Growth 2004 2005 2006 2007 2008ETOTAL GLOBAL CAPEX 16.1% 15.3% 11.5% 8.0%Total Wireline Subset 14.3% 14.6% 15.2% 7.6%Total Wireless Subset 18.2% 16.0% 7.4% 8.5%

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Annual Wireline Capex Annual Annual Wireless Capex

Y/Y Wireline Capex Grow th Y/Y Wireless Capex Grow th


16 July 2008


Markets and Technology Wireline: Developed versus Emerging

Examining global Wireline capex trends through a geographic lens, emerging-market-based wireline capex for calendar year 2008 is rebounding off a modest prior three-year average of 6.5% year-over-year growth rate and is trending toward 14.4% year-over-year growth, a level it has not achieved since 2004.

In contrast, 2008 developed market wireline capex is trending toward 6.7%, which is less than half of the calendar 2007 growth rate and almost half of the prior four-year average of 14.9%.

Exhibit 43: Annual Wireline Capex Growth by Developed/Emerging Markets Global Capex - Annual$ USD millions 2003 2004 2005 2006 2007 2008ETotal Global Capex 142,045 168,518 191,487 221,015 251,246 278,513 Wireline 77,725 89,454 99,005 111,654 128,481 139,261


Total Global Capex Y/Y Growth 18.6% 13.6% 15.4% 13.7% 10.9%Wireline Y/Y Growth 15.1% 10.7% 12.8% 15.1% 8.4%

Developed Markets Y/Y Growth 8.5% 13.6% 15.3% 15.9% 6.7%Emerging Markets Y/Y Growth 39.3% 2.3% 4.9% 12.3% 14.4%

Wireline as a % of Total Global Capex 54.7% 53.1% 51.7% 50.5% 51.1% 50.0%Developed Markets as a % of Global Capex 43.0% 39.4% 39.3% 39.3% 40.0% 38.5%Emerging Markets as a % of Global Capex 11.7% 13.7% 12.4% 11.2% 11.1% 11.5%

8.5%

13.6% 15.3% 15.9%

6.7%

39.3%

2.3%

14.4%

12.3%4.9%

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Wireline Dev eloped Wireline Emerging

Wireline Dev eloped Y/Y Grow th Wireline Emerging Y/Y Grow th


Second through Fourth Quarter 2008 Outlook

Based on the subset of 131 carriers that have reported first quarter capex and provided full year 2008 capex guidance, the annual countercyclical trade-off between developed and emerging markets seems consistent for the second through fourth quarters of 2008 as illustrated in Exhibit 44 and Exhibit 45. Emerging-market-based wireline capex for the second through fourth quarters of 2008 is trending toward 13.3% year-over-year growth versus 13.6% for the same period in the previous year. In contrast, developed market wireline capex for the remainder of 2008 is trending toward 5.3% year-over-year growth down from 15.9 and 14.7% for the second through fourth quarters of 2007 and the second through fourth quarters of 2006, respectively, and is the lowest growth rate in the past five years.

16 July 2008


Exhibit 44: Second Quarter through Fourth Quarter

Wireline Capex by Market for the Subset

Exhibit 45: Annual Wireline Capex by Market for the

Subset Reported Capex - 2Q-4Q Outlook$ USD millions 2004 2005 2006 2007 2008ETOTAL GLOBAL CAPEX 109,099 126,468 145,437 161,242 172,082

Wireline 58,694 65,393 75,016 86,886 91,509 Developed Markets 52,166 57,671 66,735 77,482 80,858 Emerging Markets 6,528 7,723 8,281 9,404 10,651

Wireline Y/Y 11.4% 14.7% 15.8% 5.3%Developed Markets Y/Y 10.6% 15.7% 16.1% 4.4%Emerging Markets Y/Y 18.3% 7.2% 13.6% 13.3%

Reported Capex - Global Annual$ USD millions 2004 2005 2006 2007 2008ETOTAL GLOBAL CAPEX 138,403 160,738 185,255 206,491 223,078

Wireline 73,351 83,874 96,084 110,735 119,152Developed Markets 65,433 74,360 85,785 99,194 105,819 Emerging Markets 7,918 9,514 10,300 11,541 13,333

Wireline Y/Y 14.3% 14.6% 15.2% 7.6%Developed Markets Y/Y 13.6% 15.4% 15.6% 6.7%Emerging Markets Y/Y 20.2% 8.3% 12.0% 15.5%

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2Q-4Q Wireline Dev eloped 2Q-4Q Wireline Emerging2Q-4Q Wireline Dev eloped Y/Y Grow th 2Q-4Q Wireline Emerging Y/Y Grow th

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Source: Company data. Source: Company data.

16 July 2008


Wireless: Developed versus Emerging

Examining global wireless capex trends through a geographic lens, calendar 2008 emerging market wireless capex growth of 19.6% marks a significant decline from 2007’s 35.1% growth rate and is significantly below the 30.8% average growth rate over the past four years.

In contrast, the anticipated 8.6% increase in developed market wireless capex is a significant improvement from 2007’s (1.0%) outright decline and represents a favorable swing of almost ten percentage points.

Exhibit 46: Annual Wireless Capex Growth by Developed/Emerging Markets Global Capex - Annual$ USD millions 2003 2004 2005 2006 2007 2008ETotal Global Capex 142,045 168,518 191,487 221,015 251,246 278,513 Wireless 64,320 79,065 92,482 109,362 122,765 139,253


Total Global Capex Y/Y Growth 18.6% 13.6% 15.4% 13.7% 10.9%Wireless Y/Y Growth 22.9% 17.0% 18.3% 12.3% 13.4%

Developed Markets Y/Y Growth 20.2% 8.5% 16.1% -1.0% 8.6%Emerging Markets Y/Y Growth 29.5% 36.3% 22.1% 35.1% 19.6%

Wireless as a % of Total Global Capex 45.3% 46.9% 48.3% 49.5% 48.9% 50.0%Developed Markets as a % of Global Capex 32.2% 32.6% 31.1% 31.3% 27.3% 26.7%Emerging Markets as a % of Global Capex 13.1% 14.3% 17.2% 18.2% 21.6% 23.3%

20.2%

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-1.0%

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19.6%16.1%

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Second through Fourth Quarter Calendar 2008 Outlook

Based on the subset of 131 carriers that have reported first quarter capex and provided full year 2008 capex guidance, the annual wireless trends for developed and emerging markets are diverging for the second through fourth quarters of 2008 as illustrated in Exhibit 47 and Exhibit 48. Emerging market wireless capex for the second through fourth quarters is trending towards a significantly diminished 11.2% year-over-year growth versus 34.7% for the same period in the previous year. In contrast, developed market wireless capex for the remainder of 2008 is trending toward a significantly improved 6.9% year-over-year growth rate versus an outright (4.8%) decline for the same period in the previous year. Although this represents a favorable swing of approximately 10 percentage points, the 6.9% year-over-year growth rate still represents the second lowest growth rate in the past five years.

16 July 2008


Exhibit 47: Second through Fourth Quarter Wireless

Capex by Market for the Subset

Exhibit 48: Annual Wireless Capex by Market for the

Subset Reported Capex - 2Q-4Q Outlook$ USD millions 2004 2005 2006 2007 2008ETOTAL GLOBAL CAPEX 109,099 126,468 145,437 161,242 172,082

Wireless 50,405 61,074 70,421 74,356 80,574 Developed Markets 38,962 44,791 51,924 49,441 52,871 Emerging Markets 11,443 16,283 18,497 24,915 27,702

Wireless Y/Y 21.2% 15.3% 5.6% 8.4%Developed Markets Y/Y 15.0% 15.9% -4.8% 6.9%Emerging Markets Y/Y 42.3% 13.6% 34.7% 11.2%

Reported Capex - Global Annual$ USD millions 2004 2005 2006 2007 2008ETOTAL GLOBAL CAPEX 138,403 160,738 185,255 206,491 223,078

Wireless 73,351 83,874 96,084 110,735 119,152Developed Markets 65,433 74,360 85,785 99,194 105,819 Emerging Markets 7,918 9,514 10,300 11,541 13,333

Wireless Y/Y 14.3% 14.6% 15.2% 7.6%Developed Markets Y/Y 13.6% 15.4% 15.6% 6.7%Emerging Markets Y/Y 20.2% 8.3% 12.0% 15.5%

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16 July 2008


Carrier Consolidation: Capex Concentration We expect further consolidation among service providers to add to the challenging longer-term outlook for carrier-focused communications infrastructure suppliers. This trend poses two separate risks. Historically, consolidation among service providers typically has resulted in reduced capital expenditures by the combined entities, with average synergies on the order of 5-10%. The more significant issue for suppliers of communications infrastructure, in our opinion, is the increased concentration of capital expenditures resulting from such strategic combinations. While the U.S. market has already seen dramatic consolidation, led by AT&T and Verizon, we suspect that this trend is not yet complete and believe that consolidation involving one or more of the Tier 1 IOCs remains likely. Outside of the United States, carrier consolidation still has a long way to go.

The United States has seen a dramatic increase in capex concentration over the past decade. Notably, while the U.S. accounts for only 23% of projected aggregate global carrier capex in calendar 2008, down nine percentage points from the 32% the U.S. accounted for in calendar 2003, U.S. carrier capex still accounts for over 50% of the carrier-derived revenues of most North American-based communication equipment suppliers. As illustrated in Exhibit 49, in the U.S., AT&T and Verizon, following the closing of the pending AllTel acquisition, control over 12% of aggregate global capex and almost 60% of U.S. capex.

On the one hand, by definition, communication equipment suppliers will not see the same degree of consolidation in the U.S. over the next 5-10 years as we have witnessed over the past 5-10 years. However, this does not mean that consolidation is done. We expect further concentration of capital expenditure with the prospect of one or more of the Tier 1 IOCs being among other possible participants.

While regions outside of the United States have had their share of consolidation transactions in recent years, there remains significant scope for increased consolidation. In the past year, we have seen a number of such transactions, with, among others, Vimpelcom (Russia) acquiring Golden Telecom (Russia), Idea Cellular (India) acquiring Spice Communications (India), and France Telecom announcing and then withdrawing a bid for TeliaSonera.

16 July 2008


Exhibit 49: Carrier Capex Concentration 2008 Carrier Accumulated % ofCarrier Capex Capex TotalVerizon 16,550 16,550 5.9%China Mobile Limited 17,135 33,685 12.1%AT&T Wireline 12,864 46,549 16.7%Vodafone 11,452 58,001 20.8%France Telecom 10,128 68,129 24.5%Deutsche Telekom 8,848 76,977 27.6%Telefonica (ex latam) 7,830 84,807 30.5%Telecom Italia 7,821 92,628 33.3%NTT DoCoMo 6,834 99,462 35.7%British Telecom 6,340 105,802 38.0%China Telecom 6,062 111,864 40.2%Comcast 5,860 117,724 42.3%KDDI 5,216 122,940 44.1%AT&T Wireless 5,119 128,059 46.0%Sprint Nextel Cons. 4,893 132,952 47.7%BSNL 4,700 137,652 49.4%Reliance 4,667 142,319 51.1%Telefonica LatAm 4,625 146,944 52.8%Telstra 4,348 151,292 54.3%MTN group 4,236 155,528 55.8%China Unicom 4,169 159,697 57.3%NTT East 4,049 163,746 58.8%America Movil 4,000 167,746 60.2%NTT West 3,736 171,481 61.6%Telenor 3,575 175,056 62.9%Time Warner Cable 3,500 178,556 64.1%T-Mobile 3,350 181,906 65.3%KPN 2,897 184,803 66.4%KT 2,834 187,637 67.4%Vimplecom 2,700 190,337 68.3%China Netcom 2,640 192,977 69.3%Telus 2,544 195,521 70.2%Mobile Telesystems 2,500 198,021 71.1%Teliasonera 2,340 200,360 71.9%Telkom Indonesia 2,262 202,622 72.8%Bharti Airtel 2,125 204,747 73.5%MTC africa 2,099 206,846 74.3%Orascom 1,961 208,807 75.0%SK Telecom 1,908 210,715 75.7%Cox 1,900 212,615 76.3%TelMex 1,880 214,495 77.0%SoftBank 1,879 216,373 77.7%SwissCom 1,876 218,249 78.4%Qwest 1,800 220,049 79.0%Telkom SA 1,733 221,783 79.6%Megafone 1,700 223,483 80.2%

Total 278,513Companies 46


16 July 2008


Regional Capex Analysis United States Exhibit 50: Quarterly U.S. Capex US Carrier CapexIn USD, millions 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08US - Wireline $5,110 $6,144 $6,458 $7,859 $5,891 $6,841 $7,167 $7,975 $7,603 $8,633 $8,750 $10,035 $9,506 $10,443 $11,164 $12,546 $10,398 Y/Y Growth -2.3% -3.4% -2.1% -5.1% 15.3% 11.3% 11.0% 1.5% 29.1% 26.2% 22.1% 25.8% 25.0% 21.0% 27.6% 25.0% 9.4% % Share of US. Capex 57.1% 59.2% 64.8% 59.6% 61.0% 54.4% 57.6% 51.5% 58.8% 60.2% 58.3% 55.8% 66.3% 67.5% 70.8% 65.8% 69.0%

US - Wireless $3,844 $4,228 $3,503 $5,334 $3,763 $5,723 $5,281 $7,499 $5,327 $5,719 $6,250 $7,957 $4,834 $5,018 $4,594 $6,535 $4,670 Y/Y Growth 59.5% 35.9% 6.8% 13.7% -2.1% 35.4% 50.8% 40.6% 41.6% -0.1% 18.3% 6.1% -9.3% -12.2% -26.5% -17.9% -3.4% % Share of US. Capex 42.9% 40.8% 35.2% 40.4% 39.0% 45.6% 42.4% 48.5% 41.2% 39.8% 41.7% 44.2% 33.7% 32.5% 29.2% 34.2% 31.0%

Total US Capex $8,955 $10,372 $9,961 $13,192 $9,654 $12,563 $12,448 $15,474 $12,930 $14,352 $15,000 $17,992 $14,340 $15,462 $15,758 $19,081 $15,068 Y/Y Growth 17% 9% 1% 2% 8% 21% 25% 17% 34% 14% 21% 16% 11% 8% 5% 6% 5%

Global Capex 29,905 32,717 35,189 44,221 34,915 39,288 39,167 50,727 40,333 44,016 47,810 56,742 45,900 47,086 50,268 67,091 51,738 US as % of Global Capex 29.9% 31.7% 28.3% 29.8% 27.7% 32.0% 31.8% 30.5% 32.1% 32.6% 31.4% 31.7% 31.2% 32.8% 31.3% 28.4% 29.1%

RBOC 2,656 3,331 3,481 4,381 3,238 3,755 4,001 4,387 4,689 5,255 4,828 5,483 5,595 6,089 6,737 7,552 6,292 Incumbent IXC 56 64 71 91 65 70 83 166 92 200 255 274 144 145 138 205 191 Emerging IXC 84 91 110 107 85 111 109 76 73 98 168 170 200 227 245 175 172 CLEC 83 95 111 119 96 114 100 106 91 111 115 132 128 167 155 154 167 Independent 447 547 550 694 394 485 500 644 328 492 533 590 385 447 481 697 392 Wireless 3,844 4,228 3,503 5,334 3,763 5,723 5,281 7,499 5,327 5,719 6,250 7,957 4,834 5,018 4,594 6,535 4,670 Cable TV MSO 1,784 2,016 2,135 2,466 2,014 2,306 2,375 2,596 2,330 2,477 2,852 3,386 3,055 3,369 3,408 3,763 3,183

Total US Capex $8,955 $10,372 $9,961 $13,192 $9,654 $12,563 $12,448 $15,474 $12,930 $14,352 $15,000 $17,992 $14,340 $15,462 $15,758 $19,081 $15,068


Exhibit 51: U.S. Capex versus Global Capex Exhibit 52: U.S. Capex: Wireless/Wireline

$-

$10,000

$20,000

$30,000

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)

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28.0%

29.0%

30.0%

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Total United States Capex Global Capex

US Capex as % of Global Capex

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

1Q04

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)

-40%

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United States - Wireline United States -Wireless

Wireline Y/Y Growth Wireless Y/Y Growth


16 July 2008


Exhibit 53: Annual U.S. Capex, 2003–08E US Carrier CapexIn USD, millions 2003 2004 2005 2006 2007 2008EUS - Wireline $26,478 $25,572 $27,874 $35,022 $43,660 $43,029 Y/Y Growth n/a -3.4% 9.0% 25.6% 24.7% -1.4% % Share of US. Capex 66.2% 60.2% 55.6% 58.1% 67.5% 65.9%

US Wireless $13,490 $16,909 $22,266 $25,253 $20,981 $22,298 Y/Y Growth n/a 25.3% 31.7% 13.4% -16.9% 6.3% % Share of US. Capex 33.8% 39.8% 44.4% 41.9% 32.5% 34.1%

Total US Capex $39,968 $42,480 $50,140 $60,274 $64,641 $65,327 Y/Y Growth n/a 6% 18% 20% 7.2% 1.1%

Global Capex 150,926 142,032 164,097 188,901 210,345 229,314 US as % of Global Capex 26.5% 29.9% 30.6% 31.9% 30.7% 28.5%

RBOC 14,059 13,849 15,381 20,255 25,973 25,364 Incumbent IXC 325 282 384 821 632 632 Emerging IXC 335 392 381 509 847 844 CLEC 214 409 415 450 604 647 Independent 2,379 2,237 2,023 1,942 2,010 1,988 Wireless 13,490 16,909 22,266 25,253 20,981 22,298 Cable TV MSO 9,165 8,402 9,290 11,044 13,594 13,554


16 July 2008


Exhibit 54: First Quarter U.S. Capex Review United States CapexUSD millions 1Q08 1Q07 $ Change YoY %TOTAL US CAPEX 15,068 14,340 728 5.1%Wireline Total 10,398 9,506 891 9.4%Wireless Total 4,670 4,834 (164) -3.4%RBOC 6,292 5,595 697 12.5%Incumbent IXC 191 144 47 32.6%Emerging IXC 172 200 (28) -14.0%CLEC 167 128 39 30.1%Independent 392 385 8 2.0%Wireless Total 4,670 4,834 (164) -3.4%Cable TV MSO 3,183 3,055 129 4.2%

RBOC 6,292 5,595 697 12.5%Qwest 416 318 98 30.8%SBC (Wireline) 3,497 2,838 659 23.2%Verizon (Wireline) 2,379 2,439 (60) -2.5%

Incumbent IXC 191 144 47 32.6%Sprint FON LD 191 144 47 32.6%

Emerging IXC 172 200 (28) -14.0%Global Crossing 59 45 14 31.1%Level 3 (Comm. & Info. Services) 113 155 (42) -27.1%

CLEC 167 128 39 30.1%FiberNet Telecom Group 1 0 1 175.0%XO Communications (Nextlink) 65 41 24 58.9%Time Warner Telecom 58 60 (2) -3.8%Alaska Communicatons (wireline) 15 6 9 143.6%Consolidated Communications 13 8 5 62.5%D&E Communications 8 6 2 25.3%Primus Telecommunications 7 6 1 9.5%

Independent 392 385 8 2.0%Windstream (ALLTel -Wireline) 56 80 (24) -30.3%CenturyTel (Wireline) 55 49 6 12.2%Citizens Communications 48 45 3 6.4%Embarq 177 179 (2) -1.1%Fairpoint communications 25 7 18 257.0%Grande Communications Holdings 9 8 1 6.8%Iowa Telecomunications Services 6 7 (1) -9.7%Surewest 18 10 8 72.8%

Wireless 4,670 4,834 (164) -3.4%Verizon Wireless (Domestic) 1,722 1,721 1 0.1%AT&T Wireless 750 500 250 50.0%Sprint PCS 875 1,403 (528) -37.6%Alltel (Wireless) 146 170 (23) -13.8%T-Mobile USA 690 610 80 13.1%US Cellular 112 110 2 1.8%Centennial 26 29 (2) -7.3%Alaska Communicatons 8 4 4 98.0%Leap Wireless 157 132 26 19.4%Metro PCS 184 156 27 17.5%

Cable TV MSO 3,183 3,055 129 4.2%AOL Time Warner (Cable) 846 720 126 17.5%Comcast (Cable) 1,355 1,443 (88) -6.1%Cox Communications 399 378 21 5.6%Charter Communications 334 298 36 12.1%Cablevision (Cable & Telecom) 158 140 19 13.4%Mediacom 64 50 14 28.2%RCN 27 26 1 3.8% Source: Company data.

16 July 2008


Exhibit 55: Second through Fourth Quarter U.S. Capex Outlook United States CapexUSD millions 2Q - 4Q08E 2Q - 4Q07 $ Change YoY %TOTAL US CAPEX 50,259 50,361 (102) -0.2%Wireline Total 32,632 34,214 (1,582) -4.6%Wireless Total 17,627 16,147 1,480 9.2%RBOC 19,072 20,378 (1,306) -6.4%Incumbent IXC 441 488 (47) -9.6%Emerging IXC 672 647 25 3.9%CLEC 481 537 (56) -10.5%Independent 1,595 1,625 (30) -1.8%Wireless Total 17,627 16,147 1,480 9.2%Cable TV MSO 10,371 10,539 (168) -1.6%

RBOC 19,072 20,378 (1,306) -6.4%Qwest 1,384 1,351 33 2.4%SBC (Wireline) 9,367 10,510 (1,143) -10.9%Verizon (Wireline) 8,321 8,517 (196) -2.3%

Incumbent IXC 441 488 (47) -9.6%Sprint FON LD 441 488 (47) -9.6%

Emerging IXC 672 647 25 3.9%Global Crossing 155 169 (14) -8.3%Level 3 (Comm. & Info. Services) 517 478 39 8.2%

CLEC 481 476 4 0.9%FiberNet Telecom Group 5 3 2 58.8%XO Communications (Nextlink) 134 174 (41) -23.4%Time Warner Telecom 204 185 19 10.4%Alaska Communicatons (wireline) 67 33 34 102.9%Consolidated Communications 35 25 9 37.4%D&E Communications 15 16 (2) -9.4%Primus Telecommunications 21 39 (18) -46.9%

Independent 1,595 1,625 (30) -1.8%Windstream (ALLTel -Wireline) 299 317 (18) -5.6%CenturyTel (Wireline) 245 277 (32) -11.5%Citizens Communications 257 271 (14) -5.1%Embarq 623 639 (16) -2.5%Fairpoint communications 78 31 47 149.9%Grande Communications Holdings 11 27 (16) -58.0%Iowa Telecomunications Services 21 20 1 3.6%Surewest 60 42 18 42.7%

Wireless 17,627 16,147 1,480 9.2%Verizon Wireless (Domestic) 4,128 4,782 (654) -13.7%AT&T Wireless 4,369 3,340 1,029 30.8%Sprint PCS 3,386 3,588 (202) -5.6%Alltel (Wireless) 854 917 (63) -6.9%T-Mobile USA 2,660 1,993 667 33.5%US Cellular 503 456 48 10.4%Centennial 84 69 15 21.5%Alaska Communicatons 34 18 16 92.5%Leap Wireless 593 373 220 58.9%Metro PCS 1,016 612 405 66.1%

Cable TV MSO 10,371 10,539 (168) -1.6%AOL Time Warner (Cable) 2,654 2,713 (59) -2.2%Comcast (Cable) 4,505 4,715 (210) -4.4%Cox Communications 1,501 1,422 79 5.6%Charter Communications 866 946 (80) -8.5%Cablevision (Cable & Telecom) 546 473 73 15.4%Mediacom 211 178 34 18.9%RCN 88 93 (5) -5.4%


16 July 2008


Europe Exhibit 56: Quarterly Europe Capex Europe CapexIn USD, millions 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08Europe- Wireline 4,838 5,424 5,127 6,732 5,515 6,473 5,878 7,922 6,796 7,171 7,542 9,386 7,659 8,029 8,253 11,582 8,255

Y/Y Growth 5.7% -2.4% -4.0% -15.3% 14.0% 19.3% 14.6% 17.7% 23.2% 10.8% 28.3% 18.5% 12.7% 12.0% 9.4% 23.4% 7.8% % of Europe 47.2% 54.8% 47.5% 51.0% 52.2% 59.2% 55.4% 52.3% 58.1% 56.8% 57.4% 53.5% 56.6% 57.9% 56.7% 57.1% 52.8%

Europe - Wireless 5,407 4,472 5,676 6,474 5,054 4,461 4,741 7,235 4,903 5,448 5,605 8,148 5,874 5,843 6,313 8,702 7,371 Y/Y Growth 21.4% 10.3% 25.9% -6.6% -6.5% -0.3% -16.5% 11.8% -3.0% 22.1% 18.2% 12.6% 19.8% 7.2% 12.6% 6.8% 25.5% % of Europe 52.8% 45.2% 52.5% 49.0% 47.8% 40.8% 44.6% 47.7% 41.9% 43.2% 42.6% 46.5% 43.4% 42.1% 43.3% 42.9% 47.2%

Total Europe 10,245 9,896 10,803 13,207 10,568 10,934 10,619 15,157 11,699 12,620 13,147 17,535 13,534 13,872 14,566 20,284 15,626 Total Y/Y Growth 13.4% 3.0% 9.7% -11.2% 3.2% 10.5% -1.7% 14.8% 10.7% 15.4% 23.8% 15.7% 15.7% 9.9% 10.8% 15.7% 15.5%

Global Capex 29,905 32,717 35,189 44,221 34,915 39,288 39,167 50,727 40,333 44,016 47,810 56,742 45,900 47,086 50,268 67,091 51,738 Europe as % of Global 34.3% 30.2% 30.7% 29.9% 30.3% 27.8% 27.1% 29.9% 29.0% 28.7% 27.5% 30.9% 29.5% 29.5% 29.0% 30.2% 30.2%


Exhibit 57: Europe Capex versus Global Capex Exhibit 58: Europe Capex: Wireless/Wireline

$-

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20.0%

22.0%

24.0%

26.0%

28.0%

30.0%

32.0%

34.0%

36.0%

Total Europe Capex Global Capex Europe Capex as % of Global Capex

$-

$2,000

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$6,000

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1Q042Q

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Europe- Wireline Europe - WirelessWireline Y/Y Growth Wireless Y/Y Growth


Exhibit 59: Annual Europe Capex Europe CapexIn USD, millions 2003 2004 2005 2006 2007 2008EEurope- Wireline 23,420 22,121 25,787 30,895 35,524 38,809

Y/Y Growth n/a -5.5% 16.6% 19.8% 15.0% 9.2% % of Europe 54.0% 50.1% 54.5% 56.2% 57.1% 56.0%

Europe - Wireless 19,949 22,030 21,491 24,105 26,732 30,458 Y/Y Growth n/a 10.4% -2.4% 12.2% 10.9% 13.9% % of Europe 46.0% 49.9% 45.5% 43.8% 42.9% 44.0%

Total Europe 43,369 44,151 47,278 55,000 62,256 69,267 Total Y/Y Growth n/a 1.8% 7.1% 16.3% 13.2% 11.3%

Global Capex 150,926 142,032 164,097 188,901 210,345 229,314 Europe as % of Global 28.7% 31.1% 28.8% 29.1% 29.6% 30.2% Source: Company data, Credit Suisse estimates.

16 July 2008


Exhibit 60: First Quarter Europe Capex Review Global CapexUSD millions 1Q08 1Q07 $ Change YoY %TOTAL EUROPEAN CARRIERS 15,626 13,534 2,092 15.5%Wireline 8,255 7,659 596 7.8%Wireless 7,371 5,874 1,497 25.5%

Wireline 8,255 7,659 596 7.8%British Telecom 1,532 1,585 (53) -3.4%Deutsche Telekom 1,294 1,458 (164) -11.2%France Telecom 1,167 843 324 38.4%Telecom Italia 1,061 982 78 8.0%Telefonica 470 438 32 7.4%KPN 398 201 198 98.6%Swisscom 337 204 134 65.6%Belgacom 157 119 38 31.8%Telecom Austria 73 64 9 14.0%Telecom Portugal 95 77 18 24.0%Virgin Media (frmly NTL) 271 299 (27) -9.2%Colt 101 82 19 23.2%Cable & Wireless 139 148 (9) -6.1%Eircom 108 98 10 9.7%ONO 147 156 (9) -5.9%OTE 208 293 (84) -28.9%Sonaecom 10 16 (6) -36.3%Tele2 50 77 (26) -34.3%Tiscali 70 46 23 50.9%QSC 43 14 30 212.6%Carphone Warehouse 159 128 31 24.3%UPC Broadcom 265 269 (4) -1.5%Telenet 99 64 35 55.3%

Wireless 7,371 5,874 1,497 25.5%Deutsche Telekom (ex T-Mobile US) 706 588 118 20.0%France Telecom 1,067 771 296 38.4%Telecom Italia 543 382 161 42.1%Telefonica Wireless (ex latam) 819 823 (4) -0.5%KPN 134 144 (10) -7.1%Swisscom 55 54 2 3.6%Belgacom 34 42 (8) -17.9%Telecom Austria 110 96 15 15.2%Telecom Portugal 47 36 11 30.9%Vodafone 3,394 2,554 840 32.9%Cable & Wireless 120 98 22 22.4%Jazztel 12 17 (5) -28.0%Sonaecom 43 21 21 99.2%Tele2 91 92 (1) -0.9%Bouygues 195 156 38 24.6%


16 July 2008


Exhibit 61: Second through Fourth Quarter Europe Capex Outlook Global CapexUSD millions 2Q - 4Q08E 2Q - 4Q07 $ Change YoY %TOTAL EUROPEAN CARRIERS 53,561 48,722 4,839 9.9%Wireline 30,474 27,865 2,609 9.4%Wireless 23,088 20,858 2,230 10.7%

Wireline 30,474 27,865 2,609 9.4%British Telecom 4,728 4,839 (111) -2.3%Deutsche Telekom 5,089 4,310 778 18.1%France Telecom 3,893 3,959 (66) -1.7%Telecom Italia 4,281 3,381 901 26.6%Telefonica 2,530 2,033 497 24.4%KPN 1,502 1,307 195 14.9%Swisscom 1,201 1,203 (1) -0.1%Belgacom 564 527 36 6.8%Telecom Austria 349 313 36 11.4%Telecom Portugal 421 417 4 0.9%Virgin Media (frmly NTL) 953 814 139 17.1%Colt 304 274 30 11.1%Cable & Wireless 380 304 76 25.0%Eircom 375 317 58 18.2%ONO 476 576 (100) -17.4%OTE 1,387 1,227 160 13.0%Sonaecom 110 53 57 106.5%Tele2 280 237 43 17.9%Tiscali 245 229 16 7.0%QSC 58 162 (104) -64.1%Carphone Warehouse 320 424 (104) -24.5%UPC Broadcom 873 800 73 9.1%Telenet 155 159 (4) -2.2%

Wireless 23,088 20,858 2,230 10.7%Deutsche Telekom (ex T-Mobile US) 1,760 2,077 (317) -15.3%France Telecom 4,001 4,035 (34) -0.8%Telecom Italia 1,936 1,647 289 17.5%Telefonica Wireless (ex latam) 4,011 3,147 864 27.5%KPN 862 639 223 34.9%Swisscom 282 255 27 10.5%Belgacom 201 167 35 20.8%Telecom Austria 345 406 (61) -14.9%Telecom Portugal 232 232 1 0.2%Vodafone 8,058 6,830 1,228 18.0%Cable & Wireless 145 261 (116) -44.6%Jazztel 60 27 33 121.7%Sonaecom 147 148 (1) -0.8%Tele2 343 323 20 6.2%Bouygues 704 663 41 6.2% Source: Company data, Credit Suisse estimates.

16 July 2008


China We set forth regional capital expenditure analysis for Chinese Carriers as of the fourth quarter of calendar 2007 since they have not yet reported first quarter 2008 earnings.

Exhibit 62: Quarterly China Capex China CapexIn millions, USD 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07China - Wireline 2,183 2,520 2,504 2,905 1,839 2,247 2,638 3,246 1,765 2,169 2,430 3,133 1,675 2,069 2,216 2,768 Y/Y Growth 45.5% 35.6% 16.8% 11.9% -15.8% -10.8% 5.3% 11.8% -4.0% -3.5% -7.9% -3.5% -5.1% -4.6% -8.8% -11.7% % of China 56.9% 56.5% 54.9% 53.9% 50.2% 49.7% 52.7% 53.1% 45.2% 45.2% 40.0% 41.0% 33.4% 33.4% 33.8% 33.8%

China - Wireless 1,655 1,938 2,061 2,480 1,824 2,273 2,371 2,871 2,137 2,627 3,644 4,511 3,347 4,135 4,336 5,415 Y/Y Growth 16.6% 9.8% 13.4% -13.4% 10.2% 17.3% 15.0% 15.8% 17.2% 15.6% 53.7% 57.1% 56.6% 57.4% 19.0% 20.0% % of China 43.1% 43.5% 45.1% 46.1% 49.8% 50.3% 47.3% 46.9% 54.8% 54.8% 60.0% 59.0% 66.6% 66.6% 66.2% 66.2%

Total China Capex 3,838 4,458 4,566 5,384 3,662 4,521 5,009 6,117 3,903 4,796 6,074 7,644 5,022 6,204 6,552 8,183 Total Y/Y Growth 31.5% 23.1% 15.2% -1.4% -4.6% 1.4% 9.7% 13.6% 6.6% 6.1% 21.3% 25.0% 28.7% 29.4% 7.9% 7.0%

Global Capex 29,905 32,717 35,189 44,221 34,915 39,288 39,167 50,727 40,333 44,016 47,810 56,742 45,900 47,086 50,268 67,091 China as % of Global 12.8% 13.6% 13.0% 12.2% 10.5% 11.5% 12.8% 12.1% 9.7% 10.9% 12.7% 13.5% 10.9% 13.2% 13.0% 12.2%


Exhibit 63: China Capex versus Global Capex Exhibit 64: China Capex: Wireless/Wireline

$-

$10,000

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Total China Capex Global Capex China Capex as % of Global Capex

$-

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$6,000

1Q04

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China - Wireline China - WirelessWireline Y/Y Growth Wireless Y/Y Growth


Exhibit 65: Annual China Capex, 2003–08E China CapexIn millions, USD 2003 2004 2005 2006 2007 2008EChina - Wireline 8,098 10,112 9,971 9,498 8,728 8,702 Y/Y Growth n/a 24.9% -1.4% -4.7% -8.1% -0.3% % of China 50.7% 55.4% 51.6% 42.4% 33.6% 29.0%

China - Wireless 7,864 8,134 9,339 12,919 17,233 21,304 Y/Y Growth n/a 3.4% 14.8% 38.3% 33.4% 23.6% % of China 49.3% 44.6% 48.4% 57.6% 66.4% 71.0%

Total China Capex 15,962 18,246 19,309 22,417 25,961 30,007 Total Y/Y Growth n/a 14.3% 5.8% 16.1% 15.8% 15.6%

Global Capex 142,045 168,518 191,487 221,015 251,246 278,513 China as % of Global 11.2% 10.8% 10.1% 10.1% 10.3% 10.8% Source: Company data, Credit Suisse estimates.

16 July 2008


Japan Exhibit 66: Quarterly Japan Capex Japan CapexIn millions, USD 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08Japan - Wireline 2,407 2,911 2,696 3,419 3,905 3,216 3,320 3,066 3,438 2,665 2,915 2,889 3,077 2,339 2,530 3,012 4,283 Y/Y Growth -0.9% 27.1% 25.0% 45.7% 62.2% 10.5% 23.2% -10.3% -11.9% -17.1% -12.2% -5.8% -10.5% -12.2% -13.2% 4.3% 39.2% % of Japan 42.6% 59.9% 48.2% 57.6% 57.3% 57.2% 59.9% 57.1% 52.2% 51.6% 47.2% 48.7% 43.5% 49.8% 50.1% 51.6% 52.1%

Japan - Wireless 3,242 1,949 2,893 2,514 2,909 2,404 2,223 2,306 3,153 2,504 3,260 3,041 3,996 2,355 2,523 2,831 3,944 Y/Y Growth 5.4% 40.6% 13.8% 117.3% -10.3% 23.3% -23.2% -8.2% 8.4% 4.2% 46.6% 31.9% 26.7% -5.9% -22.6% -6.9% -1.3% % of Japan 57.4% 40.1% 51.8% 42.4% 42.7% 42.8% 40.1% 42.9% 47.8% 48.4% 52.8% 51.3% 56.5% 50.2% 49.9% 48.4% 47.9%

Total Japan Capex 5,649 4,860 5,589 5,933 6,814 5,620 5,543 5,372 6,591 5,169 6,175 5,930 7,072 4,694 5,053 5,843 8,226 Total Y/Y Growth 2.7% 32.2% 18.9% 69.3% 20.6% 15.6% -0.8% -9.5% -3.3% -8.0% 11.4% 10.4% 7.3% -9.2% -18.2% -1.5% 16.3%

Global Capex 29,905 32,717 35,189 44,221 34,915 39,288 39,167 50,727 40,333 44,016 47,810 56,742 45,900 47,086 50,268 67,091 51,738 Japan as % of Global 18.9% 14.9% 15.9% 13.4% 19.5% 14.3% 14.2% 10.6% 16.3% 11.7% 12.9% 10.5% 15.4% 10.0% 10.1% 8.7% 15.9%


Exhibit 67: Japan Capex versus Global Capex Exhibit 68: Japan Capex: Wireless/Wireline

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Exhibit 69: Annual Japan Capex Japan CapexIn millions, USD 2003 2004 2005 2006 2007 2008EJapan - Wireline 9,223 11,434 13,506 11,908 10,958 13,059

Y/Y Growth n/a 24.0% 18.1% -11.8% -8.0% 19.2% % of Japan 53.1% 51.9% 57.8% 49.9% 48.4% 51.4%

Japan - Wireless 8,160 10,598 9,842 11,958 11,704 12,351 Y/Y Growth n/a 29.9% -7.1% 21.5% -2.1% 5.5% % of Japan 46.9% 48.1% 42.2% 50.1% 51.6% 48.6%

Total Japan Capex 17,383 22,032 23,349 23,866 22,662 25,411 Total Y/Y Growth n/a 26.7% 6.0% 2.2% -5.0% 12.1%

Global Capex 150,926 142,032 164,097 188,901 210,345 229,314 Japan as % of Global 11.5% 15.5% 14.2% 12.6% 10.8% 11.1% Source: Company data, Credit Suisse estimates.

16 July 2008


Exhibit 70: First Quarter Japan Capex Review Global CapexUSD millions 1Q08 1Q07 $ Change YoY %TOTAL JAPANESE CARRIERS 8,226 7,072 1,154 16.3%Wireline 4,283 3,077 1,206 39.2%Wireless 3,944 3,996 (52) -1.3%

Wireline 4,283 3,077 1,206 39.2%NTT Holding 156 169 (13) -7.4%NTT East 1,323 1,166 156 13.4%NTT West (JPY, 3/31/06 YE) 1,153 784 369 47.0%NTT Communications 508 308 201 65.3%NTT Data 570 320 250 78.0%KDDI 370 82 288 350.3%eAccess 16 57 (41) -71.7%Liberty Global Jcom 75 90 (15) -16.5%SoftBank 112 101 11 11.3%

Wireless 3,944 3,996 (52) -1.3%NTT DoCoMo 2,558 2,138 421 19.7%KDDI 814 979 (164) -16.8%SoftBank 571 879 (308) -35.1%


Exhibit 71: Second Quarter through Fourth Quarter Japan Capex Outlook Global CapexUSD millions 2Q - 4Q08E 2Q - 4Q07 $ Change YoY %TOTAL JAPANESE CARRIERS 17,184 15,590 1,594 10.2%Wireline 8,777 7,881 895 11.4%Wireless 8,408 7,709 699 9.1%

Wireline 8,777 7,881 895 11.4%NTT Holding 268 293 (25) -8.5%NTT East 2,726 2,651 75 2.8%NTT West (JPY, 3/31/06 YE) 2,583 2,163 420 19.4%NTT Communications 615 469 146 31.2%NTT Data 952 1,003 (51) -5.1%KDDI 956 605 352 58.1%eAccess 29 125 (96) -76.5%Liberty Global Jcom 508 306 202 66.1%SoftBank 139 267 (128) -47.9%

Wireless 8,408 7,709 699 9.1%NTT DoCoMo 4,276 4,181 95 2.3%KDDI 3,075 2,035 1,040 51.1%SoftBank 1,056 1,492 (436) -29.2%


16 July 2008


Asia-Pacific Exhibit 72: Quarterly Asia-Pacific Capex Asia-Pacific CapexIn millions, USD 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08Asia-Pacific - Wireline 570 688 645 855 702 692 746 886 633 818 769 898 701 799 839 944 807 Y/Y Growth -57.6% -60.4% -41.9% -32.9% 23.2% 0.6% 15.8% 3.6% -9.8% 18.1% 3.0% 1.4% 10.7% -2.3% 9.1% 5.1% 15.2% % of Asia-Pacific 50.9% 48.4% 44.9% 42.0% 45.5% 41.2% 42.7% 41.9% 37.4% 39.9% 35.6% 37.3% 29.1% 41.7% 38.5% 40.1% 41.9%

Asia-Pacific - Wireless 549 734 792 1,181 840 988 1,001 1,229 1,061 1,233 1,390 1,509 1,706 1,118 1,342 1,411 1,117 Y/Y Growth -35.6% -30.7% -24.6% -5.4% 53.1% 34.6% 26.5% 4.0% 26.4% 24.8% 38.8% 22.8% 60.8% -9.3% -3.4% -6.5% -34.5% % of Asia-Pacific 49.1% 51.6% 55.1% 58.0% 54.5% 58.8% 57.3% 58.1% 62.6% 60.1% 64.4% 62.7% 70.9% 58.3% 61.5% 59.9% 58.1%

Total Asia-Pacific Capex 1,118 1,422 1,436 2,037 1,542 1,680 1,748 2,114 1,694 2,050 2,158 2,407 2,406 1,917 2,180 2,355 1,924 Total Y/Y Growth -49.1% -49.2% -33.5% -19.3% 37.9% 18.2% 21.7% 3.8% 9.9% 22.0% 23.5% 13.8% 42.0% -6.5% 1.0% -2.2% -20.1%

Global Capex 29,905 32,717 35,189 44,221 34,915 39,288 39,167 50,727 40,333 44,016 47,810 56,742 45,900 47,086 50,268 67,091 51,738 Asia-Pacific as % of Global 3.7% 4.3% 4.1% 4.6% 4.4% 4.3% 4.5% 4.2% 4.2% 4.7% 4.5% 4.2% 5.2% 4.1% 4.3% 3.5% 3.7%


Exhibit 73: Asia-Pacific Capex versus Global Capex Exhibit 74: Asia-Pacific Capex: Wireless/Wireline

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Asia-Pacific - Wireline Asia-Pacific - WirelessWireline Y/Y Growth Wireless Y/Y Growth


Exhibit 75: Annual Asia-Pacific Capex Asia-Pacific CapexIn millions, USD 2003 2004 2005 2006 2007 2008EAsia-Pacific - Wireline 5,469 2,757 3,026 3,117 3,282 3,856

Y/Y Growth n/a -49.6% 9.8% 3.0% 5.3% 17.5% % of Asia-Pacific 56.5% 45.9% 42.7% 37.5% 37.1% 38.0%

Asia-Pacific - Wireless 4,209 3,256 4,058 5,192 5,576 6,297 Y/Y Growth n/a -22.6% 24.6% 28.0% 7.4% 12.9% % of Asia-Pacific 43.5% 54.1% 57.3% 62.5% 62.9% 62.0%

Total Asia-Pacific Capex 9,678 6,013 7,084 8,310 8,858 10,153 Total Y/Y Growth n/a -37.9% 17.8% 17.3% 6.6% 14.6%

Global Capex 150,926 142,032 164,097 188,901 210,345 229,314 Asia-Pacific as % of Global 6.4% 4.2% 4.3% 4.4% 4.2% 4.4% Source: Company data, Credit Suisse estimates.

16 July 2008


Exhibit 76: First Quarter Asia-Pacific Capex Review Global CapexUSD millions 1Q08 1Q07 $ Change YoY %TOTAL ASIAN-PACIFIC CARRIERS 1,924 2,406 (483) -20.1%Wireline 807 701 106 15.2%Wireless 1,117 1,706 (589) -34.5%

Wireline 807 701 106 15.2%New Zealand Telecom 126 70 57 81.5%Chunghwa 152 130 22 17.0%Singapore (Sing-tel) 173 157 16 10.5%Optus 128 112 16 14.4%Telekom Malaysia 105 57 49 85.7%Telekom Indonesia 40 45 (4) -9.8%Millicom 21 16 5 30.2%Phillipines Long Distance 29 79 (50) -63.0%PT IndoStat 28 32 (4) -12.6%CTI Group 5 5 (0) -1.4%Time dotCom 4 3 1 56.6%

Wireless 1,117 1,706 (589) -34.5%New Zealand Telecom 48 49 (1) -1.2%Chunghwa 23 19 3 17.0%Taiwan Mobile 40 53 (14) -26.0%Optus 67 42 25 58.8%Starhub 42 16 26 166.0%Telekom Malaysia 51 27 24 85.7%PT Bakrie Telecom 29 18 12 67.4%Telekom Indonesia 349 386 (38) -9.8%Mobile One 3 5 (2) -47.1%Phillipines Long Distance 44 41 3 7.8%PT IndoStat 157 706 (549) -77.7%Total Access Comm (DTAC) 68 84 (17) -19.8%True Corp 28 35 (7) -19.0%Globe Telecom 103 64 39 61.7%AIS Thailand 65 159 (94) -59.2%


16 July 2008


Exhibit 77: Second through Fourth Quarter Asia-Pacific Capex Outlook Global CapexUSD millions 2Q - 4Q08E 2Q - 4Q07 $ Change YoY %TOTAL ASIAN-PACIFIC CARRIERS 8,230 6,452 1,778 27.6%Wireline 3,049 2,582 467 18.1%Wireless 5,181 3,870 1,310 33.9%

Wireline 3,049 2,582 467 18.1%New Zealand Telecom 449 349 100 28.5%Chunghwa 678 504 174 34.5%Singapore (Sing-tel) 341 337 3 1.0%Optus 451 431 20 4.7%Telekom Malaysia 162 444 (282) -63.5%Telekom Indonesia 525 126 400 318.2%Millicom 56 61 (5) -8.0%Phillipines Long Distance 204 135 69 51.3%PT IndoStat 152 183 (31) -17.0%CTI Group 32 12 20 163.6%Time dotCom (4) 9 (13) -147.7%

Wireless 5,181 3,870 1,310 33.9%New Zealand Telecom 169 159 9 5.9%Chunghwa 150 113 37 33.0%Taiwan Mobile 263 157 106 67.5%Optus 125 138 (13) -9.5%Starhub 141 127 14 10.8%Telekom Malaysia 205 175 31 17.5%PT Bakrie Telecom 203 140 63 44.9%Telekom Indonesia 1,347 1,089 259 23.7%Mobile One 73 33 40 121.4%Phillipines Long Distance 306 277 29 10.4%PT IndoStat 863 384 479 124.6%Total Access Comm (DTAC) 289 269 20 7.3%True Corp 231 213 18 8.5%Globe Telecom 347 241 106 43.9%AIS Thailand 469 355 114 32.2% Source: Company data, Credit Suisse estimates.

16 July 2008


India Exhibit 78: Quarterly India Capex India CapexIn millions, USD 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08India - Wireline 64 39 45 71 67 62 173 147 148 118 141 103 140 106 272 146 257 Y/Y Growth -48.9% -65.7% -72.7% -53.9% 5.2% 56.7% 284.6% 109.0% 119.8% 90.8% -18.5% -30.2% -4.9% -10.0% 93.0% 41.6% 82.9% % of India 20.5% 13.3% 9.5% 12.2% 14.0% 10.5% 23.4% 19.2% 13.0% 12.3% 11.6% 10.6% 13.7% 6.9% 10.9% 4.3% 11.3%

India - Wireless 248 255 428 508 411 523 567 619 987 835 1,078 869 881 1,416 2,218 3,222 2,016 Y/Y Growth 9.1% -12.9% 34.5% 42.3% 65.7% 104.7% 32.4% 21.9% 140.0% 59.7% 90.2% 40.4% -10.7% 69.6% 105.7% 270.7% 128.7% % of India 79.5% 86.7% 90.5% 87.8% 86.0% 89.5% 76.6% 80.8% 87.0% 87.7% 88.4% 89.4% 86.3% 93.1% 89.1% 95.7% 88.7%

Total India Capex 312 295 474 578 478 585 740 766 1,135 952 1,220 972 1,022 1,522 2,491 3,368 2,272 Total Y/Y Growth -11.5% -27.8% -2.1% 13.4% 53.3% 98.3% 56.3% 32.5% 137.1% 62.9% 64.7% 26.8% -9.9% 59.8% 104.2% 246.4% 122.4%

Global Capex 29,905 32,717 35,189 44,221 34,915 39,288 39,167 50,727 40,333 44,016 47,810 56,742 45,900 47,086 50,268 67,091 51,738 India as % of Global 1.0% 0.9% 1.3% 1.3% 1.4% 1.5% 1.9% 1.5% 2.8% 2.2% 2.6% 1.7% 2.2% 3.2% 5.0% 5.0% 4.4%


Exhibit 79: India Capex versus Global Capex Exhibit 80: India Capex: Wireless/Wireline

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India - Wireline India - WirelessWireline Y/Y Growth Wireless Y/Y Growth


Exhibit 81: Annual India Capex India CapexIn millions, USD 2003 2004 2005 2006 2007 2008EIndia - Wireline 558 219 449 509 664 455

Y/Y Growth n/a -60.8% 105.4% 13.3% 30.4% -31.5% % of India 31.8% 13.2% 17.5% 11.9% 7.9% 5.6%

India - Wireless 1,196 1,440 2,120 3,770 7,738 7,737 Y/Y Growth n/a 20.4% 47.2% 77.8% 105.3% 0.0% % of India 68.2% 86.8% 82.5% 88.1% 92.1% 94.4%

Total India Capex 1,754 1,659 2,570 4,279 8,402 8,192 Total Y/Y Growth n/a -5.4% 54.9% 66.5% 96.4% -2.5%

Global Capex 150,926 142,032 164,097 188,901 210,345 229,314

India as % of Global 1.2% 1.2% 1.6% 2.3% 4.0% 3.6% Source: Company data, Credit Suisse estimates.

16 July 2008


Exhibit 82: First Quarter India Capex Review Global CapexUSD millions 1Q08 1Q07 $ Change YoY %TOTAL INDIAN CARRIERS 2,272 1,022 1,250 122.4%Wireline 257 140 116 82.9%Wireless 2,016 881 1,134 128.7%

Wireline 257 140 116 82.9%Bharti (AirTel) Wireless 257 140 116 82.9%

Wireless 2,016 881 1,134 128.7%Reliance 1,326 442 884 200.1%Bharti (AirTel) Wireless 452 243 210 86.5%IDEA Celluar (Escorts) ($USD) 237 197 40 20.4%


Exhibit 83: Second through Fourth Quarter India Capex Outlook Global CapexUSD millions 2Q - 4Q08E 2Q - 4Q07 $ Change YoY %TOTAL INDIAN CARRIERS 5,920 7,380 (1,461) -19.8%Wireline 199 524 (325) -62.1%Wireless 5,721 6,856 (1,135) -16.6%

Wireline 199 524 (325) -62.1%Bharti (AirTel) Wireless 199 524 (325) -62.1%

Wireless 5,721 6,856 (1,135) -16.6%Reliance 3,341 3,968 (627) -15.8%Bharti (AirTel) Wireless 1,217 2,193 (976) -44.5%IDEA Celluar (Escorts) ($USD) 1,163 695 467 67.2%


16 July 2008


Latin America Exhibit 84: Quarterly Latin America Capex Latin America CapexIn USD, millions 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08Latin America- Wireline 426 683 815 1,531 594 943 1,131 1,495 714 946 1,234 1,766 786 1,340 1,770 1,745 1,099

Y/Y Growth 44.5% 31.2% 44.5% 30.4% 39.5% 38.0% 38.7% -2.3% 20.1% 0.3% 9.2% 18.2% 10.1% 41.7% 43.4% -1.2% 39.9% % of Latin America 49.4% 34.8% 31.9% 47.9% 34.5% 32.3% 40.8% 33.5% 36.4% 33.5% 31.8% 46.2% 38.2% 43.7% 47.0% 27.4% 42.7%

Latin America - Wireless 436 1,281 1,744 1,664 1,127 1,974 1,639 2,969 1,244 1,874 2,642 2,054 1,271 1,730 1,999 4,619 1,473 Y/Y Growth -24.6% 69.7% 112.4% 44.3% 158.5% 54.0% -6.0% 78.4% 10.4% -5.1% 61.2% -30.8% 2.1% -7.7% -24.3% 124.9% 15.9% % of Latin America 50.6% 65.2% 68.1% 52.1% 65.5% 67.7% 59.2% 66.5% 63.6% 66.5% 68.2% 53.8% 61.8% 56.3% 53.0% 72.6% 57.3%

Total Latin America 862 1,965 2,559 3,195 1,721 2,916 2,770 4,464 1,958 2,819 3,876 3,821 2,057 3,070 3,769 6,364 2,572 Total Y/Y Growth -1.3% 54.0% 84.7% 37.3% 99.7% 48.4% 8.2% 39.7% 13.8% -3.3% 40.0% -14.4% 5.0% 8.9% -2.8% 66.6% 25.0%

Global Capex 29,905 32,717 35,189 44,221 34,915 39,288 39,167 50,727 40,333 44,016 47,810 56,742 45,900 47,086 50,268 67,091 51,738 Latin America as % of Global 2.9% 6.0% 7.3% 7.2% 4.9% 7.4% 7.1% 8.8% 4.9% 6.4% 8.1% 6.7% 4.5% 6.5% 7.5% 9.5% 5.0%


Exhibit 85: Latin America Capex versus Global Capex Exhibit 86: Latin America Capex: Wireless/Wireline

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Latin America - Wireline Latin America -WirelessWireline Y/Y Growth Wireless Y/Y Growth


Exhibit 87: Annual Latin America Capex Latin America CapexIn USD, millions 2003 2004 2005 2006 2007 2008ELatin America- Wireline 2,554 3,455 4,162 4,660 5,641 6,415

Y/Y Growth n/a 35.3% 20.5% 12.0% 21.1% 13.7% % of Latin America 43.6% 40.3% 35.1% 37.4% 37.0% 37.0%

Latin America - Wireless 3,307 5,125 7,709 7,814 9,619 10,902 Y/Y Growth n/a 55.0% 50.4% 1.4% 23.1% 13.3% % of Latin America 56.4% 59.7% 64.9% 62.6% 63.0% 63.0%

Total Latin America 5,861 8,580 11,871 12,474 15,260 17,317 Total Y/Y Growth n/a 46.4% 38.4% 5.1% 22.3% 13.5%

Global Capex 150,926 142,032 164,097 188,901 210,345 229,314 Latin America as % of Global 3.9% 6.0% 7.2% 6.6% 7.3% 7.6% Source: Company data, Credit Suisse estimates.

16 July 2008


Exhibit 88: First Quarter Latin America Capex Review Global CapexUSD millions 1Q08 1Q07 $ Change YoY %TOTAL LATIN AMERICAN CARRIERS 2,572 2,057 515 25.0%Wireline 1,099 786 313 39.9%Wireless 1,473 1,271 202 15.9%

Wireline 1,099 786 313 39.9%Telefonos de Mexico (Telemex) 108 134 (26) -19.4%Telefonica Wireline 334 236 98 41.5%Empresa de Telecomunicaciones de Bogota 46 44 2 4.4%Axtel 75 47 28 60.9%Brasil Telecom SA Participiones 92 70 22 30.8%Cia de Telecomm de Chile SA 62 48 14 29.7%Liberty Global 47 41 6 15.0%Telemig/Telenorte 290 132 157 118.8%Telecom Argentina 46 34 12 34.7%

Wireless 1,473 1,271 202 15.9%America Movil 444 427 17 4.1%Telefonica Wireless 225 214 11 5.1%Potugal Telecom 139 112 27 24.3%Brasil Telecom SA Participiones 5 2 3 154.0%Telemig/Telenorte 89 36 52 144.6%TIM Participacoes S.A. 157 121 36 29.7%Nextel International 192 167 25 15.0%Millicom 189 162 27 16.8%Telecom Argentina 33 30 3 8.7% Source: Company data.

Exhibit 89: Second through Fourth Quarter Latin America Capex Outlook Global CapexUSD millions 2Q - 4Q08E 2Q - 4Q07 $ Change YoY %TOTAL LATIN AMERICAN CARRIERS 14,745 13,204 1,541 11.7%Wireline 5,316 4,856 460 9.5%Wireless 9,429 8,348 1,081 13.0%

Wireline 5,316 4,856 460 9.5%Telefonos de Mexico (Telemex) 1,772 1,146 626 54.6%Telefonica Wireline 1,764 1,500 265 17.7%Empresa de Telecomunicaciones de Bogota 104 163 (59) -36.2%Axtel 175 181 (6) -3.3%Brasil Telecom SA Participiones 537 518 19 3.7%Cia de Telecomm de Chile SA 238 243 (5) -2.1%Liberty Global 118 117 1 0.7%Telemig/Telenorte 354 767 (413) -53.9%Telecom Argentina 255 222 32 14.6%

Wireless 9,429 8,348 1,081 13.0%America Movil 3,556 2,746 810 29.5%Telefonica Wireless 2,302 1,894 408 21.5%Potugal Telecom 685 907 (222) -24.4%Brasil Telecom SA Participiones 163 147 16 10.8%Telemig/Telenorte 694 467 227 48.7%TIM Participacoes S.A. 707 902 (196) -21.7%Nextel International 558 500 58 11.6%Millicom 556 610 (54) -8.9%Telecom Argentina 208 176 33 18.7%


16 July 2008


Korea Exhibit 90: Quarterly Korea Capex Korea CapexIn millions, USD 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08Korea - Wireline 225 515 683 1,051 469 577 688 1,115 319 730 946 1,234 416 843 827 1,333 527 Y/Y Growth -69.0% -9.1% 16.5% 29.0% 108.1% 12.1% 0.8% 6.1% -31.9% 26.7% 37.4% 10.6% 30.4% 15.4% -12.5% 8.0% 26.7% % of Korea 43.3% 50.7% 56.9% 57.2% 65.8% 55.3% 56.5% 56.1% 44.8% 49.8% 59.3% 50.1% 37.6% 47.8% 54.0% 57.1% 44.4%

Korea - Wireless 295 500 516 786 243 466 530 872 392 737 649 1,229 691 920 704 1,003 661 Y/Y Growth -11.9% 11.8% -1.5% -9.7% -17.6% -6.7% 2.6% 11.0% 61.2% 58.0% 22.4% 40.9% 76.1% 24.8% 8.5% -18.4% -4.3% % of Korea 56.7% 49.3% 43.1% 42.8% 34.2% 44.7% 43.5% 43.9% 55.2% 50.2% 40.7% 49.9% 62.4% 52.2% 46.0% 42.9% 55.6%

Total Korea Capex 520 1,014 1,199 1,837 712 1,043 1,218 1,988 711 1,467 1,595 2,463 1,107 1,763 1,531 2,335 1,188 Total Y/Y Growth -51.0% 0.1% 8.0% 9.0% 36.8% 2.8% 1.6% 8.2% -0.1% 40.7% 30.9% 23.9% 55.6% 20.1% -4.0% -5.2% 7.4%

Global Capex 29,905 32,717 35,189 44,221 34,915 39,288 39,167 50,727 40,333 44,016 47,810 56,742 45,900 47,086 50,268 67,091 51,738 Korea as % of Global 1.7% 3.1% 3.4% 4.2% 2.0% 2.7% 3.1% 3.9% 1.8% 3.3% 3.3% 4.3% 2.4% 3.7% 3.0% 3.5% 2.3%


Exhibit 91: Korea Capex versus Global Capex Exhibit 92: Korea Capex: Wireless/Wireline

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Korea - Wireline Korea -WirelessWireline Y/Y Growth Wireless Y/Y Growth


Exhibit 93: Annual Korea Capex Korea CapexIn millions, USD 2003 2004 2005 2006 2007 2008EKorea - Wireline 2,693 2,473 2,849 3,229 3,419 3,983

Y/Y Growth n/a -8.2% 15.2% 13.3% 5.9% 16.5% % of Korea 55.3% 54.1% 57.4% 51.8% 50.8% 57.0%

Korea - Wireless 2,178 2,097 2,112 3,007 3,317 3,009 Y/Y Growth n/a -3.7% 0.7% 42.4% 10.3% -9.3% % of Korea 44.7% 45.9% 42.6% 48.2% 49.2% 43.0%

Total Korea Capex 4,871 4,571 4,961 6,236 6,736 6,992 Total Y/Y Growth n/a -6.2% 8.5% 25.7% 8.0% 3.8%

Global Capex 150,926 142,032 164,097 188,901 210,345 229,314 Korea as % of Global 3.2% 3.2% 3.0% 3.3% 3.2% 3.0% Source: Company data, Credit Suisse estimates.

16 July 2008


Exhibit 94: First Quarter Korea Capex Review Global CapexUSD millions 1Q08 1Q07 $ Change YoY %TOTAL KOREAN CARRIERS 1,188 1,107 81 7.4%Wireline 527 416 111 26.7%Wireless 661 691 (30) -4.3%

Wireline 527 416 111 26.7%KT 311 299 12 4.0%SK Telecom 39 26 13 51.8%Hanaro 129 62 67 109.2%Dacom 18 16 2 11.8%LG Telecom 31 14 17 117.4%

Wireless 661 691 (30) -4.3%SK Telecom 253 285 (33) -11.5%KT Freetel 297 356 (58) -16.4%LG Telecom 111 50 61 123.4% Source: Company data.

Exhibit 95: Second through Fourth Quarter Korea Capex Outlook Global CapexUSD millions 2Q - 4Q08E 2Q - 4Q07 $ Change YoY %TOTAL KOREAN CARRIERS 5,804 5,629 175 3.1%Wireline 3,456 3,003 453 15.1%Wireless 2,348 2,626 (278) -10.6%

Wireline 3,456 3,003 453 15.1%KT 2,523 2,105 418 19.8%SK Telecom 380 372 8 2.0%Hanaro 247 316 (69) -21.8%Dacom 228 106 122 115.8%LG Telecom 78 104 (25) -24.5%

Wireless 2,348 2,626 (278) -10.6%SK Telecom 1,236 1,315 (79) -6.0%KT Freetel 738 837 (99) -11.9%LG Telecom 373 473 (100) -21.1% Source: Company data, Credit Suisse estimates.

16 July 2008


Canada Exhibit 96: Quarterly Canada Capex Canada CapexIn USD, millions 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08Wreline 412 429 458 683 477 612 570 652 555 687 791 932 643 798 869 1,131 710 Y/Y Growth -33.1% -42.3% -44.1% -39.8% 15.9% 42.7% 24.4% -4.5% 16.4% 12.1% 38.7% 42.8% 15.8% 16.2% 10.0% 21.5% 10.4%% of Canada 75.0% 74.5% 75.6% 76.7% 76.6% 73.9% 78.0% 68.7% 78.4% 68.5% 76.4% 81.1% 68.7% 71.6% 75.5% 73.6% 75.8%

Wireless 137 147 148 208 146 216 161 298 153 316 244 216 293 316 283 406 227 Y/Y Growth 162.6% 108.1% 71.2% 127.9% 6.1% 46.7% 8.9% 43.1% 5.1% 46.1% 52.0% -27.3% 91.1% 0.2% 15.6% 87.6% -22.5%% of Canada 25.0% 25.5% 24.4% 23.3% 23.4% 26.1% 22.0% 31.3% 21.6% 31.5% 23.6% 18.9% 31.3% 28.4% 24.5% 26.4% 24.2%

Total Canada 549 577 606 890 623 828 731 950 708 1,002 1,035 1,148 936 1,114 1,152 1,538 936 Y/Y Growth -17.7% -29.3% -33.1% -27.3% 13.4% 43.7% 20.6% 6.7% 13.7% 21.0% 41.6% 20.9% 32.1% 11.1% 11.3% 33.9% 0.1%

Global Capex 29,905 32,717 35,189 44,221 34,915 39,288 39,167 50,727 40,333 44,016 47,810 56,742 45,900 47,086 50,268 67,091 51,738 Canada as a % of global 1.8% 1.8% 1.7% 2.0% 1.8% 2.1% 1.9% 1.9% 1.8% 2.3% 2.2% 2.0% 2.0% 2.4% 2.3% 2.3% 1.8%


Exhibit 97: Canada Capex versus Global Capex Exhibit 98: Canada Capex: Wireless/Wireline

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Canada - Wireless Canada - Wireline

Wireless Y/Y Growth Wireline Y/Y Growth


Exhibit 99: Annual Canada Capex Canada CapexIn millions, USD 2003 2004 2005 2006 2007 2008ECanada - Wireline 3,312 1,982 2,312 2,964 3,441 4,386

Y/Y Growth n/a -40.2% 16.6% 28.2% 16.1% 27.5% % of Canada 91.7% 75.6% 73.8% 76.1% 72.6% 74.4%

Canada - Wireless 301 640 820 930 1,298 1,510 Y/Y Growth n/a 113.0% 28.1% 13.4% 39.6% 16.4% % of Canada 8.3% 24.4% 26.2% 23.9% 27.4% 25.6%

Total Canada Capex 3,613 2,622 3,132 3,894 4,739 5,896 Total Y/Y Growth n/a -27.4% 19.4% 24.3% 21.7% 24.4%

Global Capex 150,926 142,032 164,097 188,901 210,345 229,314 Canada as % of Global 2.4% 1.8% 1.9% 2.1% 2.3% 2.6% Source: Company data, Credit Suisse estimates.

16 July 2008


Exhibit 100: First Quarter Canada Capex Review Global CapexUSD millions 1Q08 1Q07 $ Change YoY %TOTAL 936 936 1 0.1%Wireline Total 710 643 67 10.4%Wireless Total 227 293 (66) -22.5%

Wireline (ex-Cable) 404 364 40 10.9%Telus 255 221 33 15.1%Manitoba Telecom 55 43 11 25.8%Aliant 95 100 (5) -4.9%

Wireless 227 293 (66) -22.5%Rogers Cantel 163 198 (35) -17.9%Telus/Clearnet 64 95 (30) -32.1%

Cable 306 279 27 9.7%Rogers Communication 128 129 (1) -1.0%Cogeco Cable 60 46 14 31.0%Shaw Cable 118 104 14 13.5%


Exhibit 101: Second through Fourth Quarter Canada Capex Outlook Global CapexUSD millions 2Q - 4Q08E 2Q - 4Q07 $ Change YoY %TOTAL 4,960 3,803 1,156 30.4%Wireline Total 3,677 2,798 878 31.4%Wireless Total 1,283 1,005 278 27.7%

Wireline (ex-Cable) 2,345 1,621 724 44.6%Telus 1,685 945 740 78.4%Manitoba Telecom 234 255 (21) -8.3%Aliant 426 421 5 1.1%

Wireless 1,283 1,005 278 27.7%Rogers Cantel 744 573 171 29.8%Telus/Clearnet 540 432 107 24.8%

Cable 1,331 1,177 154 13.1%Rogers Communication 628 587 41 7.0%Cogeco Cable 202 155 47 30.5%Shaw Cable 502 435 66 15.2%


16 July 2008


Middle East Exhibit 102: Quarterly Middle East Capex Middle East CapexIn millions, USD 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08Middle East - Wireline 140 171 171 204 178 203 205 235 177 130 159 139 91 78 108 216 109 Y/Y Growth -48.9% -42.2% -36.6% -37.3% 27.3% 19.3% 20.2% 15.2% -0.7% -36.3% -22.7% -40.7% -48.4% -40.1% -32.2% 55.5% 19.9% % of Middle East 27.4% 30.9% 25.5% 25.7% 22.5% 21.2% 21.4% 21.3% 24.3% 13.7% 21.3% 14.0% 11.3% 8.1% 12.5% 15.1% 13.7%

Middle East - Wireless 371 382 499 588 614 757 755 866 552 818 587 853 713 877 752 1,217 688 Y/Y Growth -16.7% -26.4% -11.6% -9.4% 65.6% 98.1% 51.5% 47.3% -10.0% 8.0% -22.3% -1.6% 29.1% 7.3% 28.1% 42.8% -3.6% % of Middle East 72.6% 69.1% 74.5% 74.3% 77.5% 78.8% 78.6% 78.7% 75.7% 86.3% 78.7% 86.0% 88.7% 91.9% 87.5% 84.9% 86.3%

Total Middle East Capex 511 553 670 792 792 960 961 1,101 729 947 746 992 805 955 860 1,433 797 Total Y/Y Growth -29.0% -32.2% -19.7% -18.7% 55.1% 73.8% 43.5% 39.0% -7.9% -1.4% -22.4% -9.9% 10.3% 0.8% 15.3% 44.5% -0.9%

Global Capex 29,905 32,717 35,189 44,221 34,915 39,288 39,167 50,727 40,333 44,016 47,810 56,742 45,900 47,086 50,268 67,091 51,738 Middle East as % of Global 1.7% 1.7% 1.9% 1.8% 2.3% 2.4% 2.5% 2.2% 1.8% 2.2% 1.6% 1.7% 1.8% 2.0% 1.7% 2.1% 1.5%


Exhibit 103: Middle East Capex versus Global Capex Exhibit 104: Middle East Capex: Wireless/Wireline

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Middle East - Wireline Middle East - WirelessWireless Y/Y Growth Wireline Y/Y Growth


Exhibit 105: Annual Middle East Capex, 203–08E Middle East CapexIn millions, USD 2003 2004 2005 2006 2007 2008EMiddle East - Wireline 1,163 685 822 604 493 792

Y/Y Growth n/a -41.1% 19.9% -26.4% -18.4% 60.7% % of Middle East 34.8% 27.1% 21.5% 17.7% 12.2% 17.3%

Middle East - Wireless 2,178 1,840 2,993 2,810 3,560 3,782 Y/Y Growth n/a -15.5% 62.7% -6.1% 26.7% 6.2% % of Middle East 65.2% 72.9% 78.5% 82.3% 87.8% 82.7%

Total Middle East Capex 3,341 2,525 3,814 3,414 4,052 4,574 Total Y/Y Growth n/a -24.4% 51.1% -10.5% 18.7% 12.9%

Global Capex 150,926 142,032 164,097 188,901 210,345 229,314 Middle East as % of Global 2.2% 1.8% 2.3% 1.8% 1.9% 2.0% Source: Company data, Credit Suisse estimates.

16 July 2008


Exhibit 106: First Quarter Middle East Capex Review Global CapexUSD millions 1Q08 1Q07 $ Change YoY %TOTAL MIDDLE EASTERN CARRIERS 797 805 (7) -0.9%Wireline 109 91 18 19.9%Wireless 688 713 (25) -3.6%

Wireline 109 91 18 19.9%Telecom Egypt 42 46 (4) -9.2%MTC (Kuwait) 13 18 (5) -28.2%Bezeq 55 27 27 100.4%

Wireless 688 713 (25) -3.6%Mobilnil 95 124 (29) -23.4%Turkcell 193 127 66 51.8%Orascom 338 427 (89) -20.8%Bezeq 29 15 15 100.4%Partner Communications 33 21 12 59.0%


Exhibit 107: Second through Fourth Quarter Middle East Capex Outlook Global CapexUSD millions 2Q - 4Q08E 2Q - 4Q07 $ Change YoY %TOTAL MIDDLE EASTERN CARRIERS 3,777 3,248 529 16.3%Wireline 683 402 281 70.0%Wireless 3,094 2,846 247 8.7%

Wireline 683 402 281 70.0%Telecom Egypt 278 122 156 128.3%MTC (Kuwait) 195 138 58 41.9%Bezeq 210 142 68 47.5%

Wireless 3,094 2,846 247 8.7%Mobilnil 405 458 (53) -11.6%Turkcell 858 656 201 30.7%Orascom 1,623 1,534 89 5.8%Bezeq 113 77 36 47.5%Partner Communications 95 121 (26) -21.5%


16 July 2008


Africa Exhibit 108: Quarterly Africa Capex Africa CapexIn USD, millions 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08EWreline 152 125 162 170 229 181 218 223 297 248 268 324 339 213 251 312 367 Y/Y Growth 20.6% 7.5% 13.1% 6.9% 51.1% 45.0% 34.6% 30.8% 29.4% 36.5% 22.8% 45.5% 14.1% -14.0% -6.3% -3.8% 8.3%% of Africa 58.9% 51.8% 55.1% 53.9% 52.0% 47.8% 49.1% 47.9% 41.3% 35.8% 36.1% 38.0% 34.4% 27.9% 28.1% 39.0% 39.8%

Wireless 106 117 132 146 212 198 225 242 422 445 473 529 645 549 641 488 555 Y/Y Growth 90.6% 86.6% 84.4% 79.5% 100.2% 70.3% 70.6% 65.8% 98.8% 124.0% 109.8% 118.7% 53.0% 23.6% 35.5% -7.8% -14.1%% of Africa 41.1% 48.2% 44.9% 46.1% 48.0% 52.2% 50.9% 52.1% 58.7% 64.2% 63.9% 62.0% 65.6% 72.1% 71.9% 61.0% 60.2%

Total Africa 258 242 294 316 442 380 443 465 719 692 741 853 984 762 892 799 921 Y/Y Growth 42.1% 35.1% 36.9% 31.4% 71.3% 57.2% 50.8% 46.9% 62.7% 82.2% 67.0% 83.6% 37.0% 10.1% 20.4% -6.3% -6.4%

Global capex 29,905 32,717 35,189 44,221 34,915 39,288 39,167 50,727 40,333 44,016 47,810 56,742 45,900 47,086 50,268 67,091 51,738 Africa as % of global capex 0.9% 0.7% 0.8% 0.7% 1.3% 1.0% 1.1% 0.9% 1.8% 1.6% 1.5% 1.5% 2.1% 1.6% 1.8% 1.2% 1.8%


Exhibit 109: Africa Capex versus Global Capex Exhibit 110: Africa Capex: Wireless/Wireline

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Africa - Wireless Africa - Wireline

Wireless Y/Y Growth Wireline Y/Y Growth


Exhibit 111: Annual Africa Capex, 2003–08E Africa CapexIn millions, USD 2003 2004 2005 2006 2007 2008EAfrica - Wireline 545 609 851 1,136 1,114 1,355

Y/Y Growth n/a 11.8% 39.8% 33.4% -1.9% 21.6% % of Africa 66.8% 54.9% 49.2% 37.8% 32.4% 31.3%

Africa - Wireless 271 501 878 1,868 2,323 2,975 Y/Y Growth n/a 84.7% 75.4% 112.8% 24.4% 28.1% % of Africa 33.2% 45.1% 50.8% 62.2% 67.6% 68.7%

Total Africa Capex 816 1,110 1,729 3,004 3,437 4,330 Total Y/Y Growth n/a 36.0% 55.8% 73.7% 14.4% 26.0%

Global Capex 150,926 142,032 164,097 188,901 210,345 229,314 Africa as % of Global 0.5% 0.8% 1.1% 1.6% 1.6% 1.9% Source: Company data, Credit Suisse estimates.

16 July 2008


Exhibit 112: First Quarter Africa Capex Review Global CapexUSD millions 1Q08 1Q07 $ Change YoY %TOTAL AFRICAN CARRIERS 921 984 (63) -6.4%Wireline 367 339 28 8.3%Wireless 555 645 (91) -14.1%

Wireline 367 339 28 8.3%Telkom South Africa 312 299 13 4.2%Millicom 55 39 15 39.0%

Wireless 555 645 (91) -14.1%MTC Africa (Celltell) 316 422 (105) -25.0%Telkom South Africa 136 153 (17) -11.0%Safaricom 102 70 31 44.6%


Exhibit 113: Second through Fourth Quarter Africa Capex Outlook Global CapexUSD millions 2Q - 4Q08E 2Q - 4Q07 $ Change YoY %TOTAL AFRICAN CARRIERS 3,409 2,453 955 38.9%Wireline 988 775 213 27.5%Wireless 2,420 1,678 742 44.2%

Wireline 988 775 213 27.5%Telkom South Africa 856 627 228 36.4%Millicom 133 148 (15) -10.4%

Wireless 2,420 1,678 742 44.2%MTC Africa (Celltell) 1,783 1,094 689 63.0%Telkom South Africa 429 342 88 25.6%Safaricom 208 242 (34) -14.0%


16 July 2008


Scandinavia Exhibit 114: Quarterly Scandinavia Capex Scandinavia CapexIn millions, USD 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08Scandinavia - Wireline 276 436 547 610 438 528 542 546 346 457 487 552 425 586 582 776 832 Y/Y Growth 133.8% 275.6% 357.3% 225.0% 58.4% 21.0% -1.0% -10.5% -21.0% -13.4% -10.2% 1.0% 22.7% 28.1% 19.6% 40.6% 95.9% % of Scandinavia 53.4% 44.5% 58.1% 50.3% 47.6% 52.7% 52.8% 41.3% 39.8% 40.1% 40.6% 36.5% 41.5% 44.0% 42.3% 40.5% 56.9%

Scandinavia - Wireless 241 544 394 602 482 474 485 775 523 682 712 962 598 744 793 1,139 631 Y/Y Growth -10.2% 53.9% 27.7% -3.8% 100.2% -12.9% 23.0% 28.7% 8.4% 43.9% 46.9% 24.0% 14.4% 9.2% 11.3% 18.4% 5.4% % of Scandinavia 46.6% 55.5% 41.9% 49.7% 52.4% 47.3% 47.2% 58.7% 60.2% 59.9% 59.4% 63.5% 58.5% 56.0% 57.7% 59.5% 43.1%

Total Scandinavia Capex 518 980 941 1,212 920 1,001 1,027 1,321 869 1,139 1,199 1,513 1,023 1,330 1,375 1,915 1,463 Total Y/Y Growth 33.8% 108.7% 119.8% 48.9% 77.9% 2.2% 9.1% 9.0% -5.6% 13.7% 16.8% 14.5% 17.7% 16.8% 14.7% 26.5% 43.0%

Global Capex 29,905 32,717 35,189 44,221 34,915 39,288 39,167 50,727 40,333 44,016 47,810 56,742 45,900 47,086 50,268 67,091 51,738 Scandinavia as % of Global 1.7% 3.0% 2.7% 2.7% 2.6% 2.5% 2.6% 2.6% 2.2% 2.6% 2.5% 2.7% 2.2% 2.8% 2.7% 2.9% 2.8%


Exhibit 115: Scandinavia Capex versus Global Capex Exhibit 116: Scandinavia Capex: Wireless/Wireline

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Scandinvia - Wireline Scandinvia - WirelineWireline Y/Y Growth Wireless Y/Y Growth


Exhibit 117: Annual Scandinavia Capex Scandinavia CapexIn millions, USD 2003 2004 2005 2006 2007 2008EScandinavia - Wireline 542 1,870 2,053 1,842 2,368 2,654

Y/Y Growth n/a 245.2% 9.8% -10.3% 28.6% 12.1% % of Scandinavia 25.8% 51.2% 48.1% 39.0% 42.0% 42.8%

Scandinavia - Wireless 1,557 1,782 2,216 2,879 3,275 3,543 Y/Y Growth n/a 14.4% 24.4% 29.9% 13.8% 8.2% % of Scandinavia 74.2% 48.8% 51.9% 61.0% 58.0% 57.2%

Total Scandinavia Capex 2,098 3,651 4,270 4,720 5,643 6,196 Total Y/Y Growth n/a 74.0% 16.9% 10.6% 19.5% 9.8%

Global Capex 150,926 142,032 164,097 188,901 210,345 229,314 Scandinavia as % of Global 1.4% 2.6% 2.6% 2.5% 2.7% 2.7% Source: Company data, Credit Suisse estimates.

16 July 2008


Exhibit 118: First Quarter Scandinavia Capex Review Global CapexUSD millions 1Q08 1Q07 $ Change YoY %TOTAL SCANDINAVIAN CARRIERS 1,463 1,023 440 43.0%Wireline 832 425 408 95.9%Wireless 631 598 32 5.4%

Wireline 832 425 408 95.9%TeliaSonera 383 225 158 70.6%Telenor 424 168 256 153.0%Elisa 25 33 (7) -22.3%

Wireless 631 598 32 5.4%TeliaSonera 131 109 22 20.5%Telenor 469 463 6 1.3%Elisa 30 26 4 14.2%

Source: Company data

Exhibit 119: Second Quarter through Fourth Quarter Scandinavia Capex Outlook Global CapexUSD millions 2Q - 4Q08E 2Q - 4Q07 $ Change YoY %TOTAL SCANDINAVIAN CARRIERS 4,733 4,619 114 2.5%Wireline 1,821 1,943 (122) -6.3%Wireless 2,912 2,676 236 8.8%

Wireline 1,821 1,943 (122) -6.3%TeliaSonera 1,236 1,169 67 5.7%Telenor 457 654 (197) -30.1%Elisa 128 120 8 6.8%

- - Wireless 2,912 2,676 236 8.8%TeliaSonera 589 512 77 15.0%Telenor 2,225 2,061 164 7.9%Elisa 98 103 (5) -4.9%

Source: Company data, Credit Suisse estimates

16 July 2008


Russia Exhibit 120: Quarterly Russia Capex Russia CapexIn millions, USD 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08Russia - Wireline 38 48 48 58 20 56 51 76 51 69 76 78 80 69 80 118 43 Y/Y Growth -14.7% -38.1% -31.6% -33.5% -47.8% 16.4% 6.0% 30.8% 154.2% 22.5% 48.4% 2.6% 55.8% -0.1% 5.0% 52.0% -46.0% % of Russia 9.4% 8.9% 7.3% 5.6% 3.1% 7.2% 5.5% 4.9% 8.7% 8.5% 8.2% 6.9% 12.9% 11.0% 12.4% 6.6% 5.8%

Russia - Wireless 370 494 609 973 628 721 868 1,480 538 737 842 1,040 535 557 562 1,658 701 Y/Y Growth 19.7% 1.9% 22.0% 52.2% 69.7% 45.9% 42.6% 52.1% -14.2% 2.2% -3.0% -29.8% -0.6% -24.4% -33.2% 59.5% 30.9% % of Russia 90.6% 91.1% 92.7% 94.4% 96.9% 92.8% 94.5% 95.1% 91.3% 91.5% 91.8% 93.1% 87.1% 89.0% 87.6% 93.4% 94.2%

Total Russia Capex 408 543 657 1,031 648 777 919 1,556 590 805 918 1,117 615 625 642 1,776 744 Total Y/Y Growth 15.3% -3.6% 15.3% 42.0% 58.6% 43.3% 40.0% 50.9% -9.0% 3.6% -0.1% -28.2% 4.3% -22.3% -30.1% 59.0% 21.0%

Global Capex 29,905 32,717 35,189 44,221 34,915 39,288 39,167 50,727 40,333 44,016 47,810 56,742 45,900 47,086 50,268 67,091 51,738 Russia as % of Global 1.4% 1.7% 1.9% 2.3% 1.9% 2.0% 2.3% 3.1% 1.5% 1.8% 1.9% 2.0% 1.3% 1.3% 1.3% 2.6% 1.4%


Exhibit 121: Russia Capex versus Global Capex Exhibit 122: Russia Capex: Wireless/Wireline

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Wireline Y/Y Growth Wireless Y/Y Growth


Exhibit 123: Annual Russia Capex Russia CapexIn millions, USD 2003 2004 2005 2006 2007 2008ERussia - Wireline 280 192 203 273 345 459

Y/Y Growth n/a -31.3% 5.3% 34.7% 26.6% 32.9% % of Russia 12.7% 7.3% 5.2% 8.0% 9.4% 8.1%

Russia - Wireless 1,933 2,446 3,697 3,157 3,313 5,200 Y/Y Growth n/a 26.6% 51.1% -14.6% 4.9% 57.0% % of Russia 87.3% 92.7% 94.8% 92.0% 90.6% 91.9%

Total Russia Capex 2,213 2,638 3,899 3,430 3,658 5,659 Total Y/Y Growth n/a 19.2% 47.8% -12.0% 6.7% 54.7%

Global Capex 150,926 142,032 164,097 188,901 210,345 229,314 Russia as % of Global 1.5% 1.9% 2.4% 1.8% 1.7% 2.5% Source: Company data, Credit Suisse estimates.

16 July 2008


Exhibit 124: First Quarter Russia Capex Review Global CapexUSD millions 1Q08 1Q07 $ Change YoY %TOTAL RUSSIAN CARRIERS 744 615 129 21.0%Wireline 43 80 (37) -46.0%Wireless 701 535 166 30.9%

Wireline 43 80 (37) -46.0%Comstar United Telesystems 43 80 (37) -46.0%

Wireless 701 535 166 30.9%Vimplecom 359 311 47 15.1%Mobile Telesystems 342 224 119 52.9%


Exhibit 125: Second Quarter through Fourth Quarter Russia Capex Outlook Global CapexUSD millions 2Q - 4Q08E 2Q - 4Q07 $ Change YoY %TOTAL RUSSIAN CARRIERS 4,915 3,044 1,872 61.5%Wireline 416 266 150 56.5%Wireless 4,499 2,778 1,721 62.0%

Wireline 416 266 150 56.5%Comstar United Telesystems 416 266 150 56.5%

Wireless 4,499 2,778 1,721 62.0%Vimplecom 2,342 1,462 880 60.2%Mobile Telesystems 2,158 1,316 842 63.9%


16 July 2008


Detailed Carrier Capital Expenditure Exhibit 126: Detailed Carrier Capital Expenditure Quarterly Global Capital Expenditures 2008USD millions YE 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2003 2004 2005 2006 2007 2008ETOTAL GLOBAL CARRIER CAPEXTOTAL 44,236 48,812 53,884 64,386 50,923 53,290 56,820 75,274 51,738 137,468 160,248 183,406 215,363 236,367 259,321

Q/Q Growth -22.2% 10.3% 10.4% 19.5% -20.9% 4.6% 6.6% 32.5% -31.3%Y/Y Growth 14.7% 11.4% 22.0% 13.3% 15.1% 9.2% 5.5% 16.9% 1.6% 16.6% 14.5% 17.4% 9.8% 9.7%

Wireline Total 22,842 24,840 26,507 31,468 25,538 27,711 29,761 36,628 27,687 74,558 83,481 93,866 109,701 119,699 127,956 Q/Q Growth -17.2% 8.7% 6.7% 18.7% -18.8% 8.5% 7.4% 23.1% -24.4%Y/Y Growth 12.4% 9.8% 13.6% 14.1% 11.8% 11.6% 12.3% 16.4% 8.4% 12.0% 12.4% 16.9% 9.1% 6.9%

Wireless Total 21,394 23,972 27,377 32,919 25,385 25,578 27,059 38,646 24,051 62,910 76,768 89,540 105,661 116,668 131,365 Q/Q Growth -26.9% 12.1% 14.2% 20.2% -22.9% 0.8% 5.8% 42.8% -37.8%Y/Y Growth 17.2% 13.2% 31.3% 12.5% 18.7% 6.7% -1.2% 17.4% -5.3% 22.0% 16.6% 18.0% 10.4% 12.6%

TOTAL INTERNATIONAL CARRIERSTOTAL 30,597 33,458 37,848 45,246 35,647 36,714 39,910 54,655 35,734 96,181 115,146 130,135 147,150 166,927 188,098 Wireline 14,684 15,520 16,965 20,502 15,389 16,470 17,728 22,951 16,580 47,058 55,927 63,681 67,671 72,537 80,540 Wireless 15,914 17,938 20,883 24,745 20,258 20,244 22,183 31,705 19,154 49,124 59,219 66,455 79,479 94,389 107,558

TOTAL EUROPEAN CARRIERS 11,699 12,620 13,147 17,535 13,534 13,872 14,566 20,284 15,626 39,524 44,151 47,278 55,000 62,256 69,267 Wireline 6,796 7,171 7,542 9,386 7,659 8,029 8,253 11,582 8,255 20,285 22,121 25,787 30,895 35,524 38,809 Wireless 4,903 5,448 5,605 8,148 5,874 5,843 6,313 8,702 7,371 19,239 22,030 21,491 24,105 26,732 30,458

Wireline 6,796 7,171 7,542 9,386 7,659 8,029 8,253 11,582 8,255 20,285 22,121 25,787 30,895 35,524 38,809 British Telecom 1,514 1,157 1,427 1,444 1,585 1,551 1,629 1,659 1,532 4,006 4,881 4,868 5,542 6,424 6,340 Deutsche Telekom 1,188 1,356 1,457 1,730 1,458 1,031 1,267 2,012 1,294 3,768 4,247 4,574 5,732 5,768 6,382 France Telecom 791 1,009 968 1,199 843 1,060 1,260 1,639 1,167 3,107 2,234 3,603 3,966 4,802 5,060 Telecom Italia 966 948 851 1,123 982 1,082 917 1,381 1,061 2,737 2,897 3,621 3,888 4,363 5,342 Telefonica 524 551 616 690 438 640 510 882 470 1,937 1,659 1,855 2,381 2,471 3,000 KPN 204 230 229 305 201 287 313 707 398 601 761 866 969 1,508 1,901 Swisscom 148 182 205 274 204 345 369 489 337 435 569 651 809 1,406 1,539 Belgacom 89 99 107 291 119 151 133 243 157 415 445 551 587 647 721 Telecom Austria 61 64 76 127 64 81 78 154 73 340 350 358 329 377 422 Telecom Portugal 117 147 131 148 77 97 111 209 95 415 430 562 544 494 516 Virgin Media (frmly NTL) 206 233 266 342 299 291 245 278 271 418 519 553 1,047 1,113 1,225 Colt 58 65 83 89 82 76 91 107 101 251 237 259 295 356 406 Cable & Wireless 132 76 100 119 148 83 103 118 139 168 281 432 427 452 519 Eircom 40 93 102 84 98 96 94 127 108 201 251 302 318 415 483 ONO 146 144 169 285 156 186 171 219 147 216 344 424 744 732 623 OTE 203 290 237 486 293 329 314 584 208 1,049 1,098 838 1,215 1,519 1,595 Sonaecom 10 11 8 27 16 19 11 23 10 11 32 33 57 69 120 Tele2 63 89 67 91 77 84 85 68 50 71 59 233 309 314 330 Tiscali 55 58 57 55 46 81 61 87 70 86 150 201 225 275 314 QSC 9 15 30 21 14 25 47 89 43 - 19 22 75 175 101 Carphone Warehouse 69 80 98 104 128 116 144 164 159 54 137 213 352 552 479 UPC Broadcom 147 211 194 276 269 246 249 306 265 - 330 539 827 1,069 1,138 Telenet 58 63 63 75 64 70 50 38 99 - 190 229 259 223 254

Wireless 4,903 5,448 5,605 8,148 5,874 5,843 6,313 8,702 7,371 19,239 22,030 21,491 24,105 26,732 30,458 Deutsche Telekom (ex T-Mobile USA) 556 474 509 916 588 521 548 1,008 706 1,734 1,658 2,127 2,455 2,665 2,465 France Telecom 630 1,344 958 1,593 771 1,279 1,198 1,558 1,067 2,694 3,273 3,864 4,525 4,806 5,068 Telecom Italia 208 339 302 601 382 478 502 667 543 1,518 1,851 1,555 1,450 2,029 2,479 Telefonica Wireless (ex latam) 618 983 1,003 1,572 823 864 940 1,343 819 1,484 1,986 3,717 4,176 3,970 4,830 KPN 155 240 308 410 144 173 178 288 134 985 1,343 841 1,114 783 996 Swisscom 35 53 61 113 54 70 70 115 55 322 415 216 262 309 338 Belgacom 55 48 28 139 42 59 88 19 34 177 258 156 270 209 236 Telecom Austria 63 102 71 142 96 149 92 165 110 336 285 296 379 502 455 Telecom Portugal 28 36 56 121 36 59 55 119 47 193 196 208 241 268 280 Vodafone 2,174 1,438 1,881 2,048 2,554 1,771 2,189 2,869 3,394 7,972 8,680 7,027 7,541 9,384 11,452 Cable & Wireless 80 61 79 78 98 71 88 101 120 248 219 247 299 359 264 Jazztel 34 30 29 24 17 13 7 7 12 13 18 161 117 44 72 Sonaecom 32 12 30 40 21 32 63 53 43 125 130 107 114 170 190 Tele2 88 102 95 107 92 110 90 122 91 156 147 245 393 415 434 Bouygues 147 184 195 244 156 193 203 268 195 1,282 1,571 724 770 819 899

TOTAL ASIAN-PACIFIC CARRIERS 1,694 2,050 2,158 2,407 2,406 1,917 2,180 2,355 1,924 5,937 5,958 7,084 8,310 8,858 10,153 Wireline 633 818 769 898 701 799 839 944 807 2,729 2,702 3,026 3,117 3,282 3,856 Wireless 1,061 1,233 1,390 1,509 1,706 1,118 1,342 1,411 1,117 3,208 3,256 4,058 5,192 5,576 6,297

Wireline 633 818 769 898 701 799 839 944 807 2,729 2,702 3,026 3,117 3,282 3,856 New Zealand Telecom 68 96 76 114 70 134 112 103 126 262 389 434 354 419 575 Chunghwa 117 119 152 130 130 126 152 227 152 706 521 573 519 634 829 Singapore (Sing-tel) 79 66 86 83 157 115 105 118 173 265 336 400 314 494 514 Optus 123 130 144 172 112 134 159 138 128 324 314 409 569 542 579 Telekom Malaysia 84 156 89 151 57 109 156 179 105 378 406 490 479 501 267 Telekom Indonesia 65 94 101 111 45 44 52 30 40 446 397 354 371 170 565 Millicom 22 25 26 31 16 18 19 23 21 58 32 39 105 77 77 Phillipines Long Distance 42 81 37 38 79 37 32 66 29 129 153 112 198 214 233 PT IndoStat 17 46 50 64 32 78 48 57 28 128 103 158 177 215 180 CTI Group 17 5 6 4 5 4 4 4 5 34 52 57 32 17 36

Wireless 1,061 1,233 1,390 1,509 1,706 1,118 1,342 1,411 1,117 3,208 3,256 4,058 5,192 5,576 6,297 New Zealand Telecom 49 43 34 40 49 67 42 50 48 59 80 88 166 208 217 Chunghwa 77 57 46 39 19 19 34 60 23 232 167 139 220 132 173 Taiwan Mobile 44 44 40 97 53 41 61 55 40 105 34 100 225 210 302 Optus 63 60 39 50 42 50 35 53 67 173 132 221 211 181 192 Starhub 45 35 28 35 16 28 29 71 42 127 131 124 143 143 183 Telekom Malaysia 21 15 93 100 27 56 55 65 51 144 182 228 229 202 256 PT Bakrie Telecom 17 20 14 18 18 4 114 22 29 - 33 27 69 157 232 Telekom Indonesia 318 458 492 542 386 377 451 260 349 620 552 1,030 1,810 1,475 1,696 Mobile One 3 2 4 25 5 6 4 22 3 68 82 37 35 38 76 Phillipines Long Distance 49 67 42 47 41 45 65 168 44 203 225 161 205 318 350 PT IndoStat 94 153 134 85 706 163 100 121 157 340 484 740 466 1,090 1,020 Total Access Comm (DTAC) 92 87 90 115 84 69 70 130 68 143 132 236 383 353 356 True Corp 78 60 91 32 35 41 114 58 28 251 308 255 261 248 259 Globe Telecom 45 55 67 125 64 58 71 112 103 292 379 269 291 305 450 AIS Thailand 67 77 175 160 159 93 97 165 65 452 334 403 479 514 534

20072006


16 July 2008


Exhibit 127: Detailed Carrier Capital Expenditure continued Quarterly Global Capital Expenditures 2008USD millions YE 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2003 2004 2005 2006 2007 2008ETOTAL GLOBAL CARRIER CAPEXTOTAL JAPANESE CARRIERS 6,591 5,169 6,175 5,930 7,072 4,694 5,053 5,843 8,226 17,383 22,032 23,349 23,866 22,662 25,411 Wireline 3,438 2,665 2,915 2,889 3,077 2,339 2,530 3,012 4,283 9,223 11,434 13,506 11,908 10,958 13,059 Wireless 3,153 2,504 3,260 3,041 3,996 2,355 2,523 2,831 3,944 8,160 10,598 9,842 11,958 11,704 12,351

Wireline 3,438 2,665 2,915 2,889 3,077 2,339 2,530 3,012 4,283 9,223 11,434 13,506 11,908 10,958 13,059 NTT Holding 92 42 90 192 169 37 102 154 156 106 145 224 416 462 424 NTT East (JPY, 3/31/06 YE) 1,035 708 883 960 1,166 810 883 958 1,323 2,992 3,417 3,573 3,586 3,817 4,049 NTT West (JPY, 3/31/06 YE) 1,011 1,119 853 779 784 725 638 800 1,153 3,497 3,449 4,091 3,762 2,948 3,736 NTT Communications 307 132 224 193 308 103 169 197 508 573 1,117 1,453 856 776 1,124 NTT Data 260 191 397 283 320 240 361 401 570 1,181 841 1,075 1,131 1,323 1,521 KDDI 306 192 189 214 82 203 162 240 370 575 732 1,369 901 687 1,326 eAccess 15 17 20 41 57 57 34 34 16 31 43 50 93 182 46 Liberty Global Jcom 77 123 98 118 90 80 93 133 75 268 297 359 417 396 583 SoftBank 335 142 161 109 101 84 88 95 112 - 1,393 1,313 746 368 251

Wireless 3,153 2,504 3,260 3,041 3,996 2,355 2,523 2,831 3,944 8,160 10,598 9,842 11,958 11,704 12,351 NTT DoCoMo 2,379 1,592 2,135 1,838 2,138 1,253 1,405 1,524 2,558 6,954 8,536 7,451 7,945 6,319 6,834

KDDI 774 449 442 598 979 505 683 847 814 1,206 2,062 2,391 2,263 3,014 3,890 SoftBank - 463 682 605 879 597 435 460 571 - - - 1,750 2,371 1,627

TOTAL KOREAN CARRIERS 711 1,467 1,595 2,463 1,107 1,763 1,531 2,335 1,188 4,871 4,571 4,961 6,236 6,736 6,992 Wireline 319 730 946 1,234 416 843 827 1,333 527 2,693 2,473 2,849 3,229 3,419 3,983 Wireless 392 737 649 1,229 691 920 704 1,003 661 2,178 2,097 2,112 3,007 3,317 3,009

Wireline 319 730 946 1,234 416 843 827 1,333 527 2,693 2,473 2,849 3,229 3,419 3,983 KT 229 567 786 928 299 578 572 955 311 1,872 1,697 2,116 2,510 2,404 2,834 SK Telecom 17 36 54 127 26 69 95 208 39 416 427 296 234 398 419 Hanaro 30 96 80 128 62 142 110 64 129 283 253 309 334 378 376 Dacom 20 21 14 31 16 18 32 56 18 74 64 85 86 121 245 LG Telecom 24 11 11 19 14 36 18 49 31 47 33 43 65 118 109

Wireless 392 737 649 1,229 691 920 704 1,003 661 2,178 2,097 2,112 3,007 3,317 3,009 SK Telecom 70 336 248 724 285 389 377 549 253 1,017 1,000 1,133 1,377 1,601 1,489 KT Freetel 286 312 318 368 356 340 212 285 297 820 833 696 1,284 1,193 1,036 LG Telecom 37 88 82 138 50 191 114 168 111 341 265 283 345 523 485

TOTAL CHINESE CARRIERS 3,903 4,796 6,074 7,644 5,022 6,204 6,552 8,183 - 15,962 18,246 19,309 22,417 25,961 30,007 Wireline 1,765 2,169 2,430 3,133 1,675 2,069 2,216 2,768 - 8,098 10,112 9,971 9,498 8,728 8,702 Wireless 2,137 2,627 3,644 4,511 3,347 4,135 4,336 5,415 - 7,864 8,134 9,339 12,919 17,233 21,304

Wireline 1,765 2,169 2,430 3,133 1,675 2,069 2,216 2,768 - 8,098 10,112 9,971 9,498 8,728 8,702 China Telecom 1,162 1,428 1,599 1,980 1,185 1,464 1,490 1,861 - 3,688 6,692 6,594 6,169 6,001 6,062 China Netcom 604 742 831 1,153 490 606 726 906 - 4,410 3,419 3,377 3,329 2,727 2,640 China Tietong 244 279 291 349 325 372 387 465 - 515 1,087 952 1,163 1,549 -

Wireless 2,137 2,627 3,644 4,511 3,347 4,135 4,336 5,415 - 7,864 8,134 9,339 12,919 17,233 21,304 China Mobile 1,784 2,192 3,113 3,854 2,965 3,662 3,202 3,999 - 5,977 6,939 8,086 10,943 13,828 17,135 China Unicom HK 353 434 531 657 382 472 1,134 1,416 - 1,886 1,196 1,252 1,976 3,405 4,169

TOTAL SCANDINAVIAN CARRIERS 869 1,139 1,199 1,513 1,023 1,330 1,375 1,915 1,463 2,098 3,651 4,270 4,720 5,643 6,196 Wireline 346 457 487 552 425 586 582 776 832 542 1,870 2,053 1,842 2,368 2,654 Wireless 523 682 712 962 598 744 793 1,139 631 1,557 1,782 2,216 2,879 3,275 3,543

Wireline 346 457 487 552 425 586 582 776 832 542 1,870 2,053 1,842 2,368 2,654 TeliaSonera 191 264 268 342 225 347 345 477 383 157 925 998 1,066 1,394 1,619 Telenor 129 153 184 150 168 205 206 243 424 311 862 943 616 821 881 Elisa 26 40 34 59 33 34 31 55 25 74 83 112 160 153 154

Wireless 523 682 712 962 598 744 793 1,139 631 1,557 1,782 2,216 2,879 3,275 3,543 TeliaSonera 78 97 93 179 109 136 146 230 131 961 492 538 447 621 721 Telenor 427 557 602 752 463 578 619 864 469 484 1,186 1,572 2,338 2,524 2,694 Elisa 18 28 18 31 26 30 29 45 30 112 104 106 94 129 128

TOTAL RUSSIAN CARRIERS 590 805 918 1,117 615 625 642 1,776 744 1,567 2,638 3,899 3,430 3,658 5,659 Wireline 51 69 76 78 80 69 80 118 43 - 192 203 273 345 459 Wireless 538 737 842 1,040 535 557 562 1,658 701 1,567 2,446 3,697 3,157 3,313 5,200

Wireline 51 69 76 78 80 69 80 118 43 - 192 203 273 345 459 Comstar United Telesystems 51 69 76 78 80 69 80 118 43 - 192 203 273 345 459

Wireless 538 737 842 1,040 535 557 562 1,658 701 1,567 2,446 3,697 3,157 3,313 5,200 Vimplecom 203 402 380 527 311 293 229 940 359 728 1,242 1,635 1,512 1,773 2,700 Mobile Telesystems 335 334 463 513 224 264 334 718 342 839 1,204 2,062 1,645 1,540 2,500

TOTAL INDIAN CARRIERS 1,135 952 1,220 972 1,022 1,522 2,491 3,368 2,272 1,071 1,659 2,570 4,279 8,402 8,192 Wireline 148 118 141 103 140 106 272 146 257 143 219 449 509 664 455 Wireless 987 835 1,078 869 881 1,416 2,218 3,222 2,016 928 1,440 2,120 3,770 7,738 7,737

Wireline 148 118 141 103 140 106 272 146 257 143 219 449 509 664 455 Bharti (AirTel) Wireless 148 118 141 103 140 106 272 146 257 143 219 449 509 664 455

Wireless 987 835 1,078 869 881 1,416 2,218 3,222 2,016 928 1,440 2,120 3,770 7,738 7,737 Reliance 435 302 336 361 442 434 1,301 2,233 1,326 633 712 1,490 1,434 4,410 4,667 Bharti (AirTel) Wireless 399 399 592 347 243 795 701 697 452 296 728 630 1,737 2,436 1,670 IDEA Celluar (Escorts) ($USD) 153 135 150 161 197 187 216 292 237 - - - 599 892 1,400

TOTAL MIDDLE EASTERN CARRIERS 729 947 746 992 805 955 860 1,433 797 1,598 2,525 3,814 3,414 4,052 4,574 Wireline 177 130 159 139 91 78 108 216 109 583 685 822 604 493 792 Wireless 552 818 587 853 713 877 752 1,217 688 1,015 1,840 2,993 2,810 3,560 3,782

Wireline 177 130 159 139 91 78 108 216 109 583 685 822 604 493 792 Telecom Egypt 88 74 73 99 46 37 32 52 42 351 449 522 333 168 320 MTC (Kuwait) 46 23 46 18 18 12 25 100 13 31 22 54 133 155 208 Bezeq 43 33 40 23 27 28 50 64 55 201 214 246 138 170 265

Wireless 552 818 587 853 713 877 752 1,217 688 1,015 1,840 2,993 2,810 3,560 3,782 Mobilnil 70 80 82 99 124 123 119 216 95 15 16 287 330 582 500 Turkcell 133 145 151 175 127 191 183 282 193 173 487 788 605 783 1,050 Orascom 307 536 307 536 427 510 385 639 338 667 1,087 1,678 1,686 1,961 1,961 Bezeq 23 18 22 12 15 15 27 35 29 108 115 132 75 91 143 Partner Communications 20 39 25 30 21 38 38 46 33 51 135 108 115 142 128

20072006


16 July 2008


Exhibit 128: Detailed Carrier Capital Expenditure continued Quarterly Global Capital Expenditures 2008USD millions YE 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2003 2004 2005 2006 2007 2008ETOTAL GLOBAL CARRIER CAPEXTOTAL AFRICAN CARRIERS 719 692 741 853 984 762 892 799 921 706 1,165 1,729 3,004 3,437 4,330 Wireline 297 248 268 324 339 213 251 312 367 457 664 851 1,136 1,114 1,355 Wireless 422 445 473 529 645 549 641 488 555 249 501 878 1,868 2,323 2,975

Wireline 297 248 268 324 339 213 251 312 367 457 664 851 1,136 1,114 1,355 Telkom South Africa 241 184 202 245 299 168 204 255 312 433 609 741 872 927 1,168 Millicom 55 63 66 79 39 45 47 56 55 24 55 110 264 188 188

Wireless 422 445 473 529 645 549 641 488 555 249 501 878 1,868 2,323 2,975 MTC Africa (Celltell) 249 286 298 346 422 373 433 287 316 105 253 357 1,179 1,515 2,099 Telkom South Africa 126 111 121 125 153 105 126 112 136 144 248 366 483 495 566 Safaricom 47 48 54 58 70 72 82 89 102 - - 155 206 313 310

TOTAL LATIN AMERICAN CARRIERS 1,958 2,819 3,876 3,821 2,057 3,070 3,769 6,364 2,572 5,464 8,551 11,871 12,474 15,260 17,317 Wireline 714 946 1,234 1,766 786 1,340 1,770 1,745 1,099 2,304 3,455 4,162 4,660 5,641 6,415 Wireless 1,244 1,874 2,642 2,054 1,271 1,730 1,999 4,619 1,473 3,159 5,096 7,709 7,814 9,619 10,902

Wireline 714 946 1,234 1,766 786 1,340 1,770 1,745 1,099 2,304 3,455 4,162 4,660 5,641 6,415 Telefonos de Mexico (Telemex) 131 240 322 473 134 376 694 76 108 1,062 1,453 1,404 1,166 1,280 1,880 Telefonica Wireline 170 252 347 623 236 399 411 689 334 657 770 1,081 1,391 1,735 2,098 Empresa de Telecomunicaciones de Bogota 32 20 36 43 44 55 37 70 46 - 55 48 131 206 150 Axtel 36 34 37 44 47 63 55 62 75 43 133 146 151 228 250 Brasil Telecom SA Participiones 96 118 146 172 70 130 128 260 92 64 358 474 531 588 629 Cia de Telecomm de Chile SA (USD) 36 49 51 68 48 63 97 83 62 109 119 149 204 291 300 Liberty Global 29 37 36 37 41 40 37 40 47 - 42 99 138 158 165 Telemig/Telenorte(Amazonia) Cellular (BRZ) 155 151 207 241 132 151 229 387 290 370 434 657 755 899 643 Telecom Argentina 29 44 53 66 34 63 81 78 46 - 91 105 193 256 301

Wireless 1,244 1,874 2,642 2,054 1,271 1,730 1,999 4,619 1,473 3,159 5,096 7,709 7,814 9,619 10,902 America Movil 614 906 1,388 174 427 487 718 1,540 444 1,414 2,120 3,602 3,083 3,172 4,000 Telefonica Moviles (Wireless) 158 237 474 571 214 394 431 1,069 225 614 891 1,416 1,440 2,108 2,526 Potugal Telecom 128 154 205 488 112 170 188 549 139 479 661 916 976 1,019 824 Brasil Telecom SA Participiones 2 28 50 50 2 23 42 82 5 36 412 365 130 149 168 Telemig/Telenorte(Amazonia) Cellular (BRZ) 53 83 114 121 36 82 72 312 89 223 386 465 372 503 783 TIM Participacoes S.A. (BRLs) Wireless 77 161 173 322 121 163 174 566 157 175 234 293 733 1,023 864 Nextel International 129 198 135 165 167 174 125 201 192 197 227 434 627 667 750 Millicom 52 60 62 74 162 185 193 232 189 21 79 109 248 772 745 Telecom Argentina 31 47 41 87 30 52 55 69 33 - 86 110 206 206 241

UNITED STATES CARRIERSTOTAL 12,930 14,352 15,000 17,992 14,340 15,462 15,758 19,081 15,068 39,968 42,480 50,140 60,274 64,701 65,327 Wireline Total 7,603 8,633 8,750 10,035 9,506 10,443 11,164 12,546 10,398 26,478 25,572 27,874 39,066 $43,720 $43,029Wireless Total 5,327 5,719 6,250 7,957 4,834 5,018 4,594 6,535 4,670 13,490 16,909 22,266 25,253 20,981 22,298 RBOC 4,689 5,255 4,828 5,483 5,595 6,089 6,737 7,552 6,292 14,059 13,849 15,381 $23,501 $25,973 $25,364Incumbent IXC 92 200 255 274 144 145 138 205 191 325 282 384 $821 $632 $632Emerging IXC 73 98 168 170 200 227 245 175 172 335 392 381 $549 $847 $844CLEC 91 111 115 132 128 167 155 154 167 214 409 415 $529 $665 $647Independent 328 492 533 590 385 447 481 697 392 2,379 2,237 2,023 $2,006 2,010 1,988 Wireless Total 5,327 5,719 6,250 7,957 4,834 5,018 4,594 6,535 4,670 13,490 16,909 22,266 25,253 20,981 22,298 Cable TV MSO 2,330 2,477 2,852 3,386 3,055 3,369 3,408 3,763 3,183 9,165 8,402 9,290 $11,661 13,594 13,554

RBOC 4,689 5,255 4,828 5,483 5,595 6,089 6,737 7,552 6,292 14,059 13,849 15,381 20,255 25,973 25,364 Qwest 390 442 394 406 318 426 420 505 416 2,082 1,731 1,613 1,632 1,669 1,800 SBC (Wireline) 1,881 2,221 2,100 2,162 2,838 2,982 3,564 3,964 3,497 5,157 5,000 5,501 8,364 13,348 12,864 Verizon (Wireline--Domestic Telecom) 2,418 2,592 2,334 2,915 2,439 2,681 2,753 3,083 2,379 6,820 7,118 8,267 10,259 10,956 10,700

Incumbent IXC 92 200 255 274 144 145 138 205 191 325 282 384 821 632 632 Sprint FON LD 92 200 255 274 144 145 138 205 191 325 282 384 821 632 632

Emerging IXC 73 98 168 170 200 227 245 175 172 335 392 381 509 847 844 Global Crossing 14 23 48 29 45 57 90 22 59 152 106 71 114 214 214 Level 3 (Comm. & Info. Services) (acq. Broadwing) 59 75 120 141 155 170 155 153 113 183 286 310 395 633 630

CLEC 91 111 115 132 128 167 155 154 167 214 409 415 450 604 647 FiberNet Telecom Group 1 1 1 1 0 1 1 1 1 - 4 3 3 4 7 XO Communications (Nextlink) 22 28 32 38 41 68 65 41 65 85 98 87 119 216 199 Time Warner Telecom 38 51 48 56 60 66 53 67 58 130 172 162 193 245 262 Alaska Communicatons (wireline) 7 8 14 16 6 7 10 17 15 - 37 52 45 39 82 Consolidated Communications 9 9 8 8 8 8 8 9 13 - 30 31 33 33 48 D&E Communications 7 8 5 4 6 6 5 6 8 - 25 31 24 22 22 Primus Telecommunications 9 7 8 9 6 11 13 15 7 - 43 50 33 45 28

- - - Independent 328 492 533 590 385 447 481 697 392 2,379 2,237 2,023 1,942 2,010 1,988 Windstream (ALLTel -Wireline) 10 14 88 130 80 98 90 129 56 383 336 356 242 397 355 CenturyTel (Wireline) 60 70 83 101 49 58 77 142 55 378 385 415 314 326 300 Citizens Communications 44 55 65 106 45 67 91 113 48 278 276 247 269 316 305 Embarq 184 312 260 214 179 186 193 260 177 1,240 1,042 828 970 818 800 Fairpoint communications 6 13 8 6 7 8 7 17 25 - 41 28 33 38 103 Grande Communications Holdings 7 8 9 7 8 12 4 12 9 - 51 48 31 35 20 Iowa Telecomunications Services, Inc 5 8 7 8 7 7 7 7 6 24 35 30 28 27 27 Surewest 12 13 13 18 10 12 12 18 18 76 71 70 55 53 78

Wireless 5,327 5,719 6,250 7,957 4,834 5,018 4,594 6,535 4,670 13,490 16,909 22,266 25,253 20,981 22,298 Verizon Wireless (Domestic) 1,581 1,597 1,623 1,817 1,721 1,667 1,515 1,600 1,722 4,590 5,633 6,484 6,618 6,503 5,850 AT&T Wireless 1,441 1,582 1,828 2,200 500 640 1,100 1,600 750 3,353 4,654 7,475 7,051 3,840 5,119 Sprint PCS 1,071 1,064 1,473 2,238 1,403 1,371 813 1,404 875 2,150 2,571 3,893 5,846 4,991 4,261 Alltel (Wireless) 156 394 284 455 170 325 250 342 146 763 797 979 1,289 1,086 1,000 T-Mobile USA 757 581 562 670 610 540 481 972 690 1,734 2,173 2,243 2,570 2,603 3,350 US Cellular 120 158 153 149 110 137 131 188 112 633 655 586 580 565 615 Centennial 23 80 23 13 29 34 15 21 26 105 83 127 139 98 111 Alaska Communicatons 2 4 4 4 4 7 4 7 8 - 14 12 14 22 42 Leap Wireless 61 126 162 246 132 106 107 160 157 45 77 200 595 505 750 Metro PCS 116 132 138 165 156 191 179 242 184 118 251 266 551 768 1,200 Notes: VoiceStream '01 and '02 includes PowerTel.

Cable TV MSO 2,330 2,477 2,852 3,386 3,055 3,369 3,408 3,763 3,183 9,165 8,402 9,290 11,044 13,594 13,554 AOL Time Warner (Cable) 472 546 702 998 720 831 864 1,018 846 1,637 1,559 1,837 2,718 3,433 3,500 Comcast (Cable) 967 1,045 1,247 1,381 1,443 1,586 1,492 1,637 1,355 4,097 3,660 4,030 4,640 6,158 5,860 Cox Communications 330 330 375 475 378 432 450 540 399 1,561 1,390 1,479 1,510 1,800 1,900 Charter Communications 241 290 264 308 298 281 311 354 334 854 924 947 1,103 1,244 1,200 Cablevision (Cable & Telecom) 258 193 184 142 140 144 186 143 158 775 621 695 777 613 704 Mediacom 48 55 54 54 50 62 71 45 64 241 181 228 210 227 275 RCN 14 18 26 28 26 33 34 26 27 - 66 74 86 119 115

20072006


16 July 2008


Exhibit 129: Detailed Carrier Capital Expenditure continued Quarterly Global Capital Expenditures 2008USD millions YE 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2003 2004 2005 2006 2007 2008ETOTAL GLOBAL CARRIER CAPEXCANADIAN CARRIERSTOTAL 708 1,002 1,035 1,148 936 1,114 1,152 1,538 936 1,319 2,622 3,132 3,894 4,739 5,896 Wireline Total 555 687 791 932 643 798 869 1,131 710 1,022 1,982 2,312 2,964 3,441 4,386 Wireless Total 153 316 244 216 293 316 283 406 227 297 640 820 930 1,298 1,510

Wireline 341 424 449 473 364 466 491 664 404 424 1,187 1,320 1,688 1,986 2,749 Telus 224 277 278 272 221 281 289 374 255 - 740 754 1,051 1,166 1,940 Manitoba Telecom 46 53 53 86 43 54 68 133 55 151 217 265 239 299 289 Aliant 71 94 118 115 100 131 134 156 95 274 230 302 398 521 521

Wireless 153 316 244 216 293 316 283 406 227 297 640 820 930 1,298 1,510 Rogers Cantel 100 184 144 123 198 158 157 257 163 297 338 485 551 771 906 Telus/Clearnet 54 131 100 93 95 158 126 149 64 - 302 336 378 527 604

Cable 214 262 341 459 279 331 378 468 306 598 795 992 1,276 1,456 1,637 Rogers Communication, excl. Cantel (RG) 97 144 184 275 129 168 168 251 128 368 484 592 701 716 756 Cogeco Cable (T.CCA) 31 30 40 59 46 47 56 52 60 54 67 99 160 200 261 Shaw Cable (PF for Moffat) - SJR 86 88 117 125 104 116 154 165 118 165 244 300 416 540 620

20072006


16 July 2008


Detailed Carrier Capex QoQ Growth Exhibit 130: Detailed Carrier Capital Expenditure Quarter-over-Quarter Growth Quarterly Global Capital Expenditures 2008Seasonality YE 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08TOTAL GLOBAL CARRIER CAPEXTOTAL -22.2% 10.3% 10.4% 19.5% -20.9% 4.6% 6.6% 32.5% -31.3%

Wireline Total -17.2% 8.7% 6.7% 18.7% -18.8% 8.5% 7.4% 23.1% -24.4%

Wireless Total -26.9% 12.1% 14.2% 20.2% -22.9% 0.8% 5.8% 42.8% -37.8%

TOTAL INTERNATIONAL CARRIERSTOTAL -24.3% 9.3% 13.1% 19.5% -21.2% 3.0% 8.7% 36.9% -34.6%Wireline -22.5% 5.7% 9.3% 20.8% -24.9% 7.0% 7.6% 29.5% -27.8%Wireless -25.9% 12.7% 16.4% 18.5% -18.1% -0.1% 9.6% 42.9% -39.6%

TOTAL EUROPEAN CARRIERS -22.8% 7.9% 4.2% 33.4% -22.8% 2.5% 5.0% 39.3% -23.0%Wireline -14.2% 5.5% 5.2% 24.5% -18.4% 4.8% 2.8% 40.3% -28.7%Wireless -32.2% 11.1% 2.9% 45.4% -27.9% -0.5% 8.0% 37.8% -15.3%

Wireline -14.2% 5.5% 5.2% 24.5% -18.4% 4.8% 2.8% 40.3% -28.7%British Telecom 25.1% -23.6% 23.4% 1.2% 9.8% -2.2% 5.0% 1.8% -7.6%Deutsche Telekom -29.5% 14.2% 7.4% 18.8% -15.8% -29.2% 22.9% 58.8% -35.7%France Telecom -25.0% 27.6% -4.1% 23.8% -29.6% 25.7% 18.8% 30.1% -28.8%Telecom Italia -1.0% -1.8% -10.2% 31.9% -12.5% 10.2% -15.2% 50.6% -23.2%Telefonica 21.8% 5.3% 11.6% 12.1% -36.5% 46.3% -20.3% 72.8% -46.7%KPN -24.3% 12.4% -0.2% 33.1% -34.3% 43.2% 9.0% 125.8% -43.6%Swisscom -38.4% 22.6% 13.1% 33.7% -25.8% 69.7% 6.7% 32.6% -31.0%Belgacom -56.8% 11.5% 7.9% 172.2% -59.1% 26.6% -11.7% 82.2% -35.3%Telecom Austria -47.2% 4.6% 18.5% 67.1% -49.8% 26.3% -2.8% 96.7% -52.8%Telecom Portugal -48.4% 26.3% -10.9% 13.0% -48.3% 26.8% 14.2% 88.2% -54.5%Virgin Media (frmly NTL) 21.9% 13.1% 14.5% 28.4% -12.6% -2.5% -16.0% 13.6% -2.4%Colt -32.1% 12.7% 27.5% 7.1% -7.8% -7.2% 19.5% 17.2% -5.3%Cable & Wireless 0.2% -41.9% 30.8% 18.9% 24.7% -44.0% 23.6% 14.7% 18.3%Eircom -42.5% 134.2% 9.7% -17.8% 17.3% -2.6% -1.9% 35.7% -15.4%ONO -25.0% -0.7% 17.4% 68.1% -45.3% 19.3% -7.8% 27.5% -32.9%OTE -38.1% 43.1% -18.3% 104.9% -39.7% 12.5% -4.6% 85.8% -64.3%Sonaecom 14.2% 2.0% -26.0% 248.0% -41.8% 19.7% -44.5% 119.6% -56.3%Tele2 -48.4% 39.9% -24.9% 36.7% -15.6% 9.5% 1.4% -20.0% -25.9%Tiscali -29.9% 5.5% -2.1% -3.8% -15.6% 74.8% -24.0% 41.9% -19.9%QSC 17.1% 67.4% 105.5% -30.4% -33.9% 81.5% 86.8% 89.4% -51.3%Carphone Warehouse 20.2% 17.1% 22.3% 6.4% 22.5% -9.2% 23.6% 14.4% -3.2%UPC Broadcom -17.3% 43.7% -7.9% 42.1% -2.6% -8.5% 1.3% 23.0% -13.5%Telenet -25.8% 7.5% 0.5% 20.1% -15.5% 9.8% -28.0% -23.6% 157.1%

Wireless -32.2% 11.1% 2.9% 45.4% -27.9% -0.5% 8.0% 37.8% -15.3%Deutsche Telekom (ex T-Mobile USA) -23.3% -14.8% 7.3% 80.1% -35.8% -11.4% 5.2% 83.9% -30.0%France Telecom -65.1% 113.5% -28.8% 66.3% -51.6% 65.8% -6.3% 30.1% -31.5%Telecom Italia -74.8% 63.0% -10.9% 98.9% -36.4% 25.1% 5.1% 32.7% -18.6%Telefonica Wireless (ex latam) -42.4% 59.1% 2.0% 56.7% -47.6% 5.0% 8.8% 42.7% -39.0%KPN -44.3% 54.6% 28.6% 33.1% -64.9% 19.7% 3.3% 61.6% -53.5%Swisscom -44.4% 52.8% 15.8% 83.2% -52.4% 31.5% -0.9% 65.2% -51.8%Belgacom 87.8% -13.7% -41.3% 396.7% -69.9% 41.4% 48.9% -78.5% 81.5%Telecom Austria -43.4% 61.7% -30.5% 99.3% -32.6% 55.6% -38.4% 80.1% -33.3%Telecom Portugal -64.8% 31.7% 54.0% 115.2% -70.1% 62.3% -6.3% 116.2% -60.2%Vodafone 22.5% -33.8% 30.8% 8.9% 24.7% -30.7% 23.6% 31.1% 18.3%Cable & Wireless 22.5% -24.1% 30.8% -1.2% 24.7% -26.9% 23.6% 14.5% 18.3%Jazztel -61.5% -13.2% -1.1% -19.1% -29.8% -20.6% -48.5% 6.4% 65.4%Sonaecom -30.9% -60.7% 139.8% 34.4% -46.3% 48.0% 99.3% -16.7% -19.0%Tele2 55.4% 16.1% -7.3% 13.0% -14.5% 20.3% -18.2% 35.2% -25.5%Bouygues -31.8% 25.3% 5.7% 25.5% -36.0% 23.4% 5.2% 31.9% -27.2%

20072006


16 July 2008


Exhibit 131: Detailed Carrier Capital Expenditure Quarter-over-Quarter Growth continued Quarterly Global Capital Expenditures 2008Q/Q Growth YE 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08TOTAL GLOBAL CARRIER CAPEXTOTAL ASIAN-PACIFIC CARRIERS -19.9% 21.0% 5.3% 11.5% 0.0% -20.4% 13.8% 8.0% -18.3%Wireline -28.5% 29.1% -6.0% 16.8% -22.0% 14.0% 5.0% 12.6% -14.6%Wireless -13.6% 16.2% 12.7% 8.6% 13.1% -34.5% 20.0% 5.1% -20.8%

Wireline -28.5% 29.1% -6.0% 16.8% -22.0% 14.0% 5.0% 12.6% -14.6%New Zealand Telecom -38.4% 41.5% -20.8% 49.4% -38.9% 92.6% -16.6% -7.8% 22.5%Chunghwa -35.7% 1.4% 28.1% -14.9% -0.1% -2.7% 20.2% 49.5% -33.1%Singapore (Sing-tel) -19.6% -15.9% 30.4% -3.9% 89.3% -26.7% -8.5% 12.0% 47.2%Optus -2.2% 5.5% 11.2% 19.7% -35.2% 19.8% 18.7% -13.0% -7.6%Telekom Malaysia -49.5% 86.0% -42.8% 69.4% -62.5% 93.3% 42.6% 14.5% -41.1%Telekom Indonesia -37.4% 44.0% 7.4% 10.3% -59.9% -2.4% 19.6% -42.3% 34.0%Millicom 86.8% 14.3% 4.2% 20.0% -48.7% 14.3% 4.2% 20.0% -8.9%Phillipines Long Distance 49.5% 93.5% -53.7% 1.5% 108.0% -53.1% -14.6% 108.9% -55.7%PT IndoStat -63.0% 169.3% 8.5% 27.6% -50.3% 145.2% -37.9% 18.0% -51.3%CTI Group 22.2% -68.9% 21.9% -36.1% 21.8% -26.2% 22.2% -10.4% 21.9%

Wireless -13.6% 16.2% 12.7% 8.6% 13.1% -34.5% 20.0% 5.1% -20.8%New Zealand Telecom 89.4% -11.4% -20.4% 15.9% 22.6% 38.3% -37.1% 17.1% -3.0%Chunghwa 173.7% -25.3% -19.8% -14.9% -50.6% -2.7% 78.8% 78.8% -62.4%Taiwan Mobile 38.3% -1.8% -7.4% 141.1% -44.9% -22.7% 47.6% -10.6% -27.4%Optus 11.3% -4.6% -34.7% 27.4% -14.6% 19.0% -31.1% 52.2% 27.2%Starhub 61.3% -21.4% -20.9% 24.3% -54.6% 75.1% 4.6% 145.8% -40.9%Telekom Malaysia -82.4% -32.0% 540.1% 6.6% -72.4% 103.1% -2.0% 18.2% -21.0%PT Bakrie Telecom 74.0% 22.2% -32.9% 33.9% -3.6% -77.9% 2830.8% -80.3% 31.1%Telekom Indonesia 5.1% 44.0% 7.4% 10.3% -28.7% -2.4% 19.6% -42.3% 34.0%Mobile One -91.6% -7.3% 85.4% 473.2% -80.5% 29.5% -36.7% 452.6% -88.3%Phillipines Long Distance -32.1% 37.7% -38.0% 12.9% -13.3% 10.9% 42.8% 159.5% -73.8%PT IndoStat -56.6% 61.9% -12.1% -36.8% 732.5% -76.9% -38.5% 20.4% 30.4%Total Access Comm (DTAC) 188.7% -5.4% 4.1% 27.3% -26.4% -18.1% 1.6% 84.4% -47.7%True Corp 4.3% -23.4% 51.9% -65.2% 9.7% 17.0% 180.1% -48.9% -51.6%Globe Telecom -49.9% 21.7% 22.6% 86.1% -48.8% -8.5% 21.5% 57.5% -7.6%AIS Thailand -37.5% 14.5% 126.3% -8.3% -0.3% -42.0% 5.3% 69.3% -60.6%

TOTAL JAPANESE CARRIERS 22.7% -21.6% 19.5% -4.0% 19.3% -33.6% 7.6% 15.6% 40.8%Wireline 12.2% -22.5% 9.4% -0.9% 6.5% -24.0% 8.2% 19.1% 42.2%Wireless 36.7% -20.6% 30.2% -6.7% 31.4% -41.1% 7.1% 12.2% 39.3%

Wireline 12.2% -22.5% 9.4% -0.9% 6.5% -24.0% 8.2% 19.1% 42.2%NTT Holding 96.4% -54.5% 113.4% 114.4% -11.9% -77.9% 172.5% 51.4% 1.7%NTT East (JPY, 3/31/06 YE) 29.9% -31.6% 24.7% 8.8% 21.5% -30.5% 8.9% 8.6% 38.0%NTT West (JPY, 3/31/06 YE) 0.3% 10.6% -23.8% -8.7% 0.7% -7.6% -11.9% 25.3% 44.1%NTT Communications 37.9% -57.1% 69.6% -13.9% 59.5% -66.6% 64.5% 16.6% 157.8%NTT Data 26.7% -26.3% 107.3% -28.7% 13.2% -25.0% 50.3% 11.2% 42.0%KDDI -17.0% -37.1% -1.5% 13.0% -61.6% 147.1% -20.1% 47.7% 54.4%eAccess 130.7% 9.5% 18.9% 104.5% 38.8% 0.4% -40.5% 0.5% -52.9%Liberty Global Jcom -42.0% 58.7% -19.9% 20.4% -24.4% -10.6% 16.6% 42.2% -43.7%SoftBank 20.3% -57.7% 13.9% -32.6% -7.4% -16.8% 4.8% 8.1% 18.0%

Wireless 36.7% -20.6% 30.2% -6.7% 31.4% -41.1% 7.1% 12.2% 39.3%NTT DoCoMo 37.5% -33.1% 34.1% -13.9% 16.3% -41.4% 12.2% 8.5% 67.9%

KDDI 34.2% -41.9% -1.5% 35.1% 63.7% -48.4% 35.1% 24.0% -3.8%SoftBank - - 47.4% -11.3% 45.3% -32.1% -27.2% 5.8% 24.1%

20072006


16 July 2008


Exhibit 132: Detailed Carrier Capital Expenditure Quarter-over-Quarter Growth continued Quarterly Global Capital Expenditures 2008Q/Q Growth YE 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08TOTAL KOREAN CARRIERS -64.2% 106.3% 8.7% 54.4% -55.1% 59.2% -13.1% 52.5% -49.1%Wireline -71.4% 129.0% 29.5% 30.4% -66.3% 102.6% -1.9% 61.1% -60.4%Wireless -55.0% 87.7% -11.9% 89.4% -43.8% 33.1% -23.5% 42.4% -34.1%

Wireline -71.4% 129.0% 29.5% 30.4% -66.3% 102.6% -1.9% 61.1% -60.4%KT -70.3% 148.0% 38.6% 18.1% -67.8% 93.4% -1.0% 66.8% -67.5%SK Telecom -91.1% 118.6% 49.7% 133.1% -79.9% 169.4% 38.2% 118.7% -81.4%Hanaro -71.3% 220.8% -16.2% 60.1% -51.9% 130.0% -22.7% -41.8% 102.3%Dacom -50.0% 2.4% -31.8% 123.1% -49.9% 14.1% 76.6% 77.9% -68.8%LG Telecom 72.9% -54.6% 3.7% 67.0% -23.7% 154.1% -49.6% 170.0% -37.2%

Wireless -55.0% 87.7% -11.9% 89.4% -43.8% 33.1% -23.5% 42.4% -34.1%SK Telecom -85.1% 382.2% -26.1% 191.6% -60.5% 36.1% -2.8% 45.5% -54.0%KT Freetel -15.2% 9.2% 1.9% 15.6% -3.3% -4.4% -37.6% 34.4% 4.3%LG Telecom -45.6% 140.7% -6.8% 67.0% -63.9% 284.3% -40.2% 47.2% -33.9%

TOTAL CHINESE CARRIERS -36.2% 22.9% 26.6% 25.9% -34.3% 23.5% 5.6% 24.9% n/aWireline -45.6% 22.9% 12.0% 28.9% -46.5% 23.5% 7.1% 24.9% n/aWireless -25.6% 22.9% 38.7% 23.8% -25.8% 23.5% 4.9% 24.9% n/a

Wireline -45.6% 22.9% 12.0% 28.9% -46.5% 23.5% 7.1% 24.9% n/aChina Telecom -45.0% 22.9% 12.0% 23.8% -40.2% 23.5% 1.8% 24.9% n/aChina Netcom -46.8% 22.9% 12.0% 38.7% -57.5% 23.5% 19.8% 24.9% n/aChina Tietong -14.5% 14.3% 4.2% 20.0% -6.8% 14.3% 4.2% 20.0% n/a

Wireless -25.6% 22.9% 38.7% 23.8% -25.8% 23.5% 4.9% 24.9% n/aChina Mobile -27.4% 22.9% 42.0% 23.8% -23.1% 23.5% -12.6% 24.9% n/aChina Unicom HK -14.9% 22.9% 22.3% 23.8% -41.9% 23.5% 140.2% 24.9% n/a

TOTAL SCANDINAVIAN CARRIERS -34.2% 31.0% 5.3% 26.2% -32.4% 30.0% 3.4% 39.3% -23.6%Wireline -36.6% 32.0% 6.4% 13.4% -23.0% 37.8% -0.7% 33.3% 7.3%Wireless -32.5% 30.4% 4.5% 35.0% -37.8% 24.4% 6.6% 43.6% -44.6%

Wireline -36.6% 32.0% 6.4% 13.4% -23.0% 37.8% -0.7% 33.3% 7.3%TeliaSonera -24.3% 38.1% 1.5% 27.7% -34.4% 54.6% -0.7% 38.6% -19.8%Telenor -49.5% 18.5% 20.5% -18.5% 11.7% 22.1% 0.6% 18.1% 74.3%Elisa -31.6% 54.6% -14.4% 72.7% -44.9% 3.5% -7.7% 75.8% -53.7%

Wireless -32.5% 30.4% 4.5% 35.0% -37.8% 24.4% 6.6% 43.6% -44.6%TeliaSonera -40.4% 23.6% -4.0% 92.1% -38.9% 24.9% 7.1% 57.8% -42.9%Telenor -29.4% 30.6% 7.9% 25.1% -38.4% 24.9% 7.0% 39.6% -45.7%Elisa -54.1% 53.2% -35.4% 72.7% -14.9% 13.2% -3.6% 57.1% -33.3%

TOTAL RUSSIAN CARRIERS -62.1% 36.6% 14.0% 21.7% -45.0% 1.7% 2.6% 176.7% -58.1%Wireline -32.3% 34.2% 10.3% 2.4% 2.7% -13.9% 16.1% 48.2% -63.5%Wireless -63.6% 36.8% 14.3% 23.4% -48.5% 4.0% 1.0% 194.9% -57.7%

Wireline -32.3% 34.2% 10.3% 2.4% 2.7% -13.9% 16.1% 48.2% -63.5%Comstar United Telesystems -32.3% 34.2% 10.3% 2.4% 2.7% -13.9% 16.1% 48.2% -63.5%

Wireless -63.6% 36.8% 14.3% 23.4% -48.5% 4.0% 1.0% 194.9% -57.7%Vimplecom -69.7% 97.8% -5.7% 38.8% -40.9% -6.0% -21.9% 311.3% -61.9%Mobile Telesystems -58.5% -0.2% 38.4% 10.8% -56.3% 17.9% 26.4% 115.2% -52.3%

TOTAL INDIAN CARRIERS 48.1% -16.1% 28.0% -20.3% 5.1% 49.0% 63.6% 35.2% -32.5%Wireline 0.1% -20.3% 20.0% -27.1% 36.3% -24.6% 157.5% -46.5% 76.1%Wireless 59.5% -15.4% 29.2% -19.4% 1.4% 60.7% 56.6% 45.3% -37.4%

Wireline 0.1% -20.3% 20.0% -27.1% 36.3% -24.6% 157.5% -46.5% 76.1%Bharti (AirTel) Wireless 0.1% -20.3% 20.0% -27.1% 36.3% -24.6% 157.5% -46.5% 76.1%

Wireless 59.5% -15.4% 29.2% -19.4% 1.4% 60.7% 56.6% 45.3% -37.4%Reliance -0.1% -30.7% 11.6% 7.4% 22.3% -1.7% 199.6% 71.6% -40.6%Bharti (AirTel) Wireless 117.5% -0.1% 48.4% -41.4% -30.0% 227.7% -11.8% -0.6% -35.1%IDEA Celluar (Escorts) ($USD) - -12.0% 11.6% 7.4% 22.3% -5.0% 15.4% 35.2% -18.7%

20072006


16 July 2008


Exhibit 133: Detailed Carrier Capital Expenditure Quarter-over-Quarter Growth continued Quarterly Global Capital Expenditures 2008Q/Q Growth YE 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08TOTAL MIDDLE EASTERN CARRIERS -33.8% 29.9% -21.3% 32.9% -18.9% 18.7% -10.0% 66.7% -44.4%Wireline -24.6% -26.8% 22.5% -12.4% -34.4% -14.9% 38.6% 100.8% -49.4%Wireless -36.2% 48.0% -28.2% 45.2% -16.3% 23.0% -14.3% 61.8% -43.5%

Wireline -24.6% -26.8% 22.5% -12.4% -34.4% -14.9% 38.6% 100.8% -49.4%Telecom Egypt -41.2% -16.3% -1.3% 35.4% -52.8% -20.6% -12.1% 61.1% -19.3%MTC (Kuwait) 189.4% -49.6% 95.6% -60.5% -2.6% -28.9% 102.5% 295.4% -87.4%Bezeq -38.0% -23.7% 24.2% -44.1% 20.7% 3.7% 76.6% 28.4% -14.8%

Wireless -36.2% 48.0% -28.2% 45.2% -16.3% 23.0% -14.3% 61.8% -43.5%Mobilnil -5.4% 14.4% 2.8% 20.4% 26.0% -1.0% -3.1% 81.1% -55.9%Turkcell -43.7% 9.1% 4.2% 16.0% -27.7% 50.4% -3.8% 53.9% -31.8%Orascom -37.1% 74.6% -42.7% 74.6% -20.3% 19.4% -24.5% 66.0% -47.1%Bezeq -38.0% -23.7% 24.2% -44.1% 20.7% 3.7% 76.6% 28.4% -14.8%Partner Communications -37.0% 98.9% -35.9% 20.3% -32.3% 85.8% -1.8% 21.1% -28.1%

TOTAL AFRICAN CARRIERS 54.7% -3.7% 7.0% 15.2% 15.4% -22.5% 17.0% -10.4% 15.3%Wireline 33.3% -16.6% 8.1% 21.1% 4.6% -37.1% 17.8% 24.2% 17.7%Wireless 74.4% 5.4% 6.4% 11.8% 22.0% -14.9% 16.6% -23.9% 13.7%

Wireline 33.3% -16.6% 8.1% 21.1% 4.6% -37.1% 17.8% 24.2% 17.7%South Africa Telecom 27.3% -23.7% 9.5% 21.4% 22.2% -43.9% 21.4% 25.2% 22.2%Millicom 67.3% 14.3% 4.2% 20.0% -50.1% 14.3% 4.2% 20.0% -2.7%

Wireless 74.4% 5.4% 6.4% 11.8% 22.0% -14.9% 16.6% -23.9% 13.7%MTC Africa (Celltell) 137.9% 15.3% 4.1% 16.0% 21.8% -11.5% 16.2% -33.7% 10.1%South Africa Telecom 27.3% -12.1% 9.5% 3.6% 22.2% -31.8% 20.2% -11.2% 22.2%Safaricom 22.8% 0.2% 12.8% 7.3% 22.4% 1.7% 14.1% 8.8% 14.6%

TOTAL LATIN AMERICAN CARRIERS -56.1% 44.0% 37.5% -1.4% -46.2% 49.3% 22.8% 68.9% -59.6%Wireline -52.3% 32.5% 30.5% 43.1% -55.5% 70.6% 32.1% -1.4% -37.0%Wireless -58.1% 50.6% 41.0% -22.2% -38.1% 36.1% 15.5% 131.1% -68.1%

Wireline -52.3% 32.5% 30.5% 43.1% -55.5% 70.6% 32.1% -1.4% -37.0%Telefonos de Mexico (Telemex) -75.0% 83.3% 34.2% 46.7% -71.7% 180.6% 84.6% -89.0% 42.1%Telefonica Wireline -61.4% 48.9% 37.3% 79.7% -62.1% 69.2% 3.0% 67.7% -51.6%Telecom Italia 120.1% -36.1% 75.3% 20.4% 1.8% 26.3% -33.0% 88.0% -34.4%Axtel -20.7% -4.9% 8.2% 20.8% 5.2% 35.2% -12.6% 12.9% 20.6%Brasil Telecom SA Participiones -17.1% 23.3% 23.5% 17.8% -58.9% 84.2% -1.1% 102.2% -64.5%Cia de Telecomm de Chile SA (USD) 179.2% 34.4% 4.3% 33.0% -29.4% 31.8% 54.0% -14.2% -25.5%Liberty Global -4.0% 31.2% -5.1% 3.7% 10.6% -1.7% -7.5% 8.1% 17.0%Millicom -42.4% -3.1% 37.8% 16.3% -45.1% 13.7% 52.3% 68.8% -25.2%Telecom Argentina -34.7% 49.8% 21.5% 23.3% -48.6% 86.5% 28.6% -4.3% -41.3%

Wireless -58.1% 50.6% 41.0% -22.2% -38.1% 36.1% 15.5% 131.1% -68.1%America Movil -49.4% 47.4% 53.3% -87.4% 144.6% 14.2% 47.4% 114.6% -71.2%Telefonica Moviles (Wireless) -74.2% 50.7% 99.7% 20.5% -62.6% 84.3% 9.6% 147.7% -79.0%Potugal Telecom -66.4% 20.4% 33.0% 138.2% -77.1% 52.2% 10.6% 191.9% -74.7%Brasil Telecom SA Participiones -99.0% 1061.9% 82.4% -0.1% -95.9% 1017.6% 85.2% 94.9% -93.7%Telemig/Telenorte(Amazonia) Cellular (BRZ) -72.3% 57.0% 37.5% 6.2% -70.1% 126.7% -12.2% 331.6% -71.5%TIM Participacoes S.A. (BRLs) Wireless -50.4% 109.2% 7.1% 86.7% -62.4% 34.8% 6.5% 225.6% -72.3%Nextel International 10.3% 53.5% -31.8% 22.2% 1.2% 4.2% -28.2% 60.8% -4.5%Millicom 60.1% 14.3% 4.2% 20.0% 117.6% 14.3% 4.2% 20.0% -18.3%Telecom Argentina 7.4% 52.5% -14.3% 114.9% -65.1% 69.9% 7.0% 24.8% -52.1%

20072006


16 July 2008


Exhibit 134: Detailed Carrier Capital Expenditure Quarter-over-Quarter Growth continued Quarterly Global Capital Expenditures 2008Q/Q Growth YE 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08UNITED STATES CARRIERS -16.4% 11.0% 4.5% 19.9% -20.3% 7.8% 1.9% 21.1% -21.0%Wireline Total -4.7% 13.5% 1.4% 14.7% -5.3% 9.9% 6.9% 12.4% -17.1%Wireless Total -29.0% 7.4% 9.3% 27.3% -39.3% 3.8% -8.4% 42.2% -28.5%RBOC 6.9% 12.1% -8.1% 13.6% 2.0% 8.8% 10.6% 12.1% -16.7%Incumbent IXC -44.6% 117.4% 27.5% 7.5% -47.4% 0.7% -4.8% 48.6% -6.8%Emerging IXC -3.9% 34.2% 71.4% 1.2% 17.6% 13.5% 7.9% -28.6% -1.7%CLEC -14.0% 22.2% 3.3% 15.0% -3.1% 30.1% -7.1% -0.3% 8.0%Independent -49.1% 50.0% 8.2% 10.7% -34.8% 16.2% 7.7% 44.9% -43.7%Wireless Total -29.0% 7.4% 9.3% 27.3% -39.3% 3.8% -8.4% 42.2% -28.5%Cable TV MSO -10.2% 6.3% 15.1% 18.7% -9.8% 10.3% 1.2% 10.4% -15.4%

RBOC 6.9% 12.1% -8.1% 13.6% 2.0% 8.8% 10.6% 12.1% -16.7%Qwest -22.5% 13.3% -10.9% 3.0% -21.7% 34.0% -1.4% 20.2% -17.6%SBC (Wireline) 2.6% 18.1% -5.4% 3.0% 31.3% 5.1% 19.5% 11.2% -11.8%Verizon (Wireline--Domestic Telecom) 17.9% 7.2% -10.0% 24.9% -16.3% 9.9% 2.7% 12.0% -22.8%

Incumbent IXC -44.6% 117.4% 27.5% 7.5% -47.4% 0.7% -4.8% 48.6% -6.8% Sprint FON LD -44.6% 117.4% 27.5% 7.5% -47.4% 0.7% -4.8% 48.6% -6.8%

Emerging IXC -3.9% 34.2% 71.4% 1.2% 17.6% 13.5% 7.9% -28.6% -1.7%Global Crossing 100.0% 64.3% 108.7% -39.6% 55.2% 26.7% 57.9% -75.6% 168.2%Level 3 (Comm. & Info. Services) (acq. Broadwing) -14.5% 27.1% 60.0% 17.5% 9.9% 9.7% -8.8% -1.3% -26.1%

CLEC -14.0% 22.2% 3.3% 15.0% -3.1% 30.1% -7.1% -0.3% 8.0%FiberNet Telecom Group -33.3% 0.0% 0.0% 16.7% -42.9% 200.0% 0.0% -16.7% 10.0%XO Communications (Nextlink) -8.2% 30.2% 13.2% 18.9% 9.0% 66.2% -4.2% -37.7% 60.3%Time Warner Telecom -7.6% 34.6% -5.5% 15.8% 7.5% 9.3% -19.5% 26.1% -13.3%Alaska Communicatons (wireline) -57.7% 23.2% 68.8% 16.9% -62.5% 9.1% 46.2% 73.0% -11.7%Consolidated Communications -10.3% 2.1% -10.1% 7.0% -2.1% 3.7% -6.0% 10.3% 51.1%D&E Communications -18.9% 23.3% -37.5% -12.8% 36.9% -2.9% -17.4% 15.8% 34.9%Primus Telecommunications 28.5% -28.3% 16.0% 16.4% -29.7% 66.7% 22.1% 15.1% -53.2%

Independent -49.1% 50.0% 8.2% 10.7% -34.8% 16.2% 7.7% 44.9% -43.7%ALLTel (Wireline) -91.5% 35.3% 541.2% 46.5% -38.3% 22.5% -7.9% 42.5% -56.6%CenturyTel (Wireline) -54.9% 17.3% 17.2% 22.4% -51.7% 18.8% 33.6% 83.1% -61.4%Citizens Communications -39.2% 24.4% 19.4% 62.1% -57.3% 47.8% 36.4% 24.5% -57.6%Embarq -32.4% 69.6% -16.7% -17.7% -16.4% 3.9% 3.8% 34.7% -31.9%Fairpoint communications -37.6% 113.5% -36.2% -20.8% 7.5% 12.6% -11.7% 141.7% 48.6%Grande Communications Holdings 0.0% 6.8% 9.0% -14.1% 9.6% 45.0% -65.5% 192.5% -27.0%Iowa Telecomunications Services, Inc -22.7% 61.6% -14.9% 9.9% -15.4% 2.1% 0.2% 4.7% -15.8%Surewest -51.8% 8.5% 0.0% 40.6% -42.8% 17.5% -0.8% 50.8% -1.7%

Wireless -29.0% 7.4% 9.3% 27.3% -39.3% 3.8% -8.4% 42.2% -28.5%Verizon Wireless (Domestic) 3.9% 1.0% 1.6% 12.0% -5.3% -3.1% -9.1% 5.6% 7.6%AT&T Wireless -51.5% 9.8% 15.5% 20.4% -77.3% 28.0% 71.9% 45.5% -53.1%Sprint PCS -30.2% -0.7% 38.4% 51.9% -37.3% -2.3% -40.7% 72.7% -37.7%Alltel (Wireless) -42.5% 152.6% -27.9% 60.2% -62.7% 91.8% -23.3% 36.9% -57.2%T-Mobile USA -2.8% -23.2% -3.3% 19.2% -9.0% -11.5% -10.9% 102.1% -29.0%US Cellular -40.6% 32.2% -3.5% -2.5% -26.4% 25.0% -4.7% 44.0% -40.6%Centennial 41.9% 250.6% -70.7% -45.3% 122.7% 17.9% -56.8% 45.3% 25.2%Centennial (US & PR Wireless) -69.5% 129.2% 4.5% 2.3% -7.6% 73.1% -39.2% 57.3% 19.6%Leap Wireless -48.3% 106.9% 28.5% 51.9% -46.4% -19.4% 1.0% 48.7% -1.5%Metro PCS 44.7% 14.3% 4.2% 20.0% -5.4% 22.2% -6.2% 35.2% -24.1%Notes: VoiceStream '01 and '02 includes PowerTel.

Cable TV MSO -10.2% 6.3% 15.1% 18.7% -9.8% 10.3% 1.2% 10.4% -15.4%AOL Time Warner (Cable) -11.3% 15.7% 28.6% 42.2% -27.9% 15.4% 4.0% 17.8% -16.9%Comcast (Cable) -19.3% 8.1% 19.3% 10.7% 4.5% 9.9% -5.9% 9.7% -17.2%Cox Communications -26.9% 0.0% 13.6% 26.7% -20.4% 14.3% 4.2% 20.0% -26.1%Charter Communications 82.6% 20.3% -9.0% 16.7% -3.2% -5.7% 10.7% 13.8% -5.6%Cablevision (Cable & Telecom) 29.6% -25.2% -5.0% -22.5% -1.8% 3.1% 29.0% -23.0% 10.8%Mediacom -2.8% 14.7% -0.7% -1.1% -6.9% 24.0% 14.7% -37.2% 43.5%RCN -58.8% 28.6% 44.4% 7.7% -7.1% 26.9% 3.0% -23.5% 3.8%

20072006


16 July 2008


Exhibit 135: Detailed Carrier Capital Expenditure Quarter-over-Quarter Growth continued Quarterly Global Capital Expenditures 2008Q/Q Growth YE 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08CANADIAN CARRIERS -25.4% 41.5% 3.3% 10.9% -18.5% 19.0% 3.4% 33.5% -39.1%Wireline Total -14.9% 23.7% 15.2% 17.8% -31.0% 24.1% 9.0% 30.1% -37.3%Wireless Total -48.5% 106.0% -22.5% -11.5% 35.3% 8.0% -10.6% 43.7% -44.1%

Wireline -0.6% 24.4% 5.9% 5.2% -23.0% 28.1% 5.3% 35.1% -39.2%Telus 14.3% 23.7% 0.2% -2.3% -18.6% 27.2% 2.9% 29.3% -32.0%Manitoba Telecom -42.3% 15.4% 0.2% 61.5% -49.6% 25.4% 24.2% 97.0% -59.0%Aliant 5.6% 32.6% 25.9% -2.6% -13.4% 31.3% 2.5% 16.6% -39.4%

WIRELESS -48.5% 106.0% -22.5% -11.5% 35.3% 8.0% -10.6% 43.7% -44.1%Rogers Cantel -43.1% 85.2% -21.8% -14.4% 60.5% -20.0% -1.0% 64.0% -36.8%Telus/Clearnet -56.2% 144.6% -23.5% -7.3% 1.8% 66.4% -20.2% 18.3% -56.8%

Cable -30.7% 22.5% 30.2% 34.4% -39.3% 18.8% 14.2% 23.6% -34.6%Rogers Communication, excl. Cantel (RG) -46.1% 48.7% 27.9% 49.2% -53.2% 30.0% 0.4% 49.2% -49.2%Cogeco Cable (T.CCA) 20.8% -2.7% 31.6% 49.1% -22.7% 3.6% 17.9% -7.0% 15.4%Shaw Cable (PF for Moffat) - SJR -16.8% 2.0% 33.4% 6.2% -16.4% 11.7% 32.5% 6.8% -28.2%

20072006


16 July 2008


Detailed Carrier Capex Year-over-Year Growth

Exhibit 136: Detailed Carrier Capital Expenditure Year-over-Year Growth Quarterly Global Capital Expenditures 2008Seasonality 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08TOTAL GLOBAL CARRIER CAPEXTOTAL 14.3% 17.9% 11.1% 14.6% 14.7% 11.4% 22.0% 13.3% 15.1% 9.2% 5.5% 16.9% 1.6%

Wireline Total 20.7% 12.4% 14.6% 5.5% 12.4% 9.8% 13.6% 14.1% 11.8% 11.6% 12.3% 16.4% 8.4%

Wireless Total 8.0% 24.3% 7.5% 24.8% 17.2% 13.2% 31.3% 12.5% 18.7% 6.7% -1.2% 17.4% -5.3%

TOTAL INTERNATIONAL CARRIERSTOTAL 16.8% 16.0% 6.2% 13.8% 8.1% 10.0% 22.1% 11.9% 16.5% 9.7% 5.4% 20.8% 0.2%Wireline 23.3% 11.9% 16.0% 7.7% 5.2% 2.3% 8.8% 8.2% 4.8% 6.1% 4.5% 11.9% 7.7%Wireless 11.1% 20.4% -2.1% 19.9% 10.9% 17.7% 35.5% 15.3% 27.3% 12.9% 6.2% 28.1% -5.4%

TOTAL EUROPEAN CARRIERS 3.2% 10.5% -1.7% 14.8% 10.7% 15.4% 23.8% 15.7% 15.7% 9.9% 10.8% 15.7% 15.5%Wireline 14.0% 19.3% 14.6% 17.7% 23.2% 10.8% 28.3% 18.5% 12.7% 12.0% 9.4% 23.4% 7.8%Wireless -6.5% -0.3% -16.5% 11.8% -3.0% 22.1% 18.2% 12.6% 19.8% 7.2% 12.6% 6.8% 25.5%

Wireline 14.0% 19.3% 14.6% 17.7% 23.2% 10.8% 28.3% 18.5% 12.7% 12.0% 9.4% 23.4% 7.8%British Telecom 3.9% 4.6% -11.2% 2.6% 19.5% -6.2% 23.3% 19.3% 4.7% 34.1% 14.2% 14.8% -3.4%Deutsche Telekom 11.5% 5.7% 7.1% 7.7% 55.0% 30.2% 34.9% 2.6% 22.7% -24.0% -13.0% 16.3% -11.2%France Telecom 23.2% 22.1% 64.9% 209.8% 3.3% 12.3% 9.4% 13.7% 6.7% 5.1% 30.2% 36.7% 38.4%Telecom Italia 30.0% 55.2% 15.8% 5.3% 3.9% -8.5% 25.2% 15.1% 1.7% 14.1% 7.7% 23.0% 8.0%Telefonica 8.2% 57.6% 29.1% -25.2% 35.7% -0.7% 27.3% 60.3% -16.4% 16.2% -17.1% 27.9% 7.4%KPN -7.8% 27.7% 37.9% 2.6% 35.5% 13.9% -5.5% 13.0% -1.9% 25.0% 36.5% 131.5% 98.6%Swisscom -13.1% 27.5% 34.1% 8.9% 63.2% 16.4% 25.6% 14.1% 37.5% 90.2% 79.6% 78.1% 65.6%Belgacom 93.4% 65.0% 43.8% -10.5% 67.9% -45.3% -3.3% 41.4% 34.0% 52.2% 24.6% -16.6% 31.8%Telecom Austria 35.1% 14.3% -5.1% -13.1% -16.8% -27.0% -5.5% 9.5% 4.1% 25.6% 3.0% 21.3% 14.0%Telecom Portugal 47.0% 42.3% 61.1% 10.3% 24.3% 10.1% 21.1% -34.4% -34.3% -34.0% -15.4% 40.9% 24.0%Virgin Media (frmly NTL) 5.8% 14.9% -3.0% 9.9% 74.5% 79.5% 94.7% 102.6% 45.3% 25.2% -8.1% -18.7% -9.2%Colt 9.1% 17.3% -18.4% 26.4% -8.5% 5.2% 71.7% 4.4% 41.9% 16.9% 9.6% 20.0% 23.2%Cable & Wireless 20.5% 82.2% 74.1% 55.0% 30.4% -16.8% -7.4% -9.5% 12.6% 8.6% 2.7% -1.0% -6.1%Eircom 20.1% 12.0% 43.6% 10.9% -52.8% 20.7% 41.6% 21.5% 147.7% 3.0% -7.9% 52.1% 9.7%ONO 37.5% 8.3% -23.1% 54.7% 60.7% 91.7% 164.7% 46.9% 7.2% 28.8% 1.2% -23.3% -5.9%OTE -26.8% -59.7% -2.9% 5.8% 24.5% 102.1% 16.0% 48.3% 44.4% 13.5% 32.6% 20.2% -28.9%Sonaecom 157.8% -35.8% 258.6% -19.5% 78.1% -0.3% 3.8% 200.1% 52.8% 79.3% 34.4% -15.2% -36.3%Tele2 17.7% 190.3% 87.7% 1450.6% 324.7% 37.8% 115.9% -25.9% 21.3% -5.1% 28.0% -25.1% -34.3%Tiscali 22.2% 95.4% -18.1% 59.4% 31.0% 29.7% 59.5% -30.4% -16.2% 38.8% 7.8% 58.9% 50.9%QSC 134.8% 23.6% 40.9% -21.9% 76.0% 348.2% 415.6% 180.4% 58.3% 71.6% 55.9% 324.5% 212.6%Carphone Warehouse 133.8% 56.3% 36.5% 35.8% 38.3% 57.9% 75.7% 83.2% 86.6% 44.7% 46.3% 57.2% 24.3%UPC Broadcom 63.0% 63.0% 63.5% 63.4% -10.5% 42.6% 287.2% 55.6% 83.2% 16.6% 28.2% 11.0% -1.5%Telenet -6.0% 3.3% 44.3% 32.0% 54.5% 37.0% -6.7% -3.8% 9.4% 11.9% -19.8% -49.0% 55.3%

Wireless -6.5% -0.3% -16.5% 11.8% -3.0% 22.1% 18.2% 12.6% 19.8% 7.2% 12.6% 6.8% 25.5%Deutsche Telekom (ex T-Mobile USA) 13.0% 76.4% 13.8% 28.1% 14.0% 3.0% 12.0% 26.4% 5.7% 9.9% 7.8% 10.0% 20.0%France Telecom 61.5% -2.5% -44.7% 70.7% -27.2% 118.5% 64.9% -11.6% 22.5% -4.9% 25.1% -2.2% 38.4%Telecom Italia -1.2% -12.1% -23.4% -16.5% 44.1% 18.5% 1.4% -27.3% 83.6% 40.9% 66.3% 11.0% 42.1%Telefonica Wireless (ex latam) 63.2% 114.1% 86.3% 88.5% -23.0% 8.6% 7.2% 46.6% 33.2% -12.1% -6.2% -14.6% -0.5%KPN -32.8% -33.3% -49.6% -30.7% 1.0% 16.0% 52.2% 47.4% -7.1% -28.1% -42.2% -29.8% -7.1%Swisscom 4.9% -48.3% -65.6% -53.6% -40.7% 1.4% 44.8% 80.2% 54.2% 32.8% 13.5% 2.4% 3.6%Belgacom 130.4% -38.5% -25.0% -74.8% 17.7% -5.4% -4.1% 372.9% -24.2% 24.3% 215.1% -86.4% -17.9%Telecom Austria 94.9% 3.7% 6.3% -18.5% -1.0% 70.4% 18.4% 26.8% 51.0% 45.2% 28.8% 16.4% 15.2%Telecom Portugal 16.2% 63.4% 112.0% -34.8% 12.1% -0.1% -18.4% 53.7% 30.3% 60.7% -2.2% -1.7% 30.9%Vodafone -31.2% -17.4% -21.1% 3.1% 5.0% -1.7% 9.4% 15.4% 17.5% 23.1% 16.4% 40.1% 32.9%Cable & Wireless 23.3% 14.3% 9.3% 5.1% 7.0% 23.1% 37.0% 20.0% 22.3% 17.7% 11.3% 29.1% 22.4%Jazztel 257.1% 597.2% 368.0% 1974.6% 155.1% -9.6% 13.8% -73.3% -51.3% -55.4% -76.8% -69.5% -28.0%Sonaecom 25.7% -43.7% 7.8% -30.5% 44.1% 0.1% 10.2% -12.4% -32.0% 155.9% 112.7% 31.9% 99.2%Tele2 83.8% 124.6% 136.8% -0.6% 22.0% 90.3% 54.1% 89.0% 4.0% 7.7% -4.9% 13.8% -0.9%Bouygues -51.2% -55.0% -54.6% -54.3% -4.1% 4.2% 9.3% 13.4% 6.3% 4.7% 4.2% 9.6% 24.6%

20072005 2006


16 July 2008


Exhibit 137: Detailed Carrier Capital Expenditure Year-over-Year Growth continued Quarterly Global Capital Expenditures 2008Seasonality 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08TOTAL GLOBAL CARRIER CAPEXTOTAL ASIAN-PACIFIC CARRIERS 39.3% 19.3% 22.9% 4.7% 9.9% 22.0% 23.5% 13.8% 42.0% -6.5% 1.0% -2.2% -20.1%Wireline 25.8% 2.6% 18.3% 5.6% -9.8% 18.1% 3.0% 1.4% 10.7% -2.3% 9.1% 5.1% 15.2%Wireless 53.1% 34.6% 26.5% 4.0% 26.4% 24.8% 38.8% 22.8% 60.8% -9.3% -3.4% -6.5% -34.5%

Wireline 25.8% 2.6% 18.3% 5.6% -9.8% 18.1% 3.0% 1.4% 10.7% -2.3% 9.1% 5.1% 15.2%New Zealand Telecom -2.4% 19.2% 24.6% 10.4% -38.5% -20.5% -17.2% 3.1% 2.4% 39.4% 46.8% -9.4% 81.5%Chunghwa 2.4% 2.7% 11.3% 20.9% -16.1% 15.5% 3.2% -28.9% 10.3% 5.9% -0.6% 74.6% 17.0%Singapore (Sing-tel) 46.8% 21.4% 8.1% 7.2% -27.4% -26.5% -17.6% -15.3% 99.4% 73.8% 21.9% 42.1% 10.5%Optus 51.6% 21.6% 2.7% 46.5% 15.4% 39.4% 72.3% 37.2% -9.1% 3.2% 10.2% -19.8% 14.4%Telekom Malaysia 27.4% -25.9% 151.7% 20.1% 47.5% 26.7% -38.3% -8.9% -32.4% -29.7% 75.1% 18.4% 85.7%Telekom Indonesia 145.5% 25.0% -13.3% -47.5% -18.7% 12.7% 16.2% 6.8% -31.6% -53.6% -48.3% -73.0% -9.8%Millicom 23.1% 23.1% 23.1% 23.1% 166.9% 166.9% 166.9% 166.9% -26.7% -26.7% -26.7% -26.7% 30.2%Phillipines Long Distance 0.4% -61.3% -45.5% 13.7% -8.5% 375.9% 74.0% 36.1% 89.4% -54.2% -15.5% 73.9% -63.0%PT IndoStat 54.0% 52.7% 52.7% 52.7% -49.6% 19.4% 29.5% 37.8% 85.3% 68.7% -3.5% -10.8% -12.6%CTI Group -5.9% 8.6% 9.0% 35.7% 36.0% -63.7% -63.9% -70.4% -70.5% -30.0% -29.8% -1.5% -1.4%

Wireless 53.1% 34.6% 26.5% 4.0% 26.4% 24.8% 38.8% 22.8% 60.8% -9.3% -3.4% -6.5% -34.5%New Zealand Telecom 105.4% -11.1% 55.7% -16.5% 151.2% 67.2% 98.2% 54.7% 0.2% 56.4% 23.6% 24.9% -1.2%Chunghwa 71.5% 33.9% 238.8% -73.8% 180.3% 38.5% 9.8% 39.6% -74.8% -67.2% -26.9% 53.6% 17.0%Taiwan Mobile 480.9% 404.2% 81.8% 133.9% 70.1% 109.7% 87.9% 203.2% 20.7% -5.0% 51.5% -43.8% -26.0%Optus 3.7% 87.4% 111.0% 111.8% 28.0% -4.8% -26.6% -11.7% -32.2% -15.5% -10.8% 6.5% 58.8%Starhub 38.3% 1.8% 8.5% -41.0% 30.8% 26.6% -19.6% 24.7% -64.9% -21.8% 3.4% 104.5% 166.0%Telekom Malaysia -13.9% 153.6% -77.7% 112.1% 46.3% -80.2% 433.0% -18.5% 27.9% 281.7% -41.6% -35.2% 85.7%PT Bakrie Telecom -70.7% -69.0% 57.0% -0.9% 671.8% 749.0% 8.1% 91.1% 5.9% -80.8% 737.0% 23.1% 67.4%Telekom Indonesia 413.9% 161.8% 81.6% 10.0% 36.5% 89.2% 95.0% 79.2% 21.5% -17.6% -8.2% -52.0% -9.8%Mobile One -87.7% -82.3% -81.6% -30.4% 62.1% 182.9% 19.7% -17.7% 92.4% 168.9% -8.2% -11.5% -47.1%Phillipines Long Distance 0.4% -61.3% -45.5% 13.7% 52.6% 101.0% 74.0% -34.5% -16.4% -32.6% 55.0% 256.5% 7.8%PT IndoStat 54.0% 52.7% 52.7% 52.7% -40.9% -15.7% -25.9% -61.0% 648.5% 6.7% -25.3% 42.2% -77.7%Total Access Comm (DTAC) 72.7% 43.4% 337.3% -8.9% 107.8% 15.5% 6.3% 262.1% -7.7% -20.2% -22.1% 12.8% -19.8%True Corp -15.8% -16.8% -17.2% -18.7% 47.2% -6.5% 46.5% -57.8% -55.6% -32.2% 25.0% 83.6% -19.0%Globe Telecom -29.0% -31.5% -30.3% -25.8% -7.5% -16.1% 1.3% 39.1% 42.1% 6.9% 5.9% -10.4% 61.7%AIS Thailand 32.6% 56.3% 26.4% -6.8% -29.0% 8.1% 35.8% 48.4% 136.7% 19.9% -44.2% 3.1% -59.2%

TOTAL JAPANESE CARRIERS 20.6% 15.6% -0.8% -9.5% -3.3% -8.0% 11.4% 10.4% 7.3% -9.2% -18.2% -1.5% 16.3%Wireline 62.2% 10.5% 23.2% -10.3% -11.9% -17.1% -12.2% -5.8% -10.5% -12.2% -13.2% 4.3% 39.2%Wireless -10.3% 23.3% -23.2% -8.2% 8.4% 4.2% 46.6% 31.9% 26.7% -5.9% -22.6% -6.9% -1.3%

Wireline 62.2% 10.5% 23.2% -10.3% -11.9% -17.1% -12.2% -5.8% -10.5% -12.2% -13.2% 4.3% 39.2%NTT Holding 290.6% 9.8% 26.2% -8.1% 0.3% 60.9% 52.9% 308.6% 83.2% -11.1% 13.5% -19.8% -7.4%NTT East (JPY, 3/31/06 YE) 54.6% -4.3% 34.1% -30.4% 9.3% -28.7% 5.5% 20.6% 12.7% 14.4% -0.1% -0.2% 13.4%NTT West (JPY, 3/31/06 YE) 14.2% 29.7% 17.8% 12.4% 5.9% -4.1% -11.2% -22.8% -22.5% -35.2% -25.1% 2.7% 47.0%NTT Communications 98.0% 5.8% 68.2% -35.4% -32.9% -43.3% -58.5% -13.5% 0.0% -22.2% -24.5% 2.3% 65.3%NTT Data 134.4% 35.6% 8.8% -17.9% -23.4% -16.4% 31.4% 38.0% 23.3% 25.5% -9.0% 41.9% 78.0%KDDI 62.6% 70.7% 161.0% 98.0% -40.0% -12.8% -30.3% -41.9% -73.1% 5.5% -14.4% 12.0% 350.3%eAccess 55.7% 63.7% 13.2% -43.5% 11.8% 3.5% 47.8% 514.1% 269.6% 238.8% 69.4% -16.7% -71.7%Liberty Global Jcom 20.6% 17.1% -5.8% 45.8% 5.2% 50.9% 38.8% -11.1% 15.8% -34.8% -5.1% 12.1% -16.5%SoftBank 193.9% -29.2% -36.5% -37.2% -35.3% -43.4% -39.6% -60.9% -69.9% -40.8% -45.5% -12.6% 11.3%

Wireless -10.3% 23.3% -23.2% -8.2% 8.4% 4.2% 46.6% 31.9% 26.7% -5.9% -22.6% -6.9% -1.3%NTT DoCoMo -17.9% 12.9% -28.2% -9.7% 11.9% -17.4% 28.1% 6.3% -10.1% -21.3% -34.2% -17.1% 19.7%

KDDI 20.3% 96.6% -2.7% -3.6% -1.2% -5.6% -20.4% 3.7% 26.5% 12.5% 54.4% 41.7% -16.8%SoftBank - - - - - - - - - 29.1% -36.2% -24.0% -35.1%

20072005 2006


16 July 2008


Exhibit 138: Detailed Carrier Capital Expenditure Year-over-Year Growth continued Quarterly Global Capital Expenditures 2008Seasonality 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08TOTAL GLOBAL CARRIER CAPEXTOTAL KOREAN CARRIERS 36.8% 2.8% 1.6% 8.2% -0.1% 40.7% 30.9% 23.9% 55.6% 20.1% -4.0% -5.2% 7.4%Wireline 108.1% 12.1% 0.8% 6.1% -31.9% 26.7% 37.4% 10.6% 30.4% 15.4% -12.5% 8.0% 26.7%Wireless -17.6% -6.7% 2.6% 11.0% 61.2% 58.0% 22.4% 40.9% 76.1% 24.8% 8.5% -18.4% -4.3%

Wireline 108.1% 12.1% 0.8% 6.1% -31.9% 26.7% 37.4% 10.6% 30.4% 15.4% -12.5% 8.0% 26.7%KT 145.6% 6.2% 5.2% 19.8% -43.8% 33.7% 52.9% 20.4% 30.7% 1.9% -27.2% 2.9% 4.0%SK Telecom -52.0% -29.9% -47.0% -20.6% 6.1% -5.8% -1.5% -31.9% 53.6% 89.3% 74.8% 64.0% 51.8%Hanaro 57.0% 75.9% 52.4% -17.5% -7.1% 13.3% -9.0% 23.3% 107.0% 48.4% 36.9% -50.3% 109.2%Dacom 236.4% 182.7% -3.3% 19.6% 230.3% 24.3% -36.6% -22.2% -22.0% -13.0% 125.2% 79.6% 11.8%LG Telecom 74.2% 100.7% -3.2% 8.5% 200.0% -15.4% 25.5% 35.9% -40.1% 235.6% 63.2% 163.9% 117.4%

Wireless -17.6% -6.7% 2.6% 11.0% 61.2% 58.0% 22.4% 40.9% 76.1% 24.8% 8.5% -18.4% -4.3%SK Telecom 24.2% -6.0% 38.7% 7.9% -2.6% 41.4% -30.3% 54.8% 309.7% 15.6% 52.1% -24.1% -11.5%KT Freetel -48.2% -23.8% -40.8% 29.3% 223.5% 109.9% 161.4% 9.0% 24.4% 8.9% -33.4% -22.5% -16.4%LG Telecom 24.8% 54.8% -3.5% -26.5% -56.0% 10.6% 57.6% 103.9% 35.5% 116.3% 38.6% 22.1% 123.4%

TOTAL CHINESE CARRIERS -4.6% 1.4% 9.7% 13.6% 6.6% 6.1% 21.3% 25.0% 28.7% 29.4% 7.9% 7.0% -100.0%Wireline -15.8% -10.8% 5.3% 11.8% -4.0% -3.5% -7.9% -3.5% -5.1% -4.6% -8.8% -11.7% -100.0%Wireless 10.2% 17.3% 15.0% 15.8% 17.2% 15.6% 53.7% 57.1% 56.6% 57.4% 19.0% 20.0% -100.0%

Wireline -15.8% -10.8% 5.3% 11.8% -4.0% -3.5% -7.9% -3.5% -5.1% -4.6% -8.8% -11.7% -100.0%China Telecom -8.6% -8.6% 4.0% 4.8% -6.7% -6.2% -6.8% -6.2% 2.0% 2.5% -6.8% -6.0% -100.0%China Netcom -27.6% -15.1% 7.9% 27.6% 1.6% 2.2% -9.9% 1.6% -18.8% -18.4% -12.7% -21.4% -100.0%China Tietong -12.4% -12.4% -12.4% -12.4% 22.2% 22.2% 22.2% 22.2% 33.1% 33.1% 33.1% 33.1% -100.0%

Wireless 10.2% 17.3% 15.0% 15.8% 17.2% 15.6% 53.7% 57.1% 56.6% 57.4% 19.0% 20.0% -100.0%China Mobile 13.2% 21.8% 15.1% 15.9% 11.6% 9.7% 53.1% 56.9% 66.2% 67.0% 2.9% 3.8% -100.0%China Unicom HK -7.4% -7.4% 14.3% 15.1% 57.3% 58.1% 57.4% 58.3% 8.2% 8.7% 113.6% 115.4% -100.0%

TOTAL SCANDINAVIAN CARRIERS 77.9% 2.2% 9.1% 9.0% -5.6% 13.7% 16.8% 14.5% 17.7% 16.8% 14.7% 26.5% 43.0%Wireline 58.4% 21.0% -1.0% -10.5% -21.0% -13.4% -10.2% 1.0% 22.7% 28.1% 19.6% 40.6% 95.9%Wireless 100.2% -12.9% 23.0% 28.7% 8.4% 43.9% 46.9% 24.0% 14.4% 9.2% 11.3% 18.4% 5.4%

Wireline 58.4% 21.0% -1.0% -10.5% -21.0% -13.4% -10.2% 1.0% 22.7% 28.1% 19.6% 40.6% 95.9%TeliaSonera 34.1% 30.8% -5.5% -13.7% -11.2% -13.9% 19.9% 35.5% 17.4% 31.4% 28.5% 39.5% 70.6%Telenor 96.9% 6.2% 0.9% -10.7% -35.1% -22.8% -36.8% -41.3% 30.0% 33.9% 11.9% 62.1% 153.0%Elisa 60.0% 53.3% 22.7% 22.6% 8.3% 74.7% 27.4% 56.4% 26.0% -15.6% -9.0% -7.4% -22.3%

Wireless 100.2% -12.9% 23.0% 28.7% 8.4% 43.9% 46.9% 24.0% 14.4% 9.2% 11.3% 18.4% 5.4%TeliaSonera 34.2% 71.1% -4.9% -29.7% -29.6% -49.2% -11.6% 35.8% 39.2% 40.7% 57.0% 29.0% 20.5%Telenor 182.0% -38.0% 36.7% 56.2% 20.5% 118.1% 68.1% 24.4% 8.6% 3.8% 2.8% 14.8% 1.3%Elisa -47.5% 35.3% -0.2% 37.7% 5.7% -0.4% -18.8% -21.5% 45.3% 7.4% 60.2% 45.7% 14.2%

TOTAL RUSSIAN CARRIERS 58.6% 43.3% 40.0% 50.9% -9.0% 3.6% -0.1% -28.2% 4.3% -22.3% -30.1% 59.0% 21.0%Wireline -47.8% 16.4% 6.0% 30.8% 154.2% 22.5% 48.4% 2.6% 55.8% -0.1% 5.0% 52.0% -46.0%Wireless 69.7% 45.9% 42.6% 52.1% -14.2% 2.2% -3.0% -29.8% -0.6% -24.4% -33.2% 59.5% 30.9%

Wireline -47.8% 16.4% 6.0% 30.8% 154.2% 22.5% 48.4% 2.6% 55.8% -0.1% 5.0% 52.0% -46.0%Comstar United Telesystems -47.8% 16.4% 6.0% 30.8% 154.2% 22.5% 48.4% 2.6% 55.8% -0.1% 5.0% 52.0% -46.0%

Wireless 69.7% 45.9% 42.6% 52.1% -14.2% 2.2% -3.0% -29.8% -0.6% -24.4% -33.2% 59.5% 30.9%Vimplecom 88.5% 49.1% -24.5% 44.1% -31.2% -1.0% 45.0% -21.6% 53.1% -27.2% -39.8% 78.5% 15.1%Mobile Telesystems 55.9% 41.9% 131.4% 59.4% 0.9% 6.2% -23.7% -36.6% -33.2% -21.1% -27.9% 40.1% 52.9%

TOTAL INDIAN CARRIERS 53.3% 98.3% 56.3% 32.5% 137.1% 62.9% 64.7% 26.8% -9.9% 59.8% 104.2% 246.4% 122.4%Wireline 5.2% 56.7% 284.6% 109.0% 119.8% 90.8% -18.5% -30.2% -4.9% -10.0% 93.0% 41.6% 82.9%Wireless 65.7% 104.7% 32.4% 21.9% 140.0% 59.7% 90.2% 40.4% -10.7% 69.6% 105.7% 270.7% 128.7%

Wireline 5.2% 56.7% 284.6% 109.0% 119.8% 90.8% -18.5% -30.2% -4.9% -10.0% 93.0% 41.6% 82.9%Bharti (AirTel) Wireless 5.2% 56.7% 284.6% 109.0% 119.8% 90.8% -18.5% -30.2% -4.9% -10.0% 93.0% 41.6% 82.9%

Wireless 65.7% 104.7% 32.4% 21.9% 140.0% 59.7% 90.2% 40.4% -10.7% 69.6% 105.7% 270.7% 128.7%Reliance 122.0% 103.3% 111.6% 103.8% 37.6% -16.7% -10.7% -17.0% 1.6% 44.0% 286.7% 518.1% 200.1%Bharti (AirTel) Wireless -10.0% 107.9% -23.9% -37.6% 319.0% 147.6% 210.7% 88.9% -39.2% 99.3% 18.5% 101.1% 86.5%IDEA Celluar (Escorts) ($USD) - - - - - - - - 28.9% 39.1% 43.9% 81.2% 20.4%

20072005 2006


16 July 2008


Exhibit 139: Detailed Carrier Capital Expenditure Year-over-Year Growth continued Quarterly Global Capital Expenditures 2008Seasonality 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08TOTAL GLOBAL CARRIER CAPEXTOTAL MIDDLE EASTERN CARRIERS 55.1% 73.8% 43.5% 39.0% -7.9% -1.4% -22.4% -9.9% 10.3% 0.8% 15.3% 44.5% -0.9%Wireline 27.3% 19.3% 20.2% 15.2% -0.7% -36.3% -22.7% -40.7% -48.4% -40.1% -32.2% 55.5% 19.9%Wireless 65.6% 98.1% 51.5% 47.3% -10.0% 8.0% -22.3% -1.6% 29.1% 7.3% 28.1% 42.8% -3.6%

Wireline 27.3% 19.3% 20.2% 15.2% -0.7% -36.3% -22.7% -40.7% -48.4% -40.1% -32.2% 55.5% 19.9%Telecom Egypt 22.9% 15.5% 16.6% 11.5% -20.6% -43.3% -44.3% -34.3% -47.2% -50.0% -55.4% -46.9% -9.2%MTC (Kuwait) 150.0% 150.0% 150.0% 150.0% 299.6% 76.3% 231.0% 12.9% -62.0% -46.4% -44.5% 454.5% -28.2%Bezeq 23.6% 14.3% 14.4% 9.2% -23.4% -45.8% -33.4% -67.2% -36.1% -13.1% 23.5% 183.9% 100.4%

Wireless 65.6% 98.1% 51.5% 47.3% -10.0% 8.0% -22.3% -1.6% 29.1% 7.3% 28.1% 42.8% -3.6%Mobilnil 1802.9% 2202.9% 1320.9% 1416.0% 12.2% -15.0% 42.3% 34.0% 78.5% 54.5% 45.5% 119.0% -23.4%Turkcell 61.7% 61.7% 61.7% 61.7% -15.5% -26.3% -23.2% -25.8% -4.7% 31.4% 21.3% 60.9% 51.8%Orascom 56.4% 108.5% 42.0% 34.8% -10.2% 31.9% -30.5% 9.8% 39.1% -4.9% 25.4% 19.2% -20.8%Bezeq 23.6% 14.3% 14.4% 9.2% -23.4% -45.8% -33.4% -67.2% -36.1% -13.1% 23.5% 183.9% 100.4%Partner Communications -17.2% -16.4% -19.7% -23.4% -11.4% 42.6% -5.7% -3.3% 3.9% -3.0% 48.6% 49.6% 59.0%

TOTAL AFRICAN CARRIERS 63.9% 49.0% 44.0% 39.6% 62.7% 82.2% 67.0% 83.6% 37.0% 10.1% 20.4% -6.3% -6.4%Wireline 40.4% 31.1% 24.0% 19.2% 29.4% 36.5% 22.8% 45.5% 14.1% -14.0% -6.3% -3.8% 8.3%Wireless 100.2% 70.3% 70.6% 65.8% 98.8% 124.0% 109.8% 118.7% 53.0% 23.6% 35.5% -7.8% -14.1%

Wireline 40.4% 31.1% 24.0% 19.2% 29.4% 36.5% 22.8% 45.5% 14.1% -14.0% -6.3% -3.8% 8.3%South Africa Telecom 35.9% 23.8% 17.6% 11.4% 17.1% 18.9% 6.0% 29.2% 24.0% -8.9% 1.1% 4.2% 4.2%Millicom 99.6% 99.6% 99.6% 99.6% 139.0% 139.0% 139.0% 139.0% -28.8% -28.8% -28.8% -28.8% 39.0%

Wireless 100.2% 70.3% 70.6% 65.8% 98.8% 124.0% 109.8% 118.7% 53.0% 23.6% 35.5% -7.8% -14.1%MTC Africa (Celltell) 42.4% 36.7% 42.4% 42.4% 228.6% 231.4% 231.3% 231.3% 69.7% 30.3% 45.3% -17.0% -25.0%South Africa Telecom 66.2% 51.5% 43.8% 36.2% 43.2% 37.0% 22.1% 27.0% 21.9% -5.4% 3.8% -11.0% -11.0%Safaricom - - - - -2.6% 51.7% 47.7% 49.0% 48.5% 50.6% 52.3% 54.4% 44.6%

TOTAL LATIN AMERICAN CARRIERS 101.1% 49.0% 8.5% 40.1% 13.8% -3.3% 40.0% -14.4% 5.0% 8.9% -2.8% 66.6% 25.0%Wireline 39.5% 38.0% 38.7% -2.3% 20.1% 0.3% 9.2% 18.2% 10.1% 41.7% 43.4% -1.2% 39.9%Wireless 162.0% 54.9% -5.6% 79.4% 10.4% -5.1% 61.2% -30.8% 2.1% -7.7% -24.3% 124.9% 15.9%

Wireline 39.5% 38.0% 38.7% -2.3% 20.1% 0.3% 9.2% 18.2% 10.1% 41.7% 43.4% -1.2% 39.9%Telefonos de Mexico (Telemex) 14.0% 1.8% 11.5% -17.9% -26.7% -31.0% -8.8% -9.6% 2.3% 56.6% 115.3% -83.9% -19.4%Telefonica Wireline 17.7% 97.4% 50.6% 24.3% 12.3% 5.6% 37.2% 41.9% 39.1% 58.1% 18.6% 10.7% 41.5%Telecom Italia -11.6% -11.8% -13.5% -15.9% 224.0% 80.1% 198.8% 196.9% 37.4% 171.6% 3.8% 62.1% 4.4%Axtel 78.5% 16.2% 24.4% -23.1% 13.3% 13.0% -5.9% -1.4% 30.8% 86.0% 50.2% 40.4% 60.9%Brasil Telecom SA Participiones 150.8% 205.7% 98.5% -43.6% 29.7% 4.5% -15.3% 48.7% -26.3% 10.0% -11.8% 51.3% 30.8%Cia de Telecomm de Chile SA (USD) -28.6% 4.2% 195.8% -63.6% 113.5% 57.4% -42.2% 420.8% 31.7% 29.1% 90.6% 22.9% 29.7%Liberty Global 140.2% 133.6% 135.5% 134.1% 47.7% 51.4% 42.6% 23.9% 42.8% 7.0% 4.2% 8.7% 15.0%Millicom 123.2% 53.4% 31.5% 45.7% 48.1% 26.2% 27.2% -10.6% -14.8% 0.0% 10.5% 60.4% 118.8%Telecom Argentina 116.5% -0.9% -25.7% 71.0% 258.6% 67.5% 108.8% 46.6% 15.4% 43.7% 52.1% 18.0% 34.7%

Wireless 162.0% 54.9% -5.6% 79.4% 10.4% -5.1% 61.2% -30.8% 2.1% -7.7% -24.3% 124.9% 15.9%America Movil 192.0% 32.9% -11.1% 338.3% 8.9% -15.9% 85.8% -85.6% -30.5% -46.2% -48.3% 783.0% 4.1%Telefonica Moviles (Wireless) 136.3% 92.7% 23.8% 62.0% 21.2% -20.9% 26.4% -6.5% 35.6% 65.9% -9.0% 87.1% 5.1%Potugal Telecom 349.2% 35.3% -25.3% 41.1% -36.4% -7.3% 22.9% 28.1% -12.8% 10.3% -8.3% 12.4% 24.3%Brasil Telecom SA Participiones 43.8% 105.9% -63.7% -13.9% -92.7% -57.3% 68.2% -78.9% -13.9% -17.2% -15.9% 64.0% 154.0%Telemig/Telenorte(Amazonia) Cellular (BRZ) 148.8% 216.1% -23.9% -11.4% -26.8% -33.3% 47.7% -36.5% -31.4% -0.9% -36.7% 157.2% 144.6%TIM Participacoes S.A. (BRLs) Wireless -2.8% 41.8% -1.7% 39.9% 321.4% 186.3% 173.4% 107.6% 57.1% 1.2% 0.7% 75.6% 29.7%Nextel International 60.8% 133.3% 101.6% 70.6% 76.7% 66.4% 8.0% 41.0% 29.5% -12.1% -7.4% 21.8% 15.0%Millicom 37.6% 37.6% 37.6% 37.6% 128.7% 128.7% 128.7% 128.7% 210.8% 210.8% 210.8% 210.8% 16.8%Telecom Argentina 169.3% 682.8% -31.9% -19.3% 139.1% 16.9% 48.1% 201.6% -2.1% 9.1% 36.2% -20.9% 8.7%

2005 2006 2007


16 July 2008


Exhibit 140: Detailed Carrier Capital Expenditure Year-over-Year Growth continued Quarterly Global Capital Expenditures 2008Seasonality 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08TOTAL GLOBAL CARRIER CAPEXUNITED STATES CARRIERS 7.8% 21.1% 25.0% 17.3% 33.9% 14.2% 20.5% 16.3% 10.9% 7.7% 5.1% 6.1% 5.1%Wireline Total 15.3% 11.3% 11.0% 1.5% 29.1% 26.2% 22.1% 25.8% 25.0% 21.0% 27.6% 25.0% 9.4%Wireless Total -2.1% 35.4% 50.8% 40.6% 41.6% -0.1% 18.3% 6.1% -9.3% -12.2% -26.5% -17.9% -3.4%RBOC 21.9% 12.7% 14.9% 0.1% 44.8% 39.9% 20.7% 25.0% 19.3% 15.9% 39.5% 37.7% 12.5%Incumbent IXC 16.1% 9.4% 16.9% 82.4% 41.5% 185.7% 207.2% 65.1% 56.5% -27.5% -45.9% -25.2% 32.6%Emerging IXC 1.2% 22.0% -0.9% -29.0% -14.1% -11.7% 54.1% 123.7% 174.0% 131.6% 45.8% 2.9% -14.0%CLEC 15.3% 19.4% -10.6% -11.1% -5.1% -1.9% 15.5% 24.8% 40.6% 49.7% 34.6% 16.8% 30.1%Independent -11.9% -11.3% -9.1% -7.2% -16.6% 1.5% 6.6% -8.5% 17.2% -9.2% -9.6% 18.2% 2.0%Wireless Total -2.1% 35.4% 50.8% 40.6% 41.6% -0.1% 18.3% 6.1% -9.3% -12.2% -26.5% -17.9% -3.4%Cable TV MSO 12.9% 14.4% 11.2% 5.3% 15.7% 7.4% 20.1% 30.4% 31.1% 36.0% 19.5% 11.1% 4.2%

RBOC 21.9% 12.7% 14.9% 0.1% 44.8% 39.9% 20.7% 25.0% 19.3% 15.9% 39.5% 37.7% 12.5%Qwest -31.2% -27.6% 6.5% 35.2% 24.6% 25.6% -11.5% -19.3% -18.5% -3.6% 6.6% 24.4% 30.8%SBC (Wireline) 12.4% 5.6% 6.3% 15.0% 82.1% 77.5% 51.7% 17.9% 50.9% 34.3% 69.7% 83.3% 23.2%Verizon (Wireline--Domestic Telecom) 47.6% 29.6% 23.3% -15.1% 27.8% 20.4% 7.5% 42.1% 0.9% 3.4% 18.0% 5.8% -2.5%

Incumbent IXC 16.1% 9.4% 16.9% 82.4% 41.5% 185.7% 207.2% 65.1% 56.5% -27.5% -45.9% -25.2% 32.6% Sprint FON LD 16.1% 9.4% 16.9% 82.4% 41.5% 185.7% 207.2% 65.1% 56.5% -27.5% -45.9% -25.2% 32.6%

Emerging IXC 1.2% 22.0% -0.9% -29.0% -14.1% -11.7% 54.1% 123.7% 174.0% 131.6% 45.8% 2.9% -14.0%Global Crossing -25.0% -3.7% -46.2% -66.7% -41.7% -11.5% 242.9% 314.3% 221.4% 147.8% 87.5% -24.1% 31.1%Level 3 (Comm. & Info. Services) (acq. Broadwing) 17.3% 32.8% 13.1% -19.8% -3.3% -11.8% 26.3% 104.3% 162.7% 126.7% 29.2% 8.5% -27.1%

CLEC 15.3% 19.4% -10.6% -11.1% -5.1% -1.9% 15.5% 24.8% 40.6% 49.7% 34.6% 16.8% 30.1%FiberNet Telecom Group 16.7% -28.6% -20.0% -30.8% -14.3% 20.0% -25.0% -22.2% -33.3% 100.0% 100.0% 42.9% 175.0%XO Communications (Nextlink) -15.1% -24.2% -4.9% -2.5% -0.3% 55.9% 33.3% 61.0% 91.2% 143.9% 106.3% 8.1% 58.9%Time Warner Telecom 24.7% -3.5% -16.3% -17.0% -3.6% 20.1% 22.8% 36.1% 58.3% 28.6% 9.5% 19.3% -3.8%Alaska Communicatons (wireline) -0.9% 186.9% -37.0% 93.7% -3.0% -58.5% 42.3% 2.8% -8.9% -19.3% -30.1% 3.3% 143.6%Consolidated Communications 25.8% 73.6% -10.0% -25.3% 54.0% -6.4% 15.5% -12.0% -3.9% -2.4% 2.0% 5.2% 62.5%D&E Communications 66.6% 48.8% 3.7% 0.1% -16.3% 7.4% -27.5% -45.4% -7.9% -27.5% -4.2% 27.2% 25.3%Primus Telecommunications 45.6% 71.0% 40.0% -53.0% -34.0% -57.8% -36.7% 24.4% -31.9% 58.2% 66.5% 64.6% 9.5%

Independent -11.9% -11.3% -9.1% -7.2% -16.6% 1.5% 6.6% -8.5% 17.2% -9.2% -9.6% 18.2% 2.0%ALLTel (Wireline) -5.5% 9.8% -3.1% 18.5% -86.0% -83.8% 13.2% 8.6% 684.3% 610.1% 2.0% -0.7% -30.3%CenturyTel (Wireline) 21.4% 8.2% 7.6% 0.9% -19.9% -31.0% -21.5% -24.0% -18.7% -17.6% -6.1% 40.4% 12.2%Citizens Communications -5.4% -20.6% -9.9% -4.0% -16.1% -12.2% 6.4% 46.5% 3.0% 22.3% 39.6% 7.3% 6.4%Embarq -29.2% -21.5% -16.7% -17.3% 24.3% 60.8% 21.5% -21.3% -2.7% -40.4% -25.8% 21.5% -1.1%Fairpoint communications -47.9% -45.9% 7.4% -31.6% 18.1% 142.6% -3.1% -32.7% 16.0% -38.8% -15.4% 158.3% 257.0%Grande Communications Holdings 39.3% 13.0% -28.1% -40.7% -53.2% -50.0% -12.4% 0.0% 9.6% 48.7% -52.9% 60.3% 6.8%Iowa Telecomunications Services, Inc -14.1% -0.6% 8.9% -40.5% -9.2% 2.8% -28.8% 16.9% 27.9% -19.2% -4.8% -9.3% -9.7%Surewest 19.4% -28.9% -18.3% 20.1% -38.2% 0.0% -4.5% -26.5% -12.7% -5.5% -6.3% 0.6% 72.8%

Wireless -2.1% 35.4% 50.8% 40.6% 41.6% -0.1% 18.3% 6.1% -9.3% -12.2% -26.5% -17.9% -3.4%Verizon Wireless (Domestic) 24.9% 18.5% 18.1% 0.7% -3.7% -5.9% 0.0% 19.4% 8.9% 4.4% -6.7% -11.9% 0.1%AT&T Wireless -19.4% 121.2% 108.7% 63.6% 48.4% -27.7% 35.8% -25.9% -65.3% -59.5% -39.8% -27.3% 50.0%Sprint PCS 1.5% 1.6% 109.3% 72.7% 156.2% 56.9% 16.7% 45.8% 31.0% 28.9% -44.8% -37.3% -37.6%Alltel (Wireless) 49.4% 42.3% 16.7% 0.4% -18.1% 39.1% 21.5% 67.6% 8.7% -17.4% -12.1% -24.9% -13.8%T-Mobile USA -44.1% -13.6% 22.5% 70.5% 126.0% 1.2% 1.3% -14.0% -19.4% -7.1% -14.4% 45.1% 13.1%US Cellular 11.6% -11.6% -2.5% -22.5% 6.7% 10.2% 19.1% -26.1% -8.4% -13.4% -14.5% 26.2% 1.8%Centennial 3.4% 99.7% 47.6% -0.8% 57.6% 14.5% -12.4% -20.4% 25.0% -58.0% -37.9% 64.8% -7.3%Centennial (US & PR Wireless) -91.2% -17.9% 84.5% 10.4% 489.3% 36.3% 35.6% -25.2% 126.5% 71.1% -0.5% 53.0% 98.0%Leap Wireless 51.6% 47.3% 174.6% 251.3% 148.7% 499.7% 340.4% 108.9% 116.3% -15.7% -33.7% -35.1% 19.4%Metro PCS 6.2% 6.2% 6.2% 6.2% 106.7% 106.7% 106.7% 106.7% 35.1% 44.4% 30.0% 46.5% 17.5%Notes: VoiceStream '01 and '02 includes PowerTel.

Cable TV MSO 12.9% 14.4% 11.2% 5.3% 15.7% 7.4% 20.1% 30.4% 31.1% 36.0% 19.5% 11.1% 4.2%AOL Time Warner (Cable) 21.7% 29.6% 29.8% -0.6% 33.7% 16.4% 45.3% 87.6% 52.5% 52.2% 23.1% 2.0% 17.5%Comcast (Cable) 7.6% 4.1% 13.9% 14.1% 8.5% 11.1% 24.7% 15.3% 49.2% 51.8% 19.6% 18.5% -6.1%Cox Communications 12.7% 1.8% -6.4% 18.5% -0.6% 0.3% 2.5% 5.2% 14.5% 30.9% 20.0% 13.7% 5.6%Charter Communications 11.1% 65.5% 9.6% -53.7% 14.2% -12.4% -3.3% 133.3% 23.7% -3.1% 17.8% 14.9% 12.1%Cablevision (Cable & Telecom) 25.5% -2.5% -8.5% 44.4% 60.8% 15.6% 9.0% -28.6% -45.9% -25.5% 1.2% 0.5% 13.4%Mediacom 37.5% 38.6% 49.6% -11.4% -13.1% -4.4% -19.5% 9.4% 4.8% 13.4% 31.0% -16.8% 28.2%RCN -18.6% -21.2% 6.3% 56.7% 22.8% 56.5% 52.9% -17.6% 85.7% 83.3% 30.8% -7.1% 3.8%

20072005 2006


16 July 2008


Exhibit 141: Detailed Carrier Capital Expenditure Year-over-Year Growth continued Quarterly Global Capital Expenditures 2008Seasonality 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08TOTAL GLOBAL CARRIER CAPEXCANADIAN CARRIERS 13.4% 43.7% 20.6% 6.7% 13.7% 21.0% 41.6% 20.9% 32.1% 11.1% 11.3% 33.9% 0.1%Wireline Total 15.9% 42.7% 24.4% -4.5% 16.4% 12.1% 38.7% 42.8% 15.8% 16.2% 10.0% 21.5% 10.4%Wireless Total 6.1% 46.7% 8.9% 43.1% 5.1% 46.1% 52.0% -27.3% 91.1% 0.2% 15.6% 87.6% -22.5%

Wireline 1.9% 42.3% 14.5% -6.7% 15.1% 10.4% 51.7% 37.8% 6.8% 9.9% 9.3% 40.4% 10.9%Telus -11.5% 19.8% -11.2% 8.5% 28.7% 17.3% 89.2% 38.4% -1.4% 1.4% 4.2% 37.8% 15.1%Manitoba Telecom 86.0% 58.6% 22.7% -14.5% -16.2% -16.1% -19.6% 7.8% -5.8% 2.3% 26.8% 54.7% 25.8%Aliant 4.2% 156.9% 111.4% -28.2% 5.6% 11.1% 42.4% 71.8% 40.8% 39.4% 13.5% 35.8% -4.9%

WIRELESS 6.1% 46.7% 8.9% 43.1% 5.1% 46.1% 52.0% -27.3% 91.1% 0.2% 15.6% 87.6% -22.5%Rogers Cantel -2.1% 97.4% 29.3% 62.8% 2.4% 49.1% 62.2% -29.5% 98.9% -14.0% 8.9% 108.5% -17.9%Telus/Clearnet 27.4% 9.2% -8.9% 22.1% 10.4% 42.2% 39.5% -24.1% 76.5% 20.1% 25.3% 59.9% -32.1%

Cable 49.4% 43.3% 37.2% -1.9% 18.5% 14.9% 24.7% 48.5% 30.2% 26.3% 10.8% 1.9% 9.7%Rogers Communication, excl. Cantel (RG) 36.0% 56.8% 59.0% -15.8% 2.6% -1.3% 7.7% 53.0% 32.9% 16.2% -8.7% -8.7% -1.0%Cogeco Cable (T.CCA) 69.4% 28.1% 54.1% 44.7% 41.3% 71.1% 14.8% 130.6% 47.5% 56.9% 40.6% -12.2% 31.0%Shaw Cable (PF for Moffat) - SJR 66.8% 23.3% -2.0% 23.6% 34.1% 36.5% 72.4% 20.3% 20.8% 32.3% 31.4% 32.1% 13.5%

2005 2006 2007


16 July 2008


Detailed Carrier Capex Seasonality Exhibit 142: Detailed Carrier Capital Expenditures Seasonality Quarterly Global Capital Expenditures 2008Seasonality 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08TOTAL GLOBAL CARRIER CAPEXTOTAL 21.0% 23.9% 24.1% 31.0% 20.5% 22.7% 25.0% 29.9% 21.5% 22.5% 24.0% 31.8% 20.0%

Q/Q Growth -21.5% 15.9% -2.2% 25.5% -23.3% 10.7% 9.6% 17.1% -21.5% 14.0% -100.0% #DIV/0! -21.5%Y/Y Growth 11.4% 15.1% 7.7% 11.8% 9.2% 4.3% 16.8% 9.0% 11.4% 14.8% -100.0% -100.0% 11.4%

Wireline Total 21.7% 24.1% 24.9% 29.4% 20.8% 22.6% 24.2% 28.7% 21.3% 23.2% 24.9% 30.6% 21.7%Q/Q Growth -20.6% 12.7% -1.6% 19.3% -20.0% 9.8% 4.7% 18.8% -19.1% 14.2% -100.0% #DIV/0! -19.1%Y/Y Growth 19.6% 13.2% 13.3% 5.1% 5.8% 3.2% 9.7% 9.3% 10.6% 15.0% -100.0% -100.0% 10.6%

Wireless Total 20.4% 23.7% 23.3% 32.7% 20.2% 22.7% 25.9% 31.2% 21.8% 21.9% 23.2% 33.1% 18.3%Q/Q Growth -22.6% 20.0% -2.9% 33.2% -26.8% 11.7% 15.4% 15.2% -24.2% 13.7% -100.0% #DIV/0! -24.2%Y/Y Growth 2.3% 17.4% 1.6% 20.2% 13.5% 5.6% 25.5% 8.6% 12.5% 14.6% -100.0% -100.0% 12.5%

TOTAL INTERNATIONAL CARRIERSTOTAL 21.7% 23.4% 23.8% 31.1% 20.8% 22.7% 25.7% 30.7% 21.4% 22.0% 23.9% 32.7% 19.0%Wireline 21.9% 23.8% 24.5% 29.8% 21.7% 22.9% 25.1% 30.3% 21.2% 22.7% 24.4% 31.6% 20.6%Wireless 21.6% 22.9% 23.2% 32.3% 20.0% 22.6% 26.3% 31.1% 21.5% 21.4% 23.5% 33.6% 17.8%

TOTAL EUROPEAN CARRIERS 22.4% 23.1% 22.5% 32.1% 21.3% 22.9% 23.9% 31.9% 21.7% 22.3% 23.4% 32.6% 22.6%Wireline 21.4% 25.1% 22.8% 30.7% 22.0% 23.2% 24.4% 30.4% 21.6% 22.6% 23.2% 32.6% 21.3%Wireless 23.5% 20.8% 22.1% 33.7% 20.3% 22.6% 23.3% 33.8% 22.0% 21.9% 0.0% 0.0% 24.2%

Wireline 21.4% 25.1% 22.8% 30.7% 22.0% 23.2% 24.4% 30.4% 21.6% 22.6% 23.2% 32.6% 21.3%British Telecom 26.0% 25.3% 23.8% 24.9% 27.3% 20.9% 25.7% 26.1% 24.7% 24.1% 25.4% 25.8% 24.5%Deutsche Telekom 16.8% 22.8% 23.6% 36.9% 20.7% 23.7% 25.4% 30.2% 25.3% 17.9% 22.0% 34.9% 20.3%France Telecom 21.2% 24.9% 24.6% 29.3% 19.9% 25.4% 24.4% 30.2% 17.6% 22.1% 26.2% 34.1% 23.1%Telecom Italia 25.7% 28.6% 18.8% 26.9% 24.8% 24.4% 21.9% 28.9% 22.5% 24.8% 21.0% 31.7% 19.9%Telefonica 20.8% 29.9% 26.1% 23.2% 22.0% 23.2% 25.9% 29.0% 17.7% 25.9% 20.7% 35.7% 15.7%KPN 17.4% 23.3% 28.1% 31.2% 21.1% 23.7% 23.7% 31.5% 13.3% 19.1% 20.8% 46.9% 21.0%Swisscom 13.9% 24.0% 25.1% 37.0% 18.3% 22.4% 25.4% 33.9% 14.5% 24.6% 26.2% 34.8% 21.9%Belgacom 9.6% 32.9% 20.1% 37.4% 15.2% 16.9% 18.2% 49.7% 18.4% 23.4% 20.6% 37.6% 21.8%Telecom Austria 20.6% 24.5% 22.5% 32.4% 18.7% 19.5% 23.1% 38.7% 16.9% 21.4% 20.8% 40.9% 17.3%Telecom Portugal 16.7% 23.8% 19.3% 40.2% 21.5% 27.1% 24.2% 27.3% 15.5% 19.7% 22.5% 42.3% 18.4%Virgin Media (frmly NTL) 21.3% 23.4% 24.7% 30.5% 19.7% 22.2% 25.4% 32.7% 26.8% 26.2% 22.0% 25.0% 22.2%Colt 24.4% 23.9% 18.7% 32.9% 19.6% 22.1% 28.2% 30.2% 23.0% 21.4% 25.6% 30.0% 24.9%Cable & Wireless 23.4% 21.3% 25.0% 30.4% 30.8% 17.9% 23.4% 27.8% 32.8% 18.4% 22.7% 26.1% 26.8%Eircom 27.8% 25.5% 23.8% 22.8% 12.5% 29.2% 32.0% 26.3% 23.7% 23.0% 22.6% 30.7% 22.3%ONO 21.4% 17.8% 15.1% 45.8% 19.5% 19.4% 22.8% 38.3% 21.3% 25.4% 23.4% 29.9% 23.6%OTE 19.4% 17.1% 24.4% 39.1% 16.7% 23.9% 19.5% 40.0% 19.3% 21.7% 20.7% 38.4% 13.1%Sonaecom 17.6% 32.1% 22.8% 27.5% 18.5% 18.9% 14.0% 48.6% 23.2% 27.7% 15.4% 33.8% 8.5%Tele2 6.4% 27.6% 13.2% 52.7% 20.5% 28.6% 21.5% 29.4% 24.4% 26.8% 27.1% 21.7% 15.3%Tiscali 20.9% 22.3% 17.7% 39.1% 24.5% 25.9% 25.3% 24.3% 16.8% 29.3% 22.3% 31.6% 22.1%QSC 23.1% 15.2% 27.1% 34.7% 11.8% 19.7% 40.4% 28.1% 7.9% 14.4% 26.8% 50.9% 42.8%Carphone Warehouse 23.2% 23.8% 26.2% 26.7% 19.5% 22.8% 27.9% 29.7% 23.2% 21.0% 26.0% 29.8% 33.2%UPC Broadcom 30.4% 27.4% 9.3% 32.9% 17.7% 25.5% 23.5% 33.3% 25.1% 23.0% 23.3% 28.6% 23.3%Telenet 16.4% 19.9% 29.4% 34.2% 22.5% 24.1% 24.3% 29.1% 28.6% 31.4% 22.6% 17.3% 38.9%

Wireless 23.5% 20.8% 22.1% 33.7% 20.3% 22.6% 23.3% 33.8% 22.0% 21.9% 23.6% 32.6% 24.2%Deutsche Telekom (ex T-Mobile USA) 22.9% 21.6% 21.4% 34.1% 22.7% 19.3% 20.7% 37.3% 22.1% 19.6% 20.6% 37.8% 28.6%France Telecom 22.4% 15.9% 15.0% 46.7% 13.9% 29.7% 21.2% 35.2% 16.0% 26.6% 24.9% 32.4% 21.1%Telecom Italia 9.3% 18.4% 19.1% 53.2% 14.3% 23.4% 20.8% 41.4% 18.8% 23.5% 24.8% 32.9% 21.9%Telefonica Wireless (ex latam) 21.6% 24.4% 25.2% 28.9% 14.8% 23.5% 24.0% 37.6% 20.7% 21.8% 23.7% 33.8% 17.0%KPN 18.3% 24.6% 24.1% 33.1% 13.9% 21.5% 27.7% 36.8% 18.4% 22.0% 22.8% 36.8% 13.5%Swisscom 27.1% 24.2% 19.7% 29.0% 13.3% 20.3% 23.5% 43.0% 17.3% 22.8% 22.6% 37.3% 16.4%Belgacom 30.1% 32.3% 18.7% 18.9% 20.5% 17.7% 10.4% 51.5% 20.1% 28.4% 42.4% 9.1% 14.6%Telecom Austria 21.6% 20.3% 20.3% 37.8% 16.7% 27.0% 18.8% 37.5% 19.1% 29.7% 18.3% 32.9% 24.2%Telecom Portugal 11.8% 17.5% 33.0% 37.7% 11.5% 15.1% 23.3% 50.1% 13.4% 21.8% 20.5% 44.3% 16.9%Vodafone 29.5% 20.8% 24.5% 25.3% 28.8% 19.1% 24.9% 27.2% 27.2% 18.9% 23.3% 30.6% 29.6%Cable & Wireless 30.2% 19.9% 23.4% 26.4% 26.8% 20.3% 26.6% 26.3% 27.3% 19.9% 24.6% 28.2% 45.3%Jazztel 8.3% 20.4% 16.0% 55.2% 29.2% 25.4% 25.1% 20.3% 37.9% 30.1% 15.5% 16.5% 16.5%Sonaecom 20.5% 11.6% 25.3% 42.7% 27.8% 10.9% 26.2% 35.2% 12.7% 18.8% 37.4% 31.2% 22.6%Tele2 29.6% 22.0% 25.2% 23.2% 22.5% 26.1% 24.2% 27.3% 22.1% 26.6% 21.8% 29.5% 21.0%Bouygues 21.2% 24.4% 24.6% 29.8% 19.1% 23.9% 25.3% 31.7% 19.1% 23.5% 24.7% 32.7% 21.7%

20072005 2006


16 July 2008


Exhibit 143: Detailed Carrier Capital Expenditures Seasonality continued Quarterly Global Capital Expenditures 2008Seasonality 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08TOTAL ASIAN-PACIFIC CARRIERS 21.8% 23.7% 24.7% 29.8% 20.4% 24.7% 26.0% 29.0% 27.2% 21.6% 24.6% 26.6% 18.9%Wireline 23.2% 22.9% 24.7% 29.3% 20.3% 26.2% 24.7% 28.8% 21.3% 24.3% 25.6% 28.8% 20.9%Wireless 20.7% 24.3% 24.7% 30.3% 20.4% 23.7% 26.8% 29.1% 30.6% 20.0% 24.1% 25.3% 17.7%

Wireline 23.2% 22.9% 24.7% 29.3% 20.3% 26.2% 24.7% 28.8% 21.3% 24.3% 25.6% 28.8% 20.9%New Zealand Telecom 25.5% 27.9% 21.2% 25.4% 19.2% 27.1% 21.5% 32.1% 16.6% 32.0% 26.7% 24.6% 22.0%Chunghwa 24.4% 18.0% 25.8% 31.8% 22.6% 22.9% 29.4% 25.0% 20.4% 19.9% 23.9% 35.7% 18.3%Singapore (Sing-tel) 27.0% 22.5% 26.1% 24.4% 25.1% 21.1% 27.5% 26.4% 31.7% 23.2% 21.3% 23.8% 33.7%Optus 26.0% 22.7% 20.5% 30.7% 21.6% 22.8% 25.3% 30.3% 20.6% 24.7% 29.3% 25.5% 22.1%Telekom Malaysia 11.6% 25.1% 29.5% 33.8% 17.5% 32.5% 18.6% 31.5% 11.3% 21.9% 31.2% 35.7% 39.4%Telekom Indonesia 22.6% 23.5% 24.5% 29.4% 17.6% 25.3% 27.2% 30.0% 26.2% 25.6% 30.6% 17.6% 7.1%Millicom 21.0% 24.0% 25.0% 30.0% 21.0% 24.0% 25.0% 30.0% 21.0% 24.0% 25.0% 30.0% 27.3%Phillipines Long Distance 40.7% 15.2% 19.2% 24.9% 21.1% 40.8% 18.9% 19.2% 37.0% 17.3% 14.8% 30.9% 12.6%PT IndoStat 21.6% 24.5% 24.5% 29.4% 9.7% 26.0% 28.2% 36.1% 14.8% 36.2% 22.5% 26.5% 15.4%CTI Group 21.3% 24.8% 30.3% 23.7% 51.7% 16.1% 19.6% 12.5% 29.0% 21.4% 26.2% 23.4% 13.2%

Wireless 20.7% 24.3% 24.7% 30.3% 20.4% 23.7% 26.8% 29.1% 30.6% 20.0% 24.1% 25.3% 17.7%New Zealand Telecom 22.0% 29.2% 19.6% 29.2% 29.3% 26.0% 20.7% 24.0% 23.4% 32.4% 20.4% 23.9% 22.2%Chunghwa 19.7% 29.8% 30.2% 20.2% 35.0% 26.2% 21.0% 17.9% 14.7% 14.3% 25.5% 45.6% 13.1%Taiwan Mobile 26.0% 20.7% 21.4% 31.9% 19.7% 19.3% 17.9% 43.1% 25.4% 19.6% 29.0% 25.9% 13.1%Optus 22.1% 28.4% 24.0% 25.5% 29.7% 28.3% 18.5% 23.5% 23.5% 28.0% 19.3% 29.3% 35.0%Starhub 27.5% 22.3% 27.8% 22.3% 31.4% 24.7% 19.5% 24.3% 11.0% 19.3% 20.2% 49.6% 22.9%Telekom Malaysia 6.4% 32.3% 7.7% 53.6% 9.4% 6.4% 40.8% 43.5% 13.6% 27.5% 27.0% 31.9% 19.9%PT Bakrie Telecom 8.1% 9.0% 47.2% 35.8% 24.2% 29.5% 19.8% 26.5% 11.1% 2.5% 72.2% 14.2% 12.6%Telekom Indonesia 22.6% 23.5% 24.5% 29.4% 17.6% 25.3% 27.2% 30.0% 26.2% 25.6% 30.6% 17.6% 20.6%Mobile One 4.3% 2.3% 10.0% 83.4% 7.4% 6.9% 12.7% 73.0% 13.1% 16.9% 10.7% 59.3% 3.5%Phillipines Long Distance 19.8% 20.7% 14.9% 44.6% 23.8% 32.8% 20.4% 23.0% 12.8% 14.2% 20.3% 52.7% 12.6%PT IndoStat 21.6% 24.5% 24.5% 29.4% 20.2% 32.8% 28.8% 18.2% 64.8% 14.9% 9.2% 11.1% 15.4%Total Access Comm (DTAC) 18.7% 31.8% 36.0% 13.5% 23.9% 22.6% 23.5% 30.0% 23.9% 19.6% 19.9% 36.7% 19.0%True Corp 20.9% 25.2% 24.4% 29.5% 30.0% 23.0% 34.9% 12.1% 14.0% 16.4% 46.0% 23.5% 10.9%Globe Telecom 18.0% 24.2% 24.5% 33.3% 15.4% 18.8% 23.0% 42.8% 20.9% 19.2% 23.3% 36.6% 22.9%AIS Thailand 23.6% 17.7% 31.9% 26.8% 14.1% 16.1% 36.4% 33.4% 31.0% 18.0% 18.9% 32.1% 12.2%

TOTAL JAPANESE CARRIERS 29.2% 24.1% 23.7% 23.0% 27.6% 21.7% 25.9% 24.8% 31.2% 20.7% 22.3% 25.8% 32.4%Wireline 28.9% 23.8% 24.6% 22.7% 28.9% 22.4% 24.5% 24.3% 28.1% 21.3% 23.1% 27.5% 32.8%Wireless 29.6% 24.4% 22.6% 23.4% 26.4% 20.9% 27.3% 25.4% 34.1% 20.1% 21.6% 24.2% 31.9%

Wireline 28.9% 23.8% 24.6% 22.7% 28.9% 22.4% 24.5% 24.3% 28.1% 21.3% 23.1% 27.5% 32.8%NTT Holding 41.1% 11.7% 26.2% 21.0% 22.2% 10.1% 21.5% 46.2% 36.6% 8.1% 22.0% 33.3% 36.9%NTT East (JPY, 3/31/06 YE) 26.5% 27.8% 23.4% 22.3% 28.9% 19.7% 24.6% 26.8% 30.6% 21.2% 23.1% 25.1% 32.7%NTT West (JPY, 3/31/06 YE) 23.4% 28.5% 23.5% 24.6% 26.9% 29.7% 22.7% 20.7% 26.6% 24.6% 21.7% 27.1% 30.9%NTT Communications 31.5% 16.0% 37.1% 15.3% 35.9% 15.4% 26.1% 22.5% 39.6% 13.2% 21.8% 25.4% 45.2%NTT Data 31.5% 21.3% 28.1% 19.1% 23.0% 16.9% 35.1% 25.0% 24.2% 18.2% 27.3% 30.3% 37.5%KDDI 37.2% 16.1% 19.8% 26.9% 33.9% 21.3% 21.0% 23.7% 12.0% 29.5% 23.6% 34.9% 27.9%eAccess 27.4% 32.4% 27.0% 13.3% 16.5% 18.1% 21.5% 43.9% 31.2% 31.4% 18.6% 18.7% 35.4%Liberty Global Jcom 20.5% 22.7% 19.7% 37.1% 18.6% 29.4% 23.6% 28.4% 22.6% 20.2% 23.6% 33.6% 12.8%SoftBank 39.4% 19.1% 20.3% 21.2% 44.8% 19.0% 21.6% 14.6% 27.4% 22.8% 23.9% 25.9% 44.7%

Wireless 29.6% 24.4% 22.6% 23.4% 26.4% 20.9% 27.3% 25.4% 34.1% 20.1% 21.6% 24.2% 31.9%NTT DoCoMo 28.5% 25.9% 22.4% 23.2% 29.9% 20.0% 26.9% 23.1% 33.8% 19.8% 22.2% 24.1% 37.4%

KDDI 32.7% 19.9% 23.3% 24.1% 34.2% 19.8% 19.5% 26.4% 32.5% 16.8% 22.7% 28.1% 20.9%SoftBank - - - - - 26.4% 39.0% 34.6% 37.1% 25.2% 18.3% 19.4% 35.1%

TOTAL KOREAN CARRIERS 14.4% 21.0% 24.6% 40.1% 11.4% 23.5% 25.6% 39.5% 16.4% 26.2% 22.7% 34.7% 17.0%Wireline 16.4% 20.2% 24.2% 39.1% 9.9% 22.6% 29.3% 38.2% 12.2% 24.7% 24.2% 39.0% 13.2%Wireless 11.5% 22.1% 25.1% 41.3% 13.0% 24.5% 21.6% 40.9% 20.8% 27.7% 21.2% 30.2% 22.0%

Wireline 16.4% 20.2% 24.2% 39.1% 9.9% 22.6% 29.3% 38.2% 12.2% 24.7% 24.2% 39.0% 13.2%KT 19.2% 20.0% 24.3% 36.4% 9.1% 22.6% 31.3% 37.0% 12.4% 24.0% 23.8% 39.7% 11.0%SK Telecom 5.3% 13.1% 18.7% 63.0% 7.1% 15.5% 23.2% 54.1% 6.4% 17.3% 23.9% 52.3% 9.3%Hanaro 10.4% 27.4% 28.5% 33.7% 8.9% 28.7% 24.0% 38.4% 16.4% 37.6% 29.1% 16.9% 34.4%Dacom 7.2% 19.5% 26.1% 47.3% 23.4% 23.9% 16.3% 36.4% 12.9% 14.7% 26.0% 46.3% 7.1%LG Telecom 18.3% 29.4% 20.6% 31.7% 36.9% 16.7% 17.4% 29.0% 12.1% 30.7% 15.5% 41.8% 28.3%

Wireless 11.5% 22.1% 25.1% 41.3% 13.0% 24.5% 21.6% 40.9% 20.8% 27.7% 21.2% 30.2% 22.0%SK Telecom 6.3% 21.0% 31.4% 41.3% 5.1% 24.4% 18.0% 52.5% 17.8% 24.3% 23.6% 34.3% 17.0%KT Freetel 12.7% 21.4% 17.5% 48.5% 22.3% 24.3% 24.8% 28.6% 29.8% 28.5% 17.8% 23.9% 28.7%LG Telecom 29.5% 28.2% 18.5% 23.8% 10.6% 25.6% 23.9% 39.9% 9.5% 36.5% 21.8% 32.1% 22.9%

20072005 2006


16 July 2008


Exhibit 144: Detailed Carrier Capital Expenditures Seasonality continued Quarterly Global Capital Expenditures 2008Seasonality 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08TOTAL CHINESE CARRIERS 19.0% 23.4% 25.9% 31.7% 17.4% 21.4% 27.1% 34.1% 19.3% 23.9% 25.2% 31.5% 0.0%Wireline 18.4% 22.5% 26.5% 32.6% 18.6% 22.8% 25.6% 33.0% 19.2% 23.7% 25.4% 31.7% 0.0%Wireless 19.5% 24.3% 25.4% 30.7% 16.5% 20.3% 28.2% 34.9% 19.4% 24.0% 25.2% 31.4% 0.0%

Wireline 18.4% 22.5% 26.5% 32.6% 18.6% 22.8% 25.6% 33.0% 19.2% 23.7% 25.4% 31.7% 0.0%China Telecom 18.9% 23.1% 26.0% 32.0% 18.8% 23.1% 25.9% 32.1% 19.7% 24.4% 24.8% 31.0% 0.0%China Netcom 17.6% 21.5% 27.3% 33.6% 18.1% 22.3% 25.0% 34.6% 18.0% 22.2% 26.6% 33.2% 0.0%China Tietong 21.0% 24.0% 25.0% 30.0% 21.0% 24.0% 25.0% 30.0% 21.0% 24.0% 25.0% 30.0% -

Wireless 19.5% 24.3% 25.4% 30.7% 16.5% 20.3% 28.2% 34.9% 19.4% 24.0% 25.2% 31.4% 0.0%China Mobile 19.8% 24.7% 25.1% 30.4% 16.3% 20.0% 28.4% 35.2% 21.4% 26.5% 23.2% 28.9% 0.0%China Unicom HK 18.0% 21.9% 27.0% 33.2% 17.9% 22.0% 26.9% 33.3% 11.2% 13.9% 33.3% 41.6% 0.0%

TOTAL SCANDINAVIAN CARRIERS 21.6% 23.5% 24.0% 30.9% 18.4% 24.1% 25.4% 32.1% 18.1% 23.6% 24.4% 33.9% 23.6%Wireline 21.3% 25.7% 26.4% 26.6% 18.8% 24.8% 26.4% 30.0% 17.9% 24.7% 24.6% 32.8% 31.4%Wireless 21.8% 21.4% 21.9% 35.0% 18.2% 23.7% 24.7% 33.4% 18.3% 22.7% 24.2% 34.8% 17.8%

Wireline 21.3% 25.7% 26.4% 26.6% 18.8% 24.8% 26.4% 30.0% 17.9% 24.7% 24.6% 32.8% 31.4%TeliaSonera 21.6% 30.7% 22.4% 25.3% 17.9% 24.8% 25.2% 32.1% 16.1% 24.9% 24.7% 34.3% 23.7%Telenor 21.1% 21.0% 30.9% 27.1% 20.9% 24.8% 29.9% 24.4% 20.4% 24.9% 25.1% 29.6% 48.1%Elisa 21.4% 20.5% 24.1% 33.9% 16.2% 25.1% 21.5% 37.1% 21.4% 22.2% 20.5% 36.0% 16.5%

Wireless 21.8% 21.4% 21.9% 35.0% 18.2% 23.7% 24.7% 33.4% 18.3% 22.7% 24.2% 34.8% 17.8%TeliaSonera 20.7% 35.4% 19.5% 24.4% 17.5% 21.7% 20.8% 40.0% 17.6% 21.9% 23.5% 37.1% 18.2%Telenor 22.5% 16.3% 22.8% 38.5% 18.2% 23.8% 25.7% 32.2% 18.3% 22.9% 24.5% 34.2% 17.4%Elisa 16.1% 26.2% 20.7% 37.0% 19.1% 29.3% 18.9% 32.7% 20.3% 22.9% 22.1% 34.7% 23.4%

TOTAL RUSSIAN CARRIERS 16.6% 19.9% 23.6% 39.9% 17.2% 23.5% 26.8% 32.6% 16.8% 17.1% 17.5% 48.6% 13.1%Wireline 9.9% 27.6% 25.2% 37.3% 18.7% 25.1% 27.7% 28.4% 23.0% 19.8% 23.0% 34.1% 9.4%Wireless 17.0% 19.5% 23.5% 40.0% 17.1% 23.3% 26.7% 32.9% 16.2% 16.8% 17.0% 50.1% 13.5%

Wireline 9.9% 27.6% 25.2% 37.3% 18.7% 25.1% 27.7% 28.4% 23.0% 19.8% 23.0% 34.1% 9.4%Comstar United Telesystems 9.9% 27.6% 25.2% 37.3% 18.7% 25.1% 27.7% 28.4% 23.0% 19.8% 23.0% 34.1% 9.4%

Wireless 17.0% 19.5% 23.5% 40.0% 17.1% 23.3% 26.7% 32.9% 16.2% 16.8% 17.0% 50.1% 13.5%Vimplecom 18.1% 24.8% 16.0% 41.1% 13.5% 26.6% 25.1% 34.8% 17.6% 16.5% 12.9% 53.0% 13.3%Mobile Telesystems 16.1% 15.3% 29.4% 39.2% 20.4% 20.3% 28.1% 31.2% 14.5% 17.1% 21.7% 46.6% 13.7%

TOTAL INDIAN CARRIERS 18.6% 22.7% 28.8% 29.8% 26.5% 22.3% 28.5% 22.7% 12.2% 18.1% 29.6% 40.1% 27.7%Wireline 14.9% 13.7% 38.5% 32.8% 29.0% 23.1% 27.7% 20.2% 21.1% 15.9% 41.0% 21.9% 56.4%Wireless 19.4% 24.7% 26.7% 29.2% 26.2% 22.1% 28.6% 23.1% 11.4% 18.3% 28.7% 41.6% 26.1%

Wireline 14.9% 13.7% 38.5% 32.8% 29.0% 23.1% 27.7% 20.2% 21.1% 15.9% 41.0% 21.9% 56.4%Bharti (AirTel) Wireless 14.9% 13.7% 38.5% 32.8% 29.0% 23.1% 27.7% 20.2% 21.1% 15.9% 41.0% 21.9% 56.4%

Wireless 19.4% 24.7% 26.7% 29.2% 26.2% 22.1% 28.6% 23.1% 11.4% 18.3% 28.7% 41.6% 26.1%Reliance 21.2% 24.3% 25.3% 29.2% 30.3% 21.0% 23.5% 25.2% 10.0% 9.8% 29.5% 50.6% 28.4%Bharti (AirTel) Wireless 15.1% 25.5% 30.2% 29.1% 23.0% 23.0% 34.1% 20.0% 10.0% 32.6% 28.8% 28.6% 27.1%IDEA Celluar (Escorts) ($USD) - - - - 25.5% 22.5% 25.1% 26.9% 22.1% 21.0% 24.2% 32.7% 17.0%

TOTAL MIDDLE EASTERN CARRIERS 20.8% 25.2% 25.2% 28.9% 21.4% 27.7% 21.8% 29.0% 19.9% 23.6% 21.2% 35.4% 17.4%Wireline 21.7% 24.8% 25.0% 28.6% 29.3% 21.4% 26.3% 23.0% 18.5% 15.8% 21.8% 43.9% 13.8%Wireless 20.5% 25.3% 25.2% 29.0% 19.7% 29.1% 20.9% 30.3% 20.0% 24.6% 21.1% 34.2% 18.2%

Wireline 21.7% 24.8% 25.0% 28.6% 29.3% 21.4% 26.3% 23.0% 18.5% 15.8% 21.8% 43.9% 13.8%Telecom Egypt 21.3% 24.9% 25.1% 28.7% 26.4% 22.1% 21.8% 29.6% 27.7% 21.9% 19.3% 31.1% 13.2%MTC (Kuwait) 21.2% 24.2% 25.3% 29.3% 34.7% 17.5% 34.2% 13.5% 11.3% 8.0% 16.3% 64.4% 6.1%Bezeq 22.7% 24.5% 24.8% 28.1% 30.9% 23.5% 29.2% 16.3% 16.1% 16.7% 29.4% 37.8% 20.7%

Wireless 20.5% 25.3% 25.2% 29.0% 19.7% 29.1% 20.9% 30.3% 20.0% 24.6% 21.1% 34.2% 18.2%Mobilnil 21.6% 32.7% 20.1% 25.6% 21.1% 24.2% 24.8% 29.9% 21.3% 21.1% 20.5% 37.1% 19.0%Turkcell 20.0% 25.0% 25.0% 30.0% 22.0% 24.0% 25.0% 29.0% 16.2% 24.4% 23.4% 36.0% 18.3%Orascom 20.4% 24.2% 26.3% 29.1% 18.2% 31.8% 18.2% 31.8% 21.8% 26.0% 19.6% 32.6% 17.2%Bezeq 22.7% 24.5% 24.8% 28.1% 30.9% 23.5% 29.2% 16.3% 16.1% 16.7% 29.4% 37.8% 20.7%Partner Communications 20.6% 25.5% 24.8% 29.0% 17.2% 34.3% 22.0% 26.5% 14.5% 27.0% 26.5% 32.1% 25.6%

20072005 2006


16 July 2008


Exhibit 145: Detailed Carrier Capital Expenditures Seasonality continued Quarterly Global Capital Expenditures 2008Seasonality 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08TOTAL AFRICAN CARRIERS 25.5% 22.0% 25.6% 26.9% 23.9% 23.0% 24.7% 28.4% 28.6% 22.2% 25.9% 23.3% 21.3%Wireline 26.9% 21.3% 25.6% 26.2% 26.1% 21.8% 23.6% 28.5% 30.4% 19.1% 22.5% 28.0% 27.1%Wireless 24.2% 22.6% 25.7% 27.5% 22.6% 23.8% 25.3% 28.3% 27.8% 23.6% 27.6% 21.0% 18.6%

Wireline 26.9% 21.3% 25.6% 26.2% 26.1% 21.8% 23.6% 28.5% 30.4% 19.1% 22.5% 28.0% 27.1%South Africa Telecom 27.8% 20.9% 25.7% 25.6% 27.7% 21.1% 23.1% 28.1% 32.3% 18.1% 22.0% 27.6% 26.7%Millicom 21.0% 24.0% 25.0% 30.0% 21.0% 24.0% 25.0% 30.0% 21.0% 24.0% 25.0% 30.0% 29.2%

Wireless 24.2% 22.6% 25.7% 27.5% 22.6% 23.8% 25.3% 28.3% 27.8% 23.6% 27.6% 21.0% 18.6%MTC Africa (Celltell) 21.2% 24.2% 25.3% 29.3% 21.1% 24.3% 25.3% 29.3% 27.8% 24.6% 28.6% 19.0% 15.1%South Africa Telecom 24.0% 22.0% 27.0% 27.0% 26.1% 22.9% 25.1% 26.0% 31.0% 21.1% 25.4% 22.5% 24.1%Safaricom 31.4% 20.2% 23.4% 24.9% 23.0% 23.1% 26.0% 27.9% 22.5% 22.9% 26.1% 28.4% 32.9%

TOTAL LATIN AMERICAN CARRIERS 14.5% 24.6% 23.3% 37.6% 15.7% 22.6% 31.1% 30.6% 13.5% 20.1% 24.7% 41.7% 14.9%Wireline 14.3% 22.6% 27.2% 35.9% 15.3% 20.3% 26.5% 37.9% 13.9% 23.8% 31.4% 30.9% 17.1%Wireless 14.6% 25.6% 21.3% 38.5% 15.9% 24.0% 33.8% 26.3% 13.2% 18.0% 20.8% 48.0% 13.5%

Wireline 14.3% 22.6% 27.2% 35.9% 15.3% 20.3% 26.5% 37.9% 13.9% 23.8% 31.4% 30.9% 17.1%Telefonos de Mexico (Telemex) 12.7% 24.8% 25.2% 37.3% 11.2% 20.6% 27.6% 40.5% 10.5% 29.4% 54.2% 5.9% 5.7%Telefonica Wireline 14.0% 22.1% 23.4% 40.6% 12.2% 18.1% 24.9% 44.8% 13.6% 23.0% 23.7% 39.7% 15.9%Telecom Italia 20.7% 23.8% 25.1% 30.4% 24.3% 15.6% 27.3% 32.8% 21.3% 26.9% 18.0% 33.8% 30.6%Axtel 21.6% 20.6% 26.8% 30.9% 23.7% 22.5% 24.4% 29.4% 20.5% 27.8% 24.3% 27.4% 30.1%Brasil Telecom SA Participiones 15.6% 23.8% 36.3% 24.3% 18.0% 22.2% 27.4% 32.3% 12.0% 22.1% 21.8% 44.1% 14.6%Cia de Telecomm de Chile SA (USD) 11.4% 20.8% 59.1% 8.7% 17.8% 24.0% 25.0% 33.2% 16.4% 21.6% 33.3% 28.6% 20.7%Liberty Global 19.6% 25.1% 25.3% 30.1% 20.6% 27.1% 25.7% 26.6% 25.8% 25.4% 23.5% 25.4% 28.4%Millicom 16.0% 18.2% 24.8% 41.1% 20.6% 19.9% 27.5% 32.0% 14.7% 16.7% 25.5% 43.0% 45.0%Telecom Argentina 7.8% 25.0% 24.4% 42.8% 15.2% 22.8% 27.7% 34.2% 13.2% 24.7% 31.7% 30.4% 15.2%

Wireless 14.6% 25.6% 21.3% 38.5% 15.9% 24.0% 33.8% 26.3% 13.2% 18.0% 20.8% 48.0% 13.5%America Movil 15.7% 29.9% 20.7% 33.7% 19.9% 29.4% 45.0% 5.7% 13.5% 15.4% 22.6% 48.6% 11.1%Telefonica Moviles (Wireless) 9.2% 21.2% 26.5% 43.1% 10.9% 16.5% 32.9% 39.7% 10.1% 18.7% 20.5% 50.7% 8.9%Potugal Telecom 22.0% 18.2% 18.2% 41.6% 13.1% 15.8% 21.0% 50.1% 11.0% 16.7% 18.5% 53.9% 16.8%Brasil Telecom SA Participiones 8.9% 17.7% 8.2% 65.3% 1.8% 21.1% 38.5% 38.5% 1.4% 15.3% 28.3% 55.1% 3.1%Telemig/Telenorte(Amazonia) Cellular (BRZ) 15.5% 26.8% 16.6% 41.1% 14.2% 22.4% 30.7% 32.7% 7.2% 16.4% 14.4% 62.0% 11.3%TIM Participacoes S.A. (BRLs) Wireless 6.2% 19.2% 21.6% 53.0% 10.5% 22.0% 23.5% 44.0% 11.8% 15.9% 17.0% 55.3% 18.2%Nextel International 16.8% 27.4% 28.8% 27.0% 20.6% 31.6% 21.5% 26.3% 25.0% 26.1% 18.7% 30.1% 25.6%Millicom 21.0% 24.0% 25.0% 30.0% 21.0% 24.0% 25.0% 30.0% 21.0% 24.0% 25.0% 30.0% 25.4%Telecom Argentina 11.8% 36.9% 24.9% 26.3% 15.1% 23.0% 19.7% 42.3% 14.7% 25.0% 26.8% 33.4% 13.7%

20072005 2006


16 July 2008


Exhibit 146: Detailed Carrier Capital Expenditures Seasonality continued Quarterly Global Capital Expenditures 2008Seasonality 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08UNITED STATES CARRIERS 19.3% 25.1% 24.8% 30.9% 21.5% 23.8% 24.9% 29.9% 22.2% 23.9% 24.4% 29.5% 23.1%Wireline Total 21.1% 24.5% 25.7% 28.6% 19.5% 22.1% 22.4% 25.7% 21.7% 23.9% 25.5% 28.7% 24.2%Wireless Total 16.9% 25.7% 23.7% 33.7% 21.1% 22.6% 24.7% 31.5% 23.0% 23.9% 21.9% 31.1% 20.9%RBOC 21.1% 24.4% 26.0% 28.5% 20.0% 22.4% 20.5% 23.3% 21.5% 23.4% 25.9% 29.1% 24.8%Incumbent IXC 16.9% 18.2% 21.6% 43.2% 11.2% 24.4% 31.1% 33.4% 22.8% 22.9% 21.8% 32.4% 30.2%Emerging IXC 22.3% 29.1% 28.6% 19.9% 13.3% 17.8% 30.6% 30.9% 23.6% 26.8% 28.9% 20.7% 20.4%CLEC 23.1% 27.3% 24.0% 25.5% 17.2% 21.1% 21.8% 25.0% 19.3% 25.1% 23.3% 23.2% 25.8%Independent 19.5% 24.0% 24.7% 31.9% 16.4% 24.5% 26.6% 29.4% 19.1% 22.2% 23.9% 34.7% 19.7%Wireless Total 16.9% 25.7% 23.7% 33.7% 21.1% 22.6% 24.7% 31.5% 23.0% 23.9% 21.9% 31.1% 20.9%Cable TV MSO 21.7% 24.8% 25.6% 27.9% 20.0% 21.2% 24.5% 29.0% 22.5% 24.8% 25.1% 27.7% 23.5%

RBOC 21.1% 24.4% 26.0% 28.5% 23.1% 25.9% 23.8% 27.1% 21.5% 23.4% 25.9% 29.1% 24.8%Qwest 19.4% 21.8% 27.6% 31.2% 23.9% 27.1% 24.1% 24.9% 19.1% 25.5% 25.2% 30.3% 23.1%SBC (Wireline) 18.8% 22.7% 25.2% 33.3% 22.5% 26.6% 25.1% 25.8% 21.3% 22.3% 26.7% 29.7% 27.2%Verizon (Wireline--Domestic Telecom) 22.9% 26.0% 26.3% 24.8% 23.6% 25.3% 22.8% 28.4% 22.3% 24.5% 25.1% 28.1% 22.2%

Incumbent IXC 16.9% 18.2% 21.6% 43.2% 11.2% 24.4% 31.1% 33.4% 22.8% 22.9% 21.8% 32.4% 30.2% Sprint FON LD 16.9% 18.2% 21.6% 43.2% 11.2% 24.4% 31.1% 33.4% 22.8% 22.9% 21.8% 32.4% 30.2%

Emerging IXC 22.3% 29.1% 28.6% 19.9% 14.3% 19.3% 33.0% 33.4% 23.6% 26.8% 28.9% 20.7% 20.4%Global Crossing 33.8% 36.6% 19.7% 9.9% 12.3% 20.2% 42.1% 25.4% 21.0% 26.6% 42.1% 10.3% 27.6%Level 3 (Comm. & Info. Services) (acq. Broad 19.7% 27.4% 30.6% 22.3% 14.9% 19.0% 30.4% 35.7% 24.5% 26.9% 24.5% 24.2% 17.9%

CLEC 23.1% 27.3% 24.0% 25.5% 20.3% 24.8% 25.6% 29.4% 21.2% 27.6% 25.6% 25.6% 25.8%FiberNet Telecom Group 24.1% 17.2% 27.6% 31.0% 24.0% 24.0% 24.0% 28.0% 10.5% 31.6% 31.6% 26.3% 16.9%XO Communications (Nextlink) 24.9% 20.7% 27.4% 27.0% 18.1% 23.5% 26.7% 31.7% 19.1% 31.7% 30.3% 18.9% 32.8%Time Warner Telecom 24.3% 26.2% 24.2% 25.3% 19.6% 26.4% 25.0% 28.9% 24.5% 26.8% 21.6% 27.2% 22.0%Alaska Communicatons (wireline) 13.2% 37.9% 18.7% 30.2% 14.8% 18.3% 30.8% 36.1% 15.5% 16.9% 24.8% 42.8% 18.1%Consolidated Communications 17.8% 29.9% 21.8% 30.6% 25.5% 26.0% 23.4% 25.0% 24.5% 25.4% 23.8% 26.3% 27.7%D&E Communications 25.8% 24.7% 22.9% 26.6% 27.2% 33.5% 21.0% 18.3% 27.0% 26.2% 21.7% 25.1% 33.8%Primus Telecommunications 28.6% 32.0% 24.7% 14.7% 28.4% 20.4% 23.6% 27.5% 14.2% 23.7% 28.9% 33.2% 25.5%

Independent 19.5% 24.0% 24.7% 31.9% 16.9% 25.3% 27.4% 30.4% 19.1% 22.2% 23.9% 34.7% 19.7%ALLTel (Wireline) 20.5% 24.0% 22.0% 33.5% 4.2% 5.7% 36.6% 53.5% 20.2% 24.7% 22.7% 32.4% 15.7%CenturyTel (Wireline) 18.1% 24.6% 25.3% 32.0% 19.1% 22.4% 26.3% 32.2% 15.0% 17.8% 23.8% 43.5% 18.2%Citizens Communications 21.1% 25.1% 24.7% 29.1% 16.3% 20.3% 24.2% 39.2% 14.3% 21.1% 28.8% 35.8% 15.7%Embarq 17.9% 23.4% 25.8% 32.9% 19.0% 32.2% 26.8% 22.1% 21.9% 22.7% 23.6% 31.8% 22.1%Fairpoint communications 17.9% 18.6% 29.7% 33.8% 17.9% 38.3% 24.4% 19.3% 18.1% 20.4% 18.0% 43.5% 24.0%Grande Communications Holdings 32.4% 32.4% 20.1% 15.1% 23.6% 25.2% 27.5% 23.6% 22.7% 32.9% 11.3% 33.1% 42.7%Iowa Telecomunications Services, Inc 18.7% 26.7% 32.7% 21.9% 18.2% 29.4% 25.0% 27.5% 24.3% 24.8% 24.9% 26.0% 21.9%Surewest 27.4% 18.3% 19.2% 35.1% 21.3% 23.1% 23.1% 32.5% 19.6% 23.0% 22.9% 34.5% 22.8%

Wireless 16.9% 25.7% 23.7% 33.7% 21.1% 22.6% 24.7% 31.5% 23.0% 23.9% 21.9% 31.1% 20.9%Verizon Wireless (Domestic) 25.3% 26.2% 25.0% 23.5% 23.9% 24.1% 24.5% 27.5% 26.5% 25.6% 23.3% 24.6% 29.4%AT&T Wireless 13.0% 29.3% 18.0% 39.7% 20.4% 22.4% 25.9% 31.2% 13.0% 16.7% 28.6% 41.7% 14.7%Sprint PCS 10.7% 17.4% 32.4% 39.4% 18.3% 18.2% 25.2% 38.3% 28.1% 27.5% 16.3% 28.1% 20.5%Alltel (Wireless) 19.5% 28.9% 23.9% 27.7% 12.1% 30.6% 22.0% 35.3% 15.6% 30.0% 23.0% 31.4% 14.6%T-Mobile USA 14.9% 25.6% 24.7% 34.7% 29.5% 22.6% 21.9% 26.1% 23.4% 20.7% 18.5% 37.3% 20.6%US Cellular 19.2% 24.5% 21.9% 34.4% 20.7% 27.3% 26.3% 25.7% 19.4% 24.2% 23.1% 33.3% 18.2%Centennial 11.4% 54.9% 21.0% 12.7% 16.4% 57.5% 16.8% 9.2% 29.2% 34.4% 14.9% 21.6% 23.9%Centennial (US & PR Wireless) 2.5% 24.4% 25.6% 47.5% 12.3% 28.2% 29.4% 30.1% 18.4% 31.8% 19.3% 30.4% 18.8%Leap Wireless 12.2% 10.5% 18.4% 58.9% 10.2% 21.2% 27.2% 41.3% 26.1% 21.0% 21.3% 31.6% 21.0%Metro PCS 21.0% 24.0% 25.0% 30.0% 21.0% 24.0% 25.0% 30.0% 20.3% 24.9% 23.3% 31.5% 15.3%Notes: VoiceStream '01 and '02 includes PowerTel.

Cable TV MSO 21.7% 24.8% 25.6% 27.9% 21.1% 22.4% 25.8% 30.7% 22.5% 24.8% 25.1% 27.7% 23.5%AOL Time Warner (Cable) 19.2% 25.5% 26.3% 29.0% 17.4% 20.1% 25.8% 36.7% 21.0% 24.2% 25.2% 29.7% 24.2%Comcast (Cable) 22.1% 23.3% 24.8% 29.7% 20.8% 22.5% 26.9% 29.8% 23.4% 25.8% 24.2% 26.6% 23.1%Cox Communications 22.5% 22.3% 24.7% 30.5% 21.9% 21.9% 24.8% 31.5% 21.0% 24.0% 25.0% 30.0% 21.0%Charter Communications 22.3% 35.0% 28.8% 13.9% 21.8% 26.3% 23.9% 27.9% 24.0% 22.6% 25.0% 28.5% 27.8%Cablevision (Cable & Telecom) 23.1% 24.0% 24.2% 28.7% 33.2% 24.9% 23.6% 18.3% 22.8% 23.5% 30.3% 23.4% 22.5%Mediacom 24.0% 25.0% 29.5% 21.5% 22.7% 26.0% 25.8% 25.5% 21.9% 27.2% 31.2% 19.6% 23.3%RCN 15.4% 15.6% 23.0% 46.0% 16.3% 20.9% 30.2% 32.6% 21.8% 27.7% 28.6% 21.8% 23.5%

CANADIAN CARRIERS 19.9% 26.5% 23.3% 30.3% 18.2% 25.7% 26.6% 29.5% 19.7% 23.5% 24.3% 32.4% 15.9%Wireline Total 20.6% 26.5% 24.7% 28.2% 18.7% 23.2% 26.7% 31.4% 18.7% 23.2% 25.3% 32.9% 16.2%Wireless Total 17.8% 26.3% 19.6% 36.3% 16.5% 33.9% 26.3% 23.3% 22.6% 24.4% 21.8% 31.3% 15.0%

Wireline 22.4% 29.1% 22.4% 26.0% 20.2% 25.1% 26.6% 28.0% 18.3% 23.5% 24.7% 33.4% 14.7%Telus 23.1% 31.4% 19.5% 26.0% 21.3% 26.4% 26.4% 25.8% 19.0% 24.1% 24.8% 32.1% 13.1%Manitoba Telecom 20.8% 24.0% 25.1% 30.2% 19.3% 22.3% 22.3% 36.1% 14.5% 18.2% 22.6% 44.6% 18.9%Aliant 22.2% 28.0% 27.5% 22.2% 17.8% 23.6% 29.7% 28.9% 19.1% 25.1% 25.7% 30.0% 18.2%

20072005 2006


16 July 2008


Companies Mentioned (Price as of 15 Jul 08) Acme Packet Inc. (APKT, $4.41, OUTPERFORM [V], TP $7.50) ADC Telecommunications Inc. (ADCT, $13.45, NEUTRAL, TP $16.00) ADTRAN Inc. (ADTN, $24.77, UNDERPERFORM [V], TP $19.00) Alcatel-Lucent (ALU, $5.35, OUTPERFORM, TP $14.13, MARKET WEIGHT) America Movil (AMX, $50.16, OUTPERFORM, TP $80.00) AT&T Inc. (T, $32.37, NEUTRAL, TP $39.00) Belgacom (BCOM.BR, Eu26.96, UNDERPERFORM, TP Eu28.50, OVERWEIGHT) Bezeq (BEZQ.TA, NIS6.46, NEUTRAL, TP NIS6.10) Bharti Airtel Ltd (BRTI.BO, Rs736.85, OUTPERFORM, TP Rs925.00, MARKET WEIGHT) Brasil Telecom (BRP, $70.47, RESTRICTED) BT Group (BT.L, 202.00 p, UNDERPERFORM, TP 200.00 p, OVERWEIGHT) Cablevision Systems Corp. (CVC, $19.48) Carphone Warehouse (CPW.L, 198.70 p, RESTRICTED) Centennial Communications (CYCL, $5.96) Centurytel, Inc. (CTL, $34.76, NEUTRAL, TP $41.00) Charter Communications (CHTR, $.99) China Mobile Limited (0941.HK, HK$105.00, OUTPERFORM, TP HK$146.00) China Telecom (0728.HK, HK$4.35, NEUTRAL [V], TP HK$6.00) China Unicom (0762.HK, HK$15.46, NEUTRAL [V], TP HK$19.00) CIENA Corp. (CIEN, $20.80, UNDERPERFORM [V], TP $17.00) Cisco Systems Inc. (CSCO, $21.30, NEUTRAL [V], TP $24.00) Citizens Communications (CZN, $11.45, OUTPERFORM, TP $12.50) Colt Telecom (COLT.L, 136.00 p, NEUTRAL, TP 170.00 p, OVERWEIGHT) Comcast (CMCSA, $18.29) D & E Communications, Inc. (DECC, $8.63) Deutsche Telekom (DTEGn.F, Eu10.77, OUTPERFORM, TP Eu14.00, OVERWEIGHT) eAccess (9427, ¥56,100, NEUTRAL, TP ¥50,000, OVERWEIGHT) EMBARQ (EQ, $43.29, NEUTRAL, TP $42.00) Ericsson (ERIC, $10.59, NEUTRAL, TP $12.43, MARKET WEIGHT) Fairpoint Comm Inc. (FRP, $7.23) France Telecom (FTE.PA, Eu19.41, OUTPERFORM, TP Eu24.00, OVERWEIGHT) Global Crossing Ltd. (GLBC, $16.42) Globe Telecom Inc (GLO.PS, P1015.00, NEUTRAL, TP P1350.00) Golden Telecom (GLDN.OQ, $105.02) Hanaro Telecom Inc (033630.KQ, W7,000, OUTPERFORM, TP W11,500) Hutchison Whampoa (0013.HK, HK$77.75, OUTPERFORM, TP HK$98.00) Idea Cellular Ltd (IDEA.BO, Rs75.70, UNDERPERFORM, TP Rs95.00, MARKET WEIGHT) Iliad (ILD.PA, Eu62.37, NEUTRAL, TP Eu70.00, OVERWEIGHT) Juniper Networks (JNPR, $21.72, NEUTRAL [V], TP $20.00) KDDI (9433, ¥594,000, OUTPERFORM, TP ¥820,000, OVERWEIGHT) KPN (KPN.AS, Eu10.61, NEUTRAL, TP Eu12.80, OVERWEIGHT) KT Freetel (032390.KS, W26,050, UNDERPERFORM, TP W25,500) Leap Wireless Intl. (LEAP, $39.65, OUTPERFORM [V], TP $70.00) Level 3 Communications Inc. (LVLT, $2.85, NEUTRAL [V], TP $3.00) LG Dacom Corp (015940.KS, W16,300, OUTPERFORM, TP W25,500) LG Telecom (032640.KS, W7,660, NEUTRAL, TP W9,000) Liberty Global (LBTYA, $29.57) Mahanagar Telephone Nigam (MTNL.BO, Rs90.80) Manitoba Telecom Sv (MBT.TO, C$40.58) Mediacom Communications (MCCC, $5.07) MetroPCS Wireless Inc. (PCS, $15.76) Mobistar (MSTAR.BR, Eu50.58, OUTPERFORM, TP Eu70.00, OVERWEIGHT) *MTN Group (MTNJ.J, R117.71, OUTPERFORM, TP R165.00) NEC (6701, ¥547, NEUTRAL, TP ¥540, OVERWEIGHT) Nippon Telegraph and Telephone (9432, ¥510,000, OUTPERFORM, TP ¥600,000, OVERWEIGHT) Nortel Networks Corp. (NT, $6.43, NEUTRAL [V], TP $7.00) North Pittsburgh Systems (NPSI, $22.69) NTT DoCoMo (9437, ¥158,000, NEUTRAL, TP ¥156,000, OVERWEIGHT) Optium Corporation (OPTM, $7.51, NEUTRAL [V], TP $8.00) Orascom Telecom (ORTEq.L, $56.60, OUTPERFORM, TP $91.00) OTE (OTEr.AT, Eu15.26, NEUTRAL, TP Eu20.50, OVERWEIGHT) Partner Communications (PTNR.TA, NIS76.30, NEUTRAL, TP NIS80.00) PCCW Ltd (0008.HK, HK$4.91, NEUTRAL, TP HK$5.20) Portugal Telecom (PTC.LS, Eu6.77, UNDERPERFORM, TP Eu7.25, OVERWEIGHT)

16 July 2008


PT Indosat Tbk (ISAT.JK, Rp6750.00, RESTRICTED) QSC AG (QSCG.DE, Eu1.84, NEUTRAL [V], TP Eu2.70, OVERWEIGHT) Qwest Communications International, Inc. (Q, $3.69, NEUTRAL [V], TP $6.00) RCN Corp (RCNI, $11.11) Reliance Communication Ltd (RLCM.BO, Rs406.10, UNDERPERFORM, TP Rs425.00, MARKET WEIGHT) Rogers Communications (NVS) (RCIb.TO, C$36.50, OUTPERFORM, TP C$56.00) Rostelekom (RTKM.RTS, $12.10, UNDERPERFORM, TP $3.90) Shaw Communications (NVS) (SJRb.TO, C$20.98, NEUTRAL, TP C$25.50) Sierra Wireless Inc. (SWIR, $14.47) Singapore Telecom (STEL.SI, S$3.46, OUTPERFORM, TP S$4.15) SK Telecom (017670.KS, W186,500, NEUTRAL, TP W230,000) Softbank (9984, ¥1,882, OUTPERFORM [V], TP ¥2,900, OVERWEIGHT) SonaeCom (SNC.LS, Eu2.03, NEUTRAL, TP Eu2.80, OVERWEIGHT) Sonus Networks Inc. (SONS, $3.35, OUTPERFORM [V], TP $6.00) Sprint Nextel Corp. (S, $8.26, OUTPERFORM [V], TP $12.00) Surewest Communications (SURW, $7.57) Swisscom (SCMN.VX, SFr318.75, NEUTRAL, TP SFr425.00, OVERWEIGHT) Sycamore Networks, Inc. (SCMR, $3.07, NEUTRAL, TP $3.50) Taiwan Mobile Co. Ltd. (3045.TW, NT$54.10, OUTPERFORM, TP NT$64.00) Tele2 (TEL2b.ST, SKr110.75, NEUTRAL, TP SKr115.00, OVERWEIGHT) Telecom Egypt (ETEL.CA, 16.49, OUTPERFORM, TP 20.00) Telecom Italia (TLIT.MI, Eu1.27, UNDERPERFORM, TP Eu1.40, OVERWEIGHT) Telefonica (TEF.MC, Eu17.17, OUTPERFORM, TP Eu21.50, OVERWEIGHT) Telekom Austria (TELA.VI, Eu13.71, NEUTRAL, TP Eu18.00, OVERWEIGHT) Telekom Malaysia (TLMM.KL, RM3.22, OUTPERFORM, TP RM4.02) Telemig Celular (TMB, $57.34, NEUTRAL, TP $66.00) Telenor (TEL.OL, NKr91.00, NEUTRAL, TP NKr120.00, OVERWEIGHT) TeliaSonera (TLSN.ST, SKr43.90, NEUTRAL, TP SKr54.00, OVERWEIGHT) Telmex (TMX, $24.04, UNDERPERFORM, TP $28.00) Telstra Corporation Limited (TLS.AX, A$4.25, OUTPERFORM, TP A$5.63, MARKET WEIGHT) TELUS Corporation (T.TO, C$39.01, OUTPERFORM, TP C$58.00) TIM Participacoes (TSU, $26.47, NEUTRAL, TP $40.00) Time Warner Cable (TWC, $25.45) Time Warner Telecom (TWTC, $15.29) Total Access Communication PCL (DTAC.BK, Bt48.00, NEUTRAL, TP Bt49.00) Turkcell (TCELL.IS, $14.56, OUTPERFORM [V], TP $32.00) US Cellular Corp. (USM, $54.70) Veraz Networks Inc. (VRAZ, $1.54, NEUTRAL, TP $3.00) Verizon Communication (VZ, $34.88, NEUTRAL, TP $40.00) Vimpelcom (VIP, $26.11, OUTPERFORM [V], TP $43.00) Vivo Participacoes (VIV, $5.75, NEUTRAL [V], TP $8.00) Vodafone Group (VOD.L, 147.95 p, OUTPERFORM, TP 180.00 p, OVERWEIGHT) Windstream Communications (WIN, $11.92, NEUTRAL, TP $15.00) ZTE (0763.HK, HK$35.40, OUTPERFORM [V], TP HK$38.20) *Denotes a Credit Suisse Standard Securities covered company, a joint venture involving Credit Suisse. For information regarding companies covered by CSSS, full research reports, definitions of analysts’ stock ratings, and disclosure information, please refer to: www.researchandanalytics.com.

Disclosure Appendix

Important Global Disclosures I, Paul Silverstein, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report. The analyst(s) responsible for preparing this research report received compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities. Analysts’ stock ratings are defined as follows***: Outperform (O): The stock’s total return is expected to exceed the industry average* by at least 10-15% (or more, depending on perceived risk) over the next 12 months. Neutral (N): The stock’s total return is expected to be in line with the industry average* (range of ±10%) over the next 12 months. Underperform (U)**: The stock’s total return is expected to underperform the industry average* by 10-15% or more over the next 12 months.

16 July 2008


*The industry average refers to the average total return of the relevant country or regional index (except with respect to Europe, where stock ratings are relative to the analyst’s industry coverage universe). **In an effort to achieve a more balanced distribution of stock ratings, the Firm has requested that analysts maintain at least 15% of their rated coverage universe as Underperform. This guideline is subject to change depending on several factors, including general market conditions. ***For Australian and New Zealand stocks a 7.5% threshold replaces the 10% level in all three rating definitions, with a required equity return overlay applied.

Restricted (R): In certain circumstances, Credit Suisse policy and/or applicable law and regulations preclude certain types of communications, including an investment recommendation, during the course of Credit Suisse's engagement in an investment banking transaction and in certain other circumstances. Volatility Indicator [V]: A stock is defined as volatile if the stock price has moved up or down by 20% or more in a month in at least 8 of the past 24 months or the analyst expects significant volatility going forward.

Analysts’ coverage universe weightings are distinct from analysts’ stock ratings and are based on the expected performance of an analyst’s coverage universe* versus the relevant broad market benchmark**: Overweight: Industry expected to outperform the relevant broad market benchmark over the next 12 months. Market Weight: Industry expected to perform in-line with the relevant broad market benchmark over the next 12 months. Underweight: Industry expected to underperform the relevant broad market benchmark over the next 12 months. *An analyst’s coverage universe consists of all companies covered by the analyst within the relevant sector. **The broad market benchmark is based on the expected return of the local market index (e.g., the S&P 500 in the U.S.) over the next 12 months.

16 July 2008Americas/United States

Equity Research

TE0136.doc

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