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Contents | Zoom in | Zoom out For navigation instructions please click here Search Issue | Next Page October 2007 A TERRAPINN PUBLICATION _____________________ Ahead of the pack RANKING THE WORLD’S BIGGEST NETWORK OPERATORS Contents | Zoom in | Zoom out For navigation instructions please click here Search Issue | Next Page A GLOBAL 100 Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page BEF MaGS No loose ends. It’s the little details that matter, even in the biggest and most • Convergent charging and billing complex projects. That’s why over 60 of the world’s Top 100 • Customer management operators rely on BSS/OSS from Intec. They know that in a competitive communications market anything less than great service • Total service mediation is going to cost you customers – and money. So they choose a • Interconnect billing business and operations support systems vendor that has built a global reputation for getting things right. • Partner management For ten years we have been helping operators worldwide with • Trading and routing reliable, high performance BSS/OSS products and services from our comprehensive, integrated portfolio. We take care of the details, • Convergent activation leaving them free to to build strong, profitable revenue streams by • IMS Online and Offline Charging taking care of their customers. • Carrier access billing To find out how we help the Top 100 tie up the loose ends, visit us • Managed services at www.intecbilling.com or mail us at [email protected]________________ Intec Worldwide Headquarters, Wells Court, Albert Drive, Woking, Surrey GU21 5UB, UK Tel: +44 (0) 1483 745800 E-mail: [email protected]______________________mwww.intecbilling.com A GLOBAL 100 Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page BEF MaGS A GLOBAL 100 Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page BEF MaGS GLOBAL 100 New top dog AT&T IS NUMBER ONE, BUT VERIZON IS STILL SNIFFING AT NTT’S HEELS The Global 100 ranking of the world’s top telecommunications Softbank, to move into the top 20 thanks to its acquisition of services providers is now in its seventh year, but it’s taken that Vodafone KK—and it seems to be having a lot more success with long for another operator to outdo Japan’s NTT when it comes this business than the UK-based Vodafone Group ever did. to sheer volume of revenue. On the whole, the top 20 is still largely dominated by the in- This year, fi nally, we have a new name in the number one cumbent operators of old, in spite of efforts by the altnets to position: AT&T, which of course has swallowed up BellSouth and maintain their places in the telecoms landscape. And as well as also Cingular to become the world’s largest telecoms operator, dominating the top end of the table, it seems the incumbents are with revenue of more than €88 billion. But against still doing a better job when it comes to getting return on their expectations raised last year, Veri- revenue. This applies whether they are wireline or wireless op- zon has not been able to push NTT erators, or a combination of the two. into second place and has dropped to So in spite of years of liberalisation and deregulation, the third position, with revenue of €66.799 old PTTs are still dominant and, it seems, a lot more profi t- billion. able than the newer kids on the block. But then again, when NTT, with revenue of €68.407 billion, has man- it comes to making progress up the ranking table, alterna- aged to maintain its place ahead of the US company, tive operators are certainly making considerable advances. which had shown promise to become the world leader Of the top 10 biggest revenue rank winners, Virgin Media after it bought MCI. But Verizon may be able to push was in pole position after it advanced 22 places up the further up the rankings next year: after all, it only table to position 45, while The Carphone Warehouse, needs another billion or two in revenue to do so...! whose business operation is now unrecognisable A lot can be determined by favourable exchange from its early days as “a carphone warehouse” rates, too. and later a mobile phone retailer, moved up 16 So NTT may no longer be top dog, but places. thanks to its domestic growth the Japanese op- Next year, of course, Virgin Media could be erator is hanging onto second place with gritted in a different place altogether as the cable opera- teeth in spite of the efforts by Verizon to expand tor seeks a way to extricate itself from its moun- rapidly through acquisitions. tain of debt. AT&T, meanwhile, is so far ahead it looks It’ll be interesting to see how much further likely that the US giant will stay at the top the market will consolidate and how this will af- for some time to come. Its dominance again fect the rankings next year. There are still a lot of refl ects the importance of mergers and acquisi- very small operators out there, and as it becomes tions to the big-league operators, if they want to clear how important the combination of wire- stay ahead of the game. Indeed, “new” AT&T is a less and wireline services is to an operator’s combination of “old” AT&T and the former Baby success—14 of the top 20 are combined opera- Bells SBC and BellSouth. tors— we could see more operators trying to M&A also caused another Japanese operator, branch out into new areas. ■ CONTACTS EDITORIAL ADVERTISING SUBSCRIPTION / TOTAL TELECOM MAGAZINE is published by Wren House, 43 Hatton Garden, London EC1N 8EL Wren House, 43 Hatton Garden, London EC1N 8EL CUSTOMER SERVICES F +44 (0)20 7242 4303 [email protected]_______ F +44 (0)20 7242 4303 T +44 (0)1858 435363 F +44 (0)1858 434958 or online at: www.subscription.co.uk/totaltelecom Marlene Sellebraten [email protected] Richard Silver [email protected] Editor +46 8 656 6207 Sales Manager +44 (0)20 7092 1164 Kim Baker [email protected] Anne Morris [email protected] Mabrur Ahmed [email protected] Circulation Manager +44 (0)20 7827 4175 Executive Editor +44 (0)20 7827 5944 Sales Executive +44 (0)20 7092 1277 Tower Publishing Services Ltd., Ian Kemp [email protected]__________ Tower House, Sovereign Park, © 2007. All rights reserved. (ISSN#1740-1267) Associate Editor +44 (0)1626 835 703 ADVERTISING PRODUCTION Lathkill Street. Terrapinn registered offi ce: Michelle Young [email protected] Please forward all advertising material directly to: Market Harborough, Wren House, 43 Hatton Garden, __________ COVER IMAGE/THIS PAGE: GETTY IMAGES IMAGE/THIS PAGE: COVER Art Director +44 (0)20 7827 5990 ads@totaltele______.com +44 (0)20 7827 4177 Leicestershire LE16 9EF London EC1N 8EL October 2007 WWW____________.TOTALTELE.COM 3 A GLOBAL 100 Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page BEF MaGS A GLOBAL 100 Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page BEF MaGS GLOBAL 100 The trillionaires club Marlène Tissot Sellebråten here were some big surprises in this €304 billion or 30% for altnets. Total net income year’s ranking of the world’s top 100 of the top 100 players reached over €116.6 billion, service providers, not least that the with incumbents again accounting for 70% or top 100 telecoms operators passed the €79.9 billion and altnets for 30% or €33.7 billion. Tmagic revenue threshold of one trillion euros for In total, 14 of the top 20 net income generators the first time, generating a whopping €1,017 bil- were incumbent players, most of them offering lion (US$770.7 billion) in combined revenue dur- both fixed-line and mobile services. ing the financial year 2006-2007. To give an order A total of 11 companies reported combined of magnitude, this just about matches what the losses of €2.8 billion over the reporting period. European Union plans to spend over the next 14 All but one loss-making company—Irish incum- years on achieving its climate goals. bent Eircom—were alternative operators, only Incumbent operators continue to hold a strong serving to confirm the firm grip of incumbent grip on the market: Although rankings shifted, players on worldwide telecommunications mar- the bulk of operators remained in the same kets. Players such as Global Crossing, Level 3 While altnets positions in the top 20 except for the entry of or Colt, with a long history of losses born out have earned Softbank at number 15. The Japanese operator’s of heavy infrastructure investments in the early revenue nearly doubled to €16.1 billion following “capacity boom” years, continue to lose money. their place the acquisition of Vodafone Group’s Japanese op- Moreover, apart from satellite operator Intelsat erations, Vodafone KK, in 2006. Softbank took and quad-play services provider Virgin Media, in the global Time Warner’s place after AOL sold off opera- loss-makers were all fixed-line operators. tions in Europe and changed its business model. Return-on-revenue (ROR) figures, calculated telecoms Seemingly succeeding where Vodafone had failed, as net income divided by revenue—and proposed landscape, Japan’s third-largest player even added more mo- as a means of measuring a company’s profitabil- bile subscribers in July than Japan’s number one ity—also tell a tale of incumbents’ success. Indeed, incumbents NTT and number two KDDI combined. incumbent players, be they pure-play wireline, A major change at the top this year, however, wireless or combined, show higher returns on rev- still have the is that AT&T was able to dethrone NTT (€68.4 enue than alternative network operators overall in billion) from its global revenue leadership posi- each type of operation.