Business analysisGlobal for telecoms profession als100october 2014

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A round-up of some In The Red Zone: People Power: World Leader: Dates for your diary and of the major stories AT&T and Verizon lead We profile the men at The Asia-Pacific region details of the must-attend reported in our daily this year’s ranking of the helm of some of the contributes the biggest events in the telecoms news service the world’s biggest key players in this year’s share of Global 100 industry over the coming www.totaltele.com telcos by revenues Global 100 report revenues months opinion Place your bets now as to how high Softbank can go. This year we also looked SECOND & GOAL at the impact of the Brazilian market on the Global 100. Verizon overtakes NTT to take second place in the Only one Brazilian company, Global 100, but AT&T is secure at the top for now Oi, made it into the ranking, but the country is an e love a sporting paid to those ambitions. If important source of revenue metaphor at Total AT&T gets the go-ahead to for a number of international WTelecom and the 2014 buy DirecTV, for example, it players, including Telefonica Global 100 report gives us will pull away from Verizon. and Telecom Italia. Ongoing the perfect opportunity to You could argue that speculation about market indulge. Softbank boasts the stron- consolidation will impact on It’s not often that there is gest offensive line among the all of them, whatever the a significant change at the players at the top end of the outcome. top end of the ranking of the table though. Having Meanwhile, Oi itself has world’s biggest telecoms absorbed US mobile operator the special teams on the field operators, but this edition is Sprint, the Japanese firm following the resignation of an exception. A powerful gained seven places, overtak- CEO Zeinal Bava in connec- drive from Verizon ing the likes of , tion with the possible Communications resulted in America Movil and Orange unravelling of its merger a valuable gain in yardage, to secure seventh place in the agreement with Portugal leaving the US operator in ranking. In its 2014 annual Telecom. More on that story second position in the table report Softbank described and all the recent develop- and within sacking distance the acquisition as its “first ments in the global telecoms of its major domestic rival step towards the goal of industry in our News & and perennial Global 100 full-scale global expansion.” Views section. Read on... leader AT&T. With an annual revenue growth rate in excess of 4% in dollar terms in recent years, Verizon could be seen as a A POWERFUL DRIVE FROM credible challenger for top VERIZON COMMUNICATIONS spot, but it is more likely that RESULTED IN A VALUABLE some defensive blocking on GAIN IN YARDAGE the part of AT&T will put

www.totaltele.com A round-up of the major business and finance stories of the past few months involving the world’s biggest telecos, as reported in our daily news service www.totaltele.com in brief BIG NEWS

Legendary investment telefonica uber alles Softbank will invest US$250 Telefonica became Germany’s biggest mobile operator in million in US-based content October when it closed the acquisition of KPN’s E-Plus. The producer Legendary new Telefonica Deutschland, which combines O2 Germany Entertainment. and E-Plus, has 41 million mobile subscribers, putting it ahead of previous market leader T-Mobile, which had 39.3 BRAZIL AUCTION flat million at the end of June. The acquisition “makes the The sale of 700-MHz Telefonica Group the second largest operator in Europe in spectrum in Brazil raised terms of mobile accesses and total revenue,” the Spanish telco 5.85 billion reais (€1.89bn) as declared. Telefonica’s European business certainly needed a telcos paid little more than shot in the arm. Last year the telco saw its revenues in Europe the reserve price for fall by 10.6% to €26.8 billion, with declines coming in all its frequencies and some blocks major markets, including Germany, the UK and particularly remained unsold. Spain. Meanwhile, KPN’s German business generated €3.2 billion in revenues, a 6.1% decline on the previous year. verizon backtrack Telefonica had to jump through a series of regulatory The FCC welcomed hoops in order to win European Commission approval for the Verizon’s decision to deal. Most significantly, it agreed to sell as much as 30% of its abandon plans to impose network capacity–20% over five years and a further 10% at a speed restrictions on the later date–to telecoms reseller and mobile virtual network heaviest users of its unlim- operator (MVNO) Drillisch. That agreement effectively ited 4G mobile tariffs. creates a new facilities-based competitor in Germany, something the EU is particularly keen on; 3 Ireland reached a TELENOR MYANMAR LAUNCH similar agreement in order to get the go-ahead for its O2 Norway’s Telenor began acquisition earlier this year. offering mobile services in Telefonica holds a 62.1% stake in Telefonica Deutschland, Mandalay, becoming the KPN has 20.5% and the remainder is in free float. second foreign player to launch in Myanmar. Rival Ooredoo has signed up over telefonica is the second largest 1 million customers. operator in europe

4 www.totaltele.com in brief

Fastweb on the block bava’s departure is reportedly casts oi/portugal working on a deal to sell telecom merger Italy’s Fastweb to Vodafone into doubt for €4 billion-€5 billion.

NII goes Chapter 11 profile NII Holdings, owner of several Latin American bava walks out mobile operators, filed for Zeinal Bava resigned as CEO of Brazilian telecoms operator bankruptcy protection after Oi after its ongoing merger with Portugal Telecom was failing to stem customer thrown into doubt. The announcement came after media losses. reports claimed that French cableco Altice is planning to make an offer for Portugal Telecom’s assets, a move that New PTT play would naturally require the merger process, which has begun Pacific DataVision plans to but is not yet complete, to be unwound. Oi responded by launch a new push-to-talk admitting that it is considering the sale of assets but said it service in the US, having has not yet made a decision on Portugal Telecom. acquired 900-MHz spectrum Bava, highighted as a key industry player in last year’s from Sprint. Global 100 report, was the driving force behind the merger agreement announced in October 2013. Financial irregulari- GreatLand Connections ties that led to the resignation of Portugal Telecom CEO Charter Communications Henrique Granadeiro threatened to derail the deal earlier and Comcast announced that this year, but the telcos renegotiated the terms and insisted the company spun out of they were committed to bringing it to completion. Bava’s their forthcoming merger departure naturally casts that into serious doubt. will be known as GreatLand Bava, a former Portugal Telecom chief executive, has only Connections. been at the helm of Oi since mid-2013. He was due to take on the CEO role at the merged entity. new mobile op in hungary The Hungarian government HEADING FOR THE EXIT raised 130.6 billion forints (€418m) from the sale of BAKSAAS TO GO Neelie signs off 800-MHz and 2.6-GHz Jon Fredrik Baksaas will leave his Outgoing European digital agenda spectrum. The winners post as chief executive of Telenor at commissioner Neelie Kroes de- included cableco Digi. the end of next year. The Norwegian livered her final speech to telcos, telco has yet to name a succesor. urging them to change their ways and embrace the single market. Ofcom seeks new leader Ed Richards resigned as chief ex- Hribar ditches Eircom 1.25 b n ecutive of UK regulator Ofcom after Eircom chief executive Herb Hribar shipments eight years in the role. He will leave has stepped down after two years predicted in 2014, at the end of the year and Ofcom in the job. CFO Richard Moat will up 24% on 2013 aims to have found a replacement serve as acting CEO until the Irish (IDC) by early 2015. telco names a replacement.

5 www.totaltele.com big news all eyes on mexico There is change afoot in Mexico. Carlos Slim in October confirmed that the fixed and mobile assets to be sold by America Movil will cover both the country’s east and west coasts and its border with the US. The telco is working with potential buyers, he said, but would not be drawn on whether or not they include AT&T. The US telco recently admitted it has its eye on opportunities south of the border. The new entrant, whatever its identity, will find itself in a market in a state of flux. Ricardo Salinas in September paid Televisa $717 million for the 50% of Iusacell he does not already own and is now seeking an equity partner for the telco, Mexico’s third-largest mobile operator. Number two player Telefonica, which admitted in July that it was taking part in negotiations in Mexico, has gone quiet. Meanwhile, the MVNO market is hotting up. Maz Tiempo, which piggybacks on Telefonica’s network, launched in August, two months after Virgin Mobile.

the new entrant will find itself in a market in a state of flux

BIG NAMES MAKING A COMEBACK Telecoms veteran Sol Trujillo could be about to return to the industry if rumours that he is working on a plan to raise around €7.5 billion to fund the acquisition of a stake in Telecom Italia prove to be true. Trujillo has report- edly yet to approach Telecom Italia with his plan, codenamed ‘Adriano’, which would see him take on the role of Telecom Italia CEO and appoint a new management team. He has experience on that score, having headed up a number of telcos, including US West and Orange, and most recently serving as CEO of Telstra. Little has been seen of him in telecoms circles since he left the Australian incumbent in February 2009, although in the interim he has been linked with moves for T-Mobile US and Sprint, speculation that ultimately came to noth- ing. He has made no official comment on Telecom Italia. If he has his eye on the Italian incumbent he could well face opposition from another industry heavyweight. Egyptian businessman Naguib Sawiris was recently quoted as saying that he is still interested in Telecom Italia, provided the company retains its Brazilian business, a condition that is by no means certain (see Global 100 for more details). Sawiris, who made an unsuccessful bid for Telecom Italia in 2012, said earlier this year that he would be prepared to pump as much as €2 billion into the telco.

6 www.totaltele.com in brief BIG NEWS

TELEKOM ROMANIA BORN VODA FOCUSES ON NETWORKING Romania’s Romtelecom and Vodafone is still on the lookout for fixed assets. It has entered mobile unit Cosmote became into a non-binding agreement with a view to acquiring 100% Telekom Romania to bring it of Qatar state-owned fibre network operator Qatar National into line with parent Broadband Network (Qnbn), and it is bulking up its opera- company Deutsche Telekom’s tions in Greece with the acquisition of Hellas Online; it will branding. pay €72.7 million to increase its stake to 91.2% from 18.4%, before launching a mandatory offer for the remainder. Bell Aliant going private Bell Canada has completed TOWERS GO SPECIALIST phase one of its C$3.95 Operators in Asia and Africa are looking to cut costs by billion privatisation of offloading their mobile towers. Indonesia’s XL Axiata regional subsidiary Bell recently agreed a 5.6 trillion rupiah (€362m) deal with STP for Aliant, exceeding the 50% 3,500 towers; Bharti Airtel sold 3,500 towers in six African threshold for the tender of markets to Eaton Towers; and MTN created a JV with IHS to shares by some margin. manage 9,151 towers in Nigeria. Meanwhile, India’s Reliance Jio Infocomm inked a tower-sharing deal with GTL yumobile to go in Q4 Infrastructure that it says will speed up its 4G rollout. Essar Capital has agreed to sell Kenyan operator yuMo- jazzing it up bile to and Bharti Spanish broadband provider Jazztel in September confirmed Airtel for US$120 million. It it was in talks with TeliaSonera over a possible acquisition of aims to complete the deals in its Yoigo unit. However, just days later Orange made a €3.4 the fourth quarter. billion bid for Jazztel that requires it to cancel its pursuit of Yoigo. The offer is conditional on Orange acquiring 50.01% Saudi gets an MVNO of Jazztel’s share capital. Its biggest single shareholder Virgin Mobile became Saudi Leopoldo Fernandez Pujals, who holds 14.5%, has agreed to Arabia’s first MVNO, tender his stake and the deal has the backing of top execu- launching services on Saudi tives, but number two shareholder Alken Asset Management Telecom’s network. is holding out for a higher offer.

big deals Vimpelcom exits canada GVT DEAL FINALISED ’s True deal Tony Lacavera’s Globalive Capital Telefonica inked a formal agreement True Corp carried out a 65 billion has agreed to pay C$135 million for to acquire Brazil’s GVT, having been baht (€1.56bn) recapitalisation the stake in Wind Mobile held by in talks with its parent Vivendi since that saw China Mobile take an 18% Vimpelcom and subsidiary Global August. It will pay €4.66 billion in stake in the Thai telco. Telecom Holding giving it sole con- cash plus a 12% stake in Telefonica trol of the telco. Brasil. In addition, Vivendi will take a Argentina issues 5.7% stake in Telecom Italia. Telecom Italia is re-evaluating the TDC buys norway cableco terms of its planned $960 million Denmark’s TDC will acquire Nor- versatel sold deal to sell its controlling stake in wegian cable operator Get for 12.5 Germany’s United has taken Telecom Argentina to Fintech. It billion kroner (€1.7bn).It will merge full control of fibre network operator has pushed back the deadline for Get with its YouSee unit. Versatel for €586 million. completion to the end of October.

7 www.totaltele.com CONTRIBUTED CONTENT

Ensuring Smooth Evolution & Improving User Experience Huawei helps China Unicom in LTE construction for BCIA

he time of LTE has come, traffic in the world. BCIA Users are also very demand- Tleading to rapid data holds a lot of high-end ing on service experience. service growth. Network moving users. Quality LTE How could China Unicom quality in hotspot areas is networks can bring a carrier meet the large-capacity essential to customer good brand image and requirement and ensure perception. China Unicom business value. Therefore, good user experience? had to think about the the indoor coverage for BCIA BCIA network construc- construction of hotspot areas was listed as a key project of tion is a very challenging one. such as airports, subways, China Unicom in 2014. Site access is difficult and the and stadiums in the early project has a high demand on stage of LTE deployment. Challenges to BCIA Network indoor remote monitoring Beijing Capital Construction and management. International Airport (BCIA) BCIA has a huge data service Fan Liqun, Director of the is the largest airport in China traffic, especially on holidays Network Construction and boasts the second highest and in case of flight delay. Department of Beijing 8 www.totaltele.com CONTRIBUTED CONTENT

Unicom, required that the support high-speed data LampSite solution to tackle airport network must be services and ensure top- these challenges. So far, the future-oriented to evolve quality user experience. solution has proved very smoothly as the number of In the security area and successful. Compared with smart terminals and mobile the boarding gate where the traditional indoor applications surges. So the digital devices are forbidden. distributed solution, network must be powerful Only a handful of customers LampSite is significantly enough to support future network capacity and HUAWEI CAN QUICKLY RESPOND spectrum expansion. TO CUSTOMER REQUIREMENTS

Network Planning and Design use low-speed services. So better in network deploy- Based on User Behavior and creating handover zones ment and performance,” said Scenario Characteristics between cells is the best Fan Liqun, “After network Huawei designed different choice here to ensure construction is completed, solutions based on user seamless user experience. we had a live experience, behaviors and building enjoying a downlink speed of characteristics of different Quick-to-Deploy and 140 Mbit/s. The excellent areas inside and outside the Evolution-oriented Solution network performance meets airport to improve network Based on the network the anticipation. China quality and ensure user characteristics and design Unicom will continue to perception. requirements, China Unicom work with Huawei to build In the cab and bus area adopted Huawei’s innovative more value sites.” with a lot of moving users, LampSite indoor coverage Huawei has constructed the most popular services are solution. LampSite uses a flat over 26,000 hotspot networks call and SMS services. network architecture and for 115 carriers in 64 Huawei used the multi-site supports network cable and countries. Huawei boasts cell technology to realize transmission, delivery platforms around contiguous coverage, which facilitates network the world and a comprehen- avoiding switchover between construction and makes sive supply chain. It has a cells that might compromises indoor network deployment global support center in the user experience. very simple. “Antenna-level” headquarters to share the In the waiting hall and signal sources provide best delivery resources as the VIP area, users usually super-large capacity and well as internalized standards play online games or engage support flexible cell expan- and processes and a compre- in long-time phone calls. sion. Modular design hensive quality management Data services are more supports smooth network system. With these resourc- common, posing a challenge evolution in the future es, Huawei can quickly to future network expansion. through card inserting and respond to customer Therefore, China Unicom module adding. requirements and provide had to design plans for “China Unicom and customers with full-process future cell expansions to Huawei use the innovative and high-quality services.

9 www.totaltele.com GLOBAL 100 2104 IN THE RED ZONE America’s big two now lead the telecoms world, but major markets like Brazil will also have a big impact on telcos’ fortunes

t’s America one and two companies saw their revenue risers as, for the first time in revenues fall in euro terms rank places Iseven years, we have a this year due to exchange 2014 GAined major change at the top of rate effects, but in reporting Iliad 55 15 the Global 100. Based on the currency Verizon grew its Liberty Global 24 14 most recent year’s financial turnover by 4.1% compared Millicom 56 8 results, Verizon is now the with NTT’s 2.1%. PCCW 72 8 second-largest telecoms The US operator can TalkTalk 79 8 operator in the world by attribute its rise to its Taiwan Mobile 84 8 revenues, pushing NTT– strength in mobile. Verizon Softbank 7 7 once the world leader–down accounted for $81 BSNL 54 7 into third place. billion or 67% of the Freenet 64 7 Verizon has held second operator’s revenues in the Source: Total Teleccom place before, albeit briefly, in most recent financial the 2006 Global 100 report, year–up from 65% the revenue fallers when NTT was top of the previous year–its turnover rank places pile. “This could be the last increasing by 6.8%. By 2014 Lost year for some time that contrast, its global enterprise Portugal Telecom 68 -24 Japan’s national operator business shrank by 3.9%, KPN 34 -11 holds the title. Next year, pulling down overall 61 -10 Verizon Communications wireline revenues. Arch-rival Saudi Telecom 31 -5 could be carrying the crown AT&T generates a smaller MTN 29 -4 of the biggest telecoms percentage of its revenues Rogers Comms 39 -3 operator in the world,” Total from mobile–54% in the Rostelecom 40 -3 Telecom predicted at the time. most recent year–but it too is NII Holdings 59 -3 We were correct in the first relying on that side of the KDDI 13 -2 half of that forecast, but not business for growth. The Telkom SA 78 -2 the second: AT&T took the telco reported a 4.7% Source: Total Telecom top spot in the 2007 report increase in turnover from its and has stayed there ever wireless operations, com- pressure. Verizon added since. Meanwhile, Verizon pared with a 1.3% decline in US$4.70 billion to its dropped to number three wireline. revenues last year, compared and stayed firmly planted With overall revenue to AT&T’s $1.32 billion, and there. But by the 2013 edition growth of 1% in own is $8.20 billion behind. the writing really was on the currency terms, AT&T That said, AT&T has wall: “Verizon…is mounting retains its position at the embraced M&A in recent a credible challenge for head of the Global 100, but if months and that could be its second spot,” we said. Verizon can maintain the saving grace when it comes Indeed, Verizon was less 4%-plus growth rate it has to maintaining the lead. Its than €1 billion behind NTT recorded in recent years, the $1.19 billion acquisition of in revenues last year. Both top dog could be feeling the Leap Wireless in March will 10 www.totaltele.com dŚĞǁŽƌůĚ͛ƐůĂƌŐĞƐƚŽƉĞƌĂƚŽƌƐƌĞůLJŽŶƐŝĂ/ŶĨŽ ĨŽƌƚŚĞŝƌƐƚƌĂƚĞŐŝĐ/dƐLJƐƚĞŵƐ sŝƐŝƚĂƐŝĂŝŶĨŽ͘ĐŽŵƚŽĮŶĚŽƵƚŚŽǁǁĞ ĐĂŶ ŚĞůƉ ƚƌĂŶƐĨŽƌŵ LJŽƵƌ ďƵƐŝŶĞƐƐ ĨŽƌ ƚŚĞŶĞǁĚŝŐŝƚĂůĞĐŽŶŽŵLJ revenues Rank Company name revenue Accounting Rank Company name revenue Accounting 2014 (Rank in 2013) EM Standard 2014 (Rank in 2013) EM Standard 1 AT&T (1) 93,516 US GAAP 51 turkcell (57) 4,340 iFRS 2 Verizon (3) 87,559 US GAAP 52 telekom Austria (58) 4,184 iFRS 3 ntt (2) 77,241 US GAAP 53 ote (54) 4,054 iFRS 4 China Mobile (4) 74,865 iFRS 54 BSNL (61) 3,871 indian GAAP 5 deutsche Telekom (6) 60,132 iFRS 55 iliad (70) 3,748 iFRS 6 telefonica (5) 57,061 iFRS 56 Millicom (64) 3,747 iFRS 7 Softbank (14) 47,133 iFRS 57 Shaw Comms (60) 3,689 iFRS 8 Vodafone (7) 46,388 iFRS 58 tdS (59) 3,560 US GAAP 9 America Movil (8) 43,668 iFRS 59 nii Holdings (56) 3,466 US GAAP 10 orange (9) 40,981 iFRS 60 Frontier Comms (63) 3,458 US GAAP 11 China Telecom (10) 38,204 iFRS 61 tele2 (51) 3,345 iFRS 12 China Unicom (12) 35,051 iFRS 62 tdC (65) 3,298 iFRS 13 kddi (11) 30,639 jap GAAP 63 idea Cellular (69) 3,222 indian GAAP 14 telecom Italia (13) 23,407 iFRS 64 Freenet (71) 3,193 iFRS 15 BT (16) 22,122 iFRS 65 zain (67) 3,188 iFRS 16 telstra (17) 17,477 AASB/IFRS 66 AIS (66) 3,150 thai FRS 17 Vimpelcom (18) 16,376 iFRS 67 telecom Argentina (68) 3,049 iFRS 18 kt (19) 16,191 korean IFRS 68 portugal Telecom (44) 2,911 iFRS 19 BCE (20) 13,852 iFRS 69 pLDT (72) 2,751 iFRS 20 CenturyLink (21) 13,143 US GAAP 70 CANTV (75) 2,617 Ven NSS 21 telenor (22) 12,341 iFRS 71 reliance Comms (73) 2,580 indian GAAP 22 teliaSonera (24) 11,389 iFRS 72 pCCW (80) 2,558 hk FRS 23 SK Telecom (27) 11,289 iFRS 73 Maroc Telecom (78) 2,509 iFRS 24 Liberty Global (38) 10,513 US GAAP 74 Global Telecom Holding (77) 2,504 iFRS 25 Bharti Airtel (28) 10,432 iFRS 75 tata Comms (81) 2,384 indian GAAP 26 SFR (30) 10,199 iFRS 76 telekom Malaysia (82) 2,343 MFRS 27 Comcast (31) 10,162 US GAAP 77 Spark New Zealand (79) 2,335 iFRS 28 SingTel (29) 9,726 Sing FRS 78 telkom SA (76) 2,271 iFRS 29 MTN (25) 9,444 iFRS 79 talkTalk (87) 2,083 iFRS 30 Swisscom (33) 9,327 iFRS 80 Charter Comms (86) 2,056 US GAAP 31 Saudi Telecom (26) 8,830 Saudi GAAP 81 Maxis Group (84) 2,002 MFRS 32 MTS (32) 8,822 US GAAP 82 Bezeq (85) 1,992 iFRS 33 oi (34) 8,736 iFRS 83 tot (89) 1,922 thai FRS 34 kpn (23) 8,472 iFRS 84 taiwan Mobile (92) 1,909 iFRS 35 LG Uplus (39) 7,786 korean IFRS 85 intelsat (88) 1,891 US GAAP 36 (35) 7,743 iFRS 86 SES Global (90) 1,863 iFRS 37 etisalat (42) 7,682 iFRS 87 SK Broadband (91) 1,727 korean IFRS 38 hutchison Whampoa (40) 7,589 hk FRS 88 polkomtel (93) 1,610 iFRS 39 rogers Comms (36) 7,296 iFRS 89 Cablevision (94) 1,586 US GAAP 40 rostelecom (37) 7,211 iFRS 90 Colt Telecom (95) 1,576 iFRS 41 ooredoo (41) 6,748 iFRS 91 Globe Telecom (new) 1,555 pFRS 42 MegaFon (43) 6,581 iFRS 92 elisa Corporation (96) 1,547 iFRS 43 Belgacom (45) 6,318 iFRS 93 Cable & Wireless (97) 1,362 iFRS 44 time Warner Cable (48) 5,701 US GAAP 94 StarHub (98) 1,351 Sing FRS 45 Chunghwa Telecom (46) 5,515 iFRS 95 eutelsat (100) 1,348 iFRS 46 pt Telkom (46) 4,978 indo FAS 96 idt (new) 1,222 US GAAP 47 Bouygues Telecom (50) 4,664 iFRS 97 telecom Egypt (new) 1,157 eAS 48 Level 3 (53) 4,585 US GAAP 98 MTS Allstream (99) 1,109 iFRS 49 turk Telekom (49) 4,476 iFRS 99 Cellcom (new) 1,026 iFRS 50 Windstream (55) 4,349 US GAAP 100 inmarsat (new) 917 iFRS

Source: Total Telecom/operator data

12 www.totaltele.com have a small impact on its the future shape of the pursuit, but as the Global 100 revenues–Leap, number 83 in Global 100. The firm holds a went to press it announced the table last year, has now fair amount of mobile that a second offer was also been removed–but there is at spectrum and has registered rejected. Iliad comes top of least one more deal in the its intention to participate in our ‘Revenue Risers’ table, pipeline that will have an the FCC’s planned auction of having gained 15 places since effect. AWS-3 spectrum in last year, but it has yet to AT&T agreed to buy November. With a mobile break into the top half of the satellite operator DirecTV operation, it would qualify to ranking. for $48.5 billion in May, a join the ranks of the Global Sprint’s new parent move that will significantly 100; its 2013 revenues totalled Softbank also made over- boost its presence in the TV $13.7 billion (€9.85 billion). tures to T-Mobile this year market. DirecTV’s 2013 Dish could also buy its with a view to merging the revenues came in at $31.75 way into the Global 100. It two. However, it backed away billion, which would put made an unsuccessful from that plan when AT&T well over the €100 attempt to acquire mobile regulators made it clear that billion revenues mark and operator Sprint in April 2013 such a move would not be solidify its position at the top and this year has been linked sanctioned. The acquisition of the ranking table. The with T-Mobile US, which, of Sprint propelled Softbank deal has yet to get the had we separated its results seven places up the table to go-ahead from regulators, out from those of parent number seven; Sprint but DirecTV shareholders company Deustche Telekom, contributed 39% to gave it the green light in would have ranked 16th in Softbank’s topline. September. the table in its own right. The US market also had a There is some opposition The two companies together bearing on Deutsche to the deal though, including would be 14th. Telekom’s rise up the table from rival satellite provider France’s Iliad was also in this year. The German Dish Network, which this the running for T-Mobile incumbent climbed one place summer warned that the US. It made a $33-per-share to number five, having added merged entity would have offer for 56.6% of the close to €2 billion to its too much control over the business in July, but that was revenues. While most of its content market. rebuffed as too low by other businesses saw revenue One way or another, Dish Deutsche Telekom. There declines, the US operation could well have an impact on was talk of it continuing its increased turnover by 20.7%, contributing 30.9% of the MARKET CAPITALISATION group’s top line. Its May 2013 acquistion of MetroPCS, Company revenue rank Market cap (Ebn) which has now disappeared China Mobile 4 186.77 from the table, helped boost Verizon 2 154.67 AT&T 1 135.55 that figure. Comcast 27 106.91 As a result, Deutsche Vodafone 8 68.38 Telekom has regained its Softbank 7 63.68 position as Europe’s biggest America Movil 9 62.89 telco, switching places with NTT 3 57.41 Spanish incumbent Telefonica 6 54.75 Telefonica, which lost more Deutsche Telekom 5 51.23 than €5 billion in revenues. (Market capitalisation as on 26 August 2014) Telefonica’s biggest Source: Total Telecom declines in the most recent 13 www.totaltele.com year came in Spain, where it for the company. Telefonica years; it dropped out of the saw revenues fall by over €2 is widely tipped to become a top 10 in 2011. billion, and in Brazil, where party to those talks, which Brazil is also important to its business contracted by means TIM could ultimately Mexico’s America Movil, €1.4 billion. Spain remains be sold off and its assets split which cemented its position the telco’s largest market, between its rivals. as Latin America’s biggest but only by a fraction ahead However, there has also operator by increasing of Brazil; the two markets been speculation that revenues in local currency account for 22.7% and 21.4% Telecom Italia is considering terms by 1.4%; however, it of its total respectively. a takeover bid for Oi. TIM fell one place in the ranking Telefonica generates more Brasil denied that formal to 9th as a result of revenue from Latin America talks were taking place, but Softbank’s growth. America than it does Europe and that did not comment on the Movil generated 63.5% of its looks set to continue after likelihood of its parent revenues from its home the operator in September company being interested in market and Brazil together. It agreed to pay €4.66 billion in cash plus a 12% stake in Telefonica Brasil for BRAZIL COULD HAVE A SIGNIFICANT Vivendi’s Brazilian broad- IMPACT ON THE RANKING IN FUTURE band subsidiary GVT.

BRAZILIAN BENEFITS such a move in future. While is facing challenges in Brazil is a key market for a most reports suggest that Mexico, where its fixed and number of operators and, Telecom Italia will be the mobile market shares stand despite the fact there is only target rather than the buyer at around 80% and 70% one Brazilian operator in the in Brazil, the telco does have respectively, as regulator Global 100–Oi, at number an incentive to retain its Ifetel pushes to increase 33–the country could have a Brazilian business. competition. It is working on significant impact on the Egyptian businessman a plan to sell off a portion of ranking in future years. Naguib Sawiris recently its assets in a bid to bring its The Brazilian mobile reiterated his interest in market share below 50% and market–one of the biggest in investing in Telecom Italia, thereby sidestep asymmetric the world with 276 million but only on the condition regulation and ultimately get subscribers as of the end of that it retains its operations the go-ahead to launch TV July, according to regulator in Brazil. Further, the loss of services. Shortly before the Anatel–is at the centre of TIM Brasil would have an Global 100 went to press, consolidation talk and it impact on Telecom Italia’s company founder Carlos looks as though one of its big position in the Global 100. Slim said in an interview that four operators will cease to The Italian incumbent the telco is working to reach exist in its current form in generated 29.7% of its agreement with potential the foreseeable future. revenues from Brazil in the buyers, but declined to Telecom Italia has been most recent financial year comment on speculation that fielding questions about the and as such would have AT&T is the most likely future of its TIM Brasil unit found itself at number 17 in candidate. Presuming all since the start of the year the table without that goes to plan, the rollout of a and in September America business. As it is, it has quad-play offer in Mexico Movil confirmed its inten- slipped one place to number should offset the revenue lost tion to hold talks with Oi 14, continuing its steady through the sale of fixed and regarding a possible joint bid decline over the past few mobile assets. 14 www.totaltele.com net income & Return on Revenues rank Company name Net income/ ror rank Company name Net income/ ror 2014 (rank in 2013) loss Em 2014 (rank in 2013) loss Em 1 Vodafone (35) 71,882 155.0% 51 Bharti Airtel (57) 367 3.5% 2 Verizon (2) 17,103 19.5% 52 telecom Argentina (50) 363 11.9% 3 China Mobile (1) 14,470 19.3% 53 ote (47) 323 8.0% 4 AT&T (4) 13,476 14.4% 54 eutelsat (55) 316 23.5% 5 ntt (3) 5,351 6.9% 55 telecom Egypt (new) 308 26.6% 6 Comcast (na) 5,182 51.0% 56 Spark New Zealand (69) 295 12.6% 7 telefonica (6) 4,969 8.7% 57 pCCW (61) 286 11.2% 8 America Movil (5) 4,165 9.5% 58 telkom SA (88) 271 11.9% 9 Softbank (9) 4,144 8.8% 59 iliad (65) 265 7.1% 10 telstra (10) 2,999 17.2% 60 idea Cellular (68) 239 7.4% 11 kddi (16) 2,516 8.2% 61 Freenet (66) 239 7.5% 12 BT (11) 2,441 11.0% 62 telekom Malaysia (58) 231 9.9% 13 orange (25) 2,133 5.2% 63 StarHub (62) 212 15.7% 14 SingTel (14) 2,111 21.7% 64 elisa Corporation (64) 196 12.7% 15 MTN (15) 2,103 22.3% 65 LG Uplus (81) 190 2.4% 16 China Telecom (17) 2,099 5.5% 66 Windstream (72) 175 4.0% 17 Saudi Telecom (18) 1,978 22.4% 67 Millicom (52) 149 4.0% 18 teliaSonera (12) 1,878 16.5% 68 reliance Comms (75) 138 5.4% 19 MTS (24) 1,789 20.3% 69 tdS (77) 121 3.4% 20 tele2 (53) 1,634 48.8% 70 telekom Austria (76) 110 2.6% 21 BCE (13) 1,621 11.7% 71 tot (63) 97 5.1% 22 etisalat (23) 1,533 19.9% 72 inmarsat (new) 93 10.1% 23 telenor (22) 1,438 11.7% 73 Frontier Comms (74) 84 2.4% 24 Swisscom (21) 1,383 14.8% 74 Globe Telecom (new) 81 5.2% 25 China Unicom (34) 1,236 3.5% 75 Cellcom (new) 60 5.8% 26 pt Telkom (20) 1,217 24.5% 76 Colt Telecom (78) 38 2.4% 27 deutsche Telekom (92) 1,204 2.0% 77 talkTalk (73) 34 1.6% 28 MegaFon (30) 1,146 17.4% 78 Bouygues Telecom (80) 13 0.3% 29 SK Telecom (36) 1,094 9.7% 79 tata Communications (82) 12 0.5% 30 Chunghwa Telecom (27) 1,031 18.7% 80 idt (new) 10 0.8% 31 turkcell (32) 893 20.6% 81 SK Broadband (79) 8 0.5% 32 telus (28) 879 11.3% 82 KT (37) -41 -0.3% 33 AIS (33) 799 25.4% 83 MTS Allstream (71) -57 -5.2% 34 Cable & Wireless (70) 691 50.8% 84 polkomtel (na) -76 -4.7% 35 ooredoo (29) 656 9.7% 85 Level 3 (86) -79 -1.7% 36 Belgacom (39) 652 10.3% 86 CenturyLink (46) -174 -1.3% 37 zain (38) 627 19.7% 87 intelsat (83) -183 -9.7% 38 CANTV (na) 581 22.2% 88 kpn (40) -215 -2.5% 39 pLDT (42) 579 21.1% 89 telecom Italia (90) -238 -1.0% 40 SES Global (44) 569 30.5% 90 Liberty Global (60) -658 -6.3% 41 Shaw Comms (45) 563 15.2% 91 BSNL (89) -1,125 -29.1% 42 Maroc Telecom (43) 559 22.3% 92 nii Holdings (87) -1,198 -34.6% 43 rostelecom (31) 534 7.4% 93 Global Telecom Holding (85) -2,117 -84.5% 44 oi (41) 459 5.3% 94 Vimpelcom (19) -2,969 -18.1% 45 turk Telekom (26) 430 9.6% - Cablevision (na) NA nA 46 tdC (48) 418 12.7% - Charter Comms (na) nA NA 47 Maxis Group (49) 391 19.5% - hutchison Whampoa (na) NA nA 48 portugal Telecom (56) 388 13.3% - rogers Comms (na) NA nA 49 taiwan Mobile (51) 377 19.7% - SFR (na) NA nA 50 Bezeq (54) 369 18.5% - time Warner Cable (na) NA nA

Source: Total Telecom/operator data

15 www.totaltele.com the global 100 (1-50) Rank Company name revenue revenue net income net income Country of Financial 2014 (Rank in 2013) reporting €m /net loss /loss €m reporting/ Year end c CUrrenCY reporting c CUrrency (m) CUrrency (m) 1 AT&T (1) 128,752 93,516 18,553 13,476 US/USD 31 Dec 2013 2 Verizon (3) 120,550 87,559 23,547 17,103 US/USD 31 Dec 2013 3 ntt (2) 10,925,174 77,241 756,857 5,351 japan/JPY 31 Mar 2014 4 China Mobile (4) 630,177 74,865 121,803 14,470 China/CNY 31 Dec 2013 5 deutsche Telekom (6) 60,132 60,132 1,204 1,204 Germany/EUR 31 Dec 2013 6 telefonica (5) 57,061 57,061 4,969 4,969 SpainEUR 31 Dec 2013 7 Softbank (14) 6,666,651 47,133 586,149 4,144 japan/JPY 31 Mar 2014 8 Vodafone (7) 38,346 46,388 59,420 71,882 UK/GBP 31 Mar 2014 9 America Movil (8) 786,101 43,668 74,974 4,165 Mexico/MXN 31 Dec 2013 10 orange (9) 40,981 40,981 2,133 2,133 France/EUR 31 Dec 2013 11 China Telecom (10) 321,584 38,204 17,666 2,099 China/CNY 31 Dec 2013 12 China Unicom (12) 295,038 35,051 10,408 1,236 China/CNY 31 Dec 2013 13 kddi (11) 4,333,628 30,639 355,857 2,516 japan/JPY 31 Mar 2014 14 telecom Italia (13) 23,407 23,407 -238 -238 italy/EUR 31 Dec 2013 15 BT (16) 18,287 22,122 2,018 2,441 UK/GBP 31 Mar 2014 16 telstra (17) 25,320 17,477 4,345 2,999 AustraliaAUD 30 Jun 2014 17 Vimpelcom (18) 22,546 16,376 -4,088 -2,969 russiaUSD 31 Dec 2013 18 kt (19) 23,810,599 16,191 -60,251 -41 korea/KRW 31 Dec 2013 19 BCE (20) 20,400 13,852 2,388 1,621 CanadaCAD 31 Dec 2013 20 CenturyLink (21) 18,095 13,143 -239 -174 US/USD 31 Dec 2013 21 telenor (22) 104,027 12,341 12,123 1,438 norway/NOK 31 Dec 2013 22 teliaSonera (24) 101,700 11,389 16,767 1,878 Sweden/SEK 31 Dec 2013 23 SK Telecom (27) 16,602,054 11,289 1,609,549 1,094 korea/KRW 31 Dec 2013 24 Liberty Global (38) 14,474 10,513 -906 -658 US/USD 31 Dec 2013 25 Bharti Airtel (28) 858,635 10,432 30,194 367 indiaINR 31 Mar 2014 26 SFR (30) 10,199 10,199 nA NA France/EUR 31 Dec 2013 27 Comcast (31) 13,991 10,162 7,135 5,182 US/USD 31 Dec 2013 28 SingTel (29) 16,848 9,726 3,657 2,111 Singapore/SGD 31 Mar 2014 29 MTN (25) 136,495 9,444 30,400 2,103 South Africa/ZAR 31 Dec 2013 30 Swisscom (33) 11,434 9,327 1,695 1,383 Switzerland/CHF 31 Dec 2013 31 Saudi Telecom (26) 45,605 8,830 10,218 1,978 Saudi Arabia/SAR 31 Dec 2013 32 MTS (32) 398,443 8,822 80,788 1,789 russia/RUB 31 Dec 2013 33 oi (34) 28,422 8,736 1,493 459 Brazil/BRL 31 Dec 2013 34 kpn (23) 8,472 8,472 -215 -215 netherlands/EUR 31 Dec 2013 35 LG Uplus (39) 11,450,300 7,786 279,463 190 korea/KRW 31 Dec 2013 36 telus (35) 11,404 7,743 1,294 879 Canada/CAD 31 Dec 2013 37 etisalat (42) 38,853 7,682 7,751 1,533 UAE/AED 31 Dec 2013 38 hutchison Whampoa (40) 81,048 7,589 nA NA hong Kong/HKD 31 Dec 2013 39 rogers Comms (36) 10,745 7,296 nA NA Canada/CAD 31 Dec 2013 40 rostelecom (37) 325,704 7,211 24,131 534 russia/RUB 31 Dec 2013 41 ooredoo (41) 33,851 6,748 3,293 656 Qatar/QAR 31 Dec 2013 42 MegaFon (43) 297,229 6,581 51,770 1,146 russia/RUB 31 Dec 2013 43 Belgacom (45) 6,318 6,318 652 652 Belgium/EUR 31 Dec 2013 44 time Warner Cable (48) 7,849 5,701 nA NA US/USD 31 Dec 2013 45 Chunghwa Telecom (46) 227,981 5,515 42,618 1,031 taiwan/TWD 31 Dec 2013 46 pt Telkom (46) 82,967,000 4,978 20,290,000 1,217 indonesia/IDR 31 Dec 2013 47 Bouygues (50) 4,664 4,664 13 13 France/EUR 31 Dec 2013 48 Level 3 (53) 6,313 4,585 -109 -79 US/USD 31 Dec 2013 49 turk Telekom (49) 13,190 4,476 1,267 430 turkey/TRY 31 Dec 2013 50 Windstream (55) 5,988 4,349 241 175 US/USD 31 Dec 2013

16 www.totaltele.com the global 100 (51-100)

Rank Company name revenue revenue net income net income Country of Financial 2014 (Rank in 2013) reporting €m /net loss /loss €m reporting/ Year end c CUrrenCY reporting c CUrrency (m) CUrrency (m) 51 turkcell (57) 5,975 4,340 1,229 893 turkey/USD 31 Dec 2013 52 telekom Austria (58) 4,184 4,184 110 110 Austria/EUR 31 Dec 2013 53 ote (54) 4,054 4,054 323 323 Greece/EUR 31 Dec 2013 54 BSNL (61) 271,279 3,871 -78,844 -1,125 india/INR 31 Mar 2013 55 iliad (70) 3,748 3,748 265 265 France/EUR 31 Dec 2013 56 Millicom (64) 5,159 3,747 205 149 Luxembourg/USD 31 Dec 2013 57 Shaw Comms (60) 5,142 3,689 784 563 Canada/CAD 31 Aug 2013 58 tdS (59) 4,901 3,560 167 121 US/USD 31 Dec 2013 59 nii Holdings (56) 4,773 3,466 -1,650 -1,198 US/USD 31 Dec 2013 60 Frontier Comms (63) 4,762 3,458 115 84 US/USD 31 Dec 2013 61 tele2 (51) 29,871 3,345 14,590 1,634 Sweden/SEK 31 Dec 2013 62 tdC (65) 24,605 3,298 3,119 418 denmark/DKK 31 Dec 2013 63 idea Cellular (69) 265,189 3,222 19,678 239 india/INR 31 Mar 2014 64 Freenet (71) 3,193 3,193 239 239 Germany/EUR 31 Dec 2013 65 zain (67) 1,240 3,188 244 627 kuwait/KWD 31 Dec 2013 66 AIS (66) 142,783 3,150 36,230 799 thailand/THB 31 Dec 2013 67 telecom Argentina (68) 27,350 3,049 3,254 363 Argentina/ARS 31 Dec 2013 68 portugal Telecom (44) 2,911 2,911 388 388 portugal/EUR 31 Dec 2013 69 pLDT (72) 168,331 2,751 35,453 579 philippines/PHP 31 Dec 2013 70 CANTV (75) 22,735 2,617 5,048 581 Venezuela/VEF 31 Dec 2013 71 reliance Comms (73) 212,380 2,580 11,370 138 india/INR 31 Mar 2014 72 pCCW (80) 27,317 2,558 3,055 286 hong Kong/HKD 31 Dec 2013 73 Maroc Telecom (78) 28,559 2,509 6,359 559 Morocco/MAD 31 Dec 2013 74 Global Telecom Hldg (77) 3,447 2,504 -2,914 -2,117 egypt/USD 31 Dec 2013 75 tata Comms (81) 196,196 2,384 1,028 12 india/INR 31 Mar 2014 76 telekom Malaysia (82) 10,629 2,343 1,048 231 Malaysia/MYR 31 Dec 2013 77 Spark New Zealand (79) 3,638 2,335 460 295 new Zealand/NZD 30 Jun 2014 78 telkom SA (76) 33,061 2,271 3,943 271 South Africa/ZAR 31 Mar 2014 79 talkTalk (87) 1,722 2,083 28 34 UK/GBP 31 Mar 2014 80 Charter Comms (86) 2,830 2,056 nA NA US/USD 31 Dec 2013 81 Maxis Group (84) 9,084 2,002 1,772 391 Malaysia/MYR 31 Dec 2013 82 Bezeq (85) 9,563 1,992 1,771 369 israel/ILS 31 Dec 2013 83 tot (89) 87,132 1,922 4,414 97 thailand/THB 31 Dec 2013 84 taiwan Mobile (92) 78,928 1,909 15,583 377 taiwan/TWD 31 Dec 2013 85 intelsat (88) 2,604 1,891 -252 -183 Bermuda/USD 31 Dec 2013 86 SES Global (90) 1,863 1,863 569 569 Luxembourg/EUR 31 Dec 2013 87 SK Broadband (91) 2,539,366 1,727 12,306 8 Korea/KRW 31 Dec 2013 88 polkomtel (93) 6,682 1,610 -317 -76 poland/PLN 31 Dec 2013 89 Cablevision (94) 2,184 1,586 nA NA US/USD 31 Dec 2013 90 Colt Telecom (95) 1,576 1,576 38 38 Luxembourg/EUR 31 Dec 2013 91 Globe Telecom (new) 95,141 1,555 4,960 81 philippines/PHP 31 Dec 2013 92 elisa Corp (96) 1,547 1,547 196 196 Finland/EUR 31 Dec 2013 93 Cable & Wireless (97) 1,873 1,362 951 691 UK/USD 31 Mar 2014 94 StarHub (98) 2,359 1,351 371 212 Singapore/SGD 31 Dec 2013 95 eutelsat (100) 1,348 1,348 316 316 France/EUR 30 Jun 2014 96 idt (new) 1,621 1,222 13 10 US/USD 31 Jul 2013 97 telecom Egypt (new) 11,135 1,157 2,961 308 egypt/EGP 31 Dec 2013 98 MTS Allstream (99) 1,634 1,109 -84 -57 Canada/CAD 31 Dec 2013 99 Cellcom (new) 4,927 1,026 288 60 israel/ILS 31 Dec 2013 100 inmarsat (new) 1,262 917 127 93 US/USD 31 Dec 2013

17 www.totaltele.com Oi cannot reasonably Portuguese assets, with sold off certain assets. This expect to displace America French cable operator Altice year the group saw its Movil as Latin America’s named as a likely buyer. Oi turnover fall by 16%, highest ranking operator any responded, saying it has yet pushing it down three places time soon. It could improve to make a decision on the to number 59. NII in its on its position in next year’s sale of assets in Portugal, but current state might not table through M&A, the subsequent abrupt feature in future issues of the although at the time of resignation of Oi CEO Zeinal Global 100; it filed for writing the deal it is working Bava, architect of the Chapter 11 bankruptcy on looks to be under threat. Portugal Telecom deal, lends protection in September. The Brazilian telco is in credence to the reports. Another telco that runs the process of merging with NII Holdings, which the risk of missing out next Portugal Telecom–there are operates mobile services in year is Cable & Wireless already cross ownerships Brazil, Argentina and Mexico Communications, which in between the pair–to create a under the Nextel brand has May closed the €321.8 million new entity with revenues of €11.65 billion based on the most recent numbers, LATIN AMERICA BRINGS THE MOST putting it at number 22 in INTRIGUE, ASIA THE MOST REVENUE the table, between Telenor and TeliaSonera. However, there are rumours that Oi is seen its revenues shrink in sale of its Monaco Telecom looking to unwind the recent years as customers business to French business- merger and sell off the defected and the company man and Iliad founder Xavier

18 www.totaltele.com Niel. The move formed part generated by the six opera- report. Indeed, China Mobile of its “strategy to focus...on tors in the table representing improved its revenues by the Caribbean and Latin Japan and China. As in 12.45% in local currency America region,” Cable & previous years, Japan terms this year, which Wireless said. The telco accounted for the larger translated to an increase of would still have made it into share, but without Sprint’s €7.74 billion. Furthermore, in this year’s ranking even contribution to Softbank it its half year report for 2014, without the revenues it would have fallen behind China Mobile reported a generated in Monaco, but China for the first time (see turnover of 324.68 billion would have found itself Methodology for details of yuan, up 7.1% on the dangerously close to the how geographic revenues are year-ago period. NTT needs bottom of the list. calculated). to watch its back. China’s three operators Four of the nine operators Regional reckoning between them generated on the ‘Revenue Risers’ table While Latin America brings €148.12 billion, up by more hail from the Asia-Pacific, the most intrigue to the 2014 than €17 billion from last including Indian state-owned Global 100, the Asia-Pacific year. All three make it into operator BSNL, which has region accounts for the most the top dozen of the ranking, for years struggled to revenue, overtaking Europe, with China Telecom and compete in a high-growth which has to date contrib- China Unicom taking 11th mobile market dominated by uted the biggest share. The and 12th places respectively. Bharti Airtel and Vodafone. 30 ranked operators of the China Mobile retains fourth Bharti also rose up the Asia-Pacific together spot, but it is snapping at the ranking gaining three places generated €429.78 billion in heels of NTT, which is now to take 25th spot, driven by the most recent financial just €2.38 billion ahead. growth across its businesses. year; the entire Global 100 Given the recent growth rate Vodafone’s Indian unit saw generated €1.22 trillion, of the Chinese players–see service revenue increase by down from €1.28 trillion last ‘Geography’ section for more 13% in local currency terms, year. information–it could which helped drive group Just over 70%–€303.13 conceivably make it into the revenues, offsetting weak- billion–of the Asia figure was top three in next year’s ness in its more developed European markets. While the UK-based CHINA MOBILE IS SNAPPING AT THE operator slid one place down HEELS OF JAPAN’S NTT the ranking this year to number eight, the $130 Global 100 revenues by region billion sale of its 45% stake in Verizon Wireless propelled it 21.74% 35.31% to the top of the net income table, its bottom line being more than four times that of Verizon at number two. But 3.89% while Vodafone’s position is doubtless a one-off, Verizon 5.36% stands every chance of Asia Pacific 35.31% topping the table next year. Europe 33.69% North America 21.74% Mary Lennighan Latin America 5.36% 33.69% [email protected] Middle East & Africa 3.89% Source: Total Telecom @TelecomEditor 19 www.totaltele.com people rank Company Current ChieF eMployees rank Company Current ChieF eMployees executive executive 1 AT&T Randall Stephenson 243,360 51 turkcell Süreyya Ciliv 14,315 2 Verizon Lowell McAdam 176,800 52 telekom Austria hannes Ametsreiter 16,347 3 ntt Hiroo Unoura 239,756 53 ote Michael Tsamaz 22,667 4 China Mobile Li Yue 197,030 54 BSNL R.K. Upadhyay 252,492 5 deutsche Telekom Timotheus Höttges 229,704 55 iliad Maxime Lombardini 6,876 6 telefonica César Alierta 129,893 56 Millicom Hans-Holger Albrecht 10,951 7 Softbank Masayoshi Son 70,336 57 Shaw Comms Bradley Shaw 14,500 8 Vodafone 92,812 58 tdS LeRoy Carlson 10,500 9 America Movil Daniel Hajj Aboumrad 173,174 59 nii Holdings Steven Shindler 13,600 10 orange Stéphane Richard 159,515 60 Frontier Comms Mary A Wilderotter 13,650 11 China Telecom Wang Xiaochu 306,545 61 tele2 Mats Granryd 6,143 12 China Unicom Chang Xiaobing 222,270 62 tdC Carsten Dilling 9,007 13 kddi Takashi Tanaka 27,073 63 idea Cellular Himanshu Kapania nA 14 telecom Italia Marco Patuano 75,342 64 Freenet Christoph Vilanek 4,492 15 BT Gavin Patterson 87,800 65 zain Scott Gegenheimer 6,600 16 telstra David Thodey 31,931 66 AIS Wichian Mektrakarn nA 17 Vimpelcom Jo Lunder 57,842 67 telecom Argentina Stéfano de Angelis 16,581 18 kt Chang-Gyu Hwang 32,451 68 portugal Telecom Henrique Granadeiro 12,729 19 BCE George Cope 55,830 69 pLDT Napoleon Nazareno 17,899 20 CenturyLink Glen Post, III 47,000 70 CANTV Socorro Hernandez nA 21 telenor Jon Fredrik Baksaas 32,000 71 reliance Comms Vinod Sawhny nA 22 teliaSonera Johan Dennelind 25,321 72 pCCW BG Srinivas 22,200 23 SK Telecom Sung Min Ha 23,789 73 Maroc Telecom Abdeslam Ahizoune 11,912 24 Liberty Global Michael Fries 35,000 74 Global Telecom Hg Vincenzo Nesci 11,723 25 Bharti Airtel G Vittal/C de Faria 24,893 75 tata Comms Vinod Kumar 8,128 26 SFR Jean-Yves Charlier 9,432 76 telekom Malaysia Dato’ Zam Isa 27,830 27 Comcast Brian Roberts 136,000 77 Spark NZ Simon Moutter nA 28 SingTel Chua Sock Koong 21,830 78 telkom SA Sipho Maseko 19,197 29 MTN Sifiso Dabengwa 25,424 79 talkTalk Dido Harding 2,308 30 Swisscom Urs Schaeppi 19,746 80 Charter Comms Thomas Rutledge 21,000 31 Saudi Telecom Khaled Al Ghoneim nA 81 Maxis Group Morten Lundal 3,500 32 MTS Andrei Dubovskov 67,715 82 Bezeq Stella Handler 6,479 33 oi Bayard Gontijo 42,571 83 tot Yongyuth Wattanasin nA 34 kpn Eelco Blok 20,222 84 taiwan Mobile James Jeng 2,379 35 LG Uplus Sang-Chul Lee 6,780 85 intelsat David McGlade 1,079 36 telus Joe Natale 43,400 86 SES Global Karim Michel Sabbagh 1,237 37 etisalat Ahmad Julfar nA 87 SK Broadband Ahn Seung Yun nA 38 hutchison Wh. Canning Fok nA 88 polkomtel Tobias Solorz nA 39 rogers Comms Guy Laurence 28,026 89 Cablevision James Dolan nA 40 rostelecom Sergey Kalugin 152,586 90 Colt Telecom Rakesh Bhasin 5,039 41 ooredoo Nasser Marafih 1,715 91 Globe Telecom Ernest Cu 5,987 42 MegaFon Ivan Tavrin 33,500 92 elisa Corporation Veli-Matti Mattila 4,320 43 Belgacom Dominique Leroy 15,753 93 Cable & Wireless Phil Bentley 4,748 44 time Warner Cable robert Marcus 51,600 94 StarHub Tan Tong Hai 3,528 45 Chunghwa Telecom Lih-Shyng Tsai 32,187 95 eutelsat Michel de Rosen 910 46 pt Telkom Arief Yahya 25,011 96 idt Samuel Jonas 1,320 47 Bouygues Telecom Olivier Roussat 9,092 97 telecom Egypt Mohamed El-Nawawy nA 48 Level 3 Jeff Storey 10,000 98 MTS Allstream Pierre Blouin 4,849 49 turk Telekom rami Aslan 34,441 99 Cellcom Nir Sztern 4,403 50 Windstream Jeffery Gardner 13,434 100 inmarsat Rupert Pearce 1,622 Source: Total Telecom/operator data

20 www.totaltele.com methodology SOURCING THE DATA The Global 100 table is based on the latest published revenue and New Zealand’s Telecom Corp changed its name to Spark New net income figures for operators’ full financial years, predomi- Zealand in August 2014. nantly ending 31 December 2013, but also 31 March 2014 and 30 June 2014. In some cases the latest figures from the most recent There are five newcomers to the table: Globe Telecom, IDT, financial year were unavailable at the time of going to press. Telecom Egypt, Cellcom, and Inmarsat. Despite the distortion induced by this difference in reporting, we decided to include some of these companies provided they were Companies that are newcomers to the table this year are marked significant enough in their national markets. This was the case as ‘new’; we have not listed these companies’ rankings from last for BSNL (31 March 2013), IDT (31 July 2013) and Shaw Com- year, which would have been higher than 100 and could poten- munications (31 August 2013). tially have distorted the ‘risers’ and ‘fallers’ tables. A company We strove to use audited consolidated revenue and net income is still considered to be new even if it has appeared in previous data. Whenever available we used revenue and net income issues of the Global 100. figures as reported under IFRS (International Financial Reporting Standard). When IFRS reporting was unavailable we strove to REGIONAL SPLITS use data under US GAAP (United States Generally Accepted For the most part companies were categorised based on the Accounting Principles). National reporting standards were used region in which they are headquartered, rather than the region in otherwise. which they generate most revenues. However, a company reg- istered in a region in which it has no operations was considered EXTRACTION OF TELECOMS REVENUES part of the region in which it generates the bulk of its revenues. Some of the ranked companies’ activities span non-telecommu- Specifically, Luxembourg-based Millicom International Cellular nications industries. In these instances we have endeavoured was considered part of Latin America, while US-based Liberty to extract telecoms-related revenue to avoid distorting reporting using segment infomation reported by these companies. Cor- Global is classed as being part of Europe, having been incorrectly responding net income data by segment was often unavailable. categorised with the North America operators last year. Cable & These companies include: SFR (a subsidiary of Vivendi), Comcast Wireless Communications remains as part of Europe this year, (high-speed Internet and phone only), Hutchison Whampoa, Rog- but following the disposal of its Monaco business in May it will ers Communications, Time Warner Cable (high-speed data and move to Latin America next year. voice only), Charter Communications (high-speed Internet and telephone only) and Cablevision (high-speed data and voice). EXCHANGE RATES We used historical mid-market rates at noon eastern time on the DOUBLE COUNTING day of reporting, provided by www.xe.com. Mid-market rates are There is a degree of double-counting of revenue and net income derived from mid-point between the buy and sell rates of large- in this league table due to minority shareholdings associated with value transactions in the global currency markets. As our analy- a degree of free flotation of remaining shares. Double-counting sis does not use consistent exchange rate comparisons, some may arise from shareholdings by multiple parties in a company. companies may benefit and others lose from a conversion of their COMPANY NOTES revenue and net income figure into euros. Conversion into euros Sprint has been removed from the table, having been acquired by is indicative and provides no like-for-like comparison. Companies Softbank in July 2013. whose figures were not available for the most recent financial year have had the latest exchange rate applied to ensure there is Virgin Media was removed from the table following its acquisition no advantage or disadvantage from a different exchange rate. by Liberty Global. CEO AND EMPLOYEES America Movil has fully consolidated Net Serviços’ results into its We listed the name of the chief executive officer of the company own, therefore the latter no longer features in the ranking. at the time of going to press, rather than at the time of publication of the financial results. MetroPCS was acquired by Deutsche Telekom in May 2013 and merged with T-Mobile US. It has been removed from the ranking. Bharti Airtel has two CEOs: Gopal Vittal heads up its India and Leap Wireless is now part of AT&T. South Asia operations; Christian de Faria leads its Africa business.

Global Telecom Holding replaces Orascom Telecom in the rank- We strove to obtain the latest number of employees for each ing. The company’s name changed in September 2013. company, but this data was not available in all cases.

21 www.totaltele.com ON A SPOILING FOR IN AT THE ROLL A FIGHT DEEP END

LOWELL McADAM MASAYOSHI SON MARCO PATUANO CHIEF EXECUTIVE CHAIRMAN & CEO CHIEF EXECUTIVE VERIZON SOFTBANK TELECOM ITALIA Verizon picked up this year Thwarted in his attempt to Patuano’s tenure as Telecom where it left off in 2013. acquire T-Mobile US and Italia’s head honcho has been While smaller rivals Sprint merge it with Sprint, eventful thus far to say the and T-Mobile have hogged Softbank CEO Masayoshi least. Appointed in October the limelight, the US telco Son opted to appoint, in his 2013 following the resigna- has quietly but consistently words, a street-fighter-cum- tion of Franco Bernabe, he reported impressive postpaid pirate to head up his US has since had to steer the net additions at its mobile business. Marcelo Claure has Italian incumbent through business. Confidence is been tasked with reinventing the unravelling of its biggest sufficiently high that Sprint as a value player, shareholder, the Telco McAdam has gone on record offering an alternative to consortium, and a wealth of to talk subscriber numbers AT&T and Verizon, and speculation surrounding its several weeks in advance of pitting it directly against Brazilian mobile unit. publishing official quarterly T-Mobile. TIM Brasil’s future is figures. Meanwhile, its Son’s ambitions do not uncertain after Telecom bottom line has received a stop at the US though. Italia lost out to Telefonica in boost from its $130 billion Softbank has been linked its pursuit of local fixed acquisition of Vodafone’s with a move for Vodafone broadband provider GVT. As 45% stake in Verizon and has been named as a we went to press it was Wireless. possible suitor for a portion unclear whether Telecom It has not all been plain of America Movil assets in Italia plans to make an offer sailing though. Verizon was Mexico. It is also worth for Brazil’s Oi or whether it at the epicentre of the net mentioning Alibaba. The will be the subject of a joint neutrality earthquake that Chinese e-commerce giant’s takeover bid by its rivals, Oi could potentially pave the September IPO was the included. Let’s not forget way for strict new broadband biggest ever, raising $25 that Patuano also has the regulations in the US. It also billion, which values considerable matter of abandoned plans to throttle Softbank’s 34.1% stake in the reducing Telecom Italia’s headline 4G speeds following company at a staggering $70 hefty net debt to contend pressure from the FCC. billion. with. 22 www.totaltele.com UPWARDLY GOING FOUR OF MOBILe DUTCH A KIND

XAVIER NIEL MICHAEL FRIES CHARLIE ERGEN FOUNDER PRESIDENT & CEO CHAIRMAN & CO-FOUNDER ILIAD Liberty Global DISH NETWORK Xavier Niel has not rested on M&A is the main driver Former pro poker player his laurels since shaking up behind Liberty Global’s rise Charlie Ergen hopes that the the French mobile market up this year’s Global 100 FCC’s upcoming AWS-3 two years ago and has set his ranking, particularly its 2013 spectrum auction will give sights on taking his disrup- purchase of UK cableco him a full house; that is, a tive mobile strategy to Virgin Media. The transac- mobile service with which to pastures new. After snapping tion, worth €17 billion, augment his company’s up Monaco Telecom from closed in June 2013. The triple-play offering, and a Cable & Wireless US-based company’s telecoms business big enough Communications in May, the acquisition strategy yielded to give it a seat among the Iliad founder and strategy mixed results though; it was Global 100. chief turned his attention beaten in its pursuit of Given the consolidation in westward, making a $15 Germany’s Kabel the US pay TV market this billion swoop for T-Mobile Deutschland by Vodafone. year–Comcast agreed to US, only to be rejected by Undeterred, Fries has acquire Time Warner Cable parent company Deutsche continued to look at M&A and AT&T is buying Telekom. It abandoned those opportunities in Europe this DirecTV–establishing a ambitions altogether in year, agreeing in January to mobile presence could prove October. acquire Dutch cable provider crucial to Dish. It is not Nonetheless, the telco was for €10 billion and surprising that it has been the biggest riser in this year’s merge it with Liberty’s local linked with a possible move Global 100 table, gaining 15 subsidiary UPC. The EU is for T-Mobile US, although places, and could break into currently examining the Ergen has so far kept his the top half next year. It deal’s consequences for cards close to his chest. grew revenues by 10% in the competition in the In the meantime, Dish is first six months of 2014 and Netherlands; its decision is working on a video stream- added 1 million mobile due in November. Fries is no ing service aimed at young subscribers, giving its mobile doubt hoping for a revenue- adults looking for a cheaper arm Free Mobile a customer boosting thumbs up from alternative to pay TV. It aims base of 9 million. Brussels. to launch by year-end. 23 www.totaltele.com CONTRIBUTED CONTENT Where Should You Focus Investment in Your Projects? JUNIPER NETWORKS SHARES ITS MULTI-VENDOR EXPERIENCE

ll network, telecom and It is important, however, have led us to conclude that Asecurity projects require that the integrator or VAR a simple three-phase the investment of resources, be accredited by the vendors approach to projects reduces both human and financial. that are part of the solution. complexity whilst still Acquiring hardware and Good advice depends on an allowing the granularity software is of course a major in-depth, up-to-date necessary to ensure project investment, but the invest- understanding of the success. ment in the planning and products, technologies, and It starts with a Plan phase, operations that go around best practices appropriate to in which the project goals the equipment is in many the project. When a vendor are established, the architec- ways just as important, and certifies and accredits a ture is detailed, the products may turn out to be the bulk partner it is a sign that they selected and the design of the project. This requires have met rigorous standards finalized. The model then a depth of skills and to ensure the highest quality moves on to the actual Build experience that many of service. This provides you phase of the project, organizations do not possess, with the assurance that the comprising testing, proof-of- and they are needed only for VAR or integrator really is concept, staging, migration the period of the project. Bringing in outside assis- GOOD ADVICE DEPENDS ON IN-DEPTH, tance is an extremely UP-TO-DATE UNDERSTANDING cost-effective way of ensuring project success. on top of its game and can and finally the move into Such consulting resources be counted on to provide an production. The project now are available from many informed recommendation enters the Operate phase as sources; independent based on the same tools and new products and services consultants or the product methodologies that the are integrated into the daily vendor can be a good source vendors would have used. operational environment. As of such expertise, but in Juniper Networks has a the environment evolves many cases a well-qualified broad experience in deploy- over time and new needs Network Integrator or ing multi-vendor solutions, arise, a new planning phase Value-Added Reseller (VAR) often developed in conjunc- is necessary, and the lifecycle will be your best choice since tion with knowledgeable starts again. they can put together a network integration partners multi-vendor solution and or VARs whose skills we Planning Makes the Difference provide consulting on the have certified. Thousands of Putting in place the right ensemble. engagements of this type resources for every phase of 24 www.totaltele.com CONTRIBUTED CONTENT any project is the key to enhanced technology example of where vendor success. When planning for roadmap certification is important. new or radically different n When seeking a new At Juniper Networks, for technologies such as perspective on which example, our detailed Software Defined Networks technologies to consider network consulting and and Network Function n When dissatisfied with the project management Virtualization, a substantial current network/security methodologies are shared investment is required in vendor and evaluating new with our certified order to best determine how one. Professional Services to fit them into any particu- However, experience partners, ensuring effective lar environment. shows that the most success- project planning and design. Organizations with highly ful projects begin first with skilled staff will nevertheless an initial assessment of the Turning Plans into Reality need to provide them with current environment, and a As the name suggests, the training and testing very clear description of the Build phase focuses on the opportunities. Other teams needs and requirements of deployment of products in will not be as fortunate, the desired environment the test and production having no resources to spare – not just what it will do but environments. This includes on gaining the skills how it will be managed on a migration from the existing necessary. External consul- day-to-day basis, regardless environment to the new tants can be a very cost-ef- of the actual product environment, installation fective way for them to selected. Detailed planning and configuration, system secure the right skills at the of how to migrate from the test, and system bring-up. right time – and only for the current state to the desired There is also likely to be a period those skills are state is crucial to avoid lot of activity to integrate needed. Typical scenarios unexpected problems, delays, the management of the new where this would be and user or application down equipment into existing appropriate include: time. This kind of activity is administrative structures. A n When considering the not something that can be network integrator is an development of a new or improvised, and is an excellent choice of partner for the development of the necessary interfaces into an the juniper networking lifecycle existing network manage- ment environment. The integrator can also handle PLAN BUILD OPERATE much of the logistics involved in receiving, staging and deploying equipment when and where the networking lifecycle it is needed.

Now Keep it Up! PLAN BUILD OPERATE Once the new environment ASSESSMENT DEPLOYMENT maintenance is up and running and integrated into the rest of design MIGRATION OPTIMIZATION the network, the Operate Source: Juniper Networks, Inc phase begins. This is where 25 www.totaltele.com CONTRIBUTED CONTENT most organizations focus the ware and software upgrades. account from the very bulk of their resources – in For both activities it is beginning. Experienced fact they are often called the important to have a close consultants are well-placed “operations staff.” It is easy working relationship with to not only help you to forget that during the the vendor or a support determine where you are Operate phase there are two partner certified by the and where you want to get distinct but complementary vendor. They have the to, they can provide you groups of activity— mainte- resources to solve problems with an external perspective on the gaps in your existing STRUCTURE & RIGOR ARE THE HALL- capabilities. In addition, MARKS OF A SUCCESSFUL PROJECT they can bring their broad industry experience to bear nance and proactive as quickly as possible, and and provide ideas on activities. Maintenance they also have the tools and potential areas of improve- activities cover the day-to- skills to do analysis of the ment using technology to day operations such as environment to make address your business issues. configuring and reconfigur- recommendations on its In many situations the best ing devices, resolving issues, ability to support new consultants will be found and fixing things when they applications, traffic or users. with network integrators break. On the other hand, They can also provide and VARs. Major vendors, proactive activities look to insight into the optimal ways such as Juniper Networks, the future, ensuring the to evolve the network. have certified partners environment remains robust whose consultants and yet flexible. Typically, this Conclusion engineers can provide you includes preventative Structure and rigor are the with exactly this sort of maintenance, analysis, hallmarks of a successful experience, enabling you to evaluation of how best to project and the best out- deliver the best results at evolve the network, and comes are achieved when the each stage of the networking decisions regarding hard- entire lifecycle is taken into lifecycle.

For more information visit

www.juniper.net/us/en/products-services/ services/technical-services

26 www.totaltele.com GROWING STRONG CHINA’S CONTRIBUTION China’s big three are steadily increas- ing their influence in the Global 160,000 E 140,000 430bn 100, accounting for 12.2% of total €148bn 120,000 €131bn revenues, up from 10.2% in the 2013 €119bn Revenues generated 100,000 report. China Mobile in particular is by Asia-Pacific’s 80,000

representatives in forging ahead, having seen impressive millions 60,000 the Global 100 € uptake of 4G services in the first year. 40,000 (Total Telecom) 20,000 0 2012 2013 2014 Source: Total Telecom

myanmar is going to be the most competitive market on the planet Ross Cormack, CEO, Ooredoo Myanmar geography: asia-pacific WORLD LEADER The Asia-Pacific contributes the biggest share of G100 revenues

big hitters revenues by country Japan continues to 30 12% Asia-Pacific lead the Asia-Pacific in 36% operators in revenue terms, but its 5% the Global 100 (Total Telecom) telcos are generating an increasing percent- 9% age of their turnover from outside the region. 4% Meanwhile, China has upped its share to 34% n Japan n China n Australia n South from 32% last year. 34% Korea n India n Others Source: Total Telecom

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