1. Corporates
Telecommunications
Special Report Global Wireless Review
Statistics and Commentary
Analysts Introduction
North America While wireless services remain a key driver of growth for the telecommunications industry
Michael L. Weaver
around the world, growth is slowing as market penetrations continue to increase. Growth
+1 312 368-3156
michael.weaver@fitchratings.com rates are influenced by the competitive environment, regulatory policies and business
strategies present in each market. Additionally, the evolution of data capabilities and
Bill C. Densmore
+1 312 368-3125 services is expanding wireless applications beyond traditional voice usage. Nevertheless,
bill.densmore@fitchratings.com the diversity of environments that service providers operate in around the world leads to
a large variety of operating results. Fitch Ratings believes it is insightful for analysts to
Europe/Middle East/Africa have the ability to compare and contrast results of operators and markets around the
Michael Dunning
+44 20 7417-6343
world to decipher trends and expectations.
michael.dunning@fitchratings.com
This report represents the fifth release of Fitch Ratings’ “Global Wireless Review.” Fitch
Asia-Pacific has compiled a list of 13 operating statistics for 72 operators across 27 different
Matthew Jamieson countries. This information has been displayed in a historical format for easier
+822 3278-8355 comparisons. This report also includes summary reviews of regional developments related
matthew.jamieson@fitchratings.com
to wireless activity that can enhance the usefulness of the statistics.
Vicky Melbourne
+612 8256-0325
vicky.melbourne@fitchratings.com
Global Statistics Overview
This overview section will address a select number of global aggregate data points from
Latin America this report, which seem to have greater interest to investors, for trend identification and
Sergio Rodriguez commentary. In Fitch’s sample of operators, total aggregate wireless subscribers reached
+5281 8335-7179
sergio.rodriguez@fitchratings.com 1.681 billion at year-end 2007, representing a year-over-year increase of 17.6%, or
approximately 250 million subscribers. This global subscriber growth rate is lower than
Appendices the 2006 year-end growth rate, which was 18.9%. The growth rate has slowed as the base
of subscribers has increased, but the absolute number of new subscribers increased
A. Total Active Subscribers
B. Total Active Postpaid Subscribers
compared to 2006, with approximately 200 million new additions.
C. Total Active Prepaid/Reseller
Subscribers The annual growth rate of individual regions of this study consisted of 10% for the United
D. Total Net Active Subscriber States/Canada, 8% for Western Europe, 22% for Latin America and 23% for Asia/Pacific.
Additions Interestingly, Western Europe has experienced a surge in growth compared with the 2006
E. Total Net Active Postpaid growth rate of 6%, led by Germany at approximately 13% and Italy at 11%. These growth
Subscriber Additions
F. Total Net Active Prepaid rates reflect lower tariff rates or termination charges and more flat-rate service plans.
Subscriber Additions The United States/Canada has experienced a significant decline in growth from 14% in
G. Total Blended Monthly Average 2006 as penetration levels have grown. Latin America’s growth rate has fallen from its
Revenue Per User 2006 level of approximately 34% due mainly to the difficulty of maintaining extremely
H. Total Data Monthly Average
Revenue Per User high growth rates as the subscriber base increases. Asia/Pacific continued its strong
I. Total Monthly Churn growth with a rate similar to its 2006 level of 20% due to exceptionally strong growth in
J. Revenue Growth India (72%) and Indonesia (37%). India remains the country with the fastest-growing
K. Operating EBITDA Growth subscriber base in this study, and China continues to have the greatest increase in
L. Operating EBITDA Margin
M. Capital Spending as % of Total subscribers of any country, with approximately 68 million new subscribers in 2007.
Sales/Revenue
N. Exchange Rates In terms of percentage of global subscriber base and new additions, Asia/Pacific
represented approximately 46% of the world’s total subscribers and 58% of total new
subscribers. Western Europe represents approximately 21% of total subscribers and 11% of
new additions. Latin America and the United States/Canada represent approximately 18%
and 15%, respectively, of total global subscribers and 23% and 9%, respectively, of total
www.fitchratings.com May 16, 2008
2. Corporates
global subscriber additions in 2007. As of year-end 2007, the three countries with the
largest active subscriber bases are China, with approximately 369 million, the United
States, with 230 million, and Brazil, with 115 million. Similarly, the top three countries
with the largest increase of active subscribers in 2007 were all in the Asia/Pacific region:
China, with 68 million, India with 23 million and Indonesia with an estimated 23 million.
Prepaid subscribers continued their upward trend as a percentage of the total aggregate
wireless subscriber base in the world. In this study, as of year-end 2007, prepaid
subscribers increased approximately 19% to reach approximately 951 million, or
approximately 60% of the total global subscribers, up from a 2006 level of 58%. In
contrast, global postpaid subscriber growth was approximately 6% in 2007. From a
regional perspective, the percentage of prepaid subscribers compared to total aggregate
subscribers in 2007 were as follows: United States/Canada 17%, Western Europe 55%,
Latin America 84% and Asia/Pacific 67%. The strongest prepaid subscriber growth was in
Asia/Pacific with a 2007 annual growth of approximately 27%, led by the significant
growth rates associated with India and China. The United States/Canada also experienced
strong prepaid growth in 2007 at approximately 23%, due to the increased sales focus on
this underpenetrated market segment in this region. Similarly, Latin America achieved
prepaid growth of approximately 22%, while Western Europe was relatively flat.
In terms of the countries with the largest 2007 wireless subscriber totals in the world, as
a percent of total subscribers, prepaid represented 81% in China, 17% in the United
States, 81% in Brazil and 2% in Japan. The prepaid percentage of the total subscriber mix
should continue to increase, as some of the fastest-growing wireless markets also have
the highest prepaid subscriber mixes. Prepaid penetration is the highest in countries with
relatively expensive and difficult to acquire fixed-line services. Additionally, some more
mature markets have experienced stronger prepaid growth as the search for market share
has led to subprime customer acquisition, a segment in which prepaid services is nearly
universal.
Generally, lower tariff rates, along with increased promotional activities from aggressive
competition and higher penetration of lower-usage customers, has been leading to lower
average revenue per user (ARPU) levels. In reviewing the global ARPU figures, of the
58 operators who supply this data, 29, or 50%, reported lower 2007 year-over-year
statistical points. However, this compares favorably to the 2006 level of 65% of the
operators reporting lower year-over-year ARPU levels. While competition and tariff
pressures still exist, data services are adding meaningful strength to ARPU, with almost
all operators reporting stronger data revenues. With expansion of third-generation
equipment deployment, which materially improves data throughput speed, and new
handsets and other interfaces which increase the functionality of data applications, it is
expected that data revenues will continue to grow rapidly.
The disclosure of data revenue ARPU is still limited for many operators, but some trends
are readily apparent. The 2007 study shows that data revenue as a percentage of ARPU
continues to grow steadily. Some of the highest ARPU contribution by data services can
be found in Japan (approximately 34% in 2007 versus 28% in 2006 and 27% in 2005) and
Singapore (approximately 31% in 2007 versus 27% in 2006 and 23% in 2005). In comparison,
the United States has approximately 17% of its total ARPU represented by data in 2007,
compared with 14% in 2006 and 9% in 2005.
Not surprisingly, with the higher percentage of global wireless market penetration,
operators have experienced an increase in churn. In 2007, approximately 52% of the
42 operators providing this information reported higher year-over-year churn levels. In
contrast, in 2006, approximately 39% of the 39 operators providing this information
reported higher year-over-year churn levels. It is expected that this trend of increasing
2 Global Wireless Review May 16, 2008
3. Corporates
churn levels will continue as markets mature and competition for market share becomes
more intense.
Data Presentation
It should be noted that some data limitations are present due to semi-annual reporting
and because not all operators disclosed information on all the operating metrics in this
report.
Regional Market Reviews
North America
During the second half of 2007, while industry gross additions increased modestly,
postpaid growth continued to slow from a peak in 2005 due to industry penetration rates
in excess of 80%. However, stable wireless sector fundamentals, including ARPU and
churn, coupled with an increasing number of subscribers, drove high-single-digit industry
gains in revenue and EBITDA. The key to the stability was the strong growth rate for data
revenue, which more than offset the weakness in voice ARPU from lower-valued
subscribers. To date, the weakening economy has had a minimal impact on most wireless
operators. If broader economic trends continue to weaken in 2008, consumers could
become more price sensitive, which could further dampen postpaid subscriber growth and
slow the uptake for additional data services, thereby pressuring ARPU.
Data revenues as a percentage of total revenues for the fourth quarter 2007 were 16.5%,
an increase of approximately 400 basis points from a year ago. Fitch estimates that data
contributed 73% of the total industry revenue growth. On an annualized basis for the
fourth quarter, data revenues topped $26 billion, as substantial increases in short
message service (SMS) messaging continued to be a key driver, as operators have
aggressively pushed unlimited messaging offers, ranging from $10 to $20 per month.
Consequently, SMS messaging call volume increased by more than 100% at Verizon
Wireless and AT&T Wireless in the second half of 2007 to 81 billion and 56 billion
messages, from 32 billion and 22 billion messages, respectively. Fitch believes that
Verizon and T-Mobile have priced SMS bundles more aggressively within mobile-to-mobile
calling plans, while AT&T’s approach has focused on higher-ARPU plans.
Additionally, operators report good data growth from e-mail, Internet and data access, as
companies believe the industry is still very early on the adoption curve. As of the first
quarter of 2008, AT&T Wireless indicates approximately 40% of its postpaid subscribers
are on a monthly data plan, with only 16% of subscribers using a smart phone or
integrated devices. Importantly, subscribers using these devices are nearly double the
average ARPU. The emergence of Apple’s iPhone highlights the positive effect from
innovative data-centric handsets which in conjunction with aggressive pricing on
unlimited data plans can stimulate material ARPU gains. As fourth-generation (4G)
networks are deployed, Fitch believes industry assumptions of data revenues in excess of
50% of total revenue and penetration rates well beyond 100% are achievable, making
traditional population-based penetration metrics inconsequential.
During the first quarter of 2008, the Federal Communications Commission’s (FCC) auction
of 700-megahertz (MHz) spectrum concluded, with overall bidding of approximately
$19 billion with 101 bidders winning 1,090 licenses. The average per-MHz person of
population (POP) price was $1.28. Since the FCC did not place any bidding restrictions on
the existing incumbent carriers, the auction failed to produce a new nationwide wireless
operator, with Verizon Wireless and AT&T Wireless dominating the auction in acquiring
approximately 70% of the auctioned bandwidth by spending approximately $16 billion.
The 700-MHz licenses will allow Verizon Wireless and AT&T Wireless to expand their
networks in more rural areas, increasing competitive risks for regional operators. Both
Global Wireless Review May 16, 2008 3
4. Corporates
operators have announced plans to deploy a 4G Long Term Evolution (LTE) network,
which for Verizon Wireless is a significant technology shift from a CDMA-based network.
Verizon Wireless expects to launch the LTE network commercially in 2010, with rapid
footprint acceleration thereafter. Numerous smaller entrants purchased spectrum
totaling approximately 200 million POPs in the A and B Blocks.
It is also important to note that since no new nationwide entrant emerged from the
auction, the competitive risk to the wireless industry from a well-capitalized new
entrant, such as Google, is lower. Nevertheless, with the uncertainty regarding the FCC’s
options to consider reauctioning the D Block license, a new nationwide operator could
still emerge, although Fitch believes the operational and financial challenges, including
the complexities of operating a network to public safety standards, will likely remain
daunting even after rule changes are considered. Fitch also believes that it is likely a
matter of time before Leap Wireless and MetroPCS merge operations to effectively form a
fifth nationwide operator focused on unlimited calling plans.
Europe/Middle East/Africa (EMEA)
In Western Europe, subscriber growth continues despite the relative saturation of most
markets. However, as suggested in the 2007 Global Wireless Review (published in
May 2007), further penetration increases seem likely as users demand multiple connected
devices for differing tasks and obtain subscriptions for each. While this may change as
new devices and tariffs become available, for now unit growth in subscriptions continues
in the mid to low single-digit range. Nonetheless, Germany and Italy showed impressive
double-digit subscriber growth figures in 2007, despite both having penetration of more
than 100% at the start of the year. This seeming anomaly can be explained through the
increased competition and lower cost of owning a mobile phone in these countries.
Increased regulatory pressure on termination rates, which has also occurred elsewhere,
combined with increased competitive pressure as mobile virtual network operators
(MVNOs) and resellers enter both markets, has led to a scramble for subscribers and
market share. Furthermore, in Italy, prices were materially impacted by the Bersani
Decree, eliminating top-up fees on prepaid cards.
While the subscriber growth, as well as increased usage figures, demonstrates the
elasticity remaining in the mobile market, the pricing pressure is illustrated in significant
double-digit percentage ARPU drops in both these markets. Regulatory pressure looks set
to continue, with mobile termination rates (MTRs) being reduced across the member
states with a 12% drop in the year to October 2007. Average prices are now lowest in
France (0.7c) with Italy still having the furthest still to go (11c). In addition, mobile
roaming rates were capped from July 2007, further pressurizing top-line growth with an
approximate saving of 60% on calls from another European Union (EU) member state. 2009
will see continued pressure as MTRs continue to decrease, and the regulatory focus moves
to data roaming and in particular text messaging termination.
The increased competition and related pricing pressure have had a slowing effect on
revenues, with total EU mobile revenues growing slightly slower at 3.8% in the year to
October 2007, compared with 4.1% in the year to October 2006. In the core European
markets, the slowing growth is even more apparent, with revenues for most countries
beginning to fall. Only France and Spain appear to be bucking this trend, with limited
pricing pressure in Spain, and a comparatively low penetrated materially postpaid market
in France that will likely increase the sustainability of revenue growth. The pressured
ARPU and corresponding drop in profitability is also seeing operators look towards cost
cutting, both at the operating expenditure and capital expenditure levels, leading to an
increase in announced managed services and network sharing deals, such as the one by
T-Mobile and H3G in the United Kingdom to share their 3G networks, and the one by
Vodafone and Orange to share radio towers and physical resources.
4 Global Wireless Review May 16, 2008
5. Corporates
The hope of mobile network operators (MNOs) in developed European markets is that the
promised growth of data will be able to mitigate revenue pressure from the traditional
sources of voice and messaging. While not all operators provide useful data statistics to
allow for easy comparison, it is clear that although data is slowly increasing its
significance to overall revenues (currently averaging 8% of revenues), this increase is not
yet material enough to mitigate the downward pressure. It also seems clear that there is
a large disparity between the impact of data across the key markets, especially when
comparing the growth of non-SMS data.
The Western European mobile industry players are still in the experimentation phase of
developing sustainable business models for the next generation of mobile services.
Current technology is not quite up to speed, and most handsets are still too clumsy;
however, over the next five years, this technology will develop. It is clear that rather
than a specific technology, operators need to focus on the market. Obvious targets for
markets include music, location-based services (mapping, photography, mobile
payments), e-mail and gaming. Much like the way messaging took off, Fitch believes that
new services tapping these markets need to be easy to operate and offer good value to
ensure wide-scale subscriber acceptance. The iPhone and Blackberry have demonstrated
early success in this regard and remain catalysts for the future development of data
usage. Fitch expects the data contribution to grow in the future, as flat rate tariffs, new
phones and faster networks supply the necessary ingredients to stimulate demand. Those
operators that are able to provide the innovative services, pricing transparency and
business models necessary to attract subscribers will reach a new phase of profitable
growth.
As the European mobile business model evolves to become as much a content-distribution
network as a communication network, the consolidation process will speed up. The ability
to deliver to a wide cross-border European customer base and to benefit from related
economies of scale and partnerships will define success in the sector. In the less
developed markets in East and Central Europe and in the Middle East and Africa the
mobile market follows a familiar path with rapidly growing penetration, growth of new
licensees and increasingly in Africa, substitution for fixed line networks which may now
never be built out. Consolidation is however also a clear trend with a number of powerful
groups emerging from the Middle East and Africa such as Kuwait’s Zain (42.4 million
subscribers at YE07), UAE’s Etisalat (63 million subscribers at 1Q08), South Africa’s MTN
(61.4 million subscribers at YE07) and Egypt’s Orascom (70.4 million subscribers at YE07)
commanding significant market presence across the region and still acquiring new
properties. The East and Central Europe region is also undergoing consolidation moves, as
witnessed by Deutsche Telekom’s acquisition of a controlling stake in Greece’s OTE with
a view to enhancing the two companies’ East and Central European mobile footprints.
Asia/Pacific
In 2007, average subscriber growth across the seven emerging markets covered by Fitch
(i.e., China, India, Indonesia, Malaysia, the Philippines, Thailand and Sri Lanka) was
approximately 33%, up from 29% in 2006. India, Indonesia and Sri Lanka boast standout
performances, with growth in 2007 of 53%, 42% and 42% respectively. Relatively low
penetration, combined with large addressable markets (except for Sri Lanka), has fuelled
the growth. More recently, the growth has stemmed from penetration into rural areas, as
the cost of mobile phones, aided by competitive and regulatory factors forcing tariffs
downwards, is decreasing. In the developed markets (i.e., Australia, Hong Kong. Japan,
Korea, New Zealand and Singapore), average subscriber growth was modest at 8.2%,
which was largely driven by Singapore. Despite saturation in the Singapore market,
subscriber growth of 18.5% was largely driven by tourist inflows and a growing expatriate
workforce. Interestingly, the relatively saturated Japanese market (with about 80%
Global Wireless Review May 16, 2008 5
6. Corporates
penetration) recorded 5.2% subscriber growth. Market competition has intensified as a
result of Softbank’s (the market follower) successful efforts to erode other players’
market shares. A flat-rate system, new handset sales methods and additional tariff
discounts have been the key drivers for the moves in net subscriber adds.
In China, a continuing high growth rate, on top of an already huge subscriber base, mainly
came from rural areas where penetration rates are still very low. Growth has been
stimulated by tariff reductions and low-cost customized handsets which made mobile
services affordable. Additionally, fixed to mobile substitution, following mobile tariff
reductions has meant that mobile services have become attractive to fee-sensitive
subscribers.
India is one of Asia’s fastest growing mobile markets, having grown at a compound annual
growth rate (CAGR) of more than 90% during the past five years. However, the momentum
has built rapidly over the last two fiscal years, with net additions snowballing to around
seven million per month. Strong growth rates are expected to be sustained, with
subscribers expected to double over 2007 levels within the next two years. Rural growth
is expected to be an overriding theme during 2008 in light of government support through
subsidies and a keener focus on infrastructure sharing.
The Indonesian mobile sector has recorded impressive growth over the last five years,
with total subscribers increasing from 6.5 million in 2001 to 83.6 million by
September 2007, at a CAGR of 66%. Growth is being driven almost entirely by the prepaid
segment, with prepaid net additions accounting for most of total net additions over 2004.
Robust growth is expected to continue over the medium term, given that penetration is
relatively low at 37%.
Mobile subscriber growth in Sri Lanka has been strong, with annual increases in reported
mobile subscriber numbers increasing 40%–60% per annum over the last five years;
penetration is still low at 40%. This has been driven by the improved geographical
footprint of operators and increased affordability (due to lower tariffs as a result of
intense competition and lower cost of handsets). However, the actual subscriber numbers
and penetration is overstated with multiple subscriber identity module (SIM) usage and
loose subscriber recognition policies distorting numbers. Market growth is expected to
slow given a weak economic environment (with inflation remaining more than 20% over a
considerably long period).
Although various markets are trending to maturity and are characterized by an intensive
competitive environment, mobile revenue growth remained relatively solid as the macro
environment and consumer spending continued to be supportive across most countries.
The strong revenue growth recorded by Thai operators is largely due to the first-time
recognition of interconnection (IC) revenue in 2007. Excluding IC, revenue growth was
more modest, 3% for Advanced Info Service (AIS) and 7% for Total Access Communications
Public Company Limited (DTAC) year over year, compared with strong subscriber growth
of 24% and 29% year over year, respectively, as growing subscribers were mainly from
low-volume rural users.
The stagnation in ARPU can be attributed to: a) continued price discounting, with price
wars common in Japan, Malaysia and Indonesia; b) growth in low-value prepaid users; c)
competitive intensity, fuelled to some extent by new entrants, which has placed
downwards pressure on blended ARPU. Some operators have experienced modest uplift to
blended ARPU as 3G migration gathers pace. This was especially the case in Korea, where
operators experienced relatively stable ARPU during 2007 mainly thanks to accelerated
3G migration, although margins ironically contracted due to increased 3G subscriber
acquisition costs. Due to lack of disclosure from the mobile operators, it is difficult to
gauge the extent of data contribution to underlying mobile revenue growth and ARPU.
6 Global Wireless Review May 16, 2008
7. Corporates
Nonetheless, Fitch expects that value-added services will in time become an increasing
proportion of mobile revenue following demand from the corporate sector and as
operators look to stimulate demand.
Although EBITDA margins came under pressure during 2007, some markets, namely India
and the Philippines, recorded higher margins largely due to improvements in operating
efficiencies. The variations in margins from the Thai operators reflect the change in
reporting (i.e., a higher revenue base with the inclusion of IC revenue). However, margins
are expected to remain largely stable in 2008, with some exceptions: there will likely be
tariff reductions and a high inflationary environment in Sri Lanka; price competition in
Indonesia following a cut in interconnection rates; a third entrant into the New Zealand
mobile market; and intensifying competitive pressure in Korea, All of these factors will
lead to downward pressure on margins in these markets.
The extent of capital investment during 2007 is notable. Capital expenditures increased,
although this was to be expected given that most mobile operators embarked on
3G mobile networks rollouts or infrastructure/network build-outs. With the high growth
potential still ahead for India, all major operators have aggressively ramped up capital
expenditure spending, with some operators planning pan-national expansion, while
capital intensity could ramp up in China following the issuance of the long-awaited
3G licenses. With strong growth potential ahead in Indonesia, major mobile operators are
investing heavily in their networks. Capital intensity slowed during 2007 in Thailand due
to reduced capacity requirement as penetration has reached 95%.
China, India and Thailand remain the laggards in 3G deployment. Uncertainty and lack of
transparency surround 3G deployment in China, with the government yet to indicate
when and how many licenses it will issue as well as failing to provide guidance on the
widely expected industry restructuring despite the government’s original commitment to
enable 3G services in time for the Beijing Olympics in August 2008. Notwithstanding,
China Mobile Limited’s holding parent, China Mobile Communications Corporation (CMCC),
has begun trialing Time Division Synchronous Code Division Multiple Access (TD-SCDMA),
China’s 3G home-grown standard, without the formality of 3G licenses.
Preliminary guidelines on 3G have been released by the Indian government with the
government soon to conduct an auction of 3G spectrum for GSM operators. It is expected
that the new 3G licensing (on new 2.1 gigahertz [GHz] band) in Thailand could be delayed
until 2009 after the formation of the new regulator, the National Telecommunications
Business Commission (NTBC). However, in view of uncertainties on the timeline and
selection process, AIS and DTAC plan to proceed with 3G rollout on their existing
frequency (850 MHz for DTAC and 900 MHz for AIS) and should they be granted a 3G
license, will simply migrate their 3G subscribers to the new network. In terms of
technology, both AIS and DTAC indicated that they will adopt the WCDMA technology.
While 3G services under the existing frequency are subject to revenue sharing (20%–30%)
to Telephone Organization of Thailand (TOT) and Communications Authority of Thailand
(CAT) (concession grantors), it is expected that 3G services under the license will incur
significantly lower regulatory costs.
Latin America
Companies should improve or maintain their operating performance by benefiting from
moderate subscriber growth, lower subscriber acquisition cost (SAC) and increased traffic
migration to mobile from fixed networks, which should result in strong cash flow
generation. Subscriber growth should continue at a slower pace than previous years, as
penetration continues to reach a mature stage in some countries. Fitch believes Brazil
and Mexico have the best potential to continue adding mobile users given the penetration
levels. In addition, launching of 3G services across most of the countries in the region
Global Wireless Review May 16, 2008 7
8. Corporates
should help support ARPU levels. Region-wide, the industry is concerned about the
possibility that regulators may become more active in regulating the mobile industry in
the medium term and that the United States economic slowdown will affect the region,
particularly Mexico.
Mobile operators are expected to continue with their strategy of maintaining ARPU levels
either by increasing usage of traditional voice services or by increasing revenues from
value-added services. Revenues from the latter should continue gaining importance in the
revenue mix going forward as penetration slows down. Mobile penetration is increasing at
a slower rate than previous years as it approaches a mature stage. On an aggregate basis,
it is estimated that mobile penetration approximated 70% by the end of 2007. The fixed-
line penetration rates currently sits at between the high teens to low 20% range, with a
tendency to decline. Increased mobile penetration has resulted in migration of voice
traffic to mobile networks from fixed-line networks, a trend that is expected to continue.
By the end of 2007, Argentina surpassed Chile as the country in the region with the
highest mobile penetration, with 96% versus 84%, respectively. Fitch views that Brazil and
Mexico offer the best prospects for subscriber growth, given the two countries’ mobile
penetration of approximately 64% by year-end 2007. Their penetration rates represent
two of the three lowest penetration levels of the eight biggest countries in the region in
terms of GDP and population size, with combined totals in excess of 295 million
inhabitants.
Competition in most countries in the region should remain intense but rational as net
additions slow. The wider adoption of mobile services has resulted in a decline in tariffs,
which has been offset by increased usage. Fitch expects market participants’ strategies
will target branding, service differentiation, investing in the offering of new services and
expanding the subscriber bases, although Fitch does acknowledge there is the risk some
operators could turn to more aggressive attempts to gain market share as penetration
matures. Fitch notes that there is a potential concern that regulators should turn to a
more aggressive stand towards mobile companies if the price per minute of placing a call
on a mobile phone doesn’t get close enough to that of a fixed phone. With region-wide
mobile penetration exceeding now more than three times the fixed penetration rate, and
fixed networks losing traffic to mobile networks, the government may take a more social
view towards the mobile telecommunications industry in terms of reducing prices for calls
and interconnection. Number portability is expected to be introduced in 2008 for
countries such as Brazil and Mexico and should result in heightened competition among
industry participants.
Industry consolidation seems limited for the present year in Latin America except for the
potential merger in Brazil between Telemar and Brasil Telecom. Telemar Participaçoes,
the controlling shareholder of Telemar, is pursuing a merger with Brasil Telecom, which if
successful should consolidate two of the three incumbent fixed-line operators and the
fourth and fifth largest mobile companies in Brazil. Other than this potential merger,
Brazilan wireless industry consolidation looks calm after last year’s acquisitions by Vivo
Participaçoes S.A. (Vivo) of Telemig Celular S.A. and Amazonia Celular S.A. The latter was
sold to Telemar Norte Leste S.A. by Vivo. Amazonia has operations in the same service
regions of Telemar, which significantly improves its current market share in some areas.
During 2007, Telefonica took part in the group that acquired a controlling stake in
Telecom Italia SpA, which resulted in an indirect consolidation of the Brazilian and
Argentine markets, as both companies have an important presence in these countries.
The Argentine government has extended its pronouncement on whether Telefonica’s
acquisition of a stake in the controlling group of Telecom Italia has an effect on the
Argentine telecom industry. The two incumbent operators, Telefonica de Argentina S.A.
and Telecom Argentina S.A., control together approximately 95% of the LIS and close to
8 Global Wireless Review May 16, 2008
9. Corporates
two-thirds of the mobile users. In addition, Telecom Italia owns 50% of Sofora, the entity
that controls Telecom Argentina, and has an option to buy the rest of the shares in the
next few years.
The launching of 3G services should help mobile companies offer a broader range of
value-added services and should help sustain ARPU levels. The offering of value-added
services through 3G should increase revenues and help profitability by levering the
existing user base with offering additional services. During 2008, 3G services are expected
to become more broadly available, covering major cities in the region and should expand
to additional cities into 2009. Most of the operators have already launched 3G services in
at least a few cities, but should continue investing during the year to offer the 3G service
in more locations. While 3G services enable users to have wireless broadband capabilities,
WiMAX deployments should add competition to this segment as this service is introduced.
Regional players and local incumbent wireless operators are expected to maintain a
stable credit profile over the medium term as business and competitive risks are balanced
against strong financial profiles. These profiles of the main wireless operators are
supported by low or moderate leverage and strong free cash flow generation from some
business units or incumbent fixed-line operators that offer wireless services. Competitors
with weaker financial profiles or low market shares will have a tougher time facing
increased competition than regional or incumbent operators and may ultimately be
consolidated into stronger, bigger companies.
Global Wireless Review May 16, 2008 9
10. Corporates
Appendix A
Total Active Subscribers
(000)
Mobile/Wireless Operators 4Q07 3Q07 2Q07 1Q07 4Q06 3Q06 2Q06 1Q06
United States/Canada
United States
AT&T Wireless 70,052 65,666 63,673 62,217 60,962 58,666 57,308 55,810
Verizon Wireless 65,707 63,699 62,054 60,716 59,052 56,746 54,835 53,020
Sprint Nextel 53,003 53,131 53,037 52,697 52,175 51,044 50,381 47,612
T-Mobile 28,685 27,734 26,877 26,020 25,040 24,139 23,338 22,725
ALLTEL 12,785 12,447 12,242 12,061 11,824 11,162 11,085 10,827
Total 230,232 222,677 217,883 213,711 209,053 201,757 196,947 189,994
Canada
TELUS 5,568 5,407 5,272 5,144 5,056 4,874 4,738 4,613
Rogers Wireless 7,338 7,155 6,912 6,864 6,910 6,666 6,455 6,332
Bell Mobility 6,216 6,021 5,884 5,821 5,873 5,704 5,590 5,500
Total 19,122 18,583 18,068 17,829 17,839 17,244 16,783 16,445
Europe
UK
Vodafone Group Plc 18,447 17,959 17,647 17,411 16,939 16,287 16,185 16,304
O2 plc 18,382 17,899 17,785 17,751 17,633 17,338 16,814 16,340
Orange SA 15,642 15,400 15,165 15,097 15,333 15,140 14,951 14,958
T-Mobile (Including Virgin Mobile) 17,311 17,005 16,785 16,734 16,905 16,659 16,730 16,361
H3G (Including Ireland) NA NA 4,095 3,916 NA NA 3,750 3,569
Total 69,782 68,263 71,477 70,909 66,810 65,424 68,430 67,532
France
Orange SA 24,226 23,504 23,403 23,226 23,268 22,542 22,390 22,458
Bouygues 9,256 NA 8,807 NA 8,722 NA 8,305 NA
SFR 18,766 18,109 17,980 17,910 17,883 17,505 17,415 17,328
Total 52,248 41,613 50,190 41,136 49,873 40,047 48,110 39,786
Germany
Vodafone Group Plc 33,920 32,541 31,618 30,818 30,622 29,622 29,444 29,191
O2 plc 12,472 12,168 11,558 11,184 11,025 10,629 10,335 10,099
T-Mobile 35,952 34,471 34,328 33,048 31,397 30,651 30,415 30,246
E-Plus 14,807 14,112 13,565 13,143 12,654 12,215 11,852 11,442
Total 97,151 93,292 91,069 88,193 85,698 83,117 82,046 80,978
Italy
Vodafone Group Plc 22,791 22,407 21,763 21,034 20,129 19,337 18,559 18,490
Telecom Italia Mobile (TIM) 36,331 35,310 34,312 33,569 32,450 31,488 30,408 29,664
Wind 15,600 15,300 15,216 15,200 14,700 14,500 14,273 14,000
H3G NA NA 7,677 7,190 NA NA 6,810 6,005
Total 74,722 73,017 78,968 76,993 67,279 65,325 70,050 68,159
Spain
Vodafone Group Plc 15,810 15,473 15,179 15,893 14,464 14,024 13,949 13,521
Telefonica 22,826 22,420 22,103 21,814 21,446 21,020 20,655 20,277
Orange SA 11,091 10,921 10,692 11,058 11,115 10,837 10,663 10,533
Yoigo 427 240 161 101 24 NA NA NA
Total 50,154 49,054 48,135 48,866 47,049 45,881 45,267 44,331
Latin America
Mexico
Telcel 50,011 47,516 46,114 44,946 43,190 40,720 39,150 37,588
Telefonica Moviles 12,534 11,070 10,229 9,317 8,551 7,442 6,864 6,558
Total 62,545 58,586 56,343 54,263 51,741 48,162 46,014 44,146
NA − Not available. Continued on next page.
Source: Company reports.
10 Global Wireless Review May 16, 2008
11. Corporates
Appendix A: Total Active Subscribers (Continued)
(000)
Mobile/Wireless Operators 4Q07 3Q07 2Q07 1Q07 4Q06 3Q06 2Q06 1Q06
Latin America (Continued)
Brazil
Claro 30,228 27,981 26,253 24,607 23,881 22,172 20,949 19,445
Vivo (Telefonica Moviles & Portugal Telecom SA) 33,484 31,320 30,240 29,030 29,053 28,726 28,525 30,137
Oi (Telemar Norte Leste S.A.) 15,984 14,900 13,634 13,358 13,078 12,643 12,034 11,217
TIM Participacoes S.A. 31,254 29,160 27,478 26,307 25,407 24,085 22,338 20,929
Brasil Telecom GSM 4,263 4,024 3,768 3,638 3,377 3,051 2,772 2,461
Total 115,212 107,385 101,373 96,940 94,796 90,677 86,618 84,189
Ecuador
Conecel SA 6,936 6,596 6,216 5,970 5,657 5,213 4,819 4,501
Telefonica Moviles 2,581 2,652 2,643 2,480 2,488 2,391 2,552 2,326
Total 9,517 9,248 8,859 8,450 8,145 7,604 7,371 6,827
Columbia
Comunicacion Celular S.A. 22,334 21,257 20,607 20,042 19,521 18,755 17,970 15,878
Telefonica Moviles 8,372 7,552 7,612 7,545 7,760 7,687 7,474 6,818
Total 30,706 28,809 28,219 27,587 27,281 26,442 25,444 22,696
Argentina
CTI Movil 14,618 13,520 12,736 11,874 10,875 9,680 8,618 7,754
Telefonica Moviles 13,630 12,964 12,283 11,679 11,058 9,998 9,325 8,745
Telecom Personal S.A. 10,666 10,160 9,881 9,310 8,425 7,675 6,874 6,351
Total 38,914 36,644 34,900 32,863 30,358 27,353 24,817 22,850
Peru
Telefonica Moviles 8,067 7,153 6,295 5,593 5,058 4,442 3,979 3,611
America Movil Peru 5,454 4,815 4,357 3,861 3,369 2,809 2,482 2,211
Total 13,521 11,968 10,652 9,454 8,427 7,251 6,461 5,822
Chile
Entel 5,638 5,420 5,287 5,129 5,010 4,768 4,590 4,321
Telefonica Moviles 6,283 6,052 5,928 5,767 5,681 5,618 5,515 5,335
Claro 2,672 2,561 2,694 2,550 2,372 2,102 2,001 1,942
Total 14,593 14,033 13,909 13,446 13,063 12,488 12,106 11,598
Venezuela
Movilnet C.A. 9,502 8,959 8,631 8,131 7,918 6,764 6,577 5,587
Telefonica Moviles 9,434 8,903 8,820 8,219 7,989 7,245 7,065 6,031
Corporacion Digitel C.A. 4,884 4,130 3,726 3,254 2,882 2,276 1,910 1,789
Total 23,820 21,992 21,177 19,604 18,789 16,285 15,552 13,407
Asia/Pacific
Japan
Softbank Mobile Corp. 17,614 17,053 16,441 15,909 NA NA NA 14,992
NTT DoCoMo, Inc. 53,151 52,942 52,846 52,621 52,214 52,103 51,672 51,144
KDDI 29,555 29,217 28,709 28,188 27,226 26,403 25,957 25,438
Total 100,319 99,211 97,996 96,718 79,440 78,506 77,629 91,574
Korea
SK Telecom Co., Ltd. 21,968 21,606 21,358 20,733 20,271 20,032 19,984 19,733
KT Freetel 13,721 13,583 13,512 13,156 12,914 12,773 12,634 12,539
LG TeleCom 7,809 7,612 7,451 7,212 7,012 6,899 6,765 6,645
Total 43,498 42,801 42,321 41,101 40,197 39,704 39,383 38,917
China
China Mobile Ltd 369,339 349,663 332,378 316,120 301,232 287,148 273,786 260,645
China Unicom 160,281 156,032 151,632 146,882 142,366 138,515 135,086 131,544
Total 529,620 505,695 484,010 463,002 443,598 425,633 408,872 392,189
Hong Kong
PCCW Mobile 1,071 NA 957 NA 921 NA 781 NA
HTIL 2,427 2,290 2,239 2,199 2,139 2,088 2,065 2,009
Smartone 1,108 NA 1,077 NA 1,093 NA 1,063 NA
Total 4,606 ⎯ 4,273 ⎯ 4,153 ⎯ 3,909 ⎯
NA − Not Available Continued on next page.
Source: Company reports.
Global Wireless Review May 16, 2008 11
12. Corporates
Appendix A: Total Active Subscribers (Continued)
(000)
Mobile/Wireless Operators 4Q07 3Q07 2Q07 1Q07 4Q06 3Q06 2Q06 1Q06
Asia/Pacific (Continued)
Philippines
Philippine Long Distance Telephone Co. 30,041 28,260 27,106 25,483 24,175 22,930 22,465 20,900
Globe Telecom 20,318 19,222 18,126 16,923 15,660 14,468 13,894 13,197
Total 50,359 47,482 45,232 42,406 39,835 37,397 36,359 34,097
Singapore
Singapore Telecommunications Ltd. 2,327 2,130 1,945 1,822 1,763 1,700 1,619 1,660
Australia
SingTel Optus Pty. Limited 7,002 6,894 6,802 6,737 6,677 6,601 6,555 6,486
Telstra Corporation Limited (semiannual) 9,319 NA 9,212 NA 8,892 NA 8,488 NA
Total 16,321 ⎯ 16,014 ⎯ 15,569 ⎯ 15,043 ⎯
New Zealand
Telecom Corporation of New Zealand Ltd. 2,106 2,016 1,968 1,927 1,862 1,771 1,703 1,878
India
Bharti Airtel Limited 55,163 48,876 42,704 37,141 31,974 27,061 23,073 19,579
Sri Lanka
Sri-Lanka Telecom Ltd. 1,401 1,113 926 917 885 688 609 488
Dialog Telekom Limited 4,260 3,963 3,657 3,365 3,105 2,834 2,562 2,302
Total 5,661 5,077 4,583 4,283 3,990 3,522 3,171 2,790
Indonesia
Telkomsel NA 44,457 42,811 38,903 35,597 32,466 29,270 26,951
PT Indosat 24,545 22,027 20,007 18,021 16,705 14,233 13,860 12,957
PT Excelcomindo 15,469 12,810 10,200 10,100 9,528 8,370 8,389 8,221
Total 40,014 79,294 73,018 67,024 61,830 55,069 51,519 48,129
Thailand
Advance Info Service PCL 24,105 23,204 22,691 21,089 19,521 17,724 17,318 16,634
Total Access Communication, PCL 15,772 14,878 14,476 13,329 12,225 11,463 10,622 9,823
Total 39,877 38,083 37,168 34,418 31,746 29,187 27,940 26,457
Taiwan
Chunghwa Telecom Co. Ltd 8,699 8,656 8,581 8,556 NA NA NA NA
NA − Not available.
Source: Company reports.
12 Global Wireless Review May 16, 2008
13. Corporates
Appendix B
Total Active Postpaid Subscribers
(000)
Mobile/Wireless Operators 4Q07 3Q07 2Q07 1Q07 4Q06 3Q06 2Q06 1Q06
United States/Canada
United States
AT&T Wireless 55,310 52,689 51,488 50,588 49,877 49,127 48,329 47,288
Verizon Wireless 61,011 59,363 57,674 56,136 54,676 52,604 50,723 48,990
Sprint Nextel 40,751 41,434 41,601 41,585 41,805 41,675 41,405 39,103
T-Mobile 23,914 23,181 22,624 21,937 21,211 20,428 19,656 19,149
ALLTEL NA NA NA NA NA NA NA NA
Total 180,986 176,667 173,387 170,246 167,569 163,834 160,113 154,530
Canada
TELUS 4,441 4,334 4,236 4,137 4,079 3,949 3,841 3,737
Rogers Wireless 5,914 5,756 5,561 5,493 5,398 5,209 5,038 4,908
Bell Mobility 4,450 4,372 4,297 4,254 4,244 4,180 4,157 4,051
Total 14,805 14,462 14,094 13,884 13,721 13,338 13,036 12,696
Europe
UK
Vodafone Group Plc 7,287 7,148 7,006 6,843 6,674 6,499 6,377 6,342
O2 plc 6,809 6,533 6,374 6,298 6,218 6,082 5,874 5,686
Orange SA 5,610 5,408 5,183 4,970 4,968 4,918 4,731 4,891
T-Mobile (including Virgin Mobile) 3,880 3,937 3,893 3,821 3,715 3,594 3,611 3,248
H3G (incl. Ireland) NA NA 2,472 2,333 NA NA 2,225 NA
Total 23,586 23,026 24,928 24,265 21,575 21,093 22,818 20,167
France
Orange SA 15,699 15,355 15,050 14,843 14,714 14,352 14,076 13,946
Bouygues 6,767 NA 6,438 NA 6,248 NA 5,814 NA
SFR 12,292 11,988 11,831 11,713 11,624 11,326 11,163 11,038
Total 34,758 27,343 33,319 26,556 32,586 25,678 31,053 24,984
Germany
Vodafone Group Plc 14,959 14,643 14,418 14,053 13,964 13,863 13,721 13,632
O2 plc 6,237 5,993 5,766 5,574 5,481 5,288 5,192 5,112
T-Mobile 16,054 15,669 15,520 15,343 15,092 14,709 14,559 14,384
E-Plus 6,297 6,170 6,082 6,027 6,005 5,938 5,827 5,750
Total 43,547 42,475 41,786 40,997 40,542 39,798 39,299 38,878
Italy
Vodafone Group Plc 2,006 1,860 1,763 1,683 1,590 1,508 1,466 1,442
Telecom Italia Mobile (TIM) NA NA NA NA NA NA NA NA
Wind NA NA NA NA 712 NA NA NA
H3G NA NA 2,111 1,825 NA NA 1,417 NA
Total 2,006 1,860 3,874 3,508 2,302 1,508 2,883 1,442
Spain
Vodafone Group Plc 9,059 8,758 8,773 8,709 7,825 7,531 7,114 6,706
Telefonica 13,645 13,262 12,920 12,530 12,143 11,729 11,394 11,045
Orange SA 5,956 5,790 5,621 5,464 5,420 5,223 5,149 5,106
Yoigo 181 109 77 46 10 NA NA NA
Total 28,841 27,919 27,391 26,749 25,398 24,483 23,657 22,857
Latin America
Mexico
Telcel 3,682 3,544 3,387 3,231 3,064 2,877 2,675 2,513
Telefonica Moviles 700 623 574 542 533 491 425 369
Total 4,382 4,167 3,961 3,773 3,741 3,523 3,287 3,061
Brazil
Claro 5,752 5,253 4,781 4,298 3,974 3,711 3,485 3,197
Vivo (Telefonica Moviles & Portugal Telecom SA) 6,247 5,864 5,691 5,653 5,509 5,244 5,268 5,760
Oi (Telemar Norte Leste S.A.) 2,557 2,384 2,390 2,309 2,354 2,501 2,286 2,131
TIM Participacoes S.A. 6,771 6,589 6,043 5,678 5,402 4,947 4,594 4,232
Brasil Telecom GSM 856 857 890 967 994 947 900 821
Total 22,183 20,946 19,795 18,905 18,233 17,350 16,533 16,141
NA − Not available. Continued on next page.
Source: Company reports.
Global Wireless Review May 16, 2008 13
14. Corporates
Appendix B: Total Active Postpaid Subscribers (Continued)
(000)
Mobile/Wireless Operators 4Q07 3Q07 2Q07 1Q07 4Q06 3Q06 2Q06 1Q06
Latin America (Continued)
Ecuador
Conecel SA 773 721 677 639 608 572 526 458
Telefonica Moviles 404 380 368 363 355 407 391 378
Total 1,177 1,101 1,045 1,002 963 979 917 836
Colombia
Comunicacion Celular S.A. 3,246 3,162 3,061 2,993 2,892 2,706 2,493 2,317
Telefonica Moviles 1,759 1,684 1,725 1,811 1,799 1,804 1,753 1,534
Total 5,005 4,846 4,786 4,804 4,691 4,510 4,246 3,851
Argentina
CTI Movil 1,642 1,461 1,443 1,199 1,087 976 883 821
Telefonica Moviles 4,794 4,410 4,170 3,926 3,742 3,499 3,374 3,210
Telecom Personal S.A. 3,604 3,331 3,188 3,022 2,886 2,670 2,475 2,286
Total 10,040 9,202 8,801 8,147 7,715 7,145 6,732 6,317
Peru
Telefonica Moviles 829 763 724 711 705 692 648 603
America Movil Peru 521 462 415 371 315 280 256 247
Total 1,350 1,225 1,139 1,082 1,020 972 904 850
Chile
Entel 1,490 1,385 1,238 1,107 1,030 957 890 833
Telefonica Moviles 1,541 1,461 1,370 1,251 1,173 1,127 1,013 939
Claro 395 461 568 557 474 350 288 276
Total 3,426 3,307 3,176 2,915 2,677 2,434 2,191 2,048
Venezuela
Movilnet C.A. 445 400 378 377 356 314 289 271
Telefonica Moviles 534 510 475 495 469 432 399 372
Corporacion Digitel C.A. 208 195 182 169 153 124 104 92
Total 1,187 1,106 1,034 1,042 978 870 792 735
Asia/Pacific
Japan
Softbank Mobile Corp. 16,309 15,647 14,931 NA NA NA NA NA
NTT DoCoMo, Inc. 53,109 52,900 52,802 52,577 52,168 52,056 51,623 51,091
KDDI 28,809 28,472 27,962 27,361 26,258 25,318 24,846 24,374
Total 98,227 97,019 95,695 79,938 93,923 92,681 91,709 88,807
Korea
SK Telecom Co., Ltd. 21,968 21,606 21,358 20,733 20,271 20,032 19,984 19,733
KT Freetel 13,721 13,583 13,512 13,156 12,914 12,773 12,634 12,539
LG TeleCom 7,809 7,612 7,451 7,212 7,012 6,899 6,765 6,645
Total 43,498 42,801 42,321 41,101 40,197 39,704 39,383 38,917
China
China Mobile Ltd 69,844 68,524 67,354 66,263 65,269 64,341 63,465 62,583
China Unicom 100,120 97,182 93,965 90,763 87,721 85,000 82,761 80,599
Total 169,964 165,706 161,319 157,026 152,990 149,341 146,226 143,182
Hong Kong
PCCW Mobile NA NA 581 NA 571 NA 491 NA
HTIL 1,671 1,629 1,590 1,557 1,513 1,475 1,431 1,398
Total ⎯ ⎯ 2,171 ⎯ 2,084 ⎯ 1,922 ⎯
Philippines
Philippine Long Distance Telephone Co. 342 339 333 325 319 311 297 285
Globe Telecom 710 702 683 663 644 636 615 609
Total 1,052 1,041 1,016 988 962 947 912 894
Singapore
Singapore Telecommunications Ltd. 1,342 1,308 1,286 1,270 1,245 1,225 1,210 1,204
Australia
SingTel Optus Pty. Limited 3,084 3,032 2,967 2,940 2,939 2,926 2,908 2,896
Telstra Corporation Limited (Semiannual) 5,830 NA 5,515 NA 5,266 NA 4,891 NA
Total 8,914 ⎯ 8,482 ⎯ 8,205 ⎯ 7,799 ⎯
NA − Not available. Continued on next page.
Source: Company reports.
14 Global Wireless Review May 16, 2008
15. Corporates
Appendix B: Total Active Postpaid Subscribers (Continued)
(000)
Mobile/Wireless Operators 4Q07 3Q07 2Q07 1Q07 4Q06 3Q06 2Q06 1Q06
Asia/Pacific (Continued)
New Zealand
Telecom Corporation of New Zealand Ltd. 825 810 796 775 770 748 727 712
India
Bharti Airtel Limited 4,965 4,692 4,399 4,271 4,125 3,924 3,599 3,387
Sri Lanka
Sri-Lanka Telecom Ltd. 219 200 181 182 193 197 206 221
Dialog Telekom Limited 569 523 519 486 484 475 470 462
Total 788 723 700 668 677 672 676 683
Indonesia
Telkomsel NA 1,891 1,809 1,714 1,662 1,627 1,572 1,533
PT Indosat 600 878 878 849 15,869 13,379 693 693
PT Excelcomindo 481 442 457 447 387 366 331 248
Total 1,081 3,211 3,144 3,010 16,256 15,372 2,596 2,474
Thailand
Advance Info Service PCL 2,286 2,432 2,653 2,627 2,242 1,974 1,912 1,918
Total Access Communication, PCL 2,073 2,248 2,361 2,334 2,036 1,967 1,816 1,638
Total 4,359 4,680 5,014 4,961 4,278 3,941 3,728 3,556
Taiwan
Chunghwa Telecom Co. Ltd 8,067 8,020 7,972 7,906 NA NA NA NA
NA − Not available.
Source: Company reports.
Global Wireless Review May 16, 2008 15
16. Corporates
Appendix C
Total Active Prepaid/Reseller Subscribers
(000)
Mobile/Wireless Operators 4Q07 3Q07 2Q07 1Q07 4Q06 3Q06 2Q06 1Q06
United States/Canada
United States
AT&T Wireless 14,742 12,977 12,185 11,629 11,085 9,539 8,979 8,522
Verizon Wireless 4,969 4,336 4,380 4,580 4,376 4,142 4,112 4,030
Sprint Nextel 12,252 11,697 11,436 11,112 10,370 9,369 8,976 8,509
T-Mobile 4,771 4,553 4,253 4,083 3,829 3,711 3,682 3,576
ALLTEL NA NA NA NA NA NA NA NA
Total 36,734 33,563 32,254 31,404 29,386 26,631 25,749 24,637
Canada
TELUS 1,127 1,072 1,036 1,007 977 925 897 876
Rogers Wireless 1,424 1,399 1,351 1,371 1,380 1,325 1,293 1,309
Bell Mobility 1,766 1,649 1,587 1,567 1,710 1,562 1,526 1,529
Total 4,317 4,120 3,974 3,945 4,044 3,835 3,747 3,749
Europe
UK
Vodafone Group Plc 11,160 10,811 10,641 10,568 10,265 9,788 9,808 9,962
O2 plc 11,573 11,366 11,411 11,453 11,415 11,256 10,940 10,654
Orange SA 10,032 9,992 9,982 10,127 10,365 10,222 10,220 10,067
T-Mobile (including Virgin Mobile) 13,341 13,068 12,892 12,913 13,190 13,065 13,119 13,113
H3G (incl. Ireland) NA NA 1,623 1,583 NA NA 1,525 NA
Total 46,106 45,237 46,549 46,644 45,235 44,331 45,612 43,796
France
Orange SA 8,527 8,149 8,353 8,383 8,554 8,190 8,314 8,512
Bouygues 2,490 NA 2,369 NA 2,474 NA 2,492 NA
SFR 6,474 6,121 6,149 6,197 6,259 6,179 6,252 6,290
Total 17,491 14,270 16,871 14,580 17,287 14,369 17,058 14,802
Germany
Vodafone Group Plc 18,961 17,898 17,200 16,765 16,658 15,759 15,723 15,559
O2 plc 6,235 6,175 5,792 5,610 5,544 5,341 5,143 4,987
T-Mobile 19,897 18,802 18,808 17,705 16,305 15,942 15,856 15,862
E-Plus 8,510 7,942 7,483 7,116 6,649 6,277 6,025 5,692
Total 53,603 50,817 49,283 47,196 45,156 43,319 42,747 42,100
Italy
Vodafone Group Plc 20,785 20,547 20,000 19,351 18,539 17,829 17,093 17,048
Telecom Italia Mobile (TIM) NA NA NA NA NA NA NA NA
Wind NA NA NA NA 13,989 NA NA NA
H3G NA NA 5,566 5,365 NA NA 5,393 NA
Total 20,785 20,547 25,566 24,716 32,528 17,829 22,486 17,048
Spain
Vodafone Group Plc 6,751 6,715 6,406 7,184 6,639 6,493 6,835 6,815
Telefonica 9,182 9,158 9,183 9,284 9,303 9,291 9,261 9,232
Orange SA 5,135 5,131 5,071 5,594 5,695 5,614 5,514 5,427
Yoigo 246 131 84 55 14 NA NA NA
Total 21,314 21,135 20,744 22,117 21,651 21,398 21,610 21,474
Latin America
Mexico
Telcel 46,329 43,972 42,727 41,715 40,126 37,843 36,475 35,075
Telefonica Moviles 11,834 10,447 9,655 8,775 8,018 6,951 6,439 6,189
Total 58,163 54,419 52,382 50,490 49,307 45,929 44,064 42,464
Brazil
Claro 24,476 22,728 21,472 20,309 19,907 18,461 17,464 16,248
Vivo (Telefonica Moviles & Portugal Telecom SA) 27,236 25,457 24,549 23,377 23,544 23,482 23,257 24,377
Oi (Telemar Norte Leste S.A.) 13,427 12,516 11,244 11,049 10,724 10,142 9,748 9,086
TIM Participacoes S.A. 24,483 22,571 21,435 20,629 20,005 19,138 17,744 16,697
Brasil Telecom GSM 3,407 3,167 2,878 2,671 2,383 2,104 1,872 1,640
Total 93,029 86,439 81,578 78,035 76,563 73,327 70,085 68,048
Ecuador
Conecel SA 6,163 5,875 5,539 5,331 5,049 4,641 4,293 4,043
Telefonica Moviles 2,178 2,272 2,275 2,117 2,133 1,984 2,162 1,948
Total 8,341 8,147 7,814 7,448 7,182 6,625 6,455 5,991
NA − Not available. Continued on next page.
Source: Company reports.
16 Global Wireless Review May 16, 2008
17. Corporates
Appendix C: Total Active Prepaid/Reseller Subscribers (Continued)
(000)
Mobile/Wireless Operators 4Q07 3Q07 2Q07 1Q07 4Q06 3Q06 2Q06 1Q06
Latin America (Continued)
Colombia
Comunicacion Celular S.A. 19,088 18,095 17,546 17,049 16,629 16,049 15,477 13,561
Telefonica Moviles 6,613 5,867 5,887 5,735 5,961 5,884 5,721 5,284
Total 25,701 23,962 23,433 22,784 22,590 21,933 21,198 18,845
Argentina
CTI Movil 12,976 12,059 11,293 10,675 9,788 8,704 7,735 6,933
Telefonica Moviles 8,836 8,553 8,113 7,753 7,316 6,498 5,951 5,535
Telecom Personal S.A. 7,062 6,829 6,693 6,288 5,539 5,005 4,399 4,065
Total 28,874 27,441 26,099 24,716 22,643 20,207 18,085 16,533
Peru
Telefonica Moviles 7,238 6,390 5,571 4,882 4,353 3,750 3,331 3,008
America Movil Peru 4,933 4,353 3,942 3,490 3,054 2,529 2,226 1,964
Total 12,171 10,743 9,513 8,372 7,407 6,279 5,557 4,972
Chile
Entel 4,148 4,035 4,049 4,022 3,980 3,811 3,700 3,488
Telefonica Moviles 4,742 4,591 4,558 4,516 4,508 4,492 4,502 4,396
Claro 2,277 2,100 2,126 1,993 1,898 1,752 1,713 1,666
Total 11,167 10,726 10,733 10,531 10,386 10,055 9,915 9,550
Venezuela
Movilnet C.A. 9,057 8,559 8,253 7,754 7,562 6,450 6,288 5,316
Telefonica Moviles 8,900 8,392 8,345 7,724 7,520 6,814 6,666 5,659
Corporacion Digitel C.A. 4,676 3,935 3,544 3,085 2,729 2,152 1,805 1,697
Total 22,633 20,887 20,142 18,563 17,811 15,415 14,759 12,672
Asia/Pacific
Japan
Softbank Mobile Corp. 1,305 1,405 1,509 NA NA NA NA NA
NTT DoCoMo, Inc. 41 42 43 45 46 47 49 53
KDDI 746 745 748 827 968 1,084 1,111 1,065
Total 2,092 2,192 2,300 872 1,014 1,131 1,160 2,767
Korea
SK Telecom Co., Ltd. ⎯ ⎯ ⎯ ⎯ ⎯ ⎯ ⎯ ⎯
KT Freetel ⎯ ⎯ ⎯ ⎯ ⎯ ⎯ ⎯ ⎯
LG TeleCom ⎯ ⎯ ⎯ ⎯ ⎯ ⎯ ⎯ ⎯
Total 0 0 0 0 0 0 0 0
China
China Mobile Ltd 299,495 281,139 265,024 249,857 235,963 222,807 210,321 198,062
China Unicom 60,161 58,850 57,667 56,119 54,645 53,515 52,325 50,945
Total 359,656 339,989 322,691 305,976 290,608 276,322 262,646 249,007
Hong Kong
PCCW Mobile 376 350 290
HTIL 756 661 649 642 626 613 634 611
Total ⎯ ⎯ 1,025 ⎯ 976 ⎯ 634 ⎯
Philippines
Philippine Long Distance Telephone Co. 29,699 27,921 26,773 25,158 23,857 22,619 22,168 20,615
Globe Telecom 19,598 18,520 17,443 16,260 15,016 13,832 13,279 12,588
Total 49,297 46,441 44,216 41,418 38,873 36,450 35,447 33,203
Singapore
Singapore Telecommunications Ltd. 985 823 660 552 518 475 409 456
Australia
SingTel Optus Pty. Limited 3,918 3,862 3,835 3,797 3,738 3,675 3,647 3,590
Telstra Corporation Limited (semiannual) 3,489 3,697 3,626 3,597
Total 7,407 3,862 7,532 3,797 7,364 3,675 7,244
New Zealand
Telecom Corporation of New Zealand Ltd. 1,281 1,206 1,172 1,936 1,101 1,023 976 1,166
India
Bharti Airtel Limited 50,198 44,184 38,305 32,870 27,849 23,137 19,474 16,192
Sri Lanka
Sri-Lanka Telecom Ltd. 1,183 913 746 736 692 492 403 267
Dialog Telekom Limited 3,690 3,441 3,137 2,879 2,621 2,359 2,093 1,840
Total 4,873 4,354 3,883 3,615 3,313 2,851 2,496 2,107
NA − Not available. Continued on next page.
Source: Company reports.
Global Wireless Review May 16, 2008 17
18. Corporates
Appendix C: Total Active Prepaid/Reseller Subscribers (Continued)
(000)
Mobile/Wireless Operators 4Q07 3Q07 2Q07 1Q07 4Q06 3Q06 2Q06 1Q06
Asia/Pacific (Continued)
Indonesia
Telkomsel NA 42,566 41,002 37,189 33,935 30,839 27,698 25,418
PT Indosat 23,945 21,149 19,129 17,172 835 854 13,167 12,264
PT Excelcomindo 14,988 12,369 9,743 9,653 9,141 8,004 8,058 7,973
Total 38,933 76,084 69,874 64,014 43,911 39,697 48,923 45,655
Thailand
Advance Info Service PCL 21,820 20,773 20,038 18,463 17,279 15,750 15,406 14,716
Total Access Communication, PCL 13,699 12,630 12,115 10,994 10,189 9,496 8,806 8,185
Total 35,519 33,402 32,154 29,457 27,468 25,246 24,212 22,901
Taiwan
Chunghwa Telecom Co. Ltd 632 636 609 650 NA NA NA NA
NA − Not available.
Source: Company reports.
18 Global Wireless Review May 16, 2008
19. Corporates
Appendix D
Total Net Active Subscribers Additions
(000)
Mobile/Wireless Operators 4Q07 3Q07 2Q07 1Q07 4Q06 3Q06 2Q06 1Q06
United States/Canada
United States
AT&T Wireless 2,675 1,993 1,456 1,191 2,357 1,358 1,498 1,679
Verizon Wireless 2,008 1,645 1,338 1,664 2,305 1,912 1,815 1,683
Sprint Nextel (128) (76) 340 522 695 205 677 1,293
T-Mobile 951 857 857 980 901 802 613 1,035
ALLTEL 228 205 181 237 228 101 146 165
Total 5,734 4,624 4,172 4,594 6,486 4,378 4,749 5,855
Canada
TELUS 161 135 128 91 182 137 124 92
Rogers Wireless 183 243 138 86 245 211 122 66
Bell Mobility 195 137 63 13 169 114 90 59
Total 539 515 329 190 595 462 336 217
Europe
UK
Vodafone Group Plc 488 312 236 472 652 102 (119) (21)
O2 plc 483 114 34 118 295 524 474 359
Orange SA 242 235 68 (236) 193 189 (7) 100
T-Mobile (Including Virgin Mobile) 217 219 50 (171) 246 (70) 369 258
H3G (Including Ireland) NA NA 278 216 NA NA 291 NA
Total 1,430 880 666 399 1,386 745 1,008 696
France
Orange SA 722 101 177 (42) 726 152 (68) 28
Bouygues 450 NA 85 NA 417 NA 334 NA
SFR 657 129 70 27 378 90 87 130
Total 1,829 230 332 (15) 1,521 242 353 158
Germany
Vodafone Group Plc 1,379 923 800 196 1,000 178 253 26
O2 plc 304 610 374 159 396 294 236 330
T-Mobile 1,243 143 1,280 1,651 747 236 170 724
E-Plus 695 547 422 489 439 363 410 694
Total 3,621 2,223 2,876 2,495 2,582 1,071 1,069 1,774
Italy
Vodafone Group Plc 384 644 729 905 792 778 69 282
Telecom Italia Mobile (TIM) 1,021 998 743 1,119 962 1,080 744 1,088
Wind 300 84 16 500 200 227 273 331
H3G NA NA 572 816 NA NA 671 NA
Total 1,705 1,726 2,060 3,340 1,954 2,085 1,757 1,701
Spain
Vodafone Group Plc 337 294 (714) 1,429 440 75 428 598
Telefonica 407 317 289 368 426 365 378 387
Orange SA 170 229 (366) (57) 278 174 130 232
Yoigo 187 79 60 77 NA NA NA NA
Total 1,101 919 (731) 1,817 1,144 614 936 1,217
Latin America
Mexico
Telcel 2,495 1,402 1,168 1,756 2,470 1,570 1,562 1,674
Telefonica Moviles 1,465 841 912 766 1,109 578 306 190
Total 3,960 2,243 2,080 2,522 3,579 2,148 1,868 1,864
Brazil
Claro 2,247 1,728 1,646 726 1,709 1,223 1,504 786
Vivo (Telefonica Moviles & Portugal Telecom SA) 2,163 1,080 1,210 (23) 327 201 (1,612) 332
Oi (Telemar Norte Leste S.A.) 1,084 1,266 276 280 435 609 817 874
TIM Participacoes S.A. 2,094 1,681 1,172 899 1,323 1,746 1,410 13,415
Brasil Telecom GSM 239 256 130 261 326 279 311 248
Total 7,827 6,011 4,434 2,144 4,120 4,058 2,430 15,655
NA − Not available. Continued on next page.
Source: Company reports.
Global Wireless Review May 16, 2008 19
