| ID Number: G00120850 |
Fixed Public Network Services Definitions Guide, 2004
13 May 2004 Wm. L. Hahn Alex Winogradoff The research methodology and the segmentation and definitions used for all fixed public network services regional and country-level forecasts are detailed.
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| Table of Contents
|  | Background and Overview
|  | Forecasting Goals
|  | Market Forecasting Methodology
|  | Fixed Telecom Market Revenue Summary
|  | Definitions for Fixed Public Network Services Market Revenue Summary Terms
|  | Fixed Telecom Market Retail Voice Calling Revenue
|  | Fixed Telecom Market Retail Voice Connection Revenue
|  | Fixed Telecom Market Retail Data Services Revenue
|  | Fixed Telecom Market Retail Internet Services Revenue
|  | Fixed Network Wholesale Services Revenue
|  | Fixed Network Size Data
|  | Fixed Telecom Ratios and Demographics
|  | Worldwide Geographic Regional Definitions
|  | Asia/Pacific
|  | Rest of Asia/Pacific
|  | Western Europe
|  | Rest of Western Europe
|  | Eastern Europe
|  | Rest of Eastern Europe
|  | Latin America
|  | Rest of Latin America
|  | Middle East and Africa
|  | Rest of Middle East and Africa
|  | North America
|  | Research Metrics
|  | Exchange Rates
| List of Tables
| Table 12-1. | Prevailing Exchange Rates vs. U.S. Dollar |
| List of Figures
| Figure 2-1. | Fixed Telecom Market Revenue Summary Segmentation |
| Figure 3-1. | Fixed Telecom Market Retail Voice Calling Revenue Segmentation |
| Figure 4-1. | Fixed Telecom Market Retail Voice Connection Revenue Segmentation |
| Figure 5-1. | Fixed Telecom Market Retail Unmanaged Data Services Revenue Segmentation |
| Figure 5-2. | Fixed Telecom Market Retail Managed Data Services Revenue Segmentation |
| Figure 6-1. | Fixed Telecom Market Retail Internet Services Revenue Segmentation |
| Figure 7-1. | Fixed Network Wholesale Services Revenue Segmentation |
| Figure 8-1. | Fixed Network Size Data Segmentation |
| Figure 9-1. | Fixed Telecom Ratios and Demographics Segmentation |
| ANALYSIS
| Background and Overview Each year, Gartner Dataquest surveys and holds ongoing interviews with telecommunications services providers to estimate annual revenue and develop market size assessments for the major markets worldwide. The information gathered through these sources enables Gartner Dataquest to maintain a dynamic database of fixed public network service data for each industry segment. This rigorous approach, supported by a team of experienced industry analysts, provides our clients with the most current and accurate picture of market data and trends. The purpose of this Guide, then, is twofold: First, to describe the methodology and comprehensive segmentation scheme used by Gartner Dataquest for its 2004 global, regional and country forecasts and statistics for the fixed telecom services market Second, to provide detailed telecom services market definitions for each of the line items of the forecast and all service segments of the segmentation scheme
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Forecasting Goals Gartner Dataquest aims to provide clients with forecasts that are useful, credible and as accurate as possible. Because it is impossible to always be right, it is important to provide clients with details of the assumptions that built the forecast. Gartner Dataquest realizes that clients evaluate its credibility by evaluating the historical accuracy and the quality of written forecast assumptions. This is not to imply that a conservative approach is called for; where we fail to forecast a completely new market, we have failed to inform the client of the opportunity. Gartner Dataquest uses tools and processes that maximize its overall presence in the market research industry by sharing processes and time frames, so that a unified, coherent picture of the telecom market is built. For several years, the process of developing telecom market forecasts has been undergoing continued refinement at Gartner Dataquest. Today, the process draws on Gartner Dataquest industry experts and client feedback to devise a forecast that is consistent internally and meets client expectations. The process assimilates vast amounts of disparate and aggregated data that is molded into a forecast that is scrutinized and scrubbed by many seasoned analysts. The completion of a typical long-term forecast takes about three to six weeks, depending on the product area, with several major steps. The time and effort that go into a detailed services forecast vary from period to period and are also heavily dependent on the services being forecast. Generally, forecasts produced after the release of annual data are the most time-consuming and require the most attention. Also, unexpected economic developments can affect the complexity and duration of the forecasting process. Gartner Dataquest also releases quarterly regional and selected country forecasts for the telecom and IT sector and is developing a set of forecasting tools to permit on-the-fly forecast updates.
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Market Forecasting Methodology Gartner Dataquest's market statistics methodology combines primary and secondary sources to produce the Market Forecasts and Trends documents. Gartner Dataquest continually interviews major participants within the fixed public network services markets in Asia/Pacific (including Japan), Central and Eastern Europe, North America, Latin America, Middle East and Africa, and Western Europe regions. This primary research is supplemented by additional research (primary and secondary) to verify market size, line/port totals and pricing information. Sources of data used by Gartner Dataquest include the following: Interviews with carriers and resellers Information published by major industry participants Estimates made by reliable industry spokespersons Government data or trade association data Published product literature and price lists Relevant economic data Articles in the general and trade press Published company financial reports Reports from financial analysts Information and data from online and CD-ROM data banks End-user surveys by key market segments Financial databases that model major carrier revenue on a quarterly basis Gartner Dataquest believes its Market Forecasts and statistical information are the most accurate and meaningful available. Despite the care taken in gathering, analyzing and categorizing the data, careful attention must be paid to the definitions and assumptions. Various companies, government agencies and trade associations may use slightly different definitions of product categories and regional groupings, or they may include different companies in their summaries. These differences should be kept in mind when making comparisons between data and numbers provided by Gartner Dataquest and those provided by other research organizations. Gartner Dataquest adheres to generic best practice forecasting methodology guidelines that are supplemented as needed with specific methodology for each industry research area. Gartner Dataquest strongly believes that forecasting is the meeting ground for the qualitative art of intuition and the quantitative science of data analysis. A sound forecasting process incorporates art and science into a logical and coherent series of steps that, if conducted in an organized fashion, will ensure forecasting effectiveness, reliability and accuracy. The chapters of the full Definitions Guide are organized in accordance with the forecast framework used in all of the fixed services Market Statistics forecasts at the worldwide, regional and country level. For further information, refer to the following regional Market Statistics books: "Forecast: Fixed Public Network Services, Latin America, 2002-2008," G00120764 "Forecast: Fixed Public Network Services, North America, 2002-2008," TCPS-WW-MS-0270
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Fixed Telecom Market Revenue Summary Figure 2-1 demonstrates how Table 1 in all of Gartner Dataquest's fixed services Market Statistics forecasts is organized. Table 1 is the only table for which the reported forecast lines remain consistent across all regions and countries. For Figures 3-1 through 9-1 in this guide, we identify the segmentation framework for all forecast services and their subsegments. Following each figure is a definition of each service and data element that is part of the segmentation framework. Note: In this document, all table references pertain to the data provided in the related Gartner Dataquest Market Statistics reports. All referenced figures are included in this Definitions Guide. Figure 2-1. Fixed Telecom Market Revenue Summary Segmentation Source: Gartner Dataquest (April 2004)
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Definitions for Fixed Public Network Services Market Revenue Summary Terms The following definitions apply to fixed public network services: Retail voice, public switched telephone network (PSTN) — Revenue from retail calls (see Table 2 for more details) and telephone connection/access line charges (see Table 3 for more details) delivered over the PSTN, alternately referred to as "circuit switched" voice service Retail voice, Voice over Internet Protocol (VoIP) — Revenue for retail calls delivered over the Internet or publicly shared IP carrier networks (see Table 2 for more details) and telephone connection charges using IP access (see Table 3 for more details) Retail voice services revenue — The sum of retail calling and retail telephone connection/access line revenue Retail data services revenue — End-user revenue from dedicated/private-line and packet-/circuit-switched services that are provided by public telecom operators or other carriers (see Table 4 for more details). Equipment lease/rental, connection, usage charges and initial installation/provisioning charges are included. Retail Internet services revenue (excluding bundled access facilities) — End-user revenue for Internet services, including use charges or subscription fees for Internet access, Web hosting and other Internet service provider (ISP) service revenue (see Table 5 for more details) Total fixed telecom retail service revenue — The sum of all fixed telecom services furnished by a provider to an end user — consumer and business — including retail calls and connection, retail data and retail Internet service revenue Wholesale voice services revenue — The sum of wholesale voice calling and connection and other voice-related wholesale services (see Table 6 for more details) Wholesale data services revenue — The sum of leased/private-line service and other data services (see Table 6 for more details) Wholesale Internet services revenue — The sum of IP transit and wholesale Web-hosting services (see Table 6 for more details) Total fixed telecom wholesale services revenue — Describes all fixed telecom services furnished by a provider to another telecom carrier. It is the sum of all voice, data and Internet wholesale services revenue (see Table 6 for more details).
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Fixed Telecom Market Retail Voice Calling Revenue Figure 3-1 demonstrates the segmentation framework of Table 2. Following are the definitions for each of the service elements that are part of the segmentation framework. Figure 3-1. Fixed Telecom Market Retail Voice Calling Revenue Segmentation Source: Gartner Dataquest (April 2004)
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Consumer calling revenue — Retail calling revenue for all calls (PSTN and VoIP) made by residential end users Business calling revenue — Retail calling revenue for all calls (PSTN and VoIP) made by commercial end users Domestic calling revenue — Retail calling revenue for all calls placed within a country (PSTN and VoIP) defined as national calling (local, long-distance), including fixed-to-mobile in Western Europe International calling revenue — Retail revenue from all (VoIP and PSTN) outbound calls beyond the national border (including fixed-to-mobile in Western Europe) VoIP calling — All retail revenue for calls delivered over the Internet or publicly shared IP carrier networks and separately charged for; not part of the monthly connection/access line charges from the service provider. VoIP calling that is bundled into the monthly charges is reflected in Table 3. Fixed-to-mobile calling revenue (in Western Europe) — Retail calling revenue for circuit-switched calls originating from a fixed line and terminating in a mobile line National call revenue — Retail calling revenue for circuit-switched measured/metered calls, both local and long-distance Local call revenue — Retail calling revenue for circuit-switched measured/metered calls within a local calling area Long-distance call revenue — Retail calling revenue for circuit-switched measured/metered calls, outside a local calling area and within a national boundary Outbound long-distance revenue — Retail calling revenue for caller-originated/caller-paid national long-distance services (circuit-switched measured/metered calls), including calling card and operator service revenue Inbound/free phone revenue — Retail calling revenue for called-party-paid domestic long-distance services (circuit-switched measured/metered calls), including services shared by caller and called party. Also called toll-free or 800 service. Value-added usage revenue — Retail calling revenue for usage-based value-added services including premium rate information services, usage-based enhanced services, such as call connect, call block and so on Total fixed telecom market retail calling services revenue — Includes all end-user service usage revenue that can be identified with calling over the PSTN and VoIP, generated by business customers and consumers, involving domestic and international calls (inbound and outbound). Revenue associated with the bundling of long-distance calling plans (unlimited or limited) for the PSTN are included here.
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Fixed Telecom Market Retail Voice Connection Revenue Figure 4-1 demonstrates the segmentation framework of Table 3. Following are the definitions for each of the service elements that are part of the segmentation framework. Figure 4-1. Fixed Telecom Market Retail Voice Connection Revenue Segmentation Source: Gartner Dataquest (April 2004)
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Fixed telecom market retail voice connection revenue — Includes connection services revenue for voice access to a fixed network (PSTN and VoIP) that includes one-time installation and monthly recurring revenue (for connection and value-added services) as well as government-mandated charges (for example, end-user common line [EUCL] in the United States) but not taxes PSTN connection/access line — Includes all revenue associated with the provisioning of PSTN services (including one-time connection, monthly recurring and value-added services). It does not include long-distance calling revenue bundled with the monthly service recurring charge; this is identified in Table 2. VoIP rental and connection — Includes all revenue associated the provisioning of VoIP services (including one-time connection, monthly recurring and value-added services). It also includes calling revenue that is bundled with the monthly service in the recurring charge. All separately charged/identified VoIP calling is identified in Table 2. Rental/basic revenue — Retail revenue for monthly recurring charges related to connection to the PSTN for voice-related services New connection revenue — Retail revenue for one-time installation charges of new subscribers connecting to the PSTN for voice-related services Value-added revenue — Retail monthly recurring revenue for enhanced services delivered over the PSTN for voice services, including class services (call waiting, caller ID and so on), voice messaging and so on EUCL — Retail revenue for federally mandated end-user line charges (United States only) Integrated Service Digital Network (ISDN), Primary Rate Interface (PRI) — Retail recurring and initial installation/provisioning revenue for ISDN PRI services ISDN, Basic Rate Interface (BRI) — Retail recurring and initial installation revenue for ISDN BRI services Public revenue — Revenue associated with public coin telephone usage
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Fixed Telecom Market Retail Data Services Revenue Figure 5-1 demonstrates the segmentation framework of Table 4. Following are the definitions for each of the service elements that are part of the segmentation framework. Figure 5-1. Fixed Telecom Market Retail Unmanaged Data Services Revenue Segmentation Source: Gartner Dataquest (April 2004)
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Fixed telecom market data services revenue — End-user revenue from all data services provided by public operators; the sum of unmanaged and managed data services Unmanaged data services revenue — End-user revenue from unmanaged data services; the sum of legacy packet, IP, Ethernet, DSL, cable modem and other high-speed services. Note: There are no leased-line or legacy packet service segments for the residential market in this report. Ethernet revenue — Revenue from unmanaged Ethernet service provided to business end users. This revenue refers to any Layer 2 public network carrier service that extends the Ethernet protocol-based LAN, interconnecting two or more LANs or sites. Ethernet is typically offered in the 10/100-Mbps bandwidth and, to a lesser degree, up to the lower-gigabit bandwidths and marketed as transparent or native LAN, Ethernet, Gigabit Ethernet or metropolitan/MAN Ethernet services. This includes Ethernet delivered via asynchronous transfer mode (ATM) and Synchronous Optical Network (SONET) or other Ethernet-over-fiber architecture. IP revenue — Revenue from IP services provided to business end users, including unmanaged "native" IP service and unmanaged IP virtual private network (VPN) service, and providing access or transport over the Internet or private IP networks IP (native) — Revenue from provision of unmanaged native IP services to business end users, including access or transport over the Internet or private IP networks IP VPN — Revenue from provision of unmanaged customer premises equipment (CPE)/premises-based IP VPN services to business end users, including access or transport over the Internet or private IP networks IP Multiprotocol Label Switching (MPLS) — Revenue from provision of unmanaged MPLS-based IP VPN services to business end users, including access or transport over a private MPLS network Legacy packet revenue — Revenue from provision of unmanaged legacy packet data services to business end users, including X.25, connectionless broadband data service/switched multimegabit data service (CBDS/SMDS), frame relay, ATM and other packet services X.25 — Revenue from unmanaged X.25 data services to business end users. This includes X.28 asynchronous and X.32 dial-up access and applications, such as electronic data interchange and X.400 messaging. It includes revenue from permanent and switched virtual circuits. Frame relay — Revenue from unmanaged frame relay data services to business end users. This includes frame relay encapsulated over X.25, over ATM and IP. It includes revenue from permanent and switched virtual circuits. ATM (native) — Revenue from unmanaged native ATM data services to business end users. Includes all access speeds and classes of service (for example, near real-time variable bit rate) from unbundled ATM ports; includes permanent and switched virtual circuits SMDS — Revenue from all unmanaged access classes for CBDS (Canada) and SMDS (United States) to business end users All other — Revenue from all other data services to business end users DSL revenue — Revenue from xDSL services provided to business and residential customers. This category comprises all variants of DSL (including Integrated Services Digital Network [IDSL], asymmetric [ADSL], symmetric [SDSL], single-pair high-speed [SHDSL] and very high-bit-rate digital subscriber line [VDSL]) provided to residential customers. Also included are the emerging sub-DS1 rate services, commonly referred to as ADSL Lite or G.Lite. DSL revenue includes the monthly recurring cost for DSL services (including any modem lease cost) and one-time initial installation and provisioning charges. Not included is the ISP Internet subscription cost, which is usually bundled with the DSL service. The ISP subscription costs are shown in Table 5. SDSL — Revenue from business and residential SDSL services. SDSL revenue includes the monthly recurring cost for SDSL services (including any modem lease cost) and initial installation and provisioning charges, but not ISP Internet subscription cost, which is usually bundled with the DSL service. The ISP subscription costs are shown in Table 5. ADSL — Revenue from business and residential ADSL services. ADSL revenue includes the monthly recurring cost for ADSL services (including any modem lease cost), and initial installation and provisioning charges, but not ISP Internet subscription cost which is usually bundled with the DSL service. The ISP subscription costs are shown in Table 5. VDSL — Revenue from business and residential VDSL services. VDSL revenue includes the monthly recurring cost for VDSL services (including any modem lease cost) and initial installation and provisioning charges, but not ISP Internet subscription cost, which is usually bundled with the DSL service. The ISP subscription costs are shown in Table 5. Other xDSL — Revenue from other business and residential DSL variant services. Other DSL revenue includes the monthly recurring cost for services (including any modem lease cost) and initial installation and provisioning charges, but not ISP Internet subscription cost, which is usually bundled with the DSL service. The ISP subscription costs are shown in Table 5. Cable modem revenue — End-user revenue from business and residential cable modem/hybrid fiber-coaxial (HFC) services. The revenue forecast includes the cable modem monthly service cost. Initial installation and provisioning charges are also included in the revenue forecast, but not the ISP Internet subscription cost, which is usually bundled with the cable modem service. The ISP subscription costs are shown in Table 5. Other high-speed revenue — Revenue from business and residential fixed wireless (multipoint multichannel distribution service [MMDS], local multipoint distribution service [LMDS] and unlicensed spectrum/unbundled network element [UNE] group), satellite data (consumer and business, including very small aperture terminal [VSAT]) and other non-ISDN high-speed services. The revenue forecast includes CPE/modem lease costs, where optional (limited applicability with satellite or fixed wireless services) and excludes ISP Internet subscription costs, which is usually bundled with the monthly service charge. Initial installation and provisioning charges are included in the revenue forecast. The ISP subscription costs are shown in Table 5. Fixed wireless — End-user revenue from business cable modem/HFC services. The revenue forecast includes the cable modem lease cost in the monthly service charge. Initial installation and provisioning charges are also included in the revenue forecast, but not the ISP Internet subscription cost, which is usually bundled with the monthly service charge. The ISP subscription costs are shown in Table 5. Satellite data — End-user revenue for business satellite data services. The revenue forecast includes CPE/modem lease cost where optional (limited applicability with satellite or fixed wireless services) and excludes ISP Internet subscription cost, which is usually bundled with the monthly service charge. Initial installation and provisioning charges are included in the revenue forecast. The ISP subscription costs are shown in Table 5. Narrowband — Services provided at speeds as high as 64 Kbps Wideband — Services provided at speeds greater than 64 Kbps and as high as 1.544 Mbps (United States) or 2.0 Mbps (other regions) Broadband — Services provided at speeds greater than 1.544 Mbps and as high as 34 Mbps (other regions) or 45 Mbps (United States) Leased-line revenue — Revenue from the provision of leased lines to end users. Revenue includes the basic connection and monthly rental of the line. Leased lines, optical carrier to variable speed/synchronous transport module (Oc-N/STM) — Revenue from leased-line provision at speeds greater than 34 Mbps (other regions) or 45 Mbps (United States) Leased line, below Oc-N/STM — Revenue from leased-line provision at speeds of 34 Mbps (other regions) or 45 Mbps or lower (United States) Leased line, analog — Revenue from leased lines provisioned over analog lines (for example, T1) Leased line, digital — Revenue from leased lines provisioned over digital lines (for example, Digital Signal Level 0 and 1 [DS-0] and [DS-1]) Figure 5-2 demonstrates the segmentation framework of Table 4. Following are the definitions for each of the service elements that are part of the segmentation framework. Figure 5-2. Fixed Telecom Market Retail Managed Data Services Revenue Segmentation Source: Gartner Dataquest (April 2004)
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Managed data services revenue — Managed data services incorporate proactive management and monitoring/reporting functionality of native data services. This includes revenue from the following services: managed IP VPN and managed WAN services. All managed services are composed of two types of revenue components. Gartner Dataquest classifies these as the transport/access element and the management element, which are forecast separately. Transport/access element revenue — Revenue associated with providing the underpinning data service networking layers, equivalent to native/unmanaged data service functionality, including the network interface device (NID)/edge device (for example, router), and access and transport for IP VPN and WAN services Management element revenue — Revenue includes network monitoring through extensive proactive management and a range of professional services — from basic monitoring and alerting functionality to nearly full management outsourcing. The management element may involve proactive, transparent, life cycle network operation by the service provider, including 24x7 network monitoring/reporting, real-time physical and logical/application monitoring, maintenance of router configurations database and upgrades, performance management/optimization, fault identification and resolution with managed backup connectivity, and so on. Managed IP VPN revenue — Revenue from provision of managed CPE/premises-based IP VPN services, including access or transport over the Internet or private IP networks and revenue from provision of managed MPLS-based IP VPN services, including access or transport over a private MPLS network Managed premises/CPE-based IP VPN services revenue — IP VPN service enabled at the edge (premises/CPE hardware or software), providing a single class of service and possibly offering end-to-end service-level agreements (SLAs). This type of IP VPN is viewed exclusively as the implementation of secure, end-to-end connectivity by creating tunnels through a private or public IP network using encryption methods such as Internet Protocol security (IPsec), Data Encryption Standard (DES) or Triple Data Encryption Standard (3DES). Standards-based approaches for providing this service include Point-to-Point Tunneling Protocol (PPTP), Layer Two Tunneling Protocol (L2TP) and IPsec. IP VPNs that are self-managed (do-it-yourself) by the business end user are not covered in this forecast. Revenue forecasts include edge device, access, transport and management components. Managed-network-based IP VPN services revenue — Revenue from network-based IP VPNs includes both private IP network-based and MPLS network-based IP VPN services. MPLS IP VPNs are the dominant architecture for this type of service and are fully meshed network-based solutions using Layer 3 routing, with a mix of various vendor-specific and standards-based protocols. MPLS creates virtual circuits between MPLS-enabled endpoints on-network, providing nearly instantaneous automated provisioning capabilities. MPLS provides the capability to establish traffic classes that allow tiered levels of service quality. Although still a less common practice compared with the use of DiffServe-enabled routers, MPLS handles multiple protocols (such as Layer 2, ATM and frame relay; Layer 3 IP) over the network and enables the migration of many ATM control plane functions to Layer 3. Managed WAN revenue — Revenue from managed WAN services (non-IP VPN) includes edge-to-edge network and network interface/edge device (router, channel service unit/data service unit [CSU/DSU], integrated access device [IAD], frame relay assembler/disassembler [FRAD] and so on) management, network access and core transport elements, based on a wide range of core Layer 2 transport technologies — such as legacy packet (frame relay and ATM), private line and Ethernet — supporting various network access technologies. LAN and CPE revenue are not included in this forecast; however, limited professional services, network design and engineering, and managed network applications necessary to implement this managed service are included as part of the service bundle.
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Fixed Telecom Market Retail Internet Services Revenue Figure 6-1 demonstrates the segmentation framework of Table 5. Following are the definitions for each of the service elements that are part of the segmentation framework. Figure 6-1. Fixed Telecom Market Retail Internet Services Revenue Segmentation Source: Gartner Dataquest (April 2004)
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Fixed telecom market Internet retail services revenue — Total end-user revenue for Internet and public IP services, including Internet access services that include two components: usage charges or subscription fees and any bundled access facility, Web-hosting, content distribution and caching, and value-added IP services Subscription revenue — Fees obtained for the privilege of connecting to the Internet through an ISP. These fees may include a portal, Web pages, content and so on. Only retail (end-user) access via a PC is included in these figures. Access revenue (bundled) — Fees paid by the Internet subscriber for Internet access facilities that are included (bundled) in the overall Internet services pricing structure (such as DSL, cable modem and T1 charges). These are also reflected in Table 4 to capture the total retail data services market and again in Table 6 to capture the fact that these bundled facilities may also have been re-sold to the ISP. To ensure that there is no double counting in Table 1, where the total market is defined, the bundled access facility is removed from the ISP revenue. Web-hosting revenue — Revenue for Web hosting paid by businesses (including other organizations such as government agencies) is included in the data contained in the related Gartner Dataquest Market Statistics reports. Web hosting is defined as all hosting of data, content and information — not just Web pages or Internet sites — that can be accessed via a PC. This revenue includes colocation, dedicated hosting and shared hosting revenue. Content distribution/caching revenue — Revenue for the integrated delivery of storage, computing power and transport services at the edge of the network as a fully managed service Value-added IP services revenue — End-user revenue from value-added consumer ISP services, such as additional storage space and premium personal home page features; does not include revenue for content services Dial-up subscription revenue — Retail Internet subscription revenue provided over a dial-up or circuit-switched connection Broadband/dedicated subscription revenue — Retail Internet subscription revenue provided over high-speed/broadband connections, including DSL, cable modem and satellite Shared hosting — An ISP's revenue for shared hosting paid by businesses (including other organizations). Only revenue from ISPs and Web-hosting companies is included in the data contained in the related Gartner Dataquest Market Statistics reports. Only retail (end-user) Web-hosting services accessed via a PC are covered. Colocation hosting — An ISP's revenue for colocation hosting paid by businesses (including other organizations). Only revenue from ISPs and Web-hosting companies is included in these figures. Only retail (end-user) Web-hosting services accessed via a PC are covered. Dedicated hosting — An ISP's revenue for dedicated hosting paid by businesses (including other organizations). Only revenue from ISPs and Web-hosting companies is included in these figures. Only retail (end-user) Web-hosting services accessed via a PC are covered.
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Fixed Network Wholesale Services Revenue Figure 7-1 demonstrates the segmentation framework of Table 6. Following are the definitions for each of the service elements that are part of the segmentation framework. Figure 7-1. Fixed Network Wholesale Services Revenue Segmentation Source: Gartner Dataquest (April 2004)
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Total fixed telecom market wholesale services revenue — Revenue received by carriers for fixed telecom services provided to other carriers. These services cover the full gamut of fixed services: voice, data and Internet services. Wholesale includes all intercarrier services that are rendered to carriers for their own consumption as well as services that these carriers re-sell. Wholesale voice services revenue — Revenue derived from other carriers for domestic and international voice calling services and international settlement fees as well as certain types of voice access and connection fees Wholesale domestic voice revenue — Revenue from carriers for the provision of in-country voice calling (local and long-distance), connection and switched access (United States only) Wholesale international voice revenue — Revenue from carriers for the delivery of outbound calls (PSTN or VoIP) beyond the national border International inbound settlement revenue — Carrier revenue from carrier-to-carrier international inbound settlement payments for termination of international calls Switched access revenue — Revenue obtained from interexchange carriers for the origination and termination of long-distance calls over the facilities of another carrier (United States only). The interexchange carrier pays the local carrier for the use of its facilities to access the end user (local loop). Wholesale data services revenue — Revenue from carriers for the provision of leased/private-line service, high-speed access service and packet data access/transport service Wholesale leased-line revenue — Revenue from carriers for the provision of leased lines for local and long-distance (domestic and international) connections. Revenue includes the basic connection and monthly rental of the facility. Wholesale long-distance leased-line revenue — Revenue from carriers for the provision of domestic and international leased lines. Revenue includes the basic connection and monthly rental of the facility. Wholesale local leased-line revenue (United States only) — Revenue from carriers for the provision of local leased lines, which includes those that originate and terminate within the local access and transport area (LATA) and special access lines that provide long-distance access, just as switched access. Revenue includes the basic connection and monthly rental of the facility. Special access revenue (United States only) — Revenue from carriers for local leased-line connections to an interexchange carrier's point of presence (POP). Although special access services can be bought using the special access tariff by end users (retail), the revenue described as wholesale special access in Gartner Dataquest's segmentation reflects only leased lines connecting an interexchange carrier's POP to local carrier facilities. Wholesale other data services revenue — Revenue from carriers for the provision of packet and high-speed access services (other than leased lines) High-speed access — Revenue from carriers for the provision of DSL, satellite, fixed wireless, Ethernet and cable modem services Packet data — Revenue from carriers for the provision of IP and legacy packet services (for example, frame relay and ATM) Wholesale Internet revenue — Revenue from carriers for the provision of IP transit and Web-hosting services IP transit revenue — Service provided by a carrier to an ISP or another carrier that has a national or international requirement for bulk IP connectivity to multiple Internet network access points (NAPs) and peering points. Traffic is routed on the wholesale carrier's backbone in a controlled manner under the contract SLAs and service-level guarantees (SLGs). IP transit revenue does not include the revenue generated from the access services used to transport data between the customers' site(s) and the IP transit network port (that revenue is identified in another wholesale category). Web-hosting revenue — Revenue from carriers or ISPs for Web-hosting services provided to those entities
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Fixed Network Size Data Figure 8-1 demonstrates the segmentation framework of Table 7. Following are the definitions for each of the service elements that are part of the segmentation framework. Figure 8-1. Fixed Network Size Data Segmentation Source: Gartner Dataquest (April 2004)
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Network access lines — Number of switched access connections to the PSTN (including ISDN channel counts) and the number of IP lines used for voice communications for both consumer and business customers Voice lines, PSTN — Number of switched access connections to the PSTN (including ISDN channel counts) Voice lines, VoIP — Number of "virtual" VoIP connections used for voice communications, usually via a broadband connection to the Internet or some other IP network. The virtual line is associated with a telephone number assigned for terminating PSTN calls to an IP (SIP) phone, a softphone (PC) or an IP-enabled time division multiplexing (TDM) phone. ISDN, BRI channels — Each ISDN BRI circuit connected to the PSTN is counted as two B-channels of 64 Kbps. ISDN, PRI channels — Each ISDN PRI circuit connected to the PSTN is counted as 23 B-channels of 64 Kbps. Consumer primary lines — Number of the first switched line connecting a consumer's residence to the PSTN for voice communications Consumer additional lines — Number of all switched lines in addition to the primary line connecting a consumer's residence to the PSTN Business single lines — Number of basic switched lines connecting a business to the PSTN for businesses having a single line Business multiple lines — Number of basic switched lines connecting a business to the PSTN for businesses having multiple lines Centrex lines — Number of lines connected to the PSTN using a central office (CO)-based "host" exchange for call switching, routing and calling features PBX trunks — Number of trunks connected to the PSTN and a customer-based private branch exchange for call switching, routing and calling features Incumbent operator lines — Number of PSTN and VoIP connections provided by incumbent service providers for voice communications Competitive operator lines — Number of PSTN and VoIP connections provided by competitive service providers for voice communications Competitive operator lines on-net — Number of connections provided by competitive service providers over their own network facilities Competitive operator lines, re-sold — Number of connections sold by competitive service providers to end users using the network facilities of other providers; in other words, the competitive service provider re-sells the lines of another provider. Competitive operator lines, hybrid — Number of connections provided to end users by competitive service providers using a combination of leased network facilities of incumbent providers and their own network facilities, primarily switching Data access ports — The termination at the carrier's CO or POP of X.25, ATM, SMDS and IP (one port reflects one end-to-end circuit count); at the carrier’s CO or POP for Ethernet and frame relay (one port reflects the one CO termination, access and half permanent virtual circuit [PVC]). For cable modem, satellite two-way data and fixed wireless services, these reflect in-service subscriber access facilities. Data access lines — A data line is a direct path between two termination points. In the case of circuit-switched access lines — such as ISDN BRI, ISDN PRI, and DSL — the number of in-service lines is equal to the number of in-service ports. In effect, one end of these lines terminates in the public switched network but is not necessarily directly associated with a specific terminating location. Internet subscribers — The number of paid Internet connections for household PCs and other primary Internet access devices
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Fixed Telecom Ratios and Demographics Figure 9-1 demonstrates the segmentation framework of Table 8. Following are the definitions for each of the service elements that are part of the segmentation framework. Figure 9-1. Fixed Telecom Ratios and Demographics Segmentation Source: Gartner Dataquest (April 2004)
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Population — The number of inhabitants of a given country, taken at midyear; the basis for computing lines per 100 population Households — The number of distinct households of a given country, taken at midyear; the basis for computing lines per 100 households Real gross domestic product (GDP) — Both the value of goods and services produced by the economy (referred to as the product side) and the costs incurred and types of income earned in producing those goods and services (referred to as the income side) Retail fixed services revenue per network access line — Fixed public network services retail revenue (see Table 1 for details) divided by the number of network access lines in service (see Table 7 for details) Fixed lines per 100 population — A measure of the development in a given national network, expressed as the number of network access lines in service per 100 population (see Table 7 for details). This is sometimes also referred to as teledensity. Fixed revenue per carrier employee — Fixed public network services retail revenue divided by the number of carrier employees (see Table 1 for details) Fixed revenue per capita — Fixed public network services retail revenue divided by the number of inhabitants (see Table 1 for details) Fixed revenue as a percentage of real GDP — Fixed public network services retail revenue expressed as a proportion of the real GDP (see Table 1 for details) Lines per carrier employee — The number of network access lines in service per carrier employee (see Table 7 for details) Consumer lines per household — A measure of the development in a given national network, expressed as the number of residential network access lines in service per 100 households (see Table 7 for details). Sometimes also referred to as teledensity.
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Worldwide Geographic Regional Definitions The following regional hierarchy and definitions are used for all Gartner Dataquest's geographic segmentation. Not all product categories and Gartner Dataquest services have the entire segmentation. Some may have more, and some may have less.
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Asia/Pacific The Asia/Pacific region includes Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan and Thailand.
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Rest of Asia/Pacific The Rest of Asia/Pacific region includes American Samoa, Ashmore and Cartier Islands, Baker Island, Bangladesh, Bhutan, Bouvet Island, Brunei, Cambodia, Christmas Island, Cocos (Keeling) Islands, Cook Islands, Coral Sea Islands, Federated States of Micronesia, Fiji, French Polynesia, Guam, Howland Island, Jarvis Island, Johnston Atoll, Kingman Reef, Kiribati, Laos, Macau, Maldives, Marshall Islands, Midway Islands, Mongolia, Myanmar (Burma), Nauru, Nepal, New Caledonia, Niue, Norfolk Island, Northern Mariana Islands, North Korea, Pakistan, Palau, Palmyra Atoll, Papua New Guinea, Paracel Islands, Philippines, Pitcairn Islands, Solomon Islands, Spratly Islands, Sri Lanka, Tokelau, Tonga, Tuvalu, Vanuatu, Vietnam, Wake Island, Wallis and Futuna, and Western Samoa.
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Western Europe The Western Europe region consists of Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
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Rest of Western Europe The Rest of Western Europe region includes Andorra, Cyprus, Faroe Islands, Gibraltar, Greenland, Guernsey, Iceland, Isle of Man, Jersey, Liechtenstein, Luxembourg, Malta, Monaco, San Marino and Svalbard.
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Eastern Europe The Eastern Europe region consists of the Czech Republic, Hungary, Poland, Russia and Slovakia.
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Rest of Eastern Europe The Rest of Eastern Europe region includes Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Macedonia, Moldova, Romania, Slovenia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, and Yugoslavia (Serbia and Montenegro).
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Latin America The Latin America region consists of Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela.
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Rest of Latin America The Rest of Latin America region includes Anguilla, Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bermuda, Bolivia, Cayman Islands, Clipperton Island, Costa Rica, Cuba, Dominica, Dominican Republic, Ecuador, El Salvador, Falkland Islands (Islas Malvinas), French Guiana, Grenada, Guadeloupe, Guatemala, Guyana, Haiti, Honduras, Jamaica, Martinique, Montserrat, Navassa Island, Netherlands Antilles, Nicaragua, Panama, Paraguay, Puerto Rico, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Tortola (British Virgin Islands), Trinidad and Tobago, Turks and Caicos Islands, Uruguay, and Virgin Islands (St. John, St. Croix and St. Thomas).
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Middle East and Africa The Middle East and Africa region consists of Algeria, Egypt, Iran, Israel, Morocco, South Africa and Turkey.
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Rest of Middle East and Africa The Rest of Middle East and Africa region includes Afghanistan, Angola, Bahrain, Bassas da India, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo, Cote d'Ivoire, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Europa Island, Gabon, Gambia, Ghana, Glorioso Islands, Guinea, Guinea-Bissau, Iraq, Jordan, Juan de Nova Island, Kenya, Kuwait, Lebanon, Lesotho, Liberia, Libya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mayotte, Mozambique, Namibia, Niger, Nigeria, Oman, Qatar, Reunion, Rwanda, Saint Helena, Sao Tome and Principe, Saudi Arabia, Senegal, Seychelles, Sierra Leone, Somalia, Sudan, Swaziland, Syria, Tanzania, Togo, Tromelin Island, Tunisia, Uganda, United Arab Emirates, Western Sahara, Yemen, Zaire, Zambia, and Zimbabwe.
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North America The North America region consists of the United States and Canada.
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Research Metrics The following describes the research metrics Gartner Dataquest uses for reporting market revenue, market size and market share: Compound annual growth rate (CAGR) — The annualized rate of revenue or unit shipment growth between two given years, assuming growth takes place at an exponentially compounded rate. The CAGR between years X and Z, where Z - X = N is the number of years between the two given years, is calculated as follows: CAGR Year X to Year Z = [(Value in Year Z/Value in Year X) ^ (1/N) -1] For example, the CAGR for 2001 through 2006 is calculated as follows: CAGR 2001 through 2006 = [(Value in 2006/Value in 2001) ^ (1/5) -1] End user — This is the final user of a public network service or the final purchaser of a public network service or a managed network. The final purchaser may or may not be the actual end user, but the outflow of the product stops at the end user. Carrier — This is any company that provides telecom services to either end users or to other carriers (including resellers). Revenue — This is the gross sales generated by a manufacturer, vendor or carrier/service provider, measured in unit currency. Installed base — This is the total number of lines, ports, circuits or channels in active use. Retirements — This is the total number of units that are removed from active use at a specified point in time.
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Exchange Rates Gartner Dataquest uses currency exchange rate data provided by DRI-WEFA to make its calculations. Country-level data, compiled in local currency, is converted to U.S. dollars in that fashion. Thus, it is entirely possible for the market growth rate of a given national market to vary when expressed in local currency compared with U.S. dollars. More information can be obtained through examination of the relevant regional and country-level reports. Table 12-1 provides details of the exchange rates applied.
Table 12-1. Prevailing Exchange Rates vs. U.S. Dollar
Region/Market | Annual Exchange Rate Average | Year-End Average | Projected Annual Rate, 2004 and Beyond
--- | --- | --- | ---
Argentina (Peso) | 3.15 | 2.95 | 2.96
Australia (Dollar) | 1.84 | 1.54 | 1.35
Brazil (Real) | 2.92 | 3.08 | 2.93
Bulgaria (Lev) | 2.07 | 1.73 | 1.59
Canada (Dollar) | 1.57 | 1.40 | 1.31
Chile (Peso) | 689.45 | 690.52 | 601.23
China (Yuan) | 8.28 | 8.28 | 8.28
Colombia (Peso) | 2,507.63 | 2,877.15 | 2,804.69
Czech Republic (Koruna) | 32.70 | 28.18 | 26.32
Denmark (Krone) | 7.89 | 6.58 | 6.06
Economic and Monetary Union (ECU/Euro) | 1.06 | 0.89 | 0.81
Egypt (Pound) | 4.62 | 5.87 | 6.16
Hong Kong (Dollar) | 7.80 | 7.79 | 7.76
Hungary (Forint) | 257.65 | 224.13 | 215.48
Iceland (Krona) | 91.55 | 76.65 | 72.94
India (Rupee) | 48.62 | 46.60 | 45.58
Indonesia (Rupiah) | 9,321.51 | 8,573.69 | 8,488.14
Israel (New Shekel) | 4.74 | 4.55 | 4.39
Japan (Yen) | 125.27 | 115.92 | 107.77
Malaysia (Ringgit) | 3.80 | 3.80 | 3.80
Mexico (Peso) | 9.67 | 10.80 | 11.25
New Zealand (Dollar) | 2.15 | 1.72 | 1.55
Norway (Krone) | 7.99 | 7.08 | 6.72
Peru (New Sole) | 3.52 | 3.48 | 3.47
Philippines (Peso) | 51.62 | 54.23 | 55.43
Poland (Zloty) | 4.08 | 3.89 | 3.79
Romania (Lev) | 32,912.90 | 33,059.09 | 32,904.05
Russia (Ruble) | 31.39 | 30.68 | 29.42
Singapore (Dollar) | 1.79 | 1.74 | 1.69
Slovakia (Koruna) | 45.24 | 36.73 | 33.47
South Africa (Rand) | 10.52 | 7.56 | 6.53
South Korea (Won) | 1,250.49 | 1,191.98 | 1,192.35
Sri Lanka (Rupee) | 95.76 | 96.54 | 96.40
Sweden (Krona) | 9.72 | 8.08 | 7.35
Switzerland (Franc) | 1.56 | 1.35 | 1.27
Taiwan (Dollar) | 34.54 | 34.41 | 34.06
Thailand (Baht) | 43.03 | 41.56 | 39.75
Turkey (Lira) | 1,514,163.64 | 1,501,699.74 | 1,431,264.81
Ukraine (Hryvna) | 5.50 | N/A | N/A
United Kingdom (Pound) | 0.67 | 0.61 | 0.57
Venezuela (Bolivar) | 1,161.31 | 1,620.88 | 1,599.86
N/A = Not available
Source: DRI-WEFA
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