ITU/93-10
19 November 1993
Original: English
The International Telecommunication Union to issue a report 
on the state of world telecommunications
In a report to be released early next year, the ITU estimates the total value of the telecommunication market, as measured by revenues at US$535 billion for 1992. The number of main telephone lines is estimated at 575 million. 
Service and equipment  market
Services account for more than three-quarters of the public telecommunication market with turnover of US$415 billion. The value of the equipment market is placed at US$120 billion. The report shows that, during 1992, revenues for services increased 8% from previous year whereas increases for equipment reached 9%. Given the fact that the world economy as a whole barely showed any growth in the same period, these figures illustrate the continuing strength of the telecommunication sector. 
Share of telecommunications market, 1992

Source: ITU.
Ó ITU 

Operators
The report identifies Japan's NTT as the largest operator in the service market in 1992 with revenues of US$51 billion. Interestingly, among the top ten operators, revenues are growing at approximately twice the rate of growth in the basic telephone network as a result of the investment in mobile services, data communications and, increasingly, activities outside their domestic market.
Top 10 public telecoms operators, 1992
	Operator	Country	Revenue
US$ 
(in '000 000)	Change
(91–92)
% 	Main lines
(in '000 000)	Change (91–92)
%  	
1	NTT a)	Japan	51 354	1.7%	57	2.7%	
2	AT&T b)	USA	39 580	2.0%	 –	–	
3	DBP Telekom	Germany	34 550	14.3%	35	5.6%	
4	BT a)	UK	23 379	-0.7%	26	1.9%	
5	France Télécom	France	23 164	5.9%	30	3.4%	
6	SIP	Italy	17 492	10.8%	24	2.8%	
7	BellSouth	USA	15 202	5.2%	19	3.4%	
8	Nynex	USA	13 155	-0.6%	16	1.9%	
9	GTE	USA	12 644	0.6%	17	3.6%	
10	Bell Atlantic	USA	12 093	2.5%	18	2.4%	
	Top 10		242 613	7.1%	242	3.2%	
Note: 	a) Year ending 31.3.93  		b) AT&T does not provide local exchange service.
Source:	ITU, adapted from company reports
Ó ITU
Equipment market 
The equipment market is led by Alcatel. Of the top 10 equipment vendors, five are European, three are from North America and two are Japanese. Overall, the top 10 companies accounted for almost three-quarters of the global market, a much higher degree of concentration than in the services sector. The growth of cellular networks is evident in the two companies showing the highest percentage increase of revenue in the top ten (Siemens and Motorola). Siemens has benefited from sales of GSM digital cellular systems and from infrastructure development in the new Eastern states of Germany.
Sales of cellular infrastructure equipment to developing countries had a major impact on Motorola's sales growth. Of all the manufacturers surveyed, Nokia, estimated to rank 14th in terms of revenues, showed the highest growth with a 57% increase of its telecommunication revenues, almost all from cellular equipment sales.
Top 10 telecoms equipment manufacturers, 1992
(in terms of revenue)
	Manufacturer	Country	Revenue
US$ 
(in '000 000)	 Change (91–92)
%	
1	Alcatel	France	19 359	-0.1%	
2	Siemens a)	Germany	11 877	13.3%	
3	AT&T	USA	10 809	4.5%	
4	Northern Telecom	Canada	8 029	4.5%	
5	Ericsson	Sweden	7 742	2.5%	
6	Motorola	USA	7 724	19.3%	
7	NEC b)	Japan	7 591	-4.0%	
8	Bosch	Germany	5 221	3.2%	
9	Fujitsu b)	Japan	3 738	6.4%	
10	Philips	Netherlands	3 412	7.7%	
	Top 10		85 502	8.5%	
Note:	a) Year ending 30.9.92. 	b) Year ending 31.3.93.
Source: 	ITU, adapted from company reports.
Ó ITU
Distribution of world's main telephone lines
The number of main telephone lines in the world at the end of 1992 is estimated at 575 million. Some 28 million new lines were added in 1992, a net increase of 5 percent from 1991. The world-wide teledensity (number of telephone lines in use per 100 inhabitants) averages around 10. However, there is a considerable difference in the distribution of telephone lines between developed and developing countries. There are on average 49 telephone lines per 100 inhabitants in the 24 developed member countries of the Organisation for Economic Cooperation and Development (OECD) but just 3.5 lines per 100 inhabitants of the rest of the world.
Distribution of world's main telephone lines, 1992

Source: ITU
Ó ITU

These preliminary figures are included in a report analysing global telecommunications developments over the last ten years: World Telecommunication Development Report. The Report is being prepared for the World Telecommunication Development Conference to be held in Buenos Aires, Argentina (21–29 March 1994). It will also analyze the main trends which have characterized the past ten years:
	globalization (trends in international traffic, corporate strategies, trade in equipment and services)
	technological change (transmission systems, switching systems, mobile communications, satellite systems, text/data/image communications)
	changes in the telecommunication sector (pressure for restructuring, privatization, competition, regulatory frameworks)
	telecommunication development (telecommunication gap, regional developments, high achievers, financing telecommunication development, measures for improving performance)
An appendix to the report will provide telecommunication indicators for over 200 countries and territories on traffic, network capacity and utilization, distribution and accessibility, quality, tariffs, staffing, revenues and costs, investment projections and more. Prospects and priorities for the next century will also be addressed. 
The report is expected to be available as a conference document (to conference participants only) in February 1994 and for sales as from 21 March 1994. 
For additional information on the report, please contact 
Mr.  M. Minges
Telecommunication Analyst
Telecommunication Development Bureau
Phone: +41 22 730  5519  Fax: +41 22 730 6449 	Dr. T. Kelly
Head, Operations Analysis
Strategic Policy and Planning Unit 
Phone: +41 22 730 5202  Fax: +41 22 730 5881	
A limited number of advance press copies will be available from the ITU Press Office (see below for contact). 
For additional information on the conference, please contact 
Mrs F. Lambert
Chief, Press and Public Relations
Office of the Secretary-General
Phone: +41 22 730 5969  Fax: +41 22 730 5939