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. THIS PRESS RELEASE CONTAINS GRAPHICS. THE GRAPHICS CAN BE SEEN IN THE ORIGINAL WINWORD VERSION OF THE DOCUMENT. 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 Graphic (see original document in Winword) Source: ITU. Copyright 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 Change Main lines Change US $ (91-92) (in '000 000) (91-92) (on '000 000) % % 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 Telecom 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 Copyright 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 Change US$ (91-92) (in '000 000) % 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. Copyright 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 Graphic (see original document in Winword) Source: ITU Copyright 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 This covers the provision of services and equipment for use on, or interconnection to, public telecommunication networks. Media representatives can use any of the data indicated in this press release for reporting purposes only provided they quote ITU as the source. Clippings of articles published making use of the data would be appreciated. Any other use of the data is subject to prior authorization from the ITU.