ITU/94-10 21 March 1994 ORIGINAL: English Global telecommunication market boomed in 1992 shows a report released today by the ITU [1] Released simultaneously in Buenos Aires and Geneva The size of the telecommunication market was estimated at US$535 billion in 1992 according to an ITU report released today in Buenos Aires at the World Telecommunication Development Conference. Revenues for services increased 8% from previous year whereas equipment revenues rose by 9% in 1992. Yet, despite the size and growth of the telecommunication sector, there are still considerable disparities. The 24 industrial nations of the OECD[2] contributed 85% of global telecommunication service revenues although they are home to only 16% of the world's population. And high income countries, with only 15% of the global population have 71% of the world's telephone lines. The Report analyzes main trends which have affected the telecommunication sector in 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) It reviews how these changes influence the society we live in and how those changes can be harnessed to bring economic, social and environmental benefits. The financial state of the industry is examined and various policy options for restructuring the sector are given. The Report takes a look at experiences of selected countries at various stages of economic development who achieved success under different organizational set-ups and highlights factors which led to such success. SUCCESS STORIES Botswana illustrates that a least developed country can rapidly develop its telecommunication network while at the same time install state-of-the-art technology. Turkey is noteworthy because it is one example where a government-run PTT dramatically increased the number of lines despite a relatively large population and a sizable land area. The Republic of Korea is examined as it clearly illustrates how quickly teledensity can converge with that of developed countries. Chile shows the rapid impact that privatization can have on network growth. In this context, the Report shows that the supply side of the industry has benefited over the last decade from technological change and from sector restructuring, notably where private sector participation has been introduced. Finally, a review of prospects for the telecommunication industry over the next decade is presented and priorities together with policy options proposed. The Report reviews a whole range of indicators to measure the strengths of the telecommunication market in over 200 countries and territories. The data is used to examine some 20 areas ranging from teledensity and tele- accessibility to mobile, text, data communications and broadcasting. It also provides information on telephone tariffs and traffic, income revenue and current investment levels, equipment trade and productivity. Projection of main lines growth and required investments are also forecast. The report is available on sale at a cost of 160 Swiss francs. The full database used to researching the report is available separately on diskette or on-line via Internet. Upon presentation of a valid press card, a limited number of advance press copies will be available from the ITU Press Office. FOR ADDITIONAL INFORMATION, PLEASE CONTACT F. Lambert Chief, Press and Public Information Office of the Secretary-General Phone: +41 22 730 5969 Fax: +41 22 730 5939 Internet: lambert@itu.ch From 19 to 30 March, the Press Office will be operating from Buenos Aires and can be reached at +54 1 315 8341 (telephone) or +54 1 315 8345 (fax). [1] 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. [2] OECD: Organisation for Economic Co-operation and Development _______________