WHOLESALE SURVEY 2005

Published by	BroadGroup
Published	November, 2005	Product code	44310
Content info
Price	Not Available

Introduction
Related Reports

This publication has been discontinued on July 19, 2011.

Introduction

Abstract

Report Synopsis

In this the 3rd annual survey conducted by BroadGroup, the findings comment on the expectations of carriers for their wholesale businesses in the year ahead, covering both voice and data.

The Wholesale Survey 2005 is based on research with selected international wholesale carriers conducted in Europe, North America, Asia-Pacific and Latin America. Collectively the carriers represent around 40% of all world voice traffic estimated at 221.5 billion minutes, and 3.5 Terabits of sold capacity, through over 500 Points of Presence around the globe.

Overall, Carriers confront an increasingly changing and challenging environment.

The report found that in contrast to previous years, operators believe revenue growth will now not occur outside the norm, which increases the focus on other vehicles for growth including mergers, acquisitions, strategic collaboration and voice minute aggregation.

However, price declines appear set to continue but with some amelioration in the speed and percentage rate. In contrast to other regions, high voice and data volume growth is forecast for the Asia Pacific region.

In international wholesale data, the report found that the world market has not yet stabilised, and continues to be highly competitive with low barriers to entry for IP Transit, and the possibility that a new threat to the current IP Transit business model is emerging.

Although the total international wholesale market dollar value increased by only 4% between 2003 and 2004, strikingly the report found that the mobile premium now equates to approximately 40% of all revenues. The proportion of mobile terminating traffic continues to increase - the survey average is 36% - although new challenges could impact future growth.

The report also includes two valuable additional sections that provide context for the survey results: market pricing and the value of the international wholesale voice market, and an assessment of wholesale business profitability.

Voice and Data Competition

The survey found that Carriers perceive Teleglobe as the leading competitor in wholesale voice, and that a similar accolade is accorded to COLT in wholesale data. COLT has achieved this status for the second year running, even though its activities are confined to the European region.

ITXC is critical to the ranking of Teleglobe (now acquired by VSNL) and in combination places the carrier as the number one voice competitor, as viewed by its peers in the market. Belgacom who appeared first in voice wholesale last year, now ranks behind MCI who were identified by the respondents from all geographic regions as truly global and the most competitive wholesale voice carrier, and is now second in the survey.

In international wholesale data, Level (3) Communications and Cable & Wireless, who are viewed as highly competitive and collectively operate across multiple geographies, were second and third respectively.

Who Should Buy This Report

Voice and Data Carriers
Aggregators
Single Route Operators
VoIP Players
Regulatory Organisations
Law Firms
Supplier Companies
Consultancies
Financial and Investment Services Organisations

Part I - Wholesale Survey Results 2005

1 Voice: Revenue and Volume Expectations
2 IP Infrastructure
3 Retail Traffic
4 Business Model
5 Mobile Traffic
6 Data: Growth Expectations
7 Competition: Voice
8 Competition: Data

Part II Market Pricing and the Value of the International Voice Wholesale Market

1 World Market for Voice
2 Regional Markets for Underlying Fixed Network Termination (excluding Mobile)
3 Regional Market for Actual Fixed and Mobile Network Termination
4 Fixed and Mobile Regional Comparisons
5 Termination Value

Part III Wholesale Business Profitability

1 Profitability
2 Dynamics of Profitability

FIGURES

Figure 1 Wholesale Voice Revenue Growth Expectations
Figure 2 Wholesale Voice Traffic Growth Expectations 2005/6
Figure 3 Percentage of Operator's traffic from the Operator's retail business, mapped to number of Interconnects
Figure 4 Retail relationship to Interconnects
Figure 5 Wholesale relationship to Interconnects
Figure 6 Wholesale Data Revenue Growth Expectations
Figure 7 Wholesale Data Volume Growth Expectations
Figure 8 Relationship between Volume Growth expectations and the % of Bandwidth Products in the Revenue mix
Figure 9 Relationship between the percentage of Bandwidth in the product mix and People involved in the Wholesale Data Business
Figure 10.1 Ranking of Wholesale Voice Competitors by Wholesale Carriers
Figure 10.2 Ranking of Wholesale Voice Competitors by Wholesale Carriers (adjusted)
Figure 11 Ranking of Wholesale Data Competitors by Wholesale Carriers
Figure 12 Global International Wholesale Market Value (all values expressed in billions of US$)
Figure 13 Regional changes in the underlying value of Fixed Network termination (all values expressed in US Dollars)
Figure 14 Regional termination rates (all values expressed in US Dollars)
Figure 15 Regional changes in the actual value of traffic termination (value expressed in US Dollars millions)
Figure 16 Mobile Network Termination Rates Premium over Fixed Network Termination Rates (expressed in percentages)
Figure 17 Comparison of the Regional Underlying Fixed and Actual Fixed & Mobile (values expressed in US Dollars millions)

PART III

Table 1 Wholesale Business Profitability (values expressed in US Dollars millions)
Table 2 Revised Wholesale Business Model (all values expressed in US Dollars millions)