Transcript UAE Telecommunications Sector

UAE Telecommunications Sector Developments &
Indicators, 2007 – 2009
May 2010
UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Table of Contents
Page
Introduction …………………………………………………………………………………..
3
Disclaimer ...……………………………………………………………………………….....
4
Economic Summary …………………………………………………………………………
5
Summary of Telecommunications Indicators …………………………………………….
6
Industry Background ………………………………………………………………………..
7
Fixed Telephony Services ………………………...………………………………………..
9
Mobile Services ………………………………………………………………………….…..
12
International Voice Services …………………………………………………………….….
16
Internet Services …………………………………………………………………………….
18
Data Services ……………………………………………………………………………….
24
Revenue & Usage Comparison Across Services …………………….………………….
25
Annexes :
Annex 1: Abbreviations & Acronyms ……………..……………………………………….
26
Annex 2: Definitions of Some Telecommunication/ICT Indicators …………………….
27
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UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Introduction
This report is the first TRA Annual Sector Review. It summaries the state of the Fixed,
Mobile, and Data telecommunication markets in the United Arab Emirates (UAE) in terms of
subscribers, penetration, revenues and usages (traffic) for the years 2007, 2008 and 2009.
The Report also outlines the contribution of the telecommunication sector to the UAE
economy.
The data contained in this Report is published in aggregate form only and statistics for
individual Licensees is not listed. The TRA has taken this step to protect the confidentiality of
each Licensee while recognizing that for the purpose of transparency, regulatory good
practices and to aid in the development of competition a publication of this nature is
warranted.
The TRA wishes to thank the contribution of each Licensee to this Report through the supply
of their monthly and quarterly telecommunication statistics to the TRA.
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UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Disclaimer
The TRA has compiled this report based on information received from industry, as well
as from publicly reported information from other sources.
While this report and the information contained therein is, to the best knowledge of the
TRA, free from error, the TRA does not make any representations or warranties, either
express or implied, as to the accuracy of the information.
Furthermore, the TRA is not liable for any inaccuracies, errors or omissions in the
information contained in this document or any harm that may be incurred in reliance
thereon.
If a reader wishes to use any of the information contained in this Report as the basis
for any decision, whether or not related to investment, the reader is obliged to
determine the accuracy of the same.
Furthermore, the information is provided for educational purposes only and is not
intended to be a recommendation to take any particular course of action.
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UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Economic Summary
The table below provides some high level metrics for the UAE economy:
Indicator
Population
Number of Households
Population Growth
GDP (billions)
GDP Per Capita
2007
2008
2009
4,488,000
4,765,000
5,066,000
663,263
707,150
747,817
6%
6%
6%
AED 758
AED 934
AED 839 1
AED 169,280
AED 196,512
AED 171,107 1
Source: Ministry of Economy
1
Estimated by IMF
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UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Summary of Main Telecommunications Indicators
The table below sets out a range of main indicators specific to the UAE telecommunications
sector for 2009:
Fixed Telephony Service
Mobile Service
Internet Service
1,561,196
10,671,878
1,404,405
Revenues(Millions, AED)
3,827
17,787
2,532
Voice Minutes (Millions)
5,142
20,426
N.A
ARPU 2 (monthly, AED)
204
150
150
AMPU 3 (Monthly)
257
172
N.A
Subscribers
Source: Industry Data
Note :
ARPU : Calculated by dividing the total revenues for a given period by the average number of subscribers during such period
AMPU :: Calculated by dividing the total minutes for a given period by the average number of subscribers during such period
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UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Industry Background
The UAE telecommunications sector is currently served by two integrated telecommunications operators,
Etisalat and du. Competition in the UAE telecommunications sector started de facto in early 2007 when du,
the second licensee, launched its mobile network services ending nearly 30 years of telecommunications
monopoly by Etisalat.
Today, the sector continues to be served by both Etisalat and du across multiple services as illustrated in
the table below:
National
Fixed
International
calls
Mobile
Internet
Leased
Lines
Other data
services
Etisalat






du



2


In 2010, the TRA issued a satellite services license to Al Yah Satellite Services Company PJSC to provide
telecommunications services by satellite technology. This licensee is yet not providing services and all the
data given in this report relate only to Etisalat and du. Therefore, the term “Licensee” in this report refers to
either Etisalat or du.
2
Internet services provided only in certain geographic locations
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UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
The total industry investment increased by 16%
between 2008 and 2009 from AED 8,248 million
to AED 9,544 million .
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
Telecommunications Industry
Employees
90%
70%
10,695
11,759
50%
40%
34%
-10%
2008
Employees
2008
2009
4.1%
4.4%
4.9%
2009
Emiratization (%)
Total Investment (AED millions)
14,000
Millions, AED
2007
30%
32%
10%
2007
Contribution of UAE Telecommunications
Sector to UAE GDP
11,890
Emiratization
The UAE Telecommunications sector plays an
extremely important role in the economy. It
contributed nearly 4.9% to GDP and employed
almost 12,000 persons in 2009.
Employees
Industry Background
12,000
10,000
7,902
8,248
2007
2008
9,544
8,000
6,000
4,000
2,000
-
2009
Note:
Total investment represents Licensees’ cash flows from investing activities
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UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Fixed Telephony – Number of Fixed Lines
• At the end of 2009, there were 1.6 million fixed telephony lines in the UAE. This represents 18%
increase from 2007.
• The growth in fixed line penetration was driven by a significant increase in business lines; the number
of residential lines between 2008 – 2009 fell by 8% .
• Fixed line penetration rates reached 30% at the end of 2009.
Number of Fixed Lines
(1000s)
1,561
1,400
1,324
60%
1,200
1,000
800
29%
30%
30%
40%
600
20%
400
200
Fixed Lines, 1000s
1,400
1,600
80%
1,455
Penetration
Fixed Lines 1000s
1,600
Business Vs Residential Fixed
Lines(1000s)
1,200
1,000
869
860
800
600
794
767
594
455
400
200
0
0
0%
2007
Fixed lines
2008
Penetration Rate
Note:
Fixed Lines includes ISDN fixed lines.
2007
2008
2009
2009
Number of residential fixed lines
Number of business fixed lines
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UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Fixed Telephony – Revenues
Total Fixed Telephony Revenues
(AED millions)
• Fixed telephony revenues increased by
21% between 2008 and 2009, from AED
3,173 to AED 3,827 million.
Revenue source
for all operators
% growth
2007 - 2008
% growth
2008 - 2009
Line Rental
12%
6%
National Calls
43%
-35%
Fixed to Mobile
Calls
8%
-5%
International calls
4%
7%
Others 5
-9%
25%
Note:
Millions, AED
3,172.80
3,500
2,821.78
3,000
2,500
2,000
2007
2008
2009
Monthly Fixed Line ARPU, AED
204
200
ARPU, AED
• This growth was driven primarily by line
rental and International call revenue.
3,826.61
4,000
178
182
2007
2008
150
100
50
2009
• Total Fixed Revenues include Fixed Telephony, Payphone and directory inquiry
• 5 Others represents revenues from connection and directory inquiry
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UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Fixed Telephony – Usage
• Total fixed telephony minutes increased 15%
between 2008 and 2009
• The overall growth was driven predominantly by
local calls and International calls.
Breakdown of Total Annual Voice Minutes
(millions)
Fixed to Mobile
8%
Fixed to international
37%
Local Calls
45%
Monthly Fixed Line AMPU,
Minutes
2,500
270
2,000
1,500
1,000
274
274
275
781
583
555
364
500
515
572
393
569
544
AMPU, Minutes
Minutes, Millions
6%
3,007
2,859
% Growth
2008 - 2009
Fixed to Fixed
3,247
3,500
3,000
Call Type (Minutes)
265
257
260
255
250
0
2007
2008
2009
Domestic Minutes - Fixed to Fixed
Domestic Minutes - Fixed to Mobile
International minutes
Local minutes
245
2007
2008
2009
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UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Mobile Services – Active Subscriptions
• The number of active mobile subscriptions increased 14% between December 2008 and December 2009.
• 91% of mobile subscriptions in 2009 were prepaid .
• The number of active mobile subscriptions per 100 inhabitants reached more than 204 by December
2009.
10,672
7,742
190%
195%
180%
6,000
165%
164%
150%
2,000
135%
Percentage of subscriptions
204%
4,000
100%
210%
9,358
10,000
8,000
Prepaid vs. Postpaid
subscriptions
Penetration
subscriptions, 1000s
12,000
Active Mobile Subscriptions
(1000s)
91%
90%
91%
90%
80%
70%
60%
50%
40%
30%
20%
10%
9%
9%
10%
-
120%
2007
Total Subscriptions
2008
2009
0%
2007
2008
2009
Penetration Rate
Prepaid
Postpaid
Note:
• “Active” is defined as any subscriber who has made or received a voice or video call in the preceding 90 days, or
has sent an SMS or MMS during that period.
• Prepaid figures include mobile visitors.
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UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Mobile Services – Revenue
Revenues generated from mobile services increased by 3% in 2009, from AED 17,319 million to
AED 17,787 million.
Mobile Monthly ARPU
Total Mobile Revenues
(AED millions)
17,787
17,319
18,000
190
170
17,000
170
16,000
150
172
ARPU, AED
Millions, AED
149
15,000
14,000
13,179
13,000
130
110
90
12,000
70
11,000
10,000
2007
2008
2009
50
2007
2008
2009
Note:
Mobile Revenues include voice, SMS, MMS, subscription, SIM renewal, outbound roaming, directory inquiry,
mobile data installation/ connection and mobile data usage.
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UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Mobile Services – Usage
• Total annual mobile originated call minutes
increased by 4% between 2008 and 2009.
Call type
(minutes)
• International call minutes fell by 0.03%
between 2008 - 2009.
• The average monthly minutes of usage of
postpaid subscribers is significantly higher
than that of prepaid subscribers.
% Growth 20072008
% Growth
2008-2009
Domestic Minutes
20%
5%
International
Minutes
15%
-0.03%
Breakdown of Total Annual Voice
Minutes (millions)
Mobile Average Minutes Per
User/Subscription (AMPU)
425
18,050
15,050
15,460
14,722
12,235
12,050
9,050
6,050
3,050
3,820
3,317
846
58
936
3,819
75
990
157
377
376
400
AMPU, Monthly
Voice Minutes, Millions
450
350
300
250
200
168
145
174
149
159
137
150
100
50
-
50
2007
2008
2009
Mobile to Fixed
Mobile to Mobile
Mobile to International
Outbound Roamers
2007
All subscribers
2008
Prepaid
2009
Postpaid
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UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Mobile Services – Usage
• The growth of SMS was more rapid than
that of MMS.
% Growth 2007-2008
% Growth 2008-2009
SMS
163%
219%
MMS
61%
58%
SMS (Millions)
MMS (Millions)
84
3,578
4,000
90
80
MMS , Millions
SMS, Millions
3,500
3,000
2,500
2,000
1,120
1,500
1,000
70
53
60
50
33
40
30
425
20
500
10
-
-
2007
2008
2009
2007
2008
2009
Note:
SMS includes domestic SMS, International SMS and SMS sent by outbound Roamers.
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UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
International Voice Services
50%
41.4%
International Traffic (Fixed & Mobile ) by Destination
(top 10 countries)
40%
30%
22.0%
20%
14.2%
7.1%
10%
7.7%
7.3%
7.1%
4.1%
1.3%
3.8%
1.0%
0.4%
3.8%
1.0%
2.6%
2.7%
1.9%
4.9%
2.1% 0.7%
0%
India
Pakistan
Egypt
Philippines
Bangladesh
% of International outgoing Traffic
Saudi
Arabia
Syria
Oman
United
Kingdom
Lebanon
% of International Incoming Traffic
• India, Pakistan, Egypt and Philippines represent 51% of the total outgoing international traffic.
• India and Pakistan represent 48% of the total incoming international traffic.
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UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
International Voice Services
Breakdown of International Outgoing Traffic
(Millions, Minutes)
5,000
3,900
9,000
3,820
4,000
3,819
8,000
3,317
3,500
9,373
8,485
8,058
Millions, AED
Minutes, Millions
4,500
9,683
10,000
4,601
4,392
Breakdown of International Revenues
(AED Millions)
7,760
6,852
7,000
6,000
3,000
5,000
2,500
4,000
2,000
3,000
1,500
1,000
583
781
572
2,000
1,223
1,612
1,198
1,000
500
-
2007
2008
Total international minutes
2009
Minutes from mobile
2008
2009
Revenue from mobile
Revenue from fixed
Minutes from fixed
International
outgoing Minutes
2007
Total international Revenues
% growth 20072008
% growth 20082009
From Fixed
- 2%
37%
From Mobile
15%
- 0.03%
International
Revenues
% growth
2007-2008
% growth
2008- 2009
From Fixed
- 2%
35%
From Mobile
24%
- 9%
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UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Internet - All Subscribers
• As at December 2009, there were over 1.4 million Internet subscribers in the UAE.
• As at December 2009, 51% of total Internet subscribers in the UAE were Dial-up.
• ADSL broadband was the most popular form of broadband Internet access in 2007-2009.
• The penetration of Internet users increased by 10% in 2009, up from 61.3% in the year 2008.
Internet Subscription by
Access Type
Total Internet Subscribers
800,000
1,400,000
75%
1,201,853
1,200,000
1,000,000
67.3%
832,515
61.3%
800,000
600,000
45%
45.1%
400,000
200,000
60%
25.2%
26.9%
30%
-
15%
Total Subscribers
Internet user penetration rate
600,000
2008
2009
Penetration Rate
594,877
528,633
485,679
500,000
400,000
277,720
300,000
200,000
26,162
100,000
18.5%
2007
713,981
642,849
700,000
Internet Subscribers
1,404,405
Penetration
Internet Subscribers
1,600,000
95,547
73,325
2007
Dialup
2008
ADSL
2009
Other High Speed
Note:
•Internet User Penetration rate calculated by using the ITU methodology which assumes there are 2.5 Internet users
per Internet subscription.
•Other High speed refers to FTTH, Cable Broadband, Wi-Max
18
UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Internet - Broadband Subscribers
• Total number of broadband subscribers increased by 24% between 2008 – 2009.
• Penetration of broadband subscribers increased from 11.4% in 2008 to13.2% in 2009.
800,000
70%
700,000
60%
600,000
50%
500,000
33.1%
40%
28.5%
400,000
30%
300,000
16.5%
200,000
6.6%
11.4%
13.2%
20%
10%
100,000
0
Penetration
Broadband Subscribers
Broadband Subscribers
2007 - 2009
0%
303,882
559,004
690,424
2007
2008
2009
Broadband subscribers
-10%
Broadband Penetration Rate
Broadband User Penetration Rate
Note:
• Broadband User Penetration rate calculated by using the ITU methodology which assumes there are 2.5
Internet users per Internet subscription.
19
UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Residential and Business Subscribers
637,253
700,000
600,000
Business Internet
Subscribers
585,554
488,327
619,619
Business Subscribers
Residential Subscribers
Residential Internet
Subscribers
509,365
500,000
400,000
273,803
300,000
200,000
100,000
76,728
80,000
57,295
60,000
70,805
49,639
40,306
40,000
30,079
20,000
100,000
-
2007
2008
2007
2009
2008
2009
Business dialup subscribers
Residential dialup subscribers
Business broadband subscribers
Residential broadband subscribers
Subscribers growth
2007 - 2008
Subscribers growth
2008 - 2009
Residential dial-up
20%
9%
Business dial-up
42%
34%
Residential broadband
86%
22%
Business broadband
65%
43%
Service
20
UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
The Distribution of Residential and Business Subscribers
The distribution of broadband subscribers in the UAE is heavily skewed towards the lower speed packages.
Distribution of Residential Broadband
Subscribers by Internet Speed 2007 - 2009
Residential Broadband Subscribers
Business Broadband Subscribers
Distribution of Business Broadband
Subscribers by Internet Speed 2007 - 2009
51%
50%
44%
45%
40%
36%
35%
30%
24%
25%
20%
20%
19%
17%
15%
17%
15%
12%
15%
10%
7%
5%
8%
9%
45%
40%
39%
36% 39%
1%
0.17%
0%
37%
37%
35%
35%
30%
25%
19%
19%
17%
20%
15%
10%
0.35%
5%
50%
5%
5%
1%
5%
5%
3%
2%
0.01%
1%
0.08%
0%
2007
2008
2009
2007
2008
2009
256 Kbps
512 Kbps
1 Mbps
256 Kbps
512 Kbps
1 Mbps
2 Mbps
4 Mbps
Above 4 Mbps
2 Mbps
4 Mbps
Above 4 Mbps
21
UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Internet Services – Revenue
• While Internet subscribers grew by 17% between 2008 and 2009, Internet revenues increased by
46%.
• This revenue growth can be attributed in part to the increasing proportion of subscribers on
broadband rather than dial-up packages.
Total Internet Revenue
(AED millions)
2,532
2,800
Revenue, AED
2,400
1,740
2,000
1,600
1,200
887
800
400
-
2007
2008
2009
22
UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Internet Services – ARPU
Internet Total Monthly
ARPU, AED
150
160
• Internet ARPUs have increased as the
proportion of subscribers taking broadband
packages has increased.
121
140
ARPU, AED
120
• Business broadband monthly ARPU is
significantly higher than that for other types of
Internet subscriptions.
89
100
80
60
40
20
2007
Dial-up ARPU, AED
25
19
20
19
20
15
10
12
13
12
8
2009
Broadband Monthly
ARPU, AED
11
8
5
-
Broadband ARPU, AED
Dial-up Monthly
ARPU, AED
2008
2,500
2,120
1,662
2,000
1,500
1,012
1,000
500
210 246 297
50 63
216
Overall Dialup
2007
Residential
Dialup
2008
Business
Dialup
Overall
Broadband
Residential
Broadband
Business
Broadband
2009
2007
2008
2009
23
UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Data Services – Leased Lines
• The number of leased lines subscribers fell by 1% between December 2008 and December 2009.
• leased line revenue fell by 15% to AED 879 million in 2009.
Total Leased Lines Subscribers
Total Revenue (AED millions)
1,200
17,610
1,029
17,485
17,000
16,500
16,000
15,420
15,500
15,000
879
1,000
17,500
Revenue , Millions
Leased Lines Subscribers
18,000
800
617
600
400
200
14,500
0
14,000
2007
2007
2008
2008
2009
2009
24
UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Revenue & Usage Comparison Across Services
Usage Comparison Across Services (millions,
Minutes)
18,000
Revenue Comparison Across Services
(AED millions)
17,787
17,319
16,450
18,000
15,658
16,000
16,000
13,179
12,259
14,000
12,000
Millions, AED
Minutes, Millions
14,000
10,000
8,000
6,000
3,317
4,000
3,414
2,000
3,820 3,522
3,819
3,791
10,000
8,000
6,000
4,000
572
583
12,000
3,173
2,822
781
3,827
2,532
1,740
2,000
887
2007
2008
2009
2007
Mobile Revenues
Mobile domestic minutes
Mobile international Minutes
Fixed Domestic Minutes
Fixed international Minutes
2008
Fixed Revenues
2009
Internet Revenues
25
UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Annex 1
Abbreviations & Acronyms
UAE
United Arab Emirates
TRA
Telecommunications Regulatory Authority
ITU
International Telecommunication Union
IMF
International Monetary Fund
AED
Arab Emirates Dirham
GDP
Gross Domestic Product
ARPU
Average Revenue Per User
AMPU
Average Minutes Per User
SMS
Short Message Service
MMS
Multimedia Message Service
FTTH
Fiber To The Home
ISDN
Integrated Services Digital Network
ADSL
Asymmetric Digital Subscriber Line
Kbps
Kilobits Per Second
Mbps
Megabit s Per Second
26
UAE Telecommunications Sector Developments & Indicators (2007-2009), issued May 2010
Annex 2
Definitions of Some Telecommunication/ICT Indicators (ITU, 2007)
ITU
Code
Indicator
Definition
(fixed)
telephone
lines in
operation
A main line is a (fixed) telephone line connecting the subscriber's terminal equipment to the public switched
network and which has a dedicated port in the telephone exchange equipment. This term is synonymous with the
term main station or Direct Exchange Line (DEL) that are commonly used in telecommunication documents. It may
not be the same as an access line or a subscriber. The number of ISDN channels should be included. Fixed
wireless subscribers should also be included. If not included, specify in a note.
1112
Public
payphones
Total number of all types of public telephones, including coin- and card-operated and public telephones in call
offices. Publicly available phones installed in private places should also be included, as should mobile public
telephones. All public telephones regardless of capability (e.g., local calls or national only) should be counted. If
the national definition of "payphone" differs from that above (e.g., by excluding pay phones in private places), then
respondents should indicate their own definition.
271
Mobile
cellular
telephone
subscribers
(post-paid +
prepaid)
Refers to the use of portable telephones subscribing to a public mobile telephone service and provides access to
Public Switched Telephone Network (PSTN) using cellular technology. This can include analogue and digital
cellular systems. This should also include subscribers to IMT-2000 (Third Generation, 3G). Subscribers to public
mobile data services or radio paging services should not be included. If this service has a name, please indicate in
a note, as well as the year the service commenced operation.
4213d
Dial-up
Internet
subscribers
Number of Dial-up Internet subscribers. Dial-up is a connection to the Internet via a modem and telephone line,
which requires that the modem dial a phone number when Internet access is needed. Only active subscribers that
have used the system within a reasonable period of time should be included. This period (e.g., 3 months) should
be indicated in a note.
4213dsl
DSL Internet
subscribers
Internet subscribers using Digital Subscriber Line (DSL) technology. DSL is a technology for bringing highbandwidth information to homes and small businesses over ordinary copper telephone lines. Speed should be
equal to, or greater than, 256 kbit/s, in one or both directions.
Total annual
investment
in telecom
Also referred to as annual capital expenditure, this is the gross annual investment in telecom (including fixed,
mobile and other services) for acquiring property and network. The term investment means the expenditure
associated with acquiring the ownership of property (including intellectual and non-tangible property such as
computer software) and plant. This includes expenditure on initial installations and on additions to existing
installations where the usage is expected to be over an extended period of time. Note that this applies to telecom
services that are available to the public, and excludes investment in telecom software or equipment for private
use.
112
81
27