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Global100www.totaltele.com Business analysis for telecoms professionals October 2011

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cONteNts6 Sweet success A Latin American company makes it into the top 10 for the first time, as the world’s biggest telecoms operators seek to leverage the growth potential of the region

10 Table: Ranking by revenues Revenue figures for the top 100 operators

12 Table: Ranking by net income A look at the top 100 operators ranked by profits

13 Analyst viewpoint Ernst & Young, looks at the challenges facing the telecoms sector during an unprecedented period of transformation

14 Table: The complete ranking The full 2011 Global 100 table, including revenues and profits shown in both euros and local reporting currencies, and reporting periods

16 Table: CEOs and employees The people at the helm of the world’s biggest telecoms companies and the number of employees working under them

19 Table: Return on revenues A measure of profitability, calculated as net income divided by revenues

20 Methodology and notes Explanations and clarifications on how the Global 100 is compiled

GLOBAL 100

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6 www.totaltele.com October 2011

A n A ly S i S

sweet SUCCESSA Latin American company makes it into the top 10 for the fi rst time, as the world’s big-gest telecoms operators seek to leverage the growth potential of the region

The top 10 operators in the new Global 100 ranking include a name from Latin America for the first time.

America Movil’s recent endeavours to build up its business both at home in Mexico and in the Latin American region as a whole have pushed it up to number nine in the rankings, up from 15th place in both 2010 and 2009. And with lofty ambi-tions to do more, the mobile operator group could mount a credible challenge for a higher placing in the coming years.

The telco added more than €15 billion to its revenues in 2010, recording a turnover of €36.75 billion, in no small part due to the consolidation of fixed-line operator Telmex into its results from 1 July 2010. America Movil is currently in the process of acquiring the 40% of Telmex that it does not already own. It has also recorded strong growth in key markets, particularly its Mexican wireless business and its Brazilian operation, which each contributed more than 25% to turnover.

America Movil has ambitious growth plans, insisting in its most recent 20-F report that it aims to build on its position, and crucially its subscriber base, in Latin America and the Caribbean, “both by developing our existing businesses and by making strategic acquisitions when opportunities arise.”

However, the operator’s strategy has triggered some concerns that it might sacrifice profita-bility for growth. America Movil CFO Carlos Garcia Moreno Elizondo told analysts on a conference call on its Q2 results in July that the company will keep a close eye on EBITDA, but that it will prioritise growth. “We have been always careful on EBITDA, but I think what we need to do is to take advantage of the growth in Latin America,” he said.

America Movil’s recent growth puts it in touch-ing distance of some of the biggest operators in the industry: for example, it sits just one place – and less than €9 billion in revenues – behind France

Telecom, which has staked its claim to the number eight spot for the second time in two years.

France Telecom will disappear from the ranking in the next year or two, but in name only; the French incumbent is finally saying goodbye to its legacy brand, with ‘Orange’ becoming its official corporate identity reportedly by mid-2012.

America Movil’s larger peers and rivals from Europe, North America and Asia have for the most part cemented their positions at the top end of the table. The top five of AT&T, NTT, Verizon, Deutsche Telekom and Telefonica, in that order,

remains unchanged, and has done since the 2007 report, when AT&T took the top spot for the first time, overtaking then perennial leader NTT.This year, the top two have

slightly widened the gap between themselves and the chasing pack. There is just over €5 billion between AT&T and NTT, as there was last year, but the Japanese incumbent is

now €8.2 billion ahead of Verizon, versus €5.4 billion last year.

But given recent developments in the industry, AT&T could expect to pull

away in the next few years. At the time of going to press the US giant was facing

significant opposition in its home market to its US$39 billion bid to take over T-Mobile USA, the Department

of Justice having recently filed a lawsuit against it that was joined by various

individual states. However, the operator has also received support from other state attorneys general and remains

confident it will get the go-ahead. Based on this year’s figures, the integration of T-Mobile USA would add €16.1 billion to AT&T’s revenue.

Looking ahead a few years, an AT&T/T-Mobile USA tie-up could also be good news for fifth-placed Telefonica, which is hot on the heels of current T-Mobile USA parent Deutsche Telekom, and succeeded in closing the gap in the most recent year; it is now just €1.7 billion behind its German rival, compared with €7.9 billion last year.

Mary LennighanEditor

Total Telecom

GLOBAL 100

Elizondo told analysts on a conference call on its Q2 results in July that the company will keep a close eye on EBITDA, but that it will prioritise growth. “We have been

industry, AT&T could expect to pull away in the next few years. At the time of

going to press the US giant was facing significant opposition in its home market to its US$39 billion bid to take over T-Mobile USA, the Department

of Justice having recently filed a lawsuit against it that was joined by various

individual states. However, the

confident it will get the go-ahead. Based on this year’s figures, the integration of T-Mobile USA would add €16.1 billion to AT&T’s revenue.

Latin America and the Caribbean, “both by developing our existing businesses and by making strategic acquisitions when

Source: Ernst & Young



Could the world’s largest mobile operator break into the top fi ve?

it could be that Deutsche Telekom, in fourth place, will feel the heat more than Telefonica does in years to come.

The German incumbent’s revenues have remained stagnant at between €60 billion and €65 billion for the past five years, and this year slipped to €62.42 billion from €64.6 billion last year. On the brighter side, it is back up to 20th place on the net income table (see p.12), having fallen as low as 59th last year, from 4th place the year before.

Meanwhile, China Mobile’s domestic rivals are also on their way up, albeit at a steadier pace. It is tough at the top of the Global 100 and rising up the chart does not come easy (see ‘Risers’ table). It is striking then that all three of China’s state-owned telcos climbed by one place in this year’s report.

China Telecom pulled into 13th place this year, ahead of Sprint Nextel and BT which both fell (see below). And China Unicom regained its 16th place, having dropped a place last year. Together

In keeping with the Latin American theme of this year’s Global 100 report, Telefonica’s performance in the 2010 financial year – its revenue rose to €60.74 billion from €56.73 billion a year earlier – was driven by Brazilian operator Vivo, of which it took sole control following a complex deal with former partner Portugal Telecom in 2010. Vivo alone contributed €4.96 billion to the Spanish telco’s 2010 revenues. Telefonica generated 43% of its revenues from its Latin American businesses, up from 41% a year earlier.

Another notable Latin American performance came from Brazilian fixed and mobile operator Oi, which grew revenues but slipped by one place to number 21; last year it rose from 41st place to 20th. It will doubtless become a valuable contributor to new shareholder Portugal Telecom’s revenues in years to come (see below).

Ups and downsSince the third quarter of calendar 2002, when its customer base hit 111.45 million, we have referred to China Mobile as “the world’s largest mobile operator by subscribers”, a tacit nod to Vodafone, which had the edge in revenue terms.

That is no longer the case. In the 2011 Global 100 ranking China Mobile leapfrogged its UK-based peer, taking sixth place and pushing Vodafone down into seventh. Its revenues are almost exactly €3 billion more than Vodafone’s and its subscriber base now dwarfs that of the UK telco; China Mobile had 616.79 million customers as of mid-2011 to Vodafone’s 361.42 million proportionate subscribers across the group.

China Mobile has been steadily creeping up the table, from 8th in 2008 – when it broke into the top 10 for the first time – and 2009, to seventh last year and now sixth. Could the world’s largest mobile operator be on the verge of breaking into the top five?

It remains some way behind Telefonica and both companies have ambitious growth plans in high-growth markets. While Telefonica is looking overseas for expansion, there is plenty of poten-tial left in China Mobile’s home market; the country is adding mobile users at a rate of 10 million per month, 3G services are still relatively new, and China Mobile is pushing ahead with trials of its homegrown TD-LTE technology. So

GLOBAL 100

Cable & Wireless Comms 97 70 -27

Portugal Telecom 60 36 -24

CAnTV 82 59 -23

AoL 94 76 -18

Zain 61 47 -14

TDC 63 50 -13

BSnL 53 44 -9

Rogers 41 33 -8

Colt Telecom 98 90 -8

Liberty Global 38 31 -7

SES Global 96 89 -7

RANK 2011 RANK 2010 change

FAllERS

Frontier 70 92 22

LG Telecom 47 67 20

Tata Communications 92 110 18

CenturyLink 49 65 16

Turkcell 57 68 11

Windstream 72 81 9

MegaFon 48 57 9

PT Telkom 43 52 9

ToT 95 103 8

RANK 2011 RANK 2010 change

RiSERS


For a world that’s changing faster than ever.A bold new approach for greater fl exibility. www.nokiasiemensnetworks.com

the three Chinese players generated revenues just shy of €100 billion, up from €83 billion last year.

Like the biggest risers, the companies that suffered the biggest falls down the 2011 ranking are for the most part sitting in the bottom half of the table. However, there were some noteworthy slides from the top players too.

BT, for example, is now languishing in 15th place, four places lower than it ranked last year, having dropped out of the top 10 in 2008. It recorded virtually flat revenues of €22.72 billion in the 2010-2011 reporting year, but its profitabil-ity is increasing; the telco rose four places up the net income ranking this year to 22nd, its net income reaching €1.7 billion compared with €1.16 billion a year earlier.

And, like many of its rivals, BT aims to capital-ise on the high-growth markets of Latin America going forward. In July the UK incumbent signed its largest ever contract in Latin America, a £133.45 million, five-year deal to provide the state-owned Brazilian Post Office and Telegraph Company, known locally as Correios, with a managed WAN solution based on its MPLS network. And in October BT announced that it aims to double its business in Latin America over the next three years, a plan that will see it recruit 250 new staff, expand its MPLS PoPs in the region by 20%, and launch new products and services.

Another European incumbent with one foot in Latin America found itself in the unhappy position of being second in the ‘Fallers’ list this year. Portugal Telecom slipped 24 places to number 60, its revenues having taken a hit,

following changes to its Latin American foot-print. As we predicted in last year’s report, the sale of its 50% stake in Vivo impacted on Portugal Telecom’s revenues. In the 2009 financial year Portugal Telecom generated more than €3 billion of its €6.78 billion in revenues from Vivo; in 2010 its total revenues slipped to €3.74 billion. Portugal Telecom acquired a 25.3% stake in Oi earlier this year, a move that will doubtless have a beneficial effect on its 2012 Global 100 position. Oi’s total revenues for the most recent financial year came in at €13.25 billion.

We calculated in last year’s Global 100 that Kuwait-based Zain would have dropped into the bottom quarter of the table without the contri-bution of its African operations to revenues; the 15 businesses were sold to India’s Bharti Airtel for US$10.7 billion in mid-2010. In the 2011 ranking though the telco has managed to stay out of the bottom 25%, although it did drop 14

places to number 61, its revenues having fallen to €3.58 billion from €5.63 billion.

Suggestions that Zain might disappear from the ranking altogether came to nothing though; Etisalat’s planned

purchase of a 51% stake in the company – a deal valued at around US$11.7 billion – fell apart in March. The latest related development saw a

consortium including Bahrain’s Batelco fail to reach agreement to

acquire a 25% stake in Zain’s Saudi Arabian unit for an estimated $1.2

billion in late September.We had also predicted that

subsuming Zain’s various busi-nesses would help both Etisalat and Bharti Airtel continue their respec-

tive journeys up the table. As it was, Etisalat rose five places to

BT also aims to capitalise

on growth in latin

America

GLOBAL 100


For a world that’s changing faster than ever.A bold new approach for greater fl exibility. www.nokiasiemensnetworks.com

One big name will disappear from next year’s Global 100

million-line GSM tender in 2009 - have left the telco unable to meet

demand for mobile services, and at the time of writing

Indian press reports suggested that a new 15 million-line GSM tender is under threat due to lack

of interest from private vendors.Finally, days before

going to press we had confirmation that at least one big name will disappear from next year’s Global 100 report. In early October Level 3

announced the completion of its $1.9 billion acquisition of

Global Crossing. While a number of Global Crossing executives have been

appointed to new positions at Level 3, chief executive John Legere is not among them and has already left the company (CEOs and employees table p.16). The new company will trade under the Level 3 name.

Neither company performed well in this year’s report. Global Crossing slipped four places to number 90, having recorded a small increase in revenues to €1.95 billion. Meanwhile, its new parent fell four places to 75 as its revenue declined to €2.68 billion. However, their combined revenues would have propelled them into 55th place, between Telekom Austria and Brasil Telecom.

The top 100 operators together generated reve-nues of €1.19 trillion in the most recent financial year, almost €100 billion more than in last year’s report. The top 10 operators accounted for more than €600 billion of the total. Net income for the top 100 came in at over €128 billion, €77 billion of which was attributable to the top 10. ■

number 40. However, Bharti Airtel was one of the big risers this time around.

Our calculations last year suggested that the addition of Zain’s African businesses could propel Bharti Airtel into the top 30. The Indian operator did exactly that, moving up seven places to number 30, its revenues having grown by almost €3 billion. Its mobile operations in 16 African countries (Zain’s former operations in 15 countries, plus Telecom Seychelles) contributed 22% of its revenues (in rupee terms) in the most recent financial year, and 20% of its total customer base; Bharti Airtel ended the year to 31 March 2011 with 220.88 million customers – 211.92 million of which were mobile customers – up from 137.01 million a year earlier.

Bharti Airtel was not the biggest climber of the Indian telcos though. Tata Communications made it in to the top 100 at number 92, and Idea Cellular featured in the ranking for the first time at number 80. Reliance Communications remained static at number 62.

There was less good news for Indian state-owned telco BSNL, which fell to 53rd place from 44th, its revenue having slipped by just over €800 million. The telco’s difficulties stem mainly from its inabil-ity to compete effectively in the mobile market, its share of subscribers having gradually been eroded in recent years, standing at 11.08% at the end of July, according to the latest figures from the Telecom Regulatory Authority of India (TRAI). A number of abortive attempts to award mobile network contracts – it famously abandoned a 93

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100

At&t (1)

ntt (2)

Verizon (3)

Deutsche Telekom (4)

Telefónica (5)

China Mobile (7)

Vodafone (6)

France Telecom (8)

América Móvil (15)

Kddi (10)

Telecom italia (9)

Softbank (13)

China Telecom (14)

Sprint (12)

Bt (11)

China Unicom (17)

Telstra (16)

KT (23)

BCE (21)

Kpn (18)

Oi (20)

Mtn (25)

SFR (19)

Telenor (22)

TeliaSonera (24)

Saudi Telecom (26)

SK Telecom (28)

SingTel (27)

Swisscom (30)

Bharti Airtel (37)

Comcast (32)

Qwest Comms (29)

MTS (35)

VimpelCom Ltd (41)

Hutchison Whampoa (34)

Telus (38)

Telmex (39)

Liberty Global (31)

Belgacom (42)

Etisalat (45)

Rogers (33)

Wind/infostrada (46)

PT Telkom (52)

Bouygues Telecom (48)

Qatar Telecom (unranked)

oTE (43)

LG Telecom (67)

MegaFon (57)

CenturyLink (65)

Turk Telekom (49)

Time Warner Cable (53)

Chunghwa Telecom (55)

BSnL (44)

Telekom Austria (51)

Brasil Telecom (54)

Virgin Media (56)

Turkcell (68)

Tele 2 (60)

nii Holdings (unranked)

Portugal Telecom (36)

Zain (47)

Reliance Communications (62)

tdC (50)

Telkom SA (58)

freenet/Mobilcom (61)

U.S. Cellular/TDS Telecoms (64)

MetroPCS (74)

MiC/Tigo (75)

orascom Telecom (63)

Frontier Communications (92)

Maroc Telecom (69)

Windstream (81)

AiS (unranked)

Telecom Argentina (78)

Level 3 (71)

Shaw (73)

Cable & Wireless Worldwide (72)

Bezeq (80)

PLDT (79)

iDEA Cellular (unranked)

nET Serviços (unranked)

CAnTV (59)

PCCW (77)

Maxis Group (unranked)

TM (Telekom Malaysia) (88)

iliad (82)

Leap Wireless (unranked)

Polkomtel (unranked)

TalkTalk (83)

Global Crossing (86)

intelsat (87)

tata Comms (110)

Charter Comms (91)

AOL

tOt

SES Global

Cable & Wireless Comms

Colt Telecom

Taiwan Mobile

Cablevision

92,733

87,719

79,515

62,421

60,737

54,928

51,926

45,503

36,746

29,236

27,571

25,576

24,888

24,297

22,720

19,391

18,701

14,219

13,554

13,398

13,251

12,990

12,577

12,154

11,827

10,304

10,289

10,108

9,577

9,441

9,273

8,752

8,426

7,844

7,350

7,335

6,865

6,728

6,552

6,486

6,243

5,898

5,690

5,636

5,569

5,483

5,316

5,278

5,254

5,253

5,217

5,191

5,088

4,651

4,613

4,514

4,464

4,457

4,179

3,742

3,583

3,561

3,510

3,483

3,340

3,117

3,036

2,925

2,854

2,834

2,830

2,770

2,768

2,759

2,679

2,637

2,554

2,528

2,471

2,461

2,430

2,401

2,204

2,147

2,128

2,038

2,013

2,003

1,997

1,947

1,899

1,894

1,812

1,803

1,766

1,736

1,720

1,584

1,501

1,494

US GAAp

US GAAp

US GAAp

iFRS

iFRS

iFRS

iFRS

iFRS

Mex iFRS

Jap GAAp

iFRS

Jap GAAp

iFRS

US GAAp

iFRS

iFRS

Aus Acct

Kor GAAp

Can GAAp

iFRS

iFRS

iFRS

iFRS

iFRS

iFRS

SA GAAp

Kor GAAp

Sing FRS

iFRS

iFRS

US GAAp

FASB

US GAAp

US GAAp

HKFRS

Can GAAp

Mex FRS

FASB

iFRS

iFRS

Can GAAp

iFRS

indon GAAp

iFRS

iFRS

iFRS

Kor GAAp

US GAAp

public co

iFRS

US GAAp

ROC GAAp

ind GAAp

iFRS

iFRS

US GAAp

iFRS

iFRS

US GAAp

iFRS

iFRS

ind GAAp

iFRS

iFRS

iFRS

US GAAp

US GAAp

iFRS

iFRS

US GAAp

iFRS

US GAAp

thai FRS

Arg GAAP

US GAAp

Can GAAp

iFRS

israel GAAP

Phil Fin

ind GAAp

iFRS

nSC

HK FRS

MASB

iFRS

iFRS

US GAAp

iFRS

iFRS

US GAAp

US GAAp

ind GAAp

US GAAp

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thai GAAp

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China GAAp

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Revenue company name Revenue Accountingrank in (rank in 2010) euros (m) standard2011 2010-2011

Revenue company name Revenue Accountingrank in (rank in 2010) euros (m) standard2011 2010-2011

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nET inCOME (pROFiTS) Net income Net income company name Net income/rank rank change (net income rank in 2010) loss in euro (m)in 2011 y-o-y 2010-2011

Net income Net income company name Net income/rank rank change (net income rank in 2010) loss in euro (m)in 2011 y-o-y 2010-2011

1 2 AT&T (3) 15,057

2 -1 China Mobile (1) 13,587

3 1 Telefónica (4) 10,072

4 -2 Vodafone (2) 8,906

5 5 Verizon (10) 7,624

6 -1 América Móvil (5) 5,979

7 -1 nTT (6) 5,975

8 0 France Telecom (8) 3,807

9 11 Telecom italia (20) 3,579

10 3 TeliaSonera (13) 2,615

11 -2 Telstra (9) 2,402

12 5 KDDi (17) 2,172

13 1 SingTel (14) 2,138

14 23 Softbank (37) 2,108

15 0 Saudi Telecom (15) 1,997

16 8 Telenor (24) 1,952

17 2 MTn (19) 1,906

18 4 China Telecom (22) 1,797

19 -7 KPn (12) 1,795

20 39 Deutsche Telekom (59) 1,760

21 4 BCE (25) 1,708

22 4 BT (26) 1,702

23 -5 Etisalat (18) 1,509

24 -1 Swisscom (23) 1,427

25 10 VimpelCom (35) 1,283

26 -5 Belgacom (31) 1,283

27 3 Chunghwa Telecom (30) 1,245

28 18 MiC/Tigo (46) 1,235

29 -1 MegaFon (28) 1,206

30 8 MTS (38) 1,155

31 1 Turk Telekom (32) 1,127

32 1 PT Telkom (33) 956

33 -12 Bharti Airtel (21) 937

34 -7 Telmex (27) 929

35 13 Zain (48) 918

36 -20 Brasil Telecom (16) 886

37 -3 Maroc Telecom (34) 877

38 5 SK Telecom (43) 865

39 8 Turkcell (47) 841

40 - Qatar Telecom (unranked) 838

41 16 KT (57) 795

42 48 oi (90) 786

43 -2 Telus (41) 779

44 9 Tele 2 (53) 769

45 13 CenturyLink (58) 707

46 -2 PLDT (44) 689

47 - Maxis Group (unranked) 556

48 -6 Bezeq (42) 515

49 - AiS (unranked) 514

50 0 SES Global (50) 488

51 0 Bouygues Telecom (51) 444

52 -23 China Unicom (29) 436

53 31 Liberty Global (84) 421

54 -15 CAnTV (39) 418

55 14 LG Telecom (69) 380

56 -2 Shaw (54) 378

57 5 Taiwan Mobile (62) 354

58 6 Telecom Argentina (64) 342

59 12 iliad (71) 313

60 15 TM (Telekom Malaysia) (75) 301

61 - Polkomtel (unranked) 283

62 -22 Portugal Telecom (40) 255

63 - nii Holdings (unranked) 254

64 -16 Cable & Wireless Comms (49) 242

65 -4 TDC (60) 242

66 -30 Reliance Comms (36) 239

67 18 Cable & Wireless Worldwide (85) 237

68 -2 Windstream (66) 232

69 -62 Telkom SA (7) 231

70 4 PCCW (74) 223

71 8 Telekom Austria (79) 195

72 - ToT (unranked) 164

73 4 MetroPCS (77) 144

74 - iDEA Cellular (unranked) 143

75 - nET Serviços (unranked) 138

76 -11 freenet/Mobilcom (65) 119

77 3 Frontier (81) 116

78 -1 U.S. Cellular/TDS Telecoms (76) 116

79 1 Colt Telecom (78) 71

80 3 TalkTalk Telecom (83) 40

81 -29 Qwest Communications (52) -41

82 - Tata Communications (unranked) -123

83 5 Global Crossing (88) -128

84 -28 oTE (56) -139

85 -22 orascom Telecom (63) -148

86 5 Virgin Media (91) -197

87 -26 Wind/infostrada (61) -252

88 -2 BSnL (86) -289

89 4 intelsat (93) -379

90 2 Level 3 (92) -464

91 - Leap Wireless (unranked) -586

92 -20 AoL (72) -590

93 1 Sprint (94) -2,585

94 nA SFR nA

95 nA Comcast nA

96 nA Hutchison Whampoa nA

97 nA Rogers nA

98 nA Time Warner Cable nA

99 nA Charter Communications nA

100 nA Cablevision nA

GLOBAL 100


Jonathan Dharmapalan, global telecommunications leader at Ernst & Young, looks at the challenges facing the sector during an unprecedented period of transformation

tAKING CHARGEA n A ly S T v i E w p O i n T

While the global economy continues to send out shockwaves, it is easy to overlook the more granular chal-

lenges facing specific industries. The telecommunications sector has undergone a significant amount of disruption in recent years, yet the pace of change is quickening.

Demand for data services remains explosive, while migration to new infrastructures presents challenges in both fixed and mobile. And oppor-tunities to add value are being seized by players in adjacent sectors, with operators continually forced to reappraise their ability to innovate.

The monetization of new customer demands is crucial. Flat-rate packages were a strong catalyst for mobile data take-up but a more considered value proposition is now required. In addition, new substitution threats, such as the rapid take-up of mobile IM applications, are putting operators under additional pressure to overhaul their existing business models. New metrics that are better aligned with industry trends and customer behaviours are required.

Customer affinity with technology brands and a proliferation of devices per user have put pres-sure on existing value chains. Nevertheless, new avenues to value are open to operators, for example as billing providers for third party app stores. Likewise cloud computing propositions should play to their infrastructure strengths.

Customer definitions and concepts of customer ownership need to remain fluid if operators are to make the most of a shifting value chain. Generating a single view of the user across geog-raphy and devices can unlock new revenue streams and strengthen customer loyalty, with business intelligence and analytics solutions helping to overcome the fragmentation of user data. Time-to-market is an area where operators lag technology specialists and is another reason to overhaul OSS and BSS environments.

Redefining the ecosystemOperators are becoming increasingly interde-pendent. Network-sharing, already established in the context of 3G, could become a vital part of the LTE business model, given the pressure on operators to stabilise capital intensity. Opportunities to consolidate are being realised in many markets, but where there are regulatory

obstacles, less finite ways of generating econo-mies of scale will prove vital.

New types of partnerships will also enable operators to widen their product portfolios, most notably in the enterprise space and in multi-play services for the home. Revitalized segmentation strategies can also help unlock growth in histori-cally underserved target groups such as small to medium enterprises (SMEs).

At the same time, the transformational role of telecommunications in other sectors requires a change of attitude, one that recognizes new supply and demand scenarios alongside a redefi-nition of customer ownership.

Regulation has an important role to play here: witness government stipulations around smart metering, for example. However, regulation may act as a brake as well as a driver: the business case for mobile money is clear yet regulators and incentives for collaboration may lag well behind.

In addition, legacy infrastructures present challenges of their own – for example in e-health, where current information systems may co-exist at local, regional and national levels and accord-ing to a variety of ownership models.

taking charge of the transformationDespite these challenges, operators are in a strong position to drive change. Much depends on their ability to articulate the value-generating potential of new infrastructure while also helping generate consensus between sectors.

Regulatory oversight of established parts of the business, such as broadband infrastructure and spectrum holdings, will do much to dictate the health of the sector going forward. Spectrum release agendas must prove responsive to capac-ity demands while affording established players and newcomers sufficient strategic flexibility. Ultimately, regulatory certainty must remain high in order to encourage investment.

On the other hand, adjustments need to be made to new business models, particularly in economically sensitive developed markets. And even in regions where the outlook for subscriber growth and product scope expansion look more promising, regulatory uncertainties may be increasing. As such, all players must contend with new types of risks in a sector that remains in a state of flux.

Jonathan Dharmapalan Global telecoms leader,

Ernst & Young

GLOBAL 100

healineComplete ranking table


GLOBAL 100

Rank Company name Revenue in Revenue Net income/ Net profi t/ net Country of Financial yearin 2011 (rank in 2010) euros (m) in reporting net loss in loss in reporting reporting 2010-2011 currency (m) euros (m) currency (m)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

At&t (1)

ntt (2)

Verizon (3)


Telefónica (5)

China Mobile (7)

Vodafone (6)

France Telecom (8)


Kddi (10)

Telecom italia (9)

Softbank (13)

China Telecom (14)

Sprint (12)

Bt (11)

China Unicom (17)

Telstra (16)

KT (23)

BCE (21)

Kpn (18)

Oi (20)

Mtn (25)

SFR (19)

Telenor (22)

TeliaSonera (24)

Saudi Telecom (26)

SK Telecom (28)

SingTel (27)

Swisscom (30)

Bharti Airtel (37)

Comcast (32)

Qwest Communications (29)

MTS (35)

VimpelCom Ltd (41)


Telus (38)

Telmex (39)

Liberty Global (31)

Belgacom (42)

Etisalat (45)

Rogers (33)


PT Telkom (52)



oTE (43)

LG Telecom (67)

MegaFon (57)

CenturyLink (65)

Turk Telekom (49)

92,733

87,719

79,515

62,421

60,737

54,928

51,926

45,503

36,746

29,236

27,571

25,576

24,888

24,297

22,720

19,391

18,701

14,219

13,554

13,398

13,251

12,990

12,577

12,154

11,827

10,304

10,289

10,108

9,577

9,441

9,273

8,752

8,426

7,844

7,350

7,335

6,865

6,728

6,552

6,486

6,243

5,898

5,690

5,636

5,569

5,483

5,316

5,278

5,254

5,253

124,280

10,305,003

106,565

62,421

60,737

485,231

45,884

45,503

607,855

3,434,546

27,571

3,004,640

219,864

32,563

20,076

171,298

25,304

21,331,313

18,069

13,398

29,479

114,684

12,577

94,843

106,582

51,787

15,435,373

18,071

11,988

594,672

12,428

11,730

11,293

10,512

76,571

9,779

113,563

9,017

6,552

31,929

8,323

5,898

68,629,200

5,636

27,179

5,483

7,974,743

215,515

7,042

10,852

15,057

5,975

7,624

1,760

10,072

13,587

8,906

3,807

5,979

2,172

3,579

2,108

1,797

(2,585)

1,702

436

2,402

795

1,708

1,795

786

1,906

nA

1,952

2,615

1,997

865

2,138

1,427

937

nA

(41)

1,155

1,283

nA

779

929

421

1,283

1,509

nA

(252)

956

444

838

(139)

380

1,206

707

1,127

20,179

701,875

10,217

1,760

10,072

120,024

7,870

3,807

98,905

255,122

3,579

247,663

15,877

(3,465)

1,504

3,851

3,250

1,192,542

2,277

1,795

1,749

16,827

nA

15,233

23,562

10,038

1,297,176

3,823

1,786

58,992

nA

(55)

1,548

1,720

nA

1,038

15,371

564

1,283

7,428

nA

(252)

11,537,000

444

4,087.9

(139)

569,905

49,224

948

2,328

USA

Japan

USA

Germany

Spain

Hong Kong

UK

France

Mexico

Japan

italy

Japan

China

USA

UK

Hong Kong

Australia

Korea

Canada

The netherlands

Brazil

South Africa

France

norway

Sweden

Saudi Arabia

Korea

Singapore

Switzerland

india

USA

USA

Russia

Russia

Hong Kong

Canada

Mexico

USA

Belgium

UAE

Canada

italy

indonesia

France

Qatar

Greece

Korea

Russia

USA

turkey

ended 31 Dec 2010

ended 31 Mar 2011

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Mar 2011

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Mar 2011

ended 31 Dec 2010

ended 31 Mar 2011

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Mar 2011

ended 31 Dec 2010

ended 30 Jun 2011

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Mar 2011

ended 31 Dec 2010

ended 31 Mar 2011

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

COMplETE RAnKinG TABlE

Sponsored by:Sponsored by:

Complete ranking table


Sou

rce:

Ern

st &

You

ng

GLOBAL 100

Rank Company name Revenue in Revenue Net income/ Net profi t/ net Country of Financial yearin 2011 (rank in 2010) euros (m) in reporting net loss in loss in reporting reporting 2010-2011 currency (m) euros (m) currency (m)

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100



BSnL (44)


Brasil Telecom (54)

Virgin Media (56)

Turkcell (68)

Tele 2 (60)



Zain (47)

Reliance Communications (62)

tdC (50)

Telkom SA (58)


U.S. Cellular/TDS Telecoms (64)

MetroPCS (74)

MiC/Tigo (75)


Frontier (92)

Maroc Telecom (69)

Windstream (81)

AiS (unranked)


Level 3 (71)

Shaw (73)

Cable & Wireless Worldwide (72)

Bezeq (80)

PLDT (79)



CAnTV (59)

PCCW (77)


TM (Telekom Malaysia) (88)

iliad (82)



TalkTalk (83)


intelsat (87)

tata Communications (110)

Charter (91)

AoL (76)

tOt (unranked)

SES Global (89)

Cable & Wireless Comms (70)

Colt Telecom (90)

Taiwan Mobile (96)

Cablevision (94)

5,217

5,191

5,088

4,651

4,613

4,514

4,464

4,457

4,179

3,742

3,583

3,561

3,510

3,483

3,340

3,117

3,036

2,925

2,854

2,834

2,830

2,770

2,768

2,759

2,679

2,637

2,554

2,528

2,471

2,461

2,430

2,401

2,204

2,147

2,128

2,038

2,013

2,003

1,997

1,947

1,899

1,894

1,812

1,803

1,766

1,736

1,720

1,584

1,501

1,494

6,992

202,430

320,454

4,651

10,263

3,876

5,982

40,164

5,601

3,742

1,351

224,304

26,167

33,454

3,340

4,178

4,069

3,920

3,825

3,798

31,655

3,712

111,280

14,679

3,591

3,718

2,257

11,987

144,459

155,032

5,406

13,835

22,962

8,869

8,791

2,038

2,697

7,925

1,765

2,609

2,545

119,320

2,429

2,417

71,008

1,736

2,440

1,584

58,547

2,002

nA

1,245

(289)

195

886

(197)

841

769

254

255

918

239

242

231

119

116

144

1,235

(148)

116

877

232

514

342

(464)

378

237

515

689

143

138

418

223

556

301

313

(586)

283

40

(128)

(379)

(123)

nA

(590)

164

488

242

71

354

nA

nA

48,558

(18,227)

195

1,971

(169)

1,127

6,928

341.1

255

346

15,058

1,804

2,215

119

155

193

1,655

(199)

156

9,810

311

20,667.0

1,821

(622)

533

209

2,442

40,259

8,987.1

307.2

2,408

2,324

2,295.4

1,245

313

(785.1)

1,118.9

35

(172)

(508)

(7,752)

nA

(791)

6,600

488

344

71

13,822

nA

USA

Taiwan

india

Austria

Brazil

UK

turkey

Sweden

USA

Portugal

Kuwait

india

denmark

South Africa

Germany

USA

USA

Luxembourg

Egypt

USA

Morocco

USA

Thailand

Argentina

USA

Canada

UK

israel

Philippines

india

Brazil

Venezuela

Hong Kong

Malaysia

Malaysia

France

USA

Poland

UK

Bermuda

Bermuda

india

USA

USA

Thailand

Luxembourg

UK

UK

Taiwan

USA

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Mar 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Mar 2011

ended 31 Dec 2010

ended 31 Mar 2011

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Aug 2010

ended 31 Mar 2011

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Mar 2011

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Mar 2011

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Mar 2011

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2009

ended 31 Dec 2010

ended 31 Mar 2011

ended 31 Dec 2010

ended 31 Dec 2010

ended 31 Dec 2010

Sponsored by:Sponsored by:



GLOBAL 100

CHiEF EXECUTivES AnD EMplOyEES

At&t (1)

ntt (2)

Verizon (3)


Telefónica (5)

China Mobile (7)

Vodafone (6)

France Telecom (8)


Kddi (10)

Telecom italia (9)

Softbank (13)

China Telecom (14)

Sprint (12)

Bt (11)

China Unicom (17)

Telstra (16)

KT (23)

BCE (21)

Kpn (18)

Oi (20)

Mtn (25)

SFR (19)

Telenor (22)

TeliaSonera (24)

Saudi Telecom (26)

SK Telecom (28)

SingTel (27)

Swisscom (30)

Bharti Airtel (37)

Comcast (32)

Qwest Comms (29)

MTS (35)

VimpelCom Ltd (41)


Telus (38)

Telmex (39)

Liberty Global (31)

Belgacom (42)

Etisalat (45)

Rogers (33)


PT Telkom (52)



oTE (43)

LG Telecom (67)

MegaFon (57)

CenturyLink (65)

Turk Telekom (49)



BSnL (44)


Brasil Telecom (54)

Virgin Media (56)

Turkcell (68)

Tele 2 (60)



Zain (47)

Reliance Comms (62)

tdC (50)

Telkom SA (58)


U.S. Cellular/TDS (64)

MetroPCS (74)

MiC/Tigo (75)


Frontier (92)

Maroc Telecom (69)

Windstream (81)

AiS (unranked)


Level 3 (71)

Shaw (73)

C&W Worldwide (72)

Bezeq (80)

PLDT (79)



CAnTV (59)

PCCW (77)


Telekom Malaysia (88)

iliad (82)



TalkTalk Telecom (83)


intelsat (87)

Tata Communications (83)

Charter Communications (91)

AOL

tOt

SES Global

Cable & Wireless Comms

Colt Telecom

Taiwan Mobile

Cablevision

Randall L. Stephenson

Satoshi Miura

Lowell McAdam

René Obermann

Cesar Alierta izuel

Mr. Li Yue

Vittorio Colao

Stéphane Richard

Daniel Hajj Aboumrad

tadashi Onodera

Franco Bernabé

Masayoshi Son

Wang Xiaochu

Daniel R. Hesse

ian Livingston

Chang Xiaobing

David Thodey

Suk-Chae Lee

George Cope

E. Blok

Francisco Valim

R S Dabengwa

Frank Esser

Jon Fredrik Baksaas

Lars nyberg

Saud bin Majed Al-Daweesh

Sung Ming Ha

Chua Sock Koong

Carsten Schloter

Manoj Kohli

Brian L. Roberts

Edward A. Mueller

Mikhail Shamolin

Jo Lunder

Fok Kin-ning, Canning

Darren Entwistle

Héctor Slim Seade

Michael T. Fries

Didier Bellens

nasser Bin Obood

nadir Mohamed

Ossama Bessada

Rinaldi Firmansyah

olivier Roussat

Dr. nasser Marafi h

Michael Tsamaz

Lee Sang-Chul

Sergey Soldatenkov

Glen F. Post, iii

Kamil Gokhan Bozkurt

Glenn A. Britt

Shyue-Ching Lu

R.K. Upadhyay

Hannes Ametsreiter

Francisco Valim

neil Berkett

Sureyya Ciliv

Mats Granryd

Steven P. Dussek

Zeinal Bava

nabeel Bin Salamah

Anil D Ambani

Henrik Poulsen

nombulelo Moholi

Christoph Vilanek

Mary n Dillon

Roger D Linquist

Mikael Grahne

Ahmed Abou doma

Maggie Wilderotter

Abdelslam Ahizoune

Jeffery R. Gardner

Wichian Mektrakarn

Franco Bertone

James Q. Crowe

Bradley Shaw

John Pluthero

Avi Gabbay

napoleon L. nazareno

Himanshu Kapania

José Antônio Guaraldi Félix

Ernesto Paiva

Marc Halbfi nger

Sandip das

Dato’ Sri Zamzamzairani

Maxime Lombardini

S. Douglas Hutcheson

Jarosław Bauc

Dido Harding

John J. Legere

David McGla

vinod Kumar

Michael J. Lovett

Timothy M. Armstrong

Arnon Tubtiang

Romain Bausch

tony Rice

Rakesh Bhasin

Richard tsai

James L. Dolan

266,590

219,343

194,400

246,777

285,106

164,336

83,862

161,392

148,058

18,418

84,200

21,799

312,322

40,000

92,600

310,020

39,790

31,155

50,200

30,599

12,313

34,588

10,000

33,220

28,945

21,190

20,143

23,000

19,547

23,371

102,000

28,300

39,911

42,025

240,000

34,800

52,062

20,000

16,308

nA

27,971

7,236

26,847

9,182

31,088

nA

30,000

20,300

34,138

47,500

28,134

281,635

16,501

nA

12,400

11,000

7,337

13,500

33,522

6,000

30,974

10,423

22,884

3,972

9,000

3,600

6,222

14,839

14,800

13,942

10,086

nA

15,629

5,500

11,000

6,361

7,216

28,770

7,282

15,746

nA

19,300

3,200

26,743

4,355

4,362

4,600

4,077

5,250

1,117

6,457

16,600

5,860

nA

1,578

7,104

4,825

2,548

19,065

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

Revenue company name current employeesrank (rank in 2010) chief executive 2010in 2011

Revenue company name current employeesrank (rank in 2010) chief executive 2010in 2011

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Revenue company name Return on revenuerank in (rank in 2010) 2010-20112011

Revenue company name Return on revenuerank in (rank in 2009) 2010-20112010

RETURn On REvEnUE

1 AT&T (1) 16.2%

2 nTT (2) 6.8%

3 Verizon (3) 9.6%

4 Deutsche Telekom (4) 2.8%

5 Telefónica (5) 16.6%

6 China Mobile (7) 24.7%

7 Vodafone (6) 17.2%

8 France Telecom (8) 8.4%

9 América Móvil (15) 16.3%

10 KDDi (10) 7.4%

11 Telecom italia (9) 13.0%

12 Softbank (13) 8.2%

13 China Telecom (14) 7.2%

14 Sprint (12) -10.6%

15 BT (11) 7.5%

16 China Unicom (17) 2.2%

17 Telstra (16) 12.8%

18 KT (23) 5.6%

19 BCE (21) 12.6%

20 KPn (18) 13.4%

21 oi (20) 5.9%

22 MTn (25) 14.7%

23 SFR (19) nA

24 Telenor (22) 16.1%

25 TeliaSonera (24) 22.1%

26 Saudi Telecom (26) 19.4%

27 SK Telecom (28) 8.4%

28 SingTel (27) 21.2%

29 Swisscom (30) 14.9%

30 Bharti Airtel (37) 9.9%

31 Comcast (32) nA

32 Qwest Communications (29) -0.5%

33 MTS (35) 13.7%

34 VimpelCom (41) 16.4%

35 Hutchison Whampoa (34) nA

36 Telus (38) 10.6%

37 Telmex (39) 13.5%

38 Liberty Global (31) 6.3%

39 Belgacom (42) 19.6%

40 Etisalat (45) 23.3%

41 Rogers (33) nA

42 Wind/infostrada (46) -4.3%

43 PT Telkom (52) 16.8%

44 Bouygues Telecom (48) 7.9%

45 Qatar Telecom (unranked) 15.0%

46 oTE (43) -2.5%

47 LG Telecom (67) 7.1%

48 MegaFon (57) 22.8%

49 CenturyLink (65) 13.5%

50 Turk Telekom (49) 21.5%

51 Time Warner Cable (53) nA

52 Chunghwa Telecom (55) 24.0%

53 BSnL (44) -5.7%

54 Telekom Austria (51) 4.2%

55 Brasil Telecom (54) 19.2%

56 Virgin Media (56) -4.4%

57 Turkcell (68) 18.8%

58 Tele 2 (60) 17.2%

59 nii Holdings (unranked) 6.1%

60 Portugal Telecom (36) 6.8%

61 Zain (47) 25.6%

62 Reliance Communications (62) 6.7%

63 TDC (50) 6.9%

64 Telkom SA (58) 6.6%

65 freenet/Mobilcom (61) 3.6%

66 U.S. Cellular/TDS Telecoms (64) 3.7%

67 MetroPCS (74) 4.8%

68 MiC/Tigo (75) 42.2%

69 orascom Telecom (63) -5.2%

70 Frontier (92) 4.1%

71 Maroc Telecom (69) 31.0%

72 Windstream (81) 8.4%

73 AiS (unranked) 18.6%

74 Telecom Argentina (78) 12.4%

75 Level 3 (71) -17.3%

76 Shaw (73) 14.3%

77 Cable & Wireless Worldwide (72) 9.3%

78 Bezeq (80) 20.4%

79 PLDT (79) 27.9%

80 iDEA Cellular (unranked) 5.8%

81 nET Serviços (unranked) 5.7%

82 CAnTV (59) 17.4%

83 PCCW (77) 10.1%

84 Maxis Group (unranked) 25.9%

85 TM (Telekom Malaysia) (88) 14.2%

86 iliad (82) 15.4%

87 Leap Wireless (unranked) -29.1%

88 Polkomtel (unranked) 14.1%

89 TalkTalk (83) 2.0%

90 Global Crossing (86) -6.6%

91 intelsat (87) -20.0%

92 Tata Communications (unranked) -6.5%

93 Charter Communications (91) nA

94 AoL (76) -32.7%

95 ToT (unranked) 9.3%

96 SES Global (89) 28.1%

97 Cable & Wireless Comms (70) 14.1%

98 Colt Telecom (90) 4.5%

99 Taiwan Mobile (96) 23.6%

100 Cablevision (94) nA

GLOBAL 100


Revenue and net income dataThe current league table is based on the latest published revenue and net income figures for operators’ full financial years: predominantly ending 31 December 2010, but also ending 31 March 2011, 31 March 2010, 30 June 2011, and 31 August 2010. We strove to use audited consolidated revenue and net income data. Whenever available, we used revenue and net income figures as reported under I.F.R.S. (International Financial Reporting Standard). When I.F.R.S. reporting was unavailable, we strove to use data under US G.A.A.P. (United States Generally Accepted Accounting Principles). National reporting standards were used otherwise.

Latest data availableWe strove to obtain the latest full-year figures for each ranked company, that is for calendar year 2010 and fiscal year 2010-2011. In a few cases, however, data from the most recent financial year was unavailable at the time of going to press. Despite the distortion induced by this difference in reporting, and in order to give the fairest view of companies operating in the various markets, we decided to include some of these companies, provided they were significant enough in the national market. This was the case for BSNL (31 March 2010) and Shaw Communications Inc. (31 August 2010).

Double-countingThere is a degree of double-counting of revenue and net income in this league table, due to minority shareholdings associated with a degree of free floatation of remaining shares. Double-counting may arise from shareholdings by multiple parties into a company.

Mergers & SeparationsAmerican Movil consolidated Telmex into its results from 1 July 2010. It is in the process of acquiring the 40% of Telmex it does not already own. Brasil Telecom is now a part of Oi. It will be removed from the Global 100 next year.

Extraction of telecoms revenuesSome of the ranked companies’ activities span non-telecommunications industries. In these instances, we have endeavored to extract telecommunications related revenue in order to not distort reporting, using segment information reported by these companies. Corresponding net income data by segment was, unfortunately, often unavailable. These companies include SFR (incorporates Neuf Cegetel) (a subsidiary of Vivendi), Comcast Corporation (high-speed Internet and phone only), Hutchison Whampoa (telecommuni-cation 3 Group, Hutchison Asia Telecommunications and Hutchison Telecommunications), Rogers Communications Inc. (Rogers wireless), Time Warner Cable (high speed data and voice only), and Charter Communications Inc. (high-speed Internet and telephone only).

Newcomers and drop-outsSome companies listed this year lacked a ranking in last year’s table, due either to the unavailability of company information or too low revenue figures at the time of data collection. Newcomers to the table are Qatar Telecom, NII Holdings, AIS, Idea Cellular, Net Servicos, Maxis Group, Leap Wireless and Polkomtel. Some companies dropped out of the league table, due either to consolidation by other companies or to revenue figures lower than those of the top 100 players. These companies are Elisa Corporation, Cellcom Israel, Ltd., MTS Allstream, Telecom Egypt, IDT, Fastweb, Svyazinvest, Telecom Corporation of New Zealand, and eircom.

Exchange ratesWe used historical mid-market rates at noon eastern time on the day of reporting, provided by www.xe.com. Mid-market rates are derived from mid-point between the buy and sell rates of large-value transac-tions in the global currency markets. As our analysis does not use consistent exchange rate comparisons, some companies may benefit and others lose from a conversion of their revenue and net income figures into euros. Conversion into euros is indicative and provides no like-for-like comparison. Companies whose figures were not available for 2010–2011 have had the exchange rate for the period ending 2010–2011 applied, rather than the applicable exchange rate in 2009–2010. This is to ensure there is not an unfair advantage due to a better exchange rate.

Number of employeesWe strove to obtain the latest number of employees for each ranked company, that is for calendar year 2010 and fiscal year 2010-2011. For some companies corresponding employee data was, unfortunately, unavailable. These companies include Saudi Telecom Company, Emirates Telecommunications, Brasil Telecom S.A., LG Telecom Ltd., Qatar Telecom and AIS.

Accounting standardsWe strove to obtain the accounting standard for each ranked company for calendar year 2010 and fiscal year 2010-2011. Corresponding data was unavailable for CANTV (Compañia anonima nacional telefonos de Venezuela).

Note from p.13:The views reflected in this article are the views of the author and do not necessarily reflect the views of other members of the global Ernst & Young organisation.

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