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Guide to Telecoms
Paul Wuh
(LBAL, Hong Kong) Telecoms Made Easy
This report provides a general reference guide for investors wishing to better
Stanley Yang understand telecom technology and the “alphabet soup” of acronyms used in the
(LBIE, Seoul)
industry. We have produced this reference book for both telecom specialists as
stanley.yang@lehman.com well as generalist investors who want an overview of the industry.

Sundeep Bihani „ This guidebook is divided into different sectors including, telecommunications
(LBAL, Hong Kong) technology, including cellular, mobile handsets, broadband, fiber optics, radio,
satellite, internet, fixed line, etc. In each section, we provide key terminology used
as well as easy to understand explanations of the technology that supports these
Danny Chu, CFA services. We also provide information about some of the key industry players for
(LBAL, Hong Kong) each technology, including some market-share data.
danny.chu@lehman.com „ Some of the questions answered in this report include:
Sachin Salgaonkar
(LBAL, Hong Kong) „ What is the difference between the various 3G technologies — WCDMA,
852.2252.1400 CDMA2000, and TD-SCDMA? Why is CDMA better than GSM?
„ What is an Erlang and how does it help to measure traffic on a wireless network?
Jeff Kvaal
(LBI, New York) „ What is the difference between a ring tone and a color-ring tone?
„ What is the difference between a circuit-switched and packet-switched network?
Stuart Jeffrey
(LBIE, London) „ What is spread-spectrum technology and how does it work?
sjeffrey@lehman.com „ How does DSL work and how does it differ from ADSL and ISDN technology?
What is naked DSL?
Analyst Certification
„ What is OFDM technology and how is it related to WiFi and WiMAX? What is
We, Paul Wuh, Stanley Yang,
Sundeep Bihani, Danny Chu and
802.11a, b, c, d, e, g, etc?
Sachin Salgaonkar, hereby
certify (1) that the views „ What is frame relay and why is it important?
expressed in this research report
accurately reflect our personal
views about any or all of the
subject securities or issuers
referred to in this report and (2) This report replaces the version published previously, which had incorrect page numbers in
that no part of our compensation the appendix. We apologize for any inconvenience caused.
was, is or will be directly or
indirectly related to the specific
recommendations or views Lehman Brothers does and seeks to do business with companies covered in its research reports. As a result, investors should be
aware that the firm may have a conflict of interest that could affect the objectivity of this report.
contained in this report.
Investors should consider this report as only a single factor in making their investment decision.
August 21, 2007 With the exception of research analysts based in our Taiwan branch, Lehman Brothers research analysts based outside the United
States are employed by foreign affiliates and are generally not qualified as research analysts by the NYSE or the NASD.
Guide to Telecoms

Table of Contents

Cellular Technology.......................................................................................... 3
Mobile phone network terminology ................................................................... 10
Mobile Phone Network Components ................................................................. 14
Handset and Related Terms ............................................................................. 18
Spectrum and Auctioning................................................................................. 25
Wireless Software Terminology......................................................................... 28
Terminology for Other Wireless Technologies ...................................................... 29
Broadband and Access Terminologies ............................................................... 37
Broadband and DSL Terminology...................................................................... 39
Cable TV & Video Terminology ........................................................................ 43
Fiber and Optical Component terminology ......................................................... 46
Radio & Satellite Communication Terminology ..................................................... 51
Wireline Enterprise Network Terminology ........................................................... 54
Enterprise Network Component Terminology ....................................................... 62
Carrier Network and Equipment Terminology ...................................................... 66
Internet-related Terminology.............................................................................. 69
Various Telecom Organization ......................................................................... 71
Appendix ..................................................................................................... 75
Sources for Data ......................................................................................... 75
Lehman Brothers Global Telecom Team ........................................................... 76
Index ........................................................................................................... 77

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Guide to Telecoms

Cellular Technology

Figure 1: Worldwide wireless subscribers

Subscribers 2003A 2004A 2005A 2006A 2007E 2008E 2009E 2010E

Asia Pacific 551 702 887 1,122 1,377 1,619 1,848 2,062
Europe 445 582 719 835 911 961 997 1,024
South and Central America 124 174 241 303 362 396 425 446
North America 172 192 218 251 275 294 309 322
Middle East and Africa 90 115 188 272 357 442 530 635
World 1,382 1,765 2,253 2,784 3,282 3,710 4,109 4,488
Growth Rate 20% 28% 28% 24% 18% 13% 11% 9%

APAC % of total subs 40% 40% 39% 40% 42% 44% 45% 46%
Growth Rate 27% 27% 26% 27% 23% 18% 14% 12%
Source: Lehman Brothers Research estimates

Figure 2: Wireless Penetration

Penetration 2003A 2004A 2005A 2006A 2007E 2008E 2009E 2010E

Asia Pacific 15.1% 19.2% 24.1% 30.3% 37.1% 43.2% 45.2% 46.7%
Europe 51.1% 66.8% 82.3% 95.6% 104.2% 109.7% 111.3% 112.6%
South and Central America 22.9% 31.9% 43.8% 54.8% 65.0% 70.8% 70.2% 69.8%
North America 53.3% 58.9% 66.5% 75.8% 82.2% 87.1% 89.5% 91.1%
Middle East and Africa 9.7% 10.9% 17.7% 25.5% 33.3% 41.1% 42.8% 44.3%
World 21.9% 27.7% 34.9% 42.7% 49.7% 55.6% 60.9% 65.7%
Source: Lehman Brothers Research estimates

Advanced Mobile Phone Service (AMPS): AMPS is an analog mobile phone system that
was used in U.S. from the 1980s to early 2000s. It was usually used in the frequency
range 800 MHz and used FDMA technology. It is also known as first generation cellular
technology. Total Access Communication System (TACS) is the European equivalent of
AMPS. TACS used in Japan was named ‘Japanese Total Access Communication’ (JTAC).

Personal Communications Service (PCS): The name given to digital cellular services that
operate at 1900-MHz in the United States. PCS systems in use are D-AMPS, GSM and

Personal Access System (PAS): A limited mobility mobile network operating at 1900
MHz that is deployed in China. It is also known as Xiaolingtong in China. The number of
PAS subscribers in China is trending down as GSM and CDMA mobile phone service
pricing becomes more affordable.

Personal Digital Cellular (PDC): A second-generation digital cellular standard developed

in Japan that operates on the 800MHz and 1,500MHz frequency bands. It was
developed by DoCoMo and is incompatible with wireless networks outside of Japan.

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This technology is in decline as Japan DoCoMo and Softbank are switching to


Integrated Digital Enhanced Network (iDEN): A wireless technology, developed by

Motorola, which has both two-way radio and mobile phone functionality. iDEN is more
efficient than analog cellular and radio systems. It is based on TDMA and GSM
architecture and can operate on 800 MHz, 900 MHz and 1500 MHz. Nextel (now
merged with Sprint) started offering iDEN services in US. The combined Sprint-Nextel is
transitioning to CDMA and WiMAX-based technologies. Sprint-Nextel plans to support
the iDEN technology until 2010.

IS (Interim Standard): An ANSI name for different industry protocols.

• IS-54: Digital (Second generation) TDMA technology standard in the U.S.
• IS-136: It is also known as Digital AMPS. IS-136 is an upgraded version of
IS 54 that includes features like text messaging and improved compression
• IS-95: The first CDMA technology. It is also known as CDMA One.

Global System for Mobile Communications (GSM): This is currently the most popular
digital standard for mobile phones in the world. The GSM service is used by over 2
billion subscribers across more than 212 countries.

General Packet Radio Service (GPRS): A 2.5G mobile data service that is available to
users of GSM and D-AMPS. GPRS is a packet-switched technology and hence billed per
MB of data transferred. GPRS is usually used for accessing the internet and downloading
emails. GPRS provides a theoretical data download speed of 60-80 kbps but usually
averages about 30 kbps in real-world conditions.

Enhanced Data Rates for Global Evolution (EDGE): A packet switched mobile data
service for GSM networks that provides theoretical data speed of 384 kbps (but usually
averages about 80 to 160 kbps). EDGE is mainly used for data applications like
multimedia (such as music downloads) and video services. The provisioning of EDGE
and GPRS technology only requires software upgrades for GSM networks—which makes
it relatively cost effective.

Wideband Code Division Multiple Access (W-CDMA): W-CDMA is a 3G mobile

technology. The technology supports a theoretical data transfer speed of up to 2Mbps
(but is about 384 kbps in real world examples).

Universal Mobile Telephony System (UMTS): Another name for the 3G technology.
UMTS combines W-CDMA, TD-CDMA, or TD-SCDMA air interfaces and the GSM
family of speech codecs.

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High-Speed Packet Access (HSPA): Protocols that improve data transmission speeds for
existing WCDMA networks. The HSPA protocol is still under development with only
HSDPA currently being deployed.

• High-speed Downlink Packet Access (HSDPA): A software upgrade for W-

CDMA that increases data download speeds. HSDPA improves the
downlink packet access speed. The theoretical maximum downlink data
transmission speeds using HSDPA are from 3.6 to Mbps14.4 Mbps.
Currently, there are 102 networks with HSDPA deployed in 55 countries.
HSDPA is relatively new and the number of handsets and PC data cards
using the service is still very limited.
• HSUPA (high-speed uplink packet access): A HSPA standard that improves
the uplink data speed by up to a theoretical 5.76 Mbit/second. This
standard has not been deployed.
• High Speed OFDM Packet Access (HSOPA): This is part of the proposed
3GPP's Long Term Evolution (LTE) upgrade path for UMTS systems. It is also
known as Super 3G.

Long Term Evolution (LTE): This is a project within the Third Generation Partnership Project
to improve UMTS mobile phone standards. The objectives of LTE are to improve
efficiency, lower costs, improve services, make use of new spectrum opportunities, and
provide better integration with other mobile phone standards. The proposed LTE upgrade
path from UMTS is known as Super 3G or High Speed OFDM Packet Access (HSOPA).

Code Division Multiple Access (CDMA): This 2G technology was pioneered by

Qualcomm. CDMA usually operates at 800 MHz and 1900 MHz, therefore 2100
MHz. CDMA and GSM networks are not compatible. CDMA is a method of multiple
access that divides up a radio channel by using different pseudo-random code
sequences (unique code to each data) for each user. CDMA is a form of "spread-
spectrum" technology, where each conversation is spread and transmitted over multiple

CDMA is considered to be a better technology than GSM:

• CDMA has superior network capacity since it is more efficient in using
radio spectrum.
• CDMA requires fewer base stations compared to GSM to cover the same
• CDMA handsets consume less power compared to GSM handsets.

However, GSM continues to be more popular than CDMA because:

• GSM offers a wider variety of handsets. Subscribers are also able to
switch to new phones more easily because GSM phones have SIM cards.
In general, CDMA handsets cost more than GSM phones with similar
features (mainly because of a royalty paid to Qualcomm).

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Guide to Telecoms

• Since there are many more GSM networks in the world, GSM subscribers
have more opportunities to roam when traveling.
• GSM network equipment is also more inexpensive compared to CDMA,
given the economy of scale and number of vendors providing GSM

Figure 3: Technology Progression

2G 2.5G 3G



(2G) (2.5G) (2.75G) (3G) (3.5G)



(2G) (2.5G) (3G)

Source: Lehman Brothers Research

CDMA2000- 1x RTT: This is an upgrade for CDMA that has more traffic channels and
provides QoS control. CDMA 2000 1x RTT (1 times Radio Transmission Technology)
provides a theoretical peak data download speed of 144 kbps (usually at 50 to 70
kpbs in actual usage).

CDMA2000- EV-DO: A 3G standard for CDMA technology. It stands for Evolution-Data

Optimized or Evolution-Data only. EV-DO provides data speeds of up to 2.4 Mbit/s with
Rev. 0 and up to 3.1 Mbit/s with Revision-A. This CDMA upgrade to 3G is much more
cost efficient than the upgrade to WCDMA for a GSM carrier.

EV-DO Revision-A: A modified version of the EV-DO standard that increases peak data
downlink speed up to a theoretical 3.1 Mbps and reduces latency. EV-DO Revision-A is
best suited for IP-based services like voice over Internet Protocol (VoIP) and video
telephony. This technology has been commercially deployed by KDDI in Japan, SK
Telecom, KT Freetel and LG Telecom in Korea, and Sprint and Verizon Wireless in the
United States.

EV-DO Revision B: An evolution of the EV-DO Rev A standard that provides a theoretical
peak downlink speed of 14.7 Mbit/second using better modulation schemes. However,

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Rev B will require more spectrum than earlier technology upgrades. EV-DO Rev-B are
expected to be commercially available in 2008.

EV-DO Revision C: This next-generation CDMA2000 upgrade uses OFDMA technology

and is expected to be commercially available by mid-2009. It is also known as Ultra
Mobile Broadband (UMB).

Time Division-Synchronous Code Division Multiple Access (TD-SCDMA): A 3G mobile

telecommunications standard that is approved by the ITU and is currently being deployed
in China. There will be ten cities with significant TD-SCDMA test networks in China by
the end of 2007 (see Figure 8).

The "S" in TD-SCDMA stands for "synchronous,” which means that uplink signals are
synchronized at the base station receiver which should reduce interference between

Figure 4: China is Currently Conducting TD-SCDMA Trials in Select Cities

Source: Lehman Brothers Research

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Guide to Telecoms

Figure 5: The Food-chain for the TD-SCDMA Industry

Source: Company reports, Lehman Brothers Research

Short Messaging Service (SMS): SMS is a text messaging service that is available
through a mobile phone. A SMS can have up to 160 characters.

Multimedia Messaging Service (MMS): MMS is a messaging service for 2.5G and 3G
mobile networks that enable the sending of multimedia attachments such images, audio,
and video clips. A MMS gateway, relay and server are the main equipment needed to
provide MMS service. Mobile handsets also need to be enabled to receive MMS.

Figure 6: Equipment Needed for MMS Functionality

Source: TEC, Lehman Brothers Research

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i-mode: i-mode is a wireless Internet service first introduced by NTT DoCoMo in Japan in
February 1999. It provides data transmission speeds only up to 28.8 kbps. Unlike the
WAP standard (that uses WML), i-mode uses format C-HTML, based on HTML and
DoCoMo proprietary protocols ALP (HTTP) and TLP (TCP, UDP).

Figure 7: i-mode Network’s Access to ISP

Source: ITU, Lehman Brothers Research

Freedom of Mobile Multimedia Access (FOMA): FOMA is the name for the 3G mobile
service offered by NTT DoCoMo in Japan. FOMA was the world’s first 3G service and
was launched in October 2001.

Fourth Generation (4G): 4G systems aim to provide an end-to-end IP solution where

voice, data and streamed multimedia can be served to users on an "Anytime, Anywhere"
basis at higher data rates than previous generation wireless networks. No formal
definitions for 4G have been established, as the technology is still evolving. The
technology is also expected to provide end-to-end quality of service and higher security.
Assignment of spectrum for 4G is not clear at this time.

International Mobile Telephony Advanced (IMT-A): ITU's official term for 4G mobile
telephony. IMT-A as per ITU will provide throughout of up to 100 Mbps for a mobile unit
and 1 Gbps for a fixed unit.

International Mobile Telecommunications-2000 (IMT-2000): The global standard for third

generation (3G) wireless communications as defined by the International
Telecommunication Union. WCDMA and UMTS is the third generation evolution of
GSM, while IMT 2000 means 3G evolution of second generation GSM and CDMA

August 21, 2007 9

Guide to Telecoms

Mobile phone network terminology

Average Revenue per Unit (ARPU): The average revenue per connection per month. It is
calculated by dividing the total service revenue per month by the average number of
subscribers. ARPUs are often used to determine how valuable a subscriber is to the
operator. ARPUs often decline as penetration rates increase.

Average Selling Price (ASP): The average price for a particular good. Often used when
discussing the price of a mobile phone. Since many mobile phone operators subsidize
handsets for their customers, lower ASPs are better for the carriers. On the other hand,
when discussing ASPs for mobile phone manufacturers, declining ASPs could have a
negative impact on the company’s revenue growth.

Average Wholesale Price (AWP): The sum of the factory price and shipment costs to the
main distributor.

Bundling: This is a term that is used when a service provider can provide two or more
services to its customers. The service provider often offers the bundled product at a
discount and might even have cross subsidies. Usually, a carrier uses bundling to reduce
churn rates and to improve ARPUs.

Calling Party Pays (CPP): The mobile subscriber does not pay for incoming calls. The
person who calls pays for the call.

Churn Rate: The rate at which subscribers disconnect from a network. This is usually
expressed as either monthly or yearly churn rates. Generally, this rate is much higher for
prepaid subscribers and is often “churn” imposed by the carrier when a prepaid
customer does not “top up” his prepaid account after a certain period of time.

Cost per Gross Add (CPGA): The cost of sales, marketing, advertising and handset
subsidies divided by the gross number of subscribers added during a period. CPGA is
often much higher for operators that offer handset subsidies in order to attract subscribers.
CPGA is often quite low for operators with a large prepaid subscriber base that
generally do not offer handset subsidies.

Erlang: A unit to measure telecommunications traffic. An Erlang describes the total traffic
volume during one hour.
For example, if a group of users make 20 calls in one hour, and each call had average
call duration of 5 minutes, then the number of Erlangs is calculated as shown below:
Minutes of traffic in the hour = number of calls x duration
Minutes of traffic in the hour = 20 x 5 = 100
Hours of traffic in the hour = 100 / 60 = 1.7
Traffic figure = 1.7 Erlangs

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Facilities-based Operators: Network telecom operators that have their own network and
offer services on it.

F2M Substitution (fixed to mobile substitution): When a customer gives up his fixed-line
telecom connection and substitutes it with a mobile connection, this is called as F2M

Interconnection: Interconnection means connecting calls between two carriers or the

connection between a carrier and a consumer.

Interconnection Rate: The amount that carriers receive and pay to connect a call between
two networks. Interconnection rates are usually different for calls made between two
fixed-line networks, fixed-to-mobile calls and mobile-to-mobile calls. The highest rates are
generally paid-for calls made between mobile and fixed-line networks.

Minutes of Use (MOUs): A wireless user's total connection time—often expressed as

MOU for a given month.

Mobile Network Operator (MNO): A wireless carrier that owns and operates its own
mobile network.

Mobile Virtual Network Operator (MVNO): A company that does not own mobile
spectrum but sells mobile services under its own brand name using the network of a
licensed mobile operator.

Net New Connections (a.k.a. Net adds): Gross new subscriber connections minus the
number of disconnections from a network during a given period—also referred to as the
“net adds” of a carrier.

On Net (on network calls): Calls that originate and terminate on the same network.

Off Net (off network calls): Calls that originate on the network of one carrier and
terminate on another network.

Refilling/Top-up: The process recharging a prepaid account with more money (value for
usage) is called as refilling or a top-up.

Mobile Number Portability (MNP): MNP allows a mobile telephone subscriber to retain
his/her telephone numbers when changing from one network operator to another. Asia,
Hong Kong, Korea and Singapore have already implemented MNP. Pakistan
implemented MNP in March 2007.

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Termination Rate: The rate that one telecom carrier charges another carrier to complete
(terminate) a call.

Penetration Rate: The number of subscribers/connections divided by the population. For

example, a mobile penetration rate of 23% indicates there are 23 subscribers in the
market for every 100 people.

Subscriber Acquisition Cost (SAC): The cost that an operator incurs to acquire a new
subscriber. The typical costs come from sales and marketing, and handset subsidies. Also
refer to cost per gross addition (CPGA).

Spectrum/bandwidth: Spectrum or bandwidth is the width of the band of frequencies

that an electronic signal uses on a given transmission medium. It is expressed in terms of
the difference between the highest frequency signal component and the lowest frequency
signal component.

Handoff: A handoff is when a call is transferred from one base station to another (as user
moves from one cell to another) without disconnecting the call. It is also known as
There are two types of Handoffs-
• Hard Handoff: A handoff in which connection to the source base station is
broken before the connection to the target base station is made. It is also
called as “break-before-make” handover.
• Soft Handoff: A handoff in which the channel to the source cell is retained
as the connection to the target cell is established. This handoff is also
called “make-before-break.”

Preferential Roaming: In regular roaming, a mobile phone usually picks up a network that
has the strongest signal. In preferential roaming, the SIM is programmed to choose a pre-
determined network rather than the network with the strongest signal. Operators with a
global footprint use this means to retain more calls on their own network.

Cell Splitting: A means of creating more capacity on a wireless network by having more
than one cell site cover a particular area. Each cell site covers a smaller area, with lower
power MHz and is able to reuse frequencies more times over a larger geographic
coverage area, such as a city or MTA.

Frequency Reuse: The process of using the same frequencies repeatedly across a cellular
system. Since each cell is designed to use radio frequencies only within its boundaries,
the same frequencies can be reused in other cells not far away with little potential for
interference. This process helps mobile network operators handle large numbers of calls
with a limited number of channels.

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Push to-Talk (PTT): It is a technique of communicating on a half-duplex network by using a

pushbutton to switch from voice reception mode to transmit mode. It is also known as
“Press to Transmit.” Nextel has been very successful with this service in the United States.

Value-added Service (VAS): An additional service that is offered by a telecom network

apart from the core voice service. The name indicates that it adds services to the
standard service offering. For example, SMS and MMS are considered value-added
services for mobile phone operators, as are ring-tone downloads, voice mail service, etc.

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Mobile Phone Network Components

Figure 8: Key Equipment Needed for a 2G Wireless Network

Source: Lehman Brothers Research

Smart Antenna: This type of antenna uses algorithms to identify the direction of signal
and to locate the signal beam from a mobile phone. They are usually used in more
recent technologies like W-CDMA, TD-SCDMA and WiMAX. They are also known as
adaptive antennas.

Cell Sites: An area where antenna is placed to provide wireless services to mobile
phone users in that particular area (cell).

Picocell: The short-range area (approx. 100- 250-meter range) that is covered by a cell
site. A picocell is usually used to boost the signal in a small area, usually where there is
high density of users—such as within a skyscraper in a central business district.

Femtocells: These are very small mobile phone base stations (even smaller than Picocells).
They are more inexpensive and easily scaleable—which help operators to increase
coverage while reducing capex and opex.

Backhaul: Transportation of traffic to a centralized location. This is what is used to carry

voice or data services from a mobile network base station back to the switch or
exchange, to ultimately connect a call or to transfer data to another location.
The most commonly used technologies for backhaul are:
• E1/T1 or T3 carriers
• Fiber
• Satellite (in microwave frequency)
• LMDS, Wimax (in microwave frequency)
• DSL (mostly ADSL)

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Transceiver (TRX): Equipment that transmits and receives signals to and from mobile
phones. Transceivers are part of the base transceiver station system.

Base Transceiver Station (BTS): A BTS contains the equipment for transmitting and
receiving signals as well as the equipment for securing transmissions with the base station
controller. A BTS handles traffic from several transceivers (TRXs).

Base Station Controller (BSC): Equipment that manages a network of base stations and
provides the interface between the cell sites and the mobile switching center (MSC).

Base Station Subsystem (BSS): The part of a mobile network that handles the traffic and
signaling between mobile phones and network switching sub-systems.

Billing and Operational Support System (BOSS): Software systems that help manage the
cellular network.

Operations Support Systems (OSS): Software programs that manage the network by
provisioning services, configuring network components, and managing faults.

Business Support System (BSS): Software programs that focus on customer support. Major
functions include managing order data, billing, and offering value-added services.

Visitor Location Register (VLR): A database that stores information about roaming
customers that are currently roaming a network.

Home Location Register (HLR): A database that contains information of all the mobile
users (not roaming) that are in a network.

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Guide to Telecoms

Figure 9: Key Equipment Needed for a 3G Wireless Network

Source: Lehman Brothers Research

SMS Gateway: A system that helps deliver and receive SMS messages to or from mobile
devices. Messages are temporarily stored in the SMS center if they cannot be sent

Active Telecom Infrastructure: Includes electronic infrastructure such as base tower

stations, microwave radio equipment, switches, antennas, and transceivers for signal
processing and transmission.

Passive Telecom Infrastructure: Includes non-electronic infrastructure equipment. Major

passive equipment includes towers, shelters, air-conditioning equipment, diesel electric
generators, batteries, and the technical premises. We estimate that passive infrastructure
accounts for approximately 55-60% of a network rollout cost.

Telecom Infrastructure Sharing: This is mainly used to lower capital expenditures between
one or more carriers.
The various types of infrastructure sharing include:
• Passive Infrastructure Sharing: The sharing of passive equipment—usually
means towers, etc. This is particularly helpful in a market with many mobile
carriers. Often the towers of a mobile operator are sold to an independent
tower company.
• Active Infrastructure Sharing: Sharing which includes electronic equipment.
• Spectrum-sharing: One operator leases part of its spectrum to another
operator. This is also known as spectrum trading. E.g. MVNOs in Europe.

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Figure 10: Worldwide Wireless Equipment Market Size and Share

CDMA 1x Infra GSM/GPRS EDGE Infra W-CDMA Infra
Alcatel-Lucent 47% Ericsson 40% Ericsson 39%
Nortel 27% Nokia-Siemens 31% Nokia-Siemens 30%
Motorola 18% Alcatel-Lucent 11% NEC 13%
Samsung 4% Nortel 6% Fujitsu/ALU 8%
Huawei 2% Motorola 6% $ 6.1 billion
$ 7.9 billion Huawei 4%
$ 25.6 billion
Source: Lehman Brothers Research

August 21, 2007 17

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Handset and Related Terms

Figure 11: Handset Sales by region
2001A 2002A 2003A 2004A 2005A 2006A 2007E 2008E 2009E

APAC 136 146 181 210 249 348 423 493 546
Europe 143 138 167 210 240 275 293 304 312
Latin America 30 29 38 73 100 117 127 133 139
North America 89 95 108 135 148 163 175 185 195
MEA 15 20 26 47 77 88 101 116 133
Total 413 431 520 674 814 991 1118 1230 1325

Source: Gartner, Lehman Brothers estimates

Figure 12: Handset Sales by Technology

2001A 2002A 2003A 2004A 2005A 2006A 2007E 2008E 2009E

GSM/GPRS/EDGE 250 263 342 484 603 720 735 658 550
WCDMA 0 0 3 18 44 88 168 258 338
CDMA(EVDORevA,IS,2000) 69 81 100 122 135 160 168 179 187
TDMA 46 42 27 11 2 0 0 0 0
PDC 34 32 37 24 14 5 1 0 0
Other digital 8 12 11 15 16 18 45 134 250
Analog 7 1 1 0 0 0 0 0 0
Total 413 431 520 674 814 991 1118 1230 1325
Source: Gartner, Lehman Brothers estimates

Dual-mode Phone/handsets: Denotes mobile phones that work on two different

technologies, like GSM and WCDMA, or GSM and CDMA. Most 3G mobile phones
are both dual-mode (WCDMA and GSM) and tri-band (operating on three frequency
bands). This enables the mobile phone to roam onto 2G networks when outside the 3G
coverage area.

Dual-band Mobile Phones: Denotes mobile phones that work on two sets of frequencies.
For example, a GSM phone that works on both 900MHz and 1,800MHz.

Tri-band Mobile Phones: Denotes mobile phones that work on three different sets of
frequencies. For example, a GSM phone that works on 900MHz, 1,800MHz and
1,900 MHz spectrums.

Dual-band Network: A mobile phone network that operates in two different frequency

Subscriber Identity Module (SIM) Card: A removable smart card for mobile phones that
stores subscriber/phone number information. A subscriber can change handsets by
removing the SIM card from one phone and inserting it into another mobile phone and
retain the same phone number and other information stored on the phone. All GSM
mobile phones have SIM cards.

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Removable User Identity Module (R-UIM) or a CDMA Subscriber Identity Module (CSIM):
A SIM card for CDMA handsets. This allows a CDMA subscriber to switch mobile
phones, use the same number, and retain other stored data (such as phone numbers).
Most CDMA handsets sold globally do not have this feature. However, China Unicom
requires that all its CDMA handsets sold in China have an R-UIM.

International Mobile Equipment Identifier (IMEI): A unique number assigned to a

GSM/WCDMA phone. This number is found below the battery in a phone or can be
obtained by dialing *#06# into a mobile phone. If the phone is stolen then access to
the network is stopped by telling the operator to block the phone using its IMEI number.

International Mobile Subscriber Identity (IMSI): A unique number up to 15 digits that is

assigned to a GSM SIM card. The first three digits are the Country Code, and the
following digits are the Mobile Network Code. The IMSI number is sent by the mobile
phone to the network and is used to acquire details for the mobile phone in its Home
Location Register (HLR)

FeliCa: A brand name for the contactless IC card technology developed by Sony. The
card includes an integrated non-volatile memory and wireless communication chip which
facilitates data exchange when held adjacent to compatible reader/writers. The main
applications include e-money, prepaid cards for mass public transit systems, employee ID
cards, student ID cards and card-keys.

Contactless Card: A chip that uses radio frequencies to transmit data and does not need
any physical contact. It works on Near-Field Communication (NFC)—an example being
Sony's FeLiCa chip-card technology.

Blackberry: The Blackberry is a mobile device that supports corporate email (it uses push
e-mail technology) apart from normal telephone features. It was developed by the
Canadian company Research In Motion (RIM).

August 21, 2007 19

Guide to Telecoms

Figure 13: A Blackberry Network

Source: RIMM, Lehman Brothers Research

Push Mail: An e-mail system that transfers new incoming email to a mail server then to a
mobile phone. This provides "always on” email technology. Traditional e-mail is “pull
based,” requiring users to logon to request for emails.

Smartphones: A mobile phone with personal computer features like email, a personal
organizer, and multi-media functionality (Nokia 5500, 6680; Sony Ericsson W950).

Personal Digital Assistant (PDA): A handheld computer designed to provide computing

capabilities and act as personal organizers. PDAs are also known as pocket computers
or palmtop computers. Like a computer, a PDA has a calendar, address book features
and offers internet access—examples include Nokia E61 and T-Mobile MDA.

Figure 14: Worldwide handset market size and shares

W-CDMA handsets GSM-GPRS handsets CDMA 1-x handsets QWERTY Phones
Nokia 36% Nokia 40% LG 24% RIMM 65%
Sony-Ericsson 12% Motorola 21% MOT 20% PALM 25%
Samsung 10% Samsung 11% Samsung 18% $ 4.0 billion
Sharp 9% Sony Ericsson 8% Nokia 11%
MOT 8% Benq/Siemens 4% $ 7.9 billion
$ 25.8 billion $ 79 billion
Source: Lehman Brothers Research

Symbian OS: A proprietary operating system for mobile devices that was developed by
Symbian Ltd. Symbian is owned by Nokia (47.9%), Ericsson (15.6%), Sony Ericsson
(13.1%), Panasonic (10.5%), Siemens AG (8.4%) and Samsung (4.5%). The software
provides customizable interfaces, along with Internet and PC connectivity software.

20 August 21, 2007

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EPOC 32: An operating system for mobile devices that was developed by Psion and is
now supported by Symbian.

Palm OS: An operating system for personal digital assistants (PDAs) developed by Palm

Original Equipment Manufacturer (OEM): A company that assembles a particular product

for a vendor who then sells the product under their own brand name. For the mobile
phone industry, examples include Compal, Quanta, etc.

Original Design Manufacturer (ODM): A company that designs, develops and

manufactures a product. These devices are sold to end users under someone else’s
brand. Some examples of ODM companies include Taiwan-based BenQ, HTC and

Mobile TV: The function of viewing video content on a mobile phone. The content is
usually streamed or broadcast over a network and is "real time". Mobile TV services,
similar to conventional TV services, depend on a multicast architecture—broadcasting the
same content to multiple subscribers through a simultaneous transmission. Mobile TV
technologies include DVB-H, ISDB-T, FLO, DMB (both S-DMB, a satellite-based
technology, and T-DMB, a terrestrial-based technology), and TDtv.

Lehman Brothers’ global telecom equipment team estimates that the service provider
opportunity may grow from less than $10 million in 2006 to $2.2 billion by 2009 in
North America and Europe. From a handset perspective, we estimate that units with
mobile TV functionality will grow from less than 100,000 units in 2006 to nearly 50
million units by 2009 in North America and Europe.

Digital Video Broadcasting Handheld (DVB-H): The DVB-H technical specification is an

open, nonproprietary standard developed as a derivative of the DVB-T (Digital Video
Broadcasting for Terrestrial Television) standard. The standard is designed to lower
battery power consumption and improve video quality in more difficult reception
environments. Because the DVB-H is compatible with DVB-T networks, this standard could
be adopted in regions that already have the DVB-T standard in place—such as Western

August 21, 2007 21

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Figure 15: Mobile TV Standards

Source: Lehman Brothers Research

Integrated Services Digital Broadcasting (ISDB-T): This technology was developed in

Japan to provide audio, video, and multimedia services for the terrestrial television
network. This broadcast standard also provides some modes that are suitable for
reception by handheld mobile units. ISDB-T was part of the Japanese government’s
original digital television strategy, the government has allocated one thirteenth of the
digital television transmission network for mobile broadcasting to portable and handheld
devices. This standard is limited to Japan.

Forward Link Only (FLO): This technology was designed by QUALCOMM to provide TV
services over dedicated mobile TV networks. FLO allows mobile operators to provide live
video channels, in addition to 50–100 national and local channels, which includes up
to 15 live channels, clip casts (short-format video cached on a mobile device), and
audio channels.
Owned by Qualcomm, MediaFLO USA’s business model is to program, procure,
aggregate, and broadcast video/TV and other audio- and data-related content to
various wireless devices for the US market. MediaFLO has announced plans to invest
$800 million over the next three to four years to develop, launch, and support the
network. Verizon Wireless is one of the first mobile operators to sign up for the
MediaFLO service in the 700 MHz frequency band.

Digital Multimedia Broadcast (DMB): A digital transmission system developed in Korea.

The technology was derived from the DAB standard for radio broadcasting rolled out in
Canada, most European Union countries, and parts of Asia.

DMB provides CD-quality audio streaming and can support additional data services such
as text and pictures. It is possible to roll out DMB using current DAB broadcast stations
and frequencies.

DMB has some technical similarities with DVB-H. There are a variety of DMB
technologies, including S-DMB (utilizing a satellite network) and T-DMB (utilizing a
terrestrial network). South Korea has been the primary supporter of the technology. SK
Telecom began offering commercial S-DMB services in May 2005, while T-DMB was
launched in December 2005.

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TDtv: Provided by IP Wireless, TDtv operates in the unpaired 3G spectrum bands that are
available in Europe and Asia at 1900 MHz and 2010 MHz. The system is designed to
allow W-CDMA operators to use existing spectrum to offer mobile TV and multimedia
services. TDtv base stations can be co-sited on existing W-CDMA sites and integrates at
the core network level in order to allow for integration of billing and other back-office

Digital Video Broadcasting Terrestrial (DVB-T): This technology is used in Europe to

transmit digital television.

Ringtones: The audio tone heard for an incoming call. Downloading ringtones is a form
of value-added service. Ringtones can be classified as -
• Monophonic: A ringtone that has ability to only sound one note or voice,
at a time.
• Polyphonic: A ringtone that makes use of polyphony (produces multiple
notes at a time).
• Master tone or True tones: Actual songs or tones.

Ring Back Tones: An audio tone or music that a caller hears after dialing and prior to the
call being answered at the receiving end. The service is also known as color ring tone. A
subscriber will pay to have different songs/melodies played while his caller waits for the
phone to be answered.

Figure 16: Ringtones

Source: Frost and Sullivan

August 21, 2007 23

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Figure 17: Mobile Application and Billing Market Share and Size
Mobile Applications Telecom/OSS/Bill s-w Mobile System Comp.
Comverse Tech 24% IBM 25% Andrew 34%
RIMM 11% Accenture 24% Powerwave 12%
Alcatel-Lucent 10% Telcordia 12% Others 54%
Ericsson 10% $ 7.1 billion $ 6.5 billion
Openwave 8%
$ 5 billion
Source: Lehman Brothers Research

24 August 21, 2007

Guide to Telecoms

Spectrum and Auctioning

Frequency Allocation for Cellular Technology

Frequency allocation varies from country to country, and in a country, from state to state.
Usually the entire spectrum in a particular band is not available as some frequencies may
be used for different purposes. Shown below is the example of frequency allocation in
the U.K. for cellular technology.

UMTS specifies the bands 1900-2025 MHz and 2110-2200 MHz for 3G
transmission. The satellite service uses the bands 1980-2010 MHz (uplink), and 2170-
2200 MHz (downlink). This leaves the 1900-1980 MHz, 2010-2025 MHz, and
2110-2170 MHz bands for terrestrial UMTS.

Figure 18: Frequency Allocation in the U.K.

Source: Three-g.net, Lehman Brothers

UMTS FDD is designed to operate in paired frequency bands, with uplink in the 1920-
1980 MHz band, and downlink in the 2110-2170 MHz band. UMTS TDD is left with
the unpaired frequency bands 1900-1920 MHz, and 2010-2025 MHz. In most
countries, a paired spectrum is given for each operator- one for uplink and one for

The frequencies of two adjacent operators on uplink or downlink are separated by a

small guard band to avoid interference.

August 21, 2007 25

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Figure 19: Frequency Allocation Between Different Carriers

Source: Source: Three-g.net, Lehman Brothers

3G License Process
The 3G licensing process is usually classified as either an Auction or Beauty contest (also
known as comparative selection).

The types of auctions are
• Sealed-bid Auction or Dutch Auction: In a first-price sealed-bid auction
every bidder makes a single “best-and-final” bid, and the winner pays the
price he bid.

• Ascending auction or English Auction: The price starts low and competing
bidders raise the price until nobody is prepared to bid any higher, and the
final bidder wins the prize at the final price he bid.

• Anglo-Dutch auction: Hybrid of the ascending and sealed-bid auction.

Advantages of an Auction
• Process is open, non-discriminatory and transparent and hence provides
fair opportunity for new players.
• Spectrum goes to the operator that values it the most.
Disadvantages of an Auction
• They are not appropriate if the number of bidders is less than the number of
• It requires a lot of planning.

Beauty Contest
In this process, licenses are awarded on the criteria set out in the invitation bid. Criteria
might include, for example, speed of deployment, project viability, spectrum efficiency
and the ability to stimulate competition.

Advantages of a Beauty Contest

• It reduces the risk of a license going to an inexperienced operator.

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Disadvantages of a Beauty Contest

• Process is not transparent to a large extent.
• Setting selection criteria and evaluating against them can both be difficult
• A beauty contest tends to favor established companies over inexperienced

Figure 20: Spectrum in Asia Pacific

Country Spectrum
Australia GSM-900, CDMA-800, TDMA-800, 3G- 850/2100
Bangladesh GSM-900, CDMA-800, TDMA-800, AMPS-800, 3G-TBD
Bhutan GSM-900, 3G-TBD
Brunei GSM-900, 3G-TBD
Cambodia GSM-900/1800, AMPS-800, 3G-TBD
China GSM-900/1800/1900, CDMA-800, 3G-TBD
Hong Kong GSM-900/1800, CDMA-800, TDMA-800, 3G-2100
India GSM-900/1800, CDMA-800, 3G-TBD
Indonesia GSM-900/1800, AMPS-800, CDMA-800, 3G-2100
Japan CDMA-800, PDC-800, AMPS-800, 3G-1700/2100
Korea GSM-900, CDMA-800/1700, 3G-2100
Laos GSM-900/1800, 3G-TBD
Macau GSM-900/1800, 3G-TBD
Malaysia GSM-900/1800, TDMA-800, TACS-800, NMT-450, 3G-2100
Maldives GSM-900, 3G-2100
Myanmar GSM-900, CDMA-800, TDMA-800, 3G-TBD
Nepal GSM-900
New Zealand GSM-900, CDMA-800, TDMA-800, AMPS-800, 3G 2100
Pakistan GSM-900, TDMA-800, AMPS-800, 3G-TBD
Philippines GSM-900/1800, AMPS-800, iDEN-800, 3G-2100
Singapore GSM-900/1800, 3G-2100
Sri Lanka GSM-900/1800, TDMA-800, TACS-800, AMPS-800, 3G-TBD
Taiwan GSM-900/1800, CDMA-800, 3G-2100
Thailand GSM-900/1800/1900, CDMA-800, AMPS-800, 3G-TBD
Vietnam GSM-900, CDMA-800, TDMA-800, AMPS-800, 3G-TBD
Source: CTIA, GSMA, Lehman Brothers Research

August 21, 2007 27

Guide to Telecoms

Wireless Software Terminology

Wireless Application Protocol (WAP): An application that helps access the Internet from a
mobile phone or PDA. It is an open-standard international protocol.

Wireless Mark-up Language (WML): A language that manages the content format for
mobile devices that implement Wireless Application Protocol (WAP) specifications. WML
takes into account the limitations of mobile phones, such as more limited bandwidth and
the small screen size.

E-cash (electronic cash): Currency or value uploaded onto smart cards or handheld
devices to enable transactions.

E-wallet (electronic wallet): A program that stores and controls online shopping
information, like logins, passwords, credit card details, digital signatures etc.

M-commerce (mobile commerce): The ability to conduct e-commerce functionality over a

mobile device.

M-payment (mobile payment): Payments that are made through mobile phones or other
wireless devices like a smart phone or PDA.

Mobile Middleware: Software that helps to connect mobile and enterprise applications
over wireless networks. More specifically, mobile middleware is a software layer that
helps programs and databases on different networks work together.

Mobile portal: A mobile Internet gateway that allows mobile phones to connect remotely
with an enterprise intranet mainly via a Web browser interface.

Mobile Java: Java software uploaded onto a mobile phone. Java-enabled handsets
provide various applications for mobile phones that increase software content and
reduce the risk of software viruses.

J2ME (Java 2 Micro Edition): A version of Java that is used in mobile phones, PDAs, etc.

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Terminology for Other Wireless Technologies

802.11 (WiFi): An IEEE 802.11 standard for wireless local area networks (WLAN). This
technology is more commonly used in laptops. Wi-Fi means Wireless fidelity.

The 802.11 technology standard includes:

802.11a: This technology operates at the 5GHz frequency band and can offer speed
up to 54 Mbps for a range up to 75 feet. 802.11a is incompatible with both 802.11b
and 802.11g as it operates at a different frequency band.

802.11b: This technology operates on the 2.4GHz frequency band and can transmit
data at speeds of up to 11Mbps within a range of up to 100-150 feet. Obstacles like
walls can affect the signal strength and transmission speeds.

Hybrid (802.11a + g): This wireless LAN technology operates in 2.4GHz and 5 GHz
frequency bands simultaneously. Equipment vendors like Linksys offer dual-band products,
in which routers and adapters are compatible with both standards.

802.11g: This technology is a higher version of 802.11b. 802.11g operates in the

2.4 GHz frequency band, but offers five times the data transmission speed of 802.11b
(up to 54Mbps). The technology is compatible with 802.11b.

802.11n: This technology is the next generation high-speed wireless standard that can
deliver data transmission speeds up to 540 Mbps. The technology operates in the 2.4
GHz frequency band and is backward compatible with the “a”, “b” and “g” standards.
This technology will be used for applications like streaming high definition video, voice,
and music. Estimated release date is September 2008.

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Guide to Telecoms

Figure 21: Comparison of Various 802.11 Standards

Source: Linksys, Lehman Brothers Research

Hot Spot: An area that is covered with a wireless LAN service. This is often a public
place (such as an airport lounge, in a hotel lobby, in a coffee shop, etc.) or a business
center. It is also known as a “WiFi Hotspot.”

Worldwide Interoperability for Microwave Access (WiMAX): WiMAX is a wireless

technology that provides wireless data over long distances, in a variety of different ways,
from point-to-point links to full mobile cellular-type access.

WiMAX is a further evolution of wireless connectivity that will extend wireless access
beyond current personal area networks (PANs), such as Bluetooth, and local area
networks (LANs), such as WiFi technology.

There are two main categories of WiMAX: fixed and mobile WiMAX.

Fixed WiMAX applications are point-to-multi-point and enable broadband access to

homes and businesses, whereas mobile WiMAX offer full mobility (like a cellular network)
at broadband speeds.

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Fixed WiMAX (802.16-2004): This technology also known as 802.16d. This version of
WiMAX replaces the 802.16a specifications.

Mobile WiMAX (802.16e-2005): This technology is also known as 16e and is

expected to provide mobile data and voice applications. Sprint has chosen this
technology for its 4G deployment in the US. Although the technology is still evolving, we
expect some limited deployment during 2008.

Figure 22: WiMAX Network infrastructure

Source: WiMAX forum, Lehman Brothers Research

Key Strengths of the WiMAX Technology:

Superior Technology: WiMAX is a native IP technology and uses orthogonal frequency-

division multiplexing (OFDM). One of the leading benefits of OFDM is that it alleviates
signal degradation between points that are not connected by line of sight. This was a
significant hurdle for prior generations of broadband wireless technology.

Lower-cost Technology: WiMAX is a data-only network that will not support circuit-
switched voice services. Providing circuit-switched voice is a significant cost burden for
both the CDMA2000 and W-CDMA technologies. We believe that a data-only network
like WiMAX will be up to 10%–15% less expensive to construct and maintain than
networks using both voice and data.

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Higher Data Rates: WiMAX can deliver higher data rates at lower prices than existing
cellular or broadband wireless networks. The improved efficiencies generally derive from
the more sophisticated air-interface standard, a streamlined data-only system, and
improved standardization.

Key Issues Hindering the Adoption of WiMAX:

Standardization Issues: There are currently several wireless broadband solutions in the
market such as WiBro in Korea, SmartBro in Philippines, as well as other proprietary
wireless broadband technologies. Although these technologies are similar, they differ in
terms of propagation characteristics and are not compatible.

Economies of Scale Could Prove to be Difficult for Equipment Vendors: Although we

believe that there is a viable business model for WiMAX (especially for fixed wireless
broadband), WiMAX equipment vendors might find it difficult to take advantage of
economy of scales in the near term, given the current limited deployment. In fact, IDC
estimates that WiMAX equipment will only represent about 7% of total wireless
equipment sold globally in 2010. Economy of scale also becomes an issue given the
various radio frequencies where WiMAX can be deployed---implying different
propagation characteristics, line of sight issues, etc.

Frequency Bands Allocated for WiMAX Differ by Country: The radio frequency
allocations for WiMAX vary by region. Although equipment vendors will provide
equipment for the various WiMAX frequencies, the economics of the network could vary
depending on the frequency band. The higher frequency bands (5.8 GHz) would most
likely require line-of-sight equipment. On the other hand, 2.3 GHz to 2.5 GHz would be
most optimal for non-line of sight products that require more robust in-building coverage.

Wireless Broadband (WiBro): A mobile wireless broadband technology developed and

deployed in South Korea. WiBro is now accepted by IEEE as part of the 802.16-2005
mobile WiMAX standard.

KT and SKT launched WiBro services at the end of June 2006. So far, WiBro has very
weak uptake due limited network coverage, a lack of differentiated features relative to
3.5G wireless services, and a limited selection of handsets/products for consumers.

Smart Bro: Smart in the Philippines is offering a wireless broadband service named Smart
Bro. Smart uses Canopy, a proprietary technology developed by Motorola. SmartBro
operates on unlicensed 5.6 GHz spectrum and has gained traction after being launched
in April 2006. Smart Bro targets areas in the country where DSL service is not available.
So far, Smart Bro already has about 170k subscribers on the network. Around 40% of
the Smart Bro subscribers are in Manila and the remaining 60% are in regions
throughout the rest of the Philippines.

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Figure 23: Comparisons of Various Wireless Technologies

GSM 3G CDMA - 3G TDS Standard Wimax

WCDMA HSDPA EVDO rev 0 EVDO rev A TD-CDMA TDS-CDMA 802.16d 802.16e

Industry 3GPP 3GPP 3GPP2 3GPP2 3GPP Chinese IEEE IEEE

Std Timeline Completed Completed Completed Completed Completed 2007 Completed 2007

Commercial 2003/04 2006/07 2002 2H 06 2004/05 2008 2005 2008/09


Peak speed 384 Kbps 1.8-7.2 Mbps 2.4 Mbps 3.1 Mbps 3 Mbps 2-4 Mbps 3 Mbps 20 Mbps

Channel size 5 MHz 5 MHz 1.25 MHz 1.25-20 MHz 1.25-10 MHz 1.25-10 MHz 1.25-20 MHz 1.25-20 MHz

Strength Increased S/w upgarde High data S/w upgarde Customised Political OFDM Cheaper
voice capty for high BW rate for high BW for TDtv Support technology Efficient

Weakness Low data Uplink Uplink Uplink Vendor Proprietary Lack of Timing
speed capacity capacity capacity Support Only- China mobility Uncertain

Source: Company data, Lehman Brothers Research

SON-Access: A proprietary IP-mobility solution developed by Malaysian operator Green

Packet. The technology enables users to roam seamlessly between hybrid wireless
networks and high-speed Wi-Fi hotspots. For example, using Green Packet’s service, a
smart phone user can access the internet on a Wi-Fi network in a hotel and then hand-off
to a mobile wireless network when he leaves the hotel. Green Packet is currently
deploying its SONmetro wireless broadband network deployment in Klang Valley using
unlicensed 2.4GHz spectrum band and is expected to be launched in late 2007 or
early 2008.

Mobile Broadband Wireless (802.20): This technology intends to provide high-speed

wireless connectivity to mobile users who are traveling at speeds of up to 250 kilometers
per hour.

Lightweight Extensible Authentication Protocol (LEAP): A proprietary wireless LAN

standard developed by Cisco Systems that has better authentication techniques while

Near Field Communication Technology (NFC): A short-range wireless technology that

enables secure transactions over a mobile phone. NFC only operates over a range of
10 centimeters (four inches).

Radio-frequency Identification (RFID): A technology that incorporates the use of radio

waves to identify a unique object or person.

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Guide to Telecoms

RFID Tag: A device that is attached to a person or merchandise as a form of

identification by radio waves.

Unlicensed Mobile Access (UMA): A telecommunication system that allows seamless

connectivity between wireless local area networks like WiFi or Bluetooth and mobile
networks using dual-mode handsets. It is also known as a Generic Access Network.

Ultra Mobile Broadband (UMB): The name for a 3GPP2 project that is working on the
evolution of next generation CDMA technology. This standard is expected to provide
download speeds of up to 280 Mbps and will employ OFDMA technology.

ZigBee: An IEEE 802.15.4 standard that uses low-power consumption for wireless
personal area networks. The technology works in the 2.4GHz band and offers data
rates of less than 220 Kbps over a 75 meter radius. ZigBee is used in applications that
require a low data rates, long battery life, and secure networking.

Cell-Fi: A dual-mode device that has cellular and WiFi capabilities and which enables
seamless roaming between WiFi and mobile networks. So far, there are still very limited
Cell-Fi handsets available, as few mobile operators would want to support their growth.

Orthogonal Frequency-Division Multiplexing (OFDM): A spread-spectrum modulation

technology that uses different carrier frequencies to carry data signals. OFDM uses the
spectrum more efficiently than previous wireless technologies. Some OFDM technologies
include WiFi and WiMAX.

Orthogonal Frequency Division Multiple Access (OFDMA): A multi-user version of the

OFDM. Multiple access is achieved using OFDMA by assigning subsets of sub carriers
to individual users.

Single Carrier Frequency Division Multiple Access (SC-FDMA): A multiplexing technique

where sub carriers assigned to each user are contiguous. This technique results in lower
battery consumption requirements.

Spatial Division Multiple Access (SDMA): A multiple antenna system that optimizes the
use of radio spectrum and minimizes system costs by taking advantage of the directional
property of antennas. Unlike traditional antennas that radiate power in all directions,
SDMA tracks the spatial location of mobile devices. This technology requires only one
antenna at the receiver end--which reduces CPE costs.

Multimedia Broadcast Multicast Service (MBMS): A point-to-multipoint broadcast

technology for mobile TV services. This technology is expected to be commercially
launched in 2009.

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Multiple Input/multiple Output (MIMO): A term that refers to the use of multiple antennas
at the transmitter as well as receiver side. This technology increases throughput, improves
capacity and spectral efficiency, and reduces fading.
Two examples of MIMO are:
• Multiple-input Single-output (MISO): A single antenna at the receiver end.
• Single-input Multiple-output (SIMO): Single antenna at the transmitter end.

Single-input Single-output (SISO): A system without multiple antennas at both the

transmitter and receiver end.

Bluetooth: A short range wireless technology used for personal area networks that
maintain a high level of security. Several key features of Bluetooth are robustness, low
power consumption, and low cost. Bluetooth operates in the 2.4 GHz and provides
data transmission speeds up to 3 Mbps by consuming power as low as 2.5 mw. The
technology transmits for a range of one to 20 meters. Bluetooth can be used to transfer
data and exchange information between devices such as mobile phones, laptops, PCs,
and printers.

Figure 24: Bluetooth Technology can Transmit Data Wirelessly to a Variety of Devices

Source: Althosbooks.com, Lehman Brothers Research

Binary Run-time Environment for Wireless (BREW): Qualcomm’s wireless application

development platform for mobile devices that is meant to be an alternative to mobile
Java. BREW software runs between the application and the wireless device's chip
operating system. BREW is only used with CDMA handsets.

Microwave: Radio waves with frequencies from 1 GHz to 300 GHz.

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Guide to Telecoms

Wireless Local Loop (WLL): Replaces the traditional copper wire in the last mile for
normal telephony by wireless. Signals are sent over the wireless frequencies. WLL is also
known as Broadband Wireless Access (BWA).

Wireless Local Area Network (WLAN): Data speeds on wireless LANs range from 30 to
60Kbps. WLAN utilizes spread-spectrum and works in the 900 MHz to 2 GHz
frequency band.

Access Point (AP): A device that connects wireless devices to wireline networks.

WAP Gateway: Allows mobile handsets (using WAP protocol) to access the internet.

Fixed Radio Access (FRA): Another name for WLL.

Figure 25: Wireless LAN Applications

Source: Flex watch, Lehman Brothers Research

Figure 26: Market Share and Sizes of Different Networks

Ent/Carrier WLAN SOHO/SMB Networking Security/VPN
Cisco 65% Cisco 33% Cisco 37%
Aruba n/ws 8% Netgear 23% Nokia-CHKP 20%
SBL 7% D-Link 16% Juniper 16%
3 COM 2% Buffalo 5% Others 27%
Nortel 2% $ 2.3 billion $ 3.2 billion
$ 1.4 billion
Source: Lehman Brothers Research

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Broadband and Access Terminologies

Bit: A binary digit that takes a value of either 0 or 1. A bit carries digital information.

Byte: A byte contains 8 bits and represents unit of information storage.

Figure 27: Bit and Byte powers

Bit Byte
Symbol Value Symbol Value
Kilo kb 10^3 kB 10^3
Mega Mb 10^6 MB 10^6
Giga Gb 10^9 GB 10^9
Tera Tb 10^12 TB 10^12

Note: 8 bits = 1 Byte

Source: Lehman Brothers Research

Baud: Baud is a measure for data transmission speed. One baud is one electronic state
change per second. However, the preferred unit is bps (bits per second). A single state
change can involve more than a single bit of data, the bps unit of measurement is a
better unit for the measurement of data transmission speed.

Access, Last mile, Local Loop: The final connection to an end user is called the “last mile
access.” Access technology can either be wireless or wireline. Wireline access is usually
through copper or fiber and wireless may be limited mobility or cellular. In the case of a
wireline connection, the last mile tends to require more expenditure as wires or cables
need to be rolled out.

Customer-premises Equipment (CPE): Equipment in the consumer’s premises that is

connected with a carrier's telecom network. Some more commonly known CPEs are
telephones, DSL modems or cable modems, set-top boxes, etc.

Remote Access: Access to information/connection away from the home location.

Remote Termination Unit (RTU): A device installed at a remote location that collects and
transmits data to a central or the main station.

Local Loop Unbundling (LLU) or Unbundled Access: Permitting competitors to access an

incumbent carrier’s last mile connection to the end user. LLU was established to increase
telecom market competition and lower costs to end users.

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Figure 28: Access Network

Source: IST-Bread, Lehman Brothers Research

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Broadband and DSL Terminology

Dial-Up Connection: Connecting to the internet through a traditional analog modem.

Data speeds through a dial up connection are less than 56 kpbs.

Narrowband: An internet connection which has a data transmission speed of less than
56 kbps is usually considered narrowband.

Broadband: Broadband data transmission is usually defined as “always on” and

provides minimum speeds faster than dial-up internet service. Using this definition,
anything higher than 56 kpbs can be considered “broadband” internet connectivity.
However, the data transmission speed for broadband is usually greater than 1 mbps in
developed countries.

Broadband Wireless Local Loop (B-WLL) or Local multipoint distribution service (LMDS): A
broadband wireless technology that operates around in the 28-31 GHz frequency band.
This technology is used to provide broadband fixed wireless services to transmit voice,
video, and data signals for last mile access. The technology is a point-to-multipoint
technology and is governed by IEEE. LMDS usually transmits up to five miles but the ideal
distance is a radius of about 1.5 miles.

Broadband Over Power Lines (BPL) or Power-line Internet or Powerband: A technology

used to provide broadband Internet access through electric power lines. A user would
plug a BPL "modem" into an electrical outlet in a building equipped with this service to
access high-speed internet service. Unlike cable or DSL high-speed internet access, a
separate network is not needed to implement BPL. The standard for the technology is in
early stages of evolution, it will likely take time for this technology to emerge.

Figure 29: Various Broadband Technologies

Technology Speed ARPU ($) Comments

DSL 2-10 Mbps $10-30 Most widely used technology for broadband

Cable 1-3 Mbps $15-35 Not widely deployed in Asia largely due to
fragmented nature of industry
Fiber 40 Mbps- 1Gbps $40-50 Limited deployments

Satellite 500 Kbps $15-25 Used in rural areas; gets affected by heavy

Source: Lehman Brothers Research

xDSL: A digital subscriber line that provides digital data transmission over traditional
telephone copper wires and is capable of providing speeds from 256 kbps to 24,000
Kbps, depending on the technology used, the quality of the copper infrastructure, and the
distance from the telecom carrier’s exchange.

August 21, 2007 39

Guide to Telecoms

How does DSL work?

Using a traditional copper telephone line, human voices are carried in the frequency
range of 0 to 3,400 Hertz in the form of analog signals. The remaining frequency
bandwidth on the copper wire is unutilized. DSL uses this "extra capacity" to carry data
information in digital format on the wire without disturbing the line's ability to carry
analog voice traffic.

The alphabet x in xDSL can be replaced by various letters like ‘A’, ‘H’, ‘S’, ‘V’ etc -
denoting various types of DSL technologies.

Figure 30: A Typical DSL Network

Source: Howstuffworks, Lehman Brothers Research

Asymmetrical Digital Subscriber Line (ADSL): DSL technology is called “Asymmetrical” as

it carries data transmissions faster in one direction than the other.

Consumers typically use this technology, rather than corporate users, to connect to the
internet as ADSL provides higher download speeds.

ADSL provides up to 8 Mbps download speed and 1 Mbps upload speed. ADSL is used
over short distances of about 5 km. Signals and repeaters cannot be used to boost the
signal as they distort the original voice that is carried by the same telephone lines.

40 August 21, 2007

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ADSL2+: ADSL2+ is an upgraded version of ADSL. ADSL2+ doubles the number of

downstream bits and hence provides higher data download speeds. The data
transmission speeds of ADSL2+ can be up to 24 Mbit/s downstream and 1 Mbit/s
upstream depending on the distance from the carrier’s DSLAM to the customer's home.

Rate Adaptive Digital Subscriber Line (RADSL): A variation of ADSL in which the modem
can adjust speed depending upon the length and quality of the line between the
exchange and the modem.

G.Lite: An ADSL version that provides lower speeds (1.5 Mbps downstream and 512
kbps upstream). It is also less expensive as it does not require phone splitters.

ISDN Digital Subscriber Line (IDSL): A DSL technology that carries data on existing ISDN
lines and provides data transmission speeds of 144 kbps, slightly higher than normal
ISDN speed of 128 kbps. IDSL is not a switched technology like ISDN and is an
“always on” service.

High Bit Rate Digital Subscriber Line (HDSL): High bit rate DSL provides symmetric
upstream and downstream data transmission speeds. This technology is used to connect
local exchange carriers and is often used by corporations using T1 lines. This technology
provides data transmission speeds of 1-2 Mbps over a distance of 12,000-15,000 feet.
HDSL is one of the oldest DSL technologies.

The two types of HDSL technologies are HDSL2 and SDSL.

• HDSL2: A modified version of HDSL that uses two wires instead of four to
carry the same amount of data. It is less expensive than HDSL as it requires
less wiring. This technology can work over copper of lower gauge or

• Symmetrical Digital Subscriber Line (SDSL): A symmetric DSL technology that

uses a single copper wire and can work up to 10,000 feet. This
technology offers speeds in the range of 192 kbps to 2.3 Mbps. Unlike
ADSL, it cannot co-exist with conventional voice services as it requires the
entire bandwidth. SDSL is relatively expensive and is mainly used by small-
and medium-size enterprises.

Very High Data Rate DSL (VDSL): This is the fastest DSL technology and provides up to 26
Mbps data transmission speed in a symmetric functionality and 52 Mbps (downlink) and
12 Mbps (uplink) in asymmetric access. This technology will only operate in a range of
up to 1000 feet from a central office. VDSL can support HDTV on copper and
applications like video on demand.

August 21, 2007 41

Guide to Telecoms

Digital Subscriber Line Access Multiplexer (DSLAM): A device that combines data signals
from various DSL subscribers into one stronger signal. Consumers that originally could not
be served by DSL can get access after the telephone company locates a DSLAM closer
to the end users. Depending upon the technology used, DSLAMs connect DSL lines with
Asynchronous Transfer Mode (ATM), frame relay, or Internet Protocol networks.

Naked DSL or Dry Loop DSL: A standalone DSL service that provides broadband internet
connection without requiring the end user to sign up for voice telephony service.

Figure 31: Comparison of Various DSL Technologies

xDSL Speed Max Lines
Uplink Downlink Distance needed

ADSL 1 Mbps 24 Mbps 18,000 ft 1

IDSL 144 kbps 144 kbps 35,000 ft 1
HDSL 2 Mbps 2 Mbps 15,000 ft 2
SDSL 2.5 Mbps 2.5 Mbps 22,000 ft 1
VDSL 12 Mbps 52 Mbps 1.000 ft 1

Source: Lehman Brothers Research

Figure 32: Market Share and Market size for DSL Equipment
Alcatel-Lucent 40% Thomson 21%
Huawei 9% Siemens 12%
Nokia-Siemens 8% Zyxel 12%
Ericsson 6% 2-Wire 7%
NEC 5% Cisco 6%
Others 32% D-Link 6%
$ 3.5 billion $ 2.5 billion

Source: Lehman Brothers Research

42 August 21, 2007

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Cable TV & Video Terminology

Figure 33: Cable System

Source: TechWeb

Community Antenna Television (CATV): Known as Cable TV, this service provides analog
television service to consumers typically though a hybrid fiber-coaxial network. Recently,
CATV systems are being upgraded to support broadband internet access and voice over
IP through the cable infrastructure.

Multi Service Operator (MSO): This is another name for companies that own large cable
TV systems, such Comcast in the U.S. or Virgin Media in the U.K.

Cable Modem Termination System (CMTS): This system provides high-speed data
services like cable internet or Voice over IP to cable subscribers. It is located in a cable
company's headend.

Multichannel Multipoint Distributed Service (MMDS): Known as Wireless Cable, this

technology delivers video content over microwave frequencies. Typical equipment
required for MMDS are an antenna and cable headend.

Conditional Access System (CAS): A system in which digital video signals are transmitted
over satellite to subscribers. This service is called “conditional access” because it
provides access only to subscribers, unlike free-to-the-air broadcast channels which are
available to anyone with a television. A set-top box containing a “conditional access
module” is required in the customer’s home to receive and to decrypt the signal.

August 21, 2007 43

Guide to Telecoms

Hybrid Fiber Coax (HFC): A hybrid network of optical fiber and coaxial cable that is
used by cable TV operators. The optical fiber usually forms the backbone and the coaxial
cable is used between the backbone and the customers’ homes.

Wavelength division multiplexing is used for the optical cable and frequency division
multiplexing is used for the coaxial portion. The network is capable of providing analog
TV, digital TV, video on demand as well as other high-speed services-.

Figure 34: HFC Network Architecture

Source: FCC Tutorial, Lehman Brothers Research

Video on Demand (VoD): An interactive service provided by cable or satellite companies

where the customer downloads preprogrammed content which could include TV
programs, movies, documentaries, etc.

Digital Video Recorder (DVR)/ Personal Video Recorder (PVR): This equipment records
programming (in a digital format) usually to a disk drive in the unit. One popular DVR is
provided by Tivo in the US.

Data Over Cable Service Interface Specifications (DOCSIS): An international standard

developed by CableLabs that defines the communications and operation support
interface requirements for data over cable systems. All two-way modem systems need to
follow this standard.

44 August 21, 2007

Guide to Telecoms

Figure 35: DOCSIS Speeds for Different Standards

Standard Speeds Date of
Downstream Upstream issue

1x 42 Mbps 10 Mbps Mar-97

2x 42 Mbps 30 Mbps Dec-01
3x 480 Mbps 120 Mbps Aug-06

Source: Lehman Brothers Research

Standard-definition Television (SDTV): Television systems that meet the required resolution
requirements but are not considered high definition TVs. This technology requires less
bandwidth than HDTV. SDTVs are superior to analog TVs (NTSC, PAL, PAL2, SECAM) as
SDTVs do not suffer from ghosting effects, snowy images, or static noises.

High-definition Television (HDTV): A digital television broadcasting system with

significantly higher resolution than traditional TV formats.
Three HDTV standards are currently defined by the ITU:
1. 1080i (1,080 actively interlaced lines);
2. 1080p (1,080 progressively scanned lines);
3. 720p (720 progressively scanned lines).

Videophone: A telephone that allows two-way real time video communications.

Joint Photographic Experts Group (JPEG): A method of compression for photographic

images that was standardized in 1992.

Motion Picture Experts Group (MPEG): A standard used for encrypting and compressing
Various MPEG groups include:
• MPEG-2: Used for over-the-air digital television, satellite TV service and
• MPEG-3: Originally used for HDTV but has since been replaced by MPEG-
• MPEG-4: used for interactive media.

Figure 36: Market Share and Market Size for Cable Technology Equipment
Cable Modem CMTS Cable Transmission DVR/Set top box
Motorola 34% Cisco 54% Cisco- SF Atlanta 36% Motorola 44%
Arris 30% Arris 24% Motorola 27% Cisco- SF Atlanta 32%
Cisco- SF Atlanta 22% Motorola 19% Others 37% $ 3.6 billion
Thomson 7% Bigband 3% $ 2.3 billion
$ 1.3 billion $ 990 million
Source: Lehman Brothers Research

August 21, 2007 45

Guide to Telecoms

Fiber and Optical Component terminology

Fiber: A glass-based medium that allows light signals to propagate through it. Fiber
consists of a core (through which a signal is passed) and surrounding cladding layer to
prevent loss of signal strength.
• Single-mode fiber: Fiber with a core diameter of less than 10 μm that
allows only one signal to pass at a time.
• Multi-mode fiber: Fiber with a large (greater than 10 μm) core diameter that
can carry multiple signals at a time.

Dark Fiber: Fiber that has been deployed but not utilized. This type of fiber-optic cable
has not been connected to any active or passive component and has been laid to be
used in the future. It is also known as “unlit fiber.”

Lit Fiber: This is fiber optic cable that is already being used and is attached to electronic

Optical Carrier (OC-x): This describes the range of digital signals that can be carried on
a SONET network. It is generally denoted by OC-n, where OC is the optical signal and
‘n’ indicates increments of 51.8 Mbps.
• OC-1=51 Mbps
• OC-3=155 Mbps
• OC-12 = 622 Mbps
• OC-48 = 2.5 Gbps

Optical Components: Denotes equipment used for transmission and reception through an
optical fiber.

Active Optical Components: Denotes components that transmit, amplify and receive
signals in optical transmission.

Figure 37: Optical Network

Source: IEC.org, Lehman Brothers Research

46 August 21, 2007

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Light Amplification by Stimulated Emission of Radiation (Lasers): Denotes transmitters for

optical signals.

Optical Receiver: This equipment converts optical signals back into electrical signals.

Passive Optical Components: These components do not generate or amplify the signal
but route an optical signal without using any electronics. Passive components are
attenuators (devices that reduce signal power), couplers (devices that combine/split the
signal), optical add/drop multiplexers (optical multiplexers) and filters (devices that allow
specific wavelength to pass through).

Amplifier: An amplifier increases an optical signal without converting it into an electrical


FTTx: A generic term for fiber-based network architecture. Access networks can be
divided into three main architectures:
• Fiber to the Node (FTTN);
• Fiber to the Curb (FTTC);
• Fiber to the Premise (FTTP) or Fiber to the Building (FTTB);
• Fiber to the Home (FTTH).

Figure 38: FTTX Networks

Source: Wikipedia, Lehman Brothers Research

Fiber to the Premise is a pure fiber connection from a central office to the end user’s
home. Fiber to the Node and Fiber to the Curb are hybrid fiber/copper connections,
with the difference being that a “node” is roughly 5000 feet (1 mile) from the end user

August 21, 2007 47

Guide to Telecoms

and a “curb” is roughly 500 feet. The closer a carrier builds out a fiber network to the
end user, the faster the data connection speed.

AT&T is a major supporter of the FTTN technology in the U.S., arguing that it can
generate enough bandwidth (approximately 25 megabits per second) to support fast
data, voice and video services; and FTTN is much more cost effective than FTTP.

Many telecom carriers have a tendency to choose to leverage their copper networks,
rather than deploy a new fiber connection, since their end users are more centrally
located. We believe that the quality of a carrier’s copper plant is a key factor to
enabling an easy migration to FTTN/FTTC.

BellSouth in the US has been a major supporter of FTTC since the late 1990s and enjoys
the economics of the solution based on the topography/geography of its users and the
fast new line growth in the location it serves. BellSouth has used this technology to offer
broadcast video services (basic cable) to some subscribers, as well as voice and DSL

Figure 39: Verizon and AT&T Capital Expenditure Estimates for FTTx
Verizon Year 1 Year 2 Year 3 Total
Incremental CapEx due FTTP ($B) 1.3 0.9 0.7 2.9
FTTP Capex (% of Total CapEx) 13% 9% 7% 10%
# of Homes Passed (M) 3 3 3 9
Incremental CapEx/Home Passed ($K) 0.44 0.28 0.23 0.32

AT&T Year 1 Year 2 Year 3 Total

Incremental CapEx due LightSpeed ($B) 1.4 1.7 1.3 4.4
LightSpeed Capex (% of Total CapEx) 17% 21% 16% 18%
# of Homes Passed (M) 3 6 9 18
Incremental CapEx/Home Passed ($K) 0.47 0.28 0.14 0.24
Source: Company reports, Lehman Brothers Research

Passive Optical network (PON): A fiber technology for premise and home networks. In
this network architecture, un-powered optical splitters are used to enable a single optical
fiber to serve multiple premises. Since the technology does not use active components,
the costs required to build out a passive optical network is lower than for other networks.

A PON requires Optical Line Termination (OLT) at the service provider's central office
and a number of Optical Network Units (ONUs) near the end users.

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Optical Line Terminals (OLT): This equipment is located at a central office and interfaces
with the metropolitan network. The main functionality of OLT is to adapt the incoming
traffic from the metropolitan rings to the PON transport layer.

Optical Network Termination (ONT) and Optical Network Unit (ONU): Both types of
equipment have the same functionality. An ONT is located in a customer’s premise while
an ONU is located outside the premise. These devices serve as an interface between the
customer’s equipment and the PON.

Figure 40: PON Network

Source: Infocellular, Lehman Brothers research

Internet Protocol TV (IPTV): This technology refers to delivering video/television

programming over a telecom operator’s managed IP network. Compared to traditional
cable networks that push content from all TV channels to the end users, IPTV only delivers
programs being requested, providing a much more efficient network.

IPTV can either be unicast or multicast. The unicast method provides a private content
stream to the viewer and enables on-demand services. However, the bandwidth
requirements are higher.

An IPTV network consists of a video headend, video storage and server equipment, an IP
backbone network and consumer premises equipment (CPE) such as set-top boxes (STB).

August 21, 2007 49

Guide to Telecoms

Figure 41: IP TV Components

Source: Broadband Services Forum

Asia Case Study: PCCW

To deploy IPTV, most telecom operators need to further invest in their broadband network
infrastructure. According to PCCW, the company’s total capex on its fixed-line business,
including broadband infrastructure, has been around 10-11% of the revenue from the
segment. PCCW’s additional expenditure on equipment and system upgrades, to
support IPTV beyond spending for its existing broadband network, was not significant.

PCCW’s fixed-line telecom capital expenditure increased to US$286mn in 2005,

accounting for about 14% of its revenue. However, a majority of the IPTV related
expenditure was on customer-related items, such as set-top boxes and broadband

With a 67% household broadband penetration, IPTV has been well received in Hong
Kong. PCCW’s IPTV subscriber base is currently over 800K. This has become the largest
IPTV commercial implementation in the world, and includes more than 20% of all
households in Hong Kong.

Figure 42: IPTV network configuration diagram

Source: Converge Digest, Lehman Brothers Research

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Radio & Satellite Communication Terminology

Uplink: Sending a signal from a ground station to a satellite.

Downlink: Sending signal from a satellite to a ground station. Signals use different
frequencies for uplink and downlink.

Digital Audio Broadcasting (DAB): A method of broadcasting audio using digital signals.
DAB is expected to deliver better quality digital stereo sound. DAB systems are expected
to be upgraded to DAB+ (which have superior error correction methods). DAB+
equipment is expected to become commercially available by the end of 2007.

Global Mobile Personal Communications by Satellite (GMPCS): A personal

communications system that provides transnational, regional or global coverage from a
constellation of satellites. GMPCS satellite systems provide telecom services directly to
end users. GMPCS services include two-way voice, fax, messaging, data and even
broadband multimedia.

Global Positioning System (GPS): This technology helps to determine location, speed and
direction of a user with the help of constellation of at least 24 medium Earth-orbiting
satellites. GPS is widely used for navigation worldwide and is a useful tool for map-
making, land surveying, commerce, and scientific uses.

Location-based Services (LBS): These information-based services and advertising are

related to the current location where a mobile phone network operates. The location is
usually tracked by sending radio waves or by using a GPS chip embedded in a mobile

Time Distance of Arrival (TDOA): A method of determining the location of a mobile

transmitting device (such as a mobile phone) by using three-dimensional location
coordinates to triangulate a particular location.

Telematics: The science of sending, receiving and storing information via

telecommunication devices. It is also used in navigation systems used for tracking
applications such as OnStar (a telematics service of General Motors).

Terrestrial Trunked Radio (TETRA): A digital mobile two-way transceiver (walkie-talkie).

TETRA is an ETSI standard for digital radio technology. This technology works in 400
MHz frequency and is used by government agencies across Europe.

Mobisode: Video content (usually broadcast television) that is designed for viewing on a
mobile telephone. These mobisodes are usually short in duration given the cost of
wireless data transmission.

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Streaming: A technique of one-way transmission of audio and/or video data on the

internet or on a mobile network. Using this technique, a file can start playing almost
immediately without the need to download the complete file first.

Very Small Aperture Terminal (VSAT): A device that communicates by bouncing signals
off a satellite in geosynchronous (stationary) orbit above the earth. "VSAT terminals" are
the satellite modems/routers and are small (generally between .75 meter and 1.2
meters) dishes that operate at a customer's location. "VSAT hubs" are large (often 9
meters or larger) dishes with sophisticated network controls which send and receive
transmissions to communicate with the VSAT terminals.

VSAT terminals are used for internet access in rural areas where getting cable or
telephone lines is too expensive. Download speeds using VSAT terminals can reach up to
500 kbps while upload speeds are only up to 50 kbps. Satellite networks are slower
than cable and DSL but faster than narrowband. Data speeds can also be slowed by
poor weather conditions such as heavy rain.

Figure 43: Satellite Broadband Connection

Source: Starband, Lehman Brothers Research

Attenuation: This refers to the loss of strength (amplitude and intensity) of a signal
during the transmission through a medium. Amplifiers are used to strengthen a signal.

Decibel: The unit to measure attenuation is decibels. This is represented as per unit length
of medium. E.g. dB/cm, dB/km.

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Portable Navigation Device: Mobile equipment that has GPS and navigation

Crosstalk: Unwanted interference (generally pieces of speech or tones leaking from other
connection). Analog signals are more susceptible to crosstalk compared to digital
signals. A twisted pair cable is often used to reduce crosstalk for analog signals.

Far-end Crosstalk: Interference at the distance end of a transmission system.

Dispersion: The weakening of a signal that occurs in transmission through fiber optic
cabling. Two main types of dispersion include material dispersion and waveguide
dispersion. Material dispersion occurs due to the material of waves and wave guide
dispersion occurs due to the speed of a wave.

Line-of-Sight: Wireless transmission that takes place in a straight-line is line of sight

transmission. This type of transmission cannot travel if some obstruction blocks the signal.

Figure 44: Satellite Navigation Equipment Market Share and Size

Microwave Sat. Navign PND
Ericsson 28% TomTom 31%
Nokia-Siemens 22% MiTAC 30%
NEC 18% Garmin 20%
Harris CP 14% $ 15 million
Alcatel-Lucent 8%
$ 5 billion
Source: Lehman Brothers Research

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Wireline Enterprise Network Terminology

Circuit: A circuit can be defined as the entire path between two terminals where
communication takes place.

Circuit-Switched Network: This network establishes a dedicated physical circuit (or

channel) temporarily on demand between two terminals. Each circuit that is dedicated
cannot be used by other callers until the circuit is released and a new connection is
established. Even if no communication is taking place in a dedicated circuit, that channel
remains unavailable to other users. Traditional fixed-line telephony services are usually on
a circuit-switched network.

Packet-switched Network: In a packet switched network, data is split into pieces, called
packets, which are routed over a shared network. Packet-switched networks do not
require an established circuit—allowing many pairs of nodes to communicate almost
simultaneously over the same channel. Each “packet” of data is individually addressed to
help the data find its way to its final destination. Internet networks are packet switched as
are voice-over-IP (VOIP) networks.

Connection-oriented Network: A means of communicating data after the establishment of

an end-to-end connection. A connection-oriented service is also called a "reliable"
network service, as it guarantees that data will arrive at its destination in the proper
sequence. For example, a Transmission Control Protocol (TCP) is a connection-oriented

Duplex: A duplex communication system has two connected devices that communicate
with each another in both directions.
• Half-duplex: provides communication in both directions, but only one
direction at a time (not simultaneously).
• Full-duplex: provides communication in both directions simultaneously

Time Division Duplex (TDD): A modulation technique that uses time division multiplexing
to separate outward and return signals with the same frequency band.
TDD is a particularly useful technology when uplink and downlink data speeds are
variable. As the amount of uplink data traffic increases, more bandwidth can be
allocated and can be reduced when it declines. The primary two technologies that use

Frequency-division duplex (FDD): A modulation technique that uses separate uplink and
downlink frequencies, which allows users to transmit and receive data simultaneously.
FDD is a more efficient technology for symmetric data traffic patterns. Radio frequency
planning is easier and more efficient when using FDD.

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Ethernet: A computer networking technology that operates at speeds up to 10 Mbps for

local area networks. This technology is used to connect computers within the same
building or on a campus. Ethernet technology has been standardized as IEEE 802.3.

Figure 45: Ethernet Market Size and Market Shares

Carrier Ethernet (Metro)
Cisco 54%
Alcatel 15%
Nortel 3%
Nokia Siemens 3%
Hitachi 3%
Foundry 2%
Extreme 2%
$ 2.1 billion
Source: Lehman Brothers Research

10 Base-T: A technological standard that denotes 10 Mbits/s speed for Ethernet over a
twisted pair. 10 Base-T was the first vendor-independent standard for the implementation
of Ethernet using twisted-pair wiring.

Other common standards are 100 BASE-T and 1000 BASE-T which are capable of
handling speeds at 100 Mbits/s and 1000 Mbits/s, respectively. These standards have
backward compatibility with 10 Base-T networks.

DS1/T1: A carrier signaling mechanism devised by Bell Labs that is widely used for
digital lines in North America, Canada and Japan to transmit voice and data. The
technology operates at 1.544Mbps. In Europe, T-1 lines operate at 2.048Mbps and
are known as E-Carriers.

Higher speeds are mentioned below

American Standards European Standards
DS0: 64 Kbps DS0: 64 Kbps
DS1: 24 DS0 channels = 1.54 Mbps E1: 32 DS0 channels = 2.04 Mbps
DS2: 96 DS0 channels = 6.31 Mbps E2: 128 DS0 channels = 8.44 Mbps
DS3: 672 DS0 channels = 44.73 Mbps E3: 512 DS0 channels = 34.36 Mbps
Note: DS3 is also know as T3

Fast Ethernet: Ethernet that can provide speeds up to 100Mbps.

Fiber Data Distributed Interface (FDDI): This technology provides faster local area network
access than Ethernet as it primarily uses fiber as its preferred medium. FDDI offers data
transmissions that can extend up to 200 kilometers (124 miles). Typically, FDDI offers
data transmission speeds up to 100Mbps. The technology can also be used as a high-
speed backbone to connect a group of lower speed LANs.

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Integrated Services Digital Network (ISDN): A circuit-switched telephone network system,

that allows digital transmission of voice and data over ordinary telephone copper wires,
resulting in better quality and higher speeds than is available with a PSTN network.
ISDN usage is declining with the growth of DSL deployment.
ISDN is very similar to xDSL, but differs from xDSL in 2 ways:
• ISDN is a circuit-switched service while xDSL is a point-to-point access
• ISDN requires external power while, xDSL carries its own power on the

Broadband Integrated Services Digital Network (B-ISDN): A technology which transmits

voice and data over fiber optic wires. This technology uses ATM for switching.

Frame Relay: A data transmission technique used to send digital information using a relay
of frames to one or many destinations. The data is divided into variable-size units called
a frame. The data is sent over an established circuit. The user of a frame relay network
only pays for the amount of data transferred rather than a full-time leased line.
Frame Relay originated as an extension of ISDN.

Permanent Virtual Circuit (PVC): A term used for defining the establishment of a network
connection between two points. Typically used in frame relay and ATM networking.

Multiplexing: A process where multiple signals are combined into one signal. The main
purpose of this technology is to share an expensive resource such as a carrier channel.

Frequency Division Multiplexing (FDM): A type of multiplexing where signals at different

frequencies are sent through a single channel.

Frequency Division Multiple Access (FDMA): This technology allows multiple users to
share a physical communications channel. FDMA is the traditional means of separating
radio signals from different transmitters.

Time Division Multiplexing (TDM): A type of multiplexing where two or more signals are
transferred simultaneously as sub-channels into one communication channel based on
time slot assignment.

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Time Division Multiple Access (TDMA): This technology allows different users to share the
same frequency channel by dividing the signal into different timeslots.
TDMA is mainly used in various mobile phone technologies (such as GSM, PDC, iDEN)
and in satellite systems.

Wavelength Division Multiplexing (WDM): This technology multiplexes multiple optical

carrier signals on a single optical fiber. Telecom carriers like WDM as this technology is
able to expand the capacity of a network without having to lay more fiber.

Dense Wave Division Multiplexing (DWDM): A technology where 40 or more separate

wavelengths or channels of data are multiplexed into a single optical fiber.

Code Division Multiple Access (CDMA): CDMA is a method of multiple access that
divides a radio channel by using different pseudo-random code sequences (using a
unique code for each piece of data). CDMA is a form of "spread-spectrum" technology,
where each voice conversation is spread and transmitted over multiple frequencies.

Intelligent Networking (IN): An architecture for both fixed and mobile telecom networks
that allows operators to differentiate themselves by providing value-added services in
addition to traditional telecom services. This is typically achieved through software

Local Area Network (LAN): A computer network covering a small geographical area like
house or group of buildings. Most LANs are based on IEEE 802.3 Ethernet technology.

Metropolitan Area Network (MAN): A data network that usually spans over a city area.
These networks typically use wireless infrastructure or optical fiber connections to link
network sites. This technology is an IEEE 802.6 standard.

Wide Area Network (WAN): A computer network that covers a broad geographical
area (i.e. regional or national boundaries) and typically uses routers and public
communications links. The largest and most well-known example of a WAN is the

Long-haul Networks: These networks carry aggregated traffic across cities. These
networks mainly have point-to-point transmission links.

Multicast: A method of sending data to multiple recipients simultaneously.

Narrowcasting: Sending a message to a small group of people.

Open System Interconnection (OSI): An OSI Model is a seven-layer model in which each
layer performs a set of functions to support the other layers. The seven layers, from top to

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bottom are: Application, Presentation, Session, Transport, Network, Data Link and
Physical. This architecture is considered one of the main standards for data networking.

Packet: A packet is a block of data carried over a computer network. It has a header
that contains information like the destination address.

Public Data Network (PDN): A network that provides data transmission services for the

Point of Presence (POP): An interface point for communications devices. It is also termed
as a service provider’s location for connecting its users.

Point-to-Point Protocol (PPP): A term used to define a direct connection between two

Point-to-Point Tunneling Protocol: A technology to implement virtual private networks. This

ensures secure transmission of messages from one VPN to another through a public

Synchronous digital hierarchy (SDH): A method of transmitting digital information over

optical fiber in a synchronized manner to ensure that no data is lost. The SDH standard
was developed by the International Telecommunication Union (ITU).

Synchronous Optical Networking (SONET): SONET is the US equivalent standard of

SDH. SONET is used in the U.S. and Canada and SDH is used in the rest of the world.
The two standards are not compatible.

Figure 46: SONET and WDM Market Size and Market Shares
Alcatel-Lucent 23% Nortel 19% Alcatel-Lucent 25%
Nortel 10% Cisco 14% Huawei 12%
Huawei 10% Alcatel-Lucent 13% Fujitsu 12%
Siemens 9% ADVA Optical 12% Nortel 11%
Ciena 9% Fujitsu 7% Nokia-Siemens 7%
$ 1.8 billion $ 1.7 billion $ 5.3 billion
Source: Lehman Brothers Research

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Figure 47: Optical Speeds

Optical Frame Format BW Line rate
Signal rate SONET SDH (kbits/s) (kbits/s)

OC-1 STS-1 STM-0 48,960 51,840

OC-3 STS-3 STM-1 150,336 155,520
OC-12 STS-12 STM-4 601,344 622,080
OC-24 STS-24 STM-8 1,202,688 1,244,160
OC-48 STS-48 STM-16 2,405,376 2,488,320
OC-96 STS-96 STM-32 4,810,752 4,976,640
OC-192 STS-192 STM-64 9,621,504 9,953,280
OC-768 STS-768 STM-256 38,486,016 39,813,120
OC-1536 STS-1536 STM-512 76,972,032 79,626,120
OC-3072 STS-3072 STM-1024 153,944,064 159,252,240

Source: Lehman Brothers Research

Spread-Spectrum Technology: A technique where discrete frequencies are spread in time

or frequency domains to provide secure communication transmission. This technology
increases resistance to natural interference and jamming, and prevents detection.
Although spread-spectrum technology consumes more bandwidth, it provides reliable and
secure transmissions. “Spread spectrum” implies that the carrier signals occupy the entire
Two main types of spread-spectrum technology are frequency hopping and direct

Frequency-hopping Spread Spectrum (FHSS): A method of transmitting signals by

continuously switching a carrier among numerous frequency channels, using a pseudo
random sequence known to both transmitter and receiver.

Direct-sequence Spread-spectrum Technology (DSSS): This technology generates a noise

signal (in a pseudorandom sequence) for each bit of data that is transmitted. The noise-
like signal can be used to reconstruct the original data at the receiving end, by
multiplying it by the same pseudo-random sequence.

Protocol: A set of rules regarding signaling, authentication and error detection that are
followed to send information over a communications channel.

SS7 (Signaling System 7): Telephony signaling protocols that are used in public switched
telephone network calls.

Mesh Network: A network with no centralized access point, but is connected to other
adjacent nodes. Data is routed between nodes to be sent to the final destination. A mesh
network where all nodes are connected is called a fully-connected network.

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Virtual Private Network (VPN): A private communication network used by corporate users
to communicate securely over a public network. A VPN’s encrypted data is sent using a
tunneling protocol.

P2P (peer-to-peer): A type of networking where computers are directly connected to each
other rather than communicating through intermittent nodes. Peer nodes simultaneously
function as client and server.

Router Protocol: A program used by routers to determine an appropriate path for data to
be moved toward its final destination. The path taken by the data is dynamically
determined depending on the traffic load of various route options.

Resource Reservation Protocol (RRP): A protocol that reserves and allocates bandwidth for
real-time transmission. It is mainly used for video data traffic.

Multiprotocol Label Switching (MPLS): A networking protocol that uses the properties of a
circuit-switched network over a packet-switched network. This technology protocol uses
labels that contain destination information attached to packets. MPLS is much faster than
older technologies (ATM and Frame Relay) as the routers only examine the top-most data
label and transfers it further.

Transmission Control Protocol (TCP): One of the core protocols used for the Internet. This
is a connection-oriented protocol that guarantees reliable and orderly delivery of data
from sender to receiver.

Unsigned Datagram Protocol (UDP): An internet protocol used for delivering data. Unlike
TCP, this protocol does not guarantee that the packets will be arriving in a particular
order at a destination. This protocol is often used in videoconferencing and similar
applications when it is necessary to get large amount of data through quickly and it does
not matter if some data packets are dropped.

IMS (IP Multimedia Subsystem): A framework used to deliver IP multimedia services to

consumers. IMS was originally designed by 3GPP to promote the evolution of cellular
networks beyond 2G.

Modulation: The process of varying an electrical signal (e.g. voice) so that it can be
transmitted over a particular channel in a required band.
Modulation can be either analog or digital. Analog modulation techniques are Amplitude
modulation (AM), Frequency modulation (FM) and Phase modulation (PM). Digital
modulation techniques are Amplitude-shift keying (ASK), Frequency-shift keying (FSK) and
Phase-shift keying (PSK).

Carrier Wave: A signal that is modified to carry information. Carrier waves are usually
at a higher frequency than the signal needed to be transmitted.

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Baseband: The original information carrying signal that is modified by carrier wave.

Quadrature Amplitude Modulation (QAM): A modulation technique that modulates

amplitude and the phase of a carrier simultaneously. QAM is used in DSL equipment.

Quadrature Phase-shift Keying (QPSK): A digital modulation scheme that conveys data by
changing the phase of carrier wave. QPSK can carry twice as much data as other
techniques since uses four phases for data transmission.

ATM: A circuit-switched network that runs over SONET (Synchronous Optical

Networking) and has fixed cells of 53 bytes (48 bytes for data and 5 bytes for header).
ATM is a connection-oriented technology that is mainly used by corporate customers that
require high-bandwidth for large data transfers.

Virtual Circuit: A communication agreement established between two devices before a

call is initiated. They are primarily used for Asynchronous Transfer Mode (ATM) and
Frame Relay.

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Enterprise Network Component Terminology

Backbone: The main path for carrying traffic between a source and destination in a
wireline network.

Switch: A networking device that connects Ethernet or other packet networks. One
purpose of a switch is to reduce network costs. With a switch deployed in a network, all
nodes do not need be connected to each other. Switches also transfer data packets
through a network. However, a switch mechanically forward data without regard to data
congestion (unlike routers).

Hub/Repeater: A device that amplifies or broadcasts a signal. These devices do not

manage traffic. Repeaters are available for both analog and digital signals.

Router: A networking device that forwards data traffic towards a destination based on
predetermined routing tables and protocols. 3 main types of routers are Enterprise, core
and edge.

Figure 48: Router Market Size and Share

Enterprise Router Carrier Edge Router Carrier Core Router
Cisco 86% Cisco 53% Cisco 61%
Juniper 4% Alcatel 16% Juniper 31%
Huawei 4% Juniper 14% Others 8%
Nortel 2% Ericsson/RBAK 4% $ 2.1 billion
$ 4.1 billion Huawei 4%
$ 5.4 billion
Source: Lehman Brothers Research

Gateway: A device that interconnects networks with different network protocol

technologies by performing the required protocol conversions.

Bridges: A means of connecting two networks at a physical level. They are very similar to
hubs/repeaters, however, unlike Hub/repeater bridges they manage traffic.

Hop: The transfer from one node to another node in a network

Layer 2 Switch: These switch data packets to a destination based on the MAC (media
access control) address. Layer 2 switches have high speed, low latency and low cost.
They are also efficient as they require no modification to data packet.

Layer 3 Switch: Layer 3 switching is hardware-based routing with all packet forwarding
handled by hardware ASICs. Layer 3 switches are similar to routers in terms of
functionality except that routers use microprocessors to make forwarding decisions and
switches use hardware-based packet switching.

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Layer 4 Switch: Layer 4 switching is considered to be hardware-based layer 3 switching

technology that also considers the application used (for example, Telnet or FTP).

Figure 49: Market Share and Size for Different Switches

Central Office Switch Layer 2 & 3 Switch Layer 4 - 7 Switch
Alcatel 38% Cisco 74% F5 Networks 33%
Nortel 12% HPQ 4% Cisco 32%
Nokia-Siemens 12% Nortel 3% Nortel 8%
Ericsson 10% 3 COM 2% Radware 7%
NEC 2% Foundry 2% Foundry 7%
Others 26% Extreme networks 2% Others 13%
$ 5 billion $ 15.2 billion $ 0.8 billion
Source: Lehman Brothers Research

Add-drop Multiplexer (ADM): A multiplexer and a router for wavelength-division

multiplexing systems. The device is capable to “Add” wavelength channels to existing
signals or “Drop” off more channels. They are also known as optical add-drop

Digital Cross Connect: Circuit-switched equipment that allows DS0 data to be

multiplexed into higher-level TDM signals like DS1. Cross-connect equipment is similar to
add-drop multiplexers but do not perform add-drop functions. SONET/SDH cross-
connects are digital cross-connect systems (DCS) and next generation products are
optical cross-connects (OXC).

Digital Loop Carrier (DLC): This type of carrier digitizes and multiplexes signals carried
on the local loops onto a single stream on a DLC segment. DLC is also known as pair-
gain device.

Figure 50: DLC and OLT Market Size and Shares

Alcatel-Lucent 27%
Tellabs 13%
Huawei 12%
Sumitomo 11%
Eric- Marconi 6%
$ 2.7 billion
Source: Lehman Brothers Research

Concentrator: A device that consolidates low-speed circuits into a high-speed circuit with
an intention of efficiently utilizing the limited network resources.

Leased Line: A transmission line that is reserved for private use.

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Network Interface Card (NIC): A unit that acts as an interface between a computer and
the network cable. It is also known as a LAN adaptor.

PCMCIA: PCMCIA stands for "Personal Computer Memory Card International

Association. It is a peripheral interface designed for laptops/computers.

There are 3 main types of PCMCIA cards:

Type I: 16 bit interface and used for memory devices like FLASH, RAM.
Type II: 16 or 32 bit interface such as a modem or TV cards.
Type III:16 or 32 bit interface such as a Hard disk drives.

Node: An access point or a point on the network where there is a router or switching

Converter: A device that coverts analog signals to digital signals. They are also called as
A/D converters.

Digital Signal Processor (DSP): The main function of DSP is to remove any noise or
compression of signals. DSPs ensure quality is maintained during transmission and allows
proper recreation of a signal. Before signal processing, an analog signal is first
converted to digital before passing through a DSP.

Figure 51: Transmission Process

Analog A to D Digital Sig. D to A Analog
Signal Converter Processor Converter Signal

Source: Lehman Brothers Research

Passive Components: A passive component is a component that cannot produce

electrical energy but may consume electrical energy. Some passive components used in
telecom equipments include:
• Connectors: Link devices together in a circuit.
• Resistors: Regulate voltage and current levels in a circuit
• Capacitors: Energy storage devices that can also do frequency variation
and filtering functions.

Twisted Pair: In this type of cabling, the two wires are wound together. This method
helps in canceling out the electromagnetic interference (EMI) from external sources and
also lowers the amount of crosstalk from neighboring wires. Twisted pair is mainly used
in telephone networks.

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Unshielded Twisted Pair (UTP): UTP cables are not shielded cabling. The lack of shielding
provides a high degree of flexibility. Radiation generated during high speed transmission
is released and reduces interference. UTP is mainly used in computer networking.

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Carrier Network and Equipment Terminology

Central Office: The main hub of a telecom carrier that includes telephone switches that
terminate all the lines into an assigned area.

Telephone Exchange: A switch known as wire-center in some developed markets.

Trunk: A circuit between telephone switchboards or other switching equipment that

supports large amount of traffic.

Trunk lines: Telephone lines that link a PBX to the telephone provider.

Public Switched Telephone Network (PSTN): The global network of circuit-switched

telephone carriers. The PSTN has evolved from a fixed-line analog telephone network to
a digital network that includes termination for mobile phones.

Post Telephone and Telegraph Administrations (PTT): Government organizations that are
responsible for postal mail, telegraph, and telephone services. In many countries, the
former government-monopoly PTT has been partially or completely privatized.

Plain Old Telephone Service (POTS): A term used to describe traditional voice telephony
service. Some of the modern services that became available to basic wireline telephony
subscribers are voicemail, caller ID, call waiting, and conference calling facility.

Figure 52: A typical Traditional Telephone Network

Source: Wikipedia, AT&T

Private Branch Exchange (PBX): A private telephone exchange that serves a particular
office. This exchange is connected to a public-switched telephone network (PSTN) and
can handle calls between extensions as well as connections to the PSTN. It is also called
as Private Automatic Branch Exchange (PABX) or Electronic Private Automatic Branch
Exchange (EPABX).

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Figure 53: PBX Equipment Market Shares and Size

Total PBX
Avaya 20%
Siemens 17%
Nortel 11%
Cisco 9%
Alcatel 8%
NEC 7%
$ 7.2 billion
Source: Lehman Brothers Research

Class 4 switch: A switch that connects long distance lines in the Public Switched
Telephone Network (PSTN) to connect with telephone company offices.

Class 5 switch: A switch that directly serves subscribers. Class 5 switches usually utilize
hardware for the switching.

Softswitch: A device in a telephone network which connects calls from one phone line to
another through software. Older switches used hardware to carry out switching.

Next Generation Networking (NGN): A single network that transports services (voice,
data, and all sorts of media such as video) by putting all the data into packets. A NGN
uses Internet Protocol.

Figure 54: Next Generation Network

Source: Telecordia, Lehman Brothers Research

Incumbent Local Exchange Carrier (ILEC): A LEC that is an incumbent and has a
dominant position in the market.

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Competitive Local Exchange Carrier (CLEC): A new telecom operator that competes
against the ILECs for customers. There are both facilities based CLECs that build out their
own networks and non-facilities based CLECs that lease network access on a wholesale
basis from the ILEC and resells telecom services to its customers.

Data Local Exchange Carrier (DLEC): A CLEC that specializes in DSL services. A DLEC
usually leases lines and resells them to Internet Service Providers (ISPs).

Regional Bell Operating Company (RBOC): The seven regional telco companies formed
to focus on a specific region after the splitting up of AT&T in US in 1984. The initial
seven “Baby bells” were Ameritech, Bell Atlantic, BellSouth, NYNEX, Pacific Telesis,
Southwestern Bell and US West. Over the past 10 years, these companies have merged
again to form three remaining companies: AT&T, Verizon, and Qwest.

Interexchange Carrier (IXC): A long-distance telephone company that carries voice traffic
between telephone exchanges.

Figure 55: A Carrier and Enterprise Network Connected Together

Source: Lehman Brothers Research

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Internet-related Terminology

Internet: The worldwide publicly accessible network that uses the standard IP protocol for

Internet2: A high-speed internet network used by government, academic and research. It

is also known as UCAID (University Corporation for Advanced Internet Development).

Intranet: A private computer network within an organization that uses internet protocol.

IP (Internet Protocol): A set of rules (protocol) regarding the transfer of packets over the

ISP (Internet Service Provider): An Internet service provider gives its customers’ access to
the Internet and related services. Initially, most ISPs were run by the existing wireline

Portal: A web-site that acts as an access point to other sites on the internet. Portals
present information from diverse sources in a unified way. Some examples of internet
portals include: Yahoo, MSN, and Google.

Proxy Server: An intermediary server that requests other servers for required requests.

IP v4: The fourth iteration of the Internet Protocol (IP) and is the first version of internet
protocol to be widely deployed. IPv4 uses 32-bit (4-byte) addresses which translates to
4,294,967,296 possible unique addresses. However, some of the addresses are
reserved for special purposes such as private networks. With the increase in internet
subscribers, the number of available new addresses is declining.

IPv6 is expected to resolve the problem of limited number of internet addresses.

IP v6: The successor for IPv4 which support almost an unlimited number of addresses. IP
v6 is still in development.

Voice-Over IP: VoIP is the routing of voice conversations over the Internet using internet

Internet Telephony: Using voice over IP to make telephone calls using the public internet.

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Figure 56: Carrier VOIP and IP Telephony Market Share and Size
Carrier VoIP Ent IP Telephony
Nortel 17% Avaya 19%
Cisco 11% Siemens 14%
Nokia-Siemens 9% Cisco 13%
Huawei 8% Nortel 12%
Sonus Networks 6% Alcatel 7%
Ericsson 6% NEC 6%
$ 3.4 billion $ 5.4 billion
Source: Lehman brothers Research

Skype: Skype is company that provides voice-over internet protocol (VOIP) service. Skype
operates on a peer-to-peer model, rather than the more traditional central server model.
In other words, a user directory is not stored at a centralized location but distributed
among various points in the network. Skype was acquired by eBay in September 2005.

MIME (Multi-Purpose Internet Mail Extensions): An internet email standard that allows
attachments to be included with an email.

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Various Telecom Organization

Telecom Industry Organizations:

International Telecommunications Union (ITU): An international organization that governs

standardization and regulation for the radio and telecommunications industry.
The ITU is composed of three main bureaus:
Telecommunications Bureau (ITU-T) that coordinates standards
Radio communications Bureau (ITU-R) that regulates allocation of radio frequencies
Development Bureau (ITU-D) that creates policies, regulation and provides training
programs in developing countries.

American National Standards Institute (ANSI): A private, nonprofit organization that sets
standards for products, services, processes, systems, and personnel in the United States.
The organization also coordinates US standards with international standards so that
American products can be used worldwide.

European Telecommunications Standards Institute (ETSI): An independent, non-profit

organization that produces telecommunications standards. These standards have been
adopted across the world (but exclude the U.S. and Japan). The ETSI also ensures
interoperability between standards, such as Integrated Services Digital Network, GSM
and UMTS.

Institute of Electrical and Electronics Engineers (IEEE): A nonprofit association of scientists

and engineers founded in 1963. A key function is to set global standards for computing
and communications. It currently oversees about 900 active IEEE standards and has 400
more in development.

CDMA Development Group (CDG): An international consortium of companies that are

leading the adoption and evolution of 3G CDMA wireless systems around the world.
The CDG is comprised of CDMA service providers and manufacturers, application
developers and content providers. By working together, CDG’s members hope to ensure
interoperability among systems, while expediting the availability of 3G CDMA
technology to consumers. CDG was founded in December 1993.

WiMAX Forum: An organization formed to certify and promote the compatibility and
interoperability of broadband wireless products based upon the harmonized IEEE
802.16 standard. One of the WiMAX Forum’s goals is to accelerate the introduction of
the technology into the marketplace. The Forum was established in June 2001 and has
more than 420 members comprising the majority of operators, component and
equipment companies in the WiMAX ecosystem.

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Common Public Radio Interface (CPRI): An industry group aimed at defining publicly
available specification for the key internal interface of radio base stations between the
Radio Equipment Control (REC) and Radio Equipment (RE). Companies cooperating to
define the CPRI Specification include Ericsson AB, Huawei Technologies Co., Ltd, NEC
Corporation, Nortel Networks SA and Siemens AG

Infrared Data Association (IrDA): An association that defines the physical specifications
communications protocol standards for short-range exchange of data over infrared light.
The IrDA maintains a standard for infrared data transmission (up to 4 Mbps).

Location Interoperability Forum (LIF): Founded by Ericsson, Motorola and Nokia in

October 2000 to achieve the goal of providing global location-based services on
wireless networks and terminals.

Regulators & other bodies in the Asia Pacific Region:

• Australian Competition and Consumer Commission (ACCC): An
independent authority in Australia that was formed in 1995 to administer
the Trade Practices Act of 1974. The ACCC promotes competition and fair
trade in the market place to benefit consumers, businesses and the
community. The ACCC also regulates national infrastructure services such
as the telecommunications industry.

• Australian Communications and Media Authority (ACMA): The regulator of

broadcasting, radio communications, telecommunications and online
content in Australia. The ACMA was formed by merging two previous
regulatory bodies--the Australian Communications Authority and the
Australian Broadcasting Authority.

• Ministry of Information Industry (MII): The communications and IT regulator
in the Peoples Republic of China. The MII handles telecom industry-specific
issues and provides rulings on items such as calling party pays, 3G
licensing terms, telecom tariffs, and VAS agreements, etc.

• National Development and Reform Commission (NDRC): The NDRC is the

controller of macroeconomic policy for the Chinese government and its
policies impact the fundamentals of the telecommunication industry. More
specifically, the NDRC is responsible for designing long-term economic
development plans and has responsibility for large-scale capital investment
projects including 3G deployment.

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• State Assets Supervision and Administration Commission (SASAC): A

regulatory body in China that has regulatory power over all state-owned
enterprises (SOEs). Since all the telecom operators in China are state-
owned enterprises, they fall under the management of SASAC. Recently,
SASAC reiterated its control over six key industries in China (including
telecommunications) and its opinion will be crucial to any potential industry

Hong Kong
• Office of the Telecommunications Authority (OFTA): The regulator and
competition authority for telecommunications industry in the Hong Kong
Special Administrative Region.

• Telecommunications Regulatory Authority of India (TRAI): The main
telecommunications regulatory body in India. TRAI is an independent
regulator that was established in 1997. The main functions of TRAI are to
make recommendations on licensing issues, competition, spectrum, levy
fees and charges on operators, and perform administrative and financial
• The Department of Telecom (DOT): DOT is part of the Ministry of
Communications and Information Technology in the executive branch of the
Government of India. The DOT makes major policy decisions in India
related to the telecom industry. More specifically, the DOT is responsible
for the granting of licenses, managing spectrum allocation, and forming
regulatory policies.

• Badan Regulasi Telekomunikasi Indonesia (BRTI): The telecommunications
regulator in Indonesia.

• Ministry of Information and Communications (MIC): The communications
and IT regulator in South Korea.
• Fair Trade Commission (FTC): It is South Korea's regulatory authority for
economic competition. It was established in 1981 within the Economic
Planning Board.

• Malaysian Communications and Multimedia Commission (MCMC): The
regulator for the converging communications and multimedia industry in
Malaysia. The minister in charge of telecom policies is the Energy, Water
and Communications Minister.

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The Philippines
• National Telecommunications Commission (NTC): The communications
regulator for information and communications technology in the Philippines.
This agency is part of the Department of Transport and Communication.

• Infocomm Development Authority of Singapore (iDA): iDA is a statutory board
of the Singapore government, operating under the Ministry of Information,
Communications and The Arts (MICA). The iDA is a single agency for
integrated planning, policy formulation, regulation and industry development
of the IT and telecommunications sectors in Singapore.

• National Communications Commission (NCC): It is the regulator for
telecommunications, broadcast radio and TV in Taiwan. The NCC was
established in Feb 2006 through the merging of DGT and the Department of
Broadcasting Affairs of Government Information Office (GIO), which
regulated broadcasting.

• National Telecommunications Commission (NTC): The telecom regulator in
Thailand. It is Thailand’s first independent regulator. The government is in
process of forming a regulator National Broadcasting Commission (NBC) for
the media sector in Thailand.

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Sources for Data

For all the worldwide market share and size: Dataquest, Dell’Oro, Infonetics, RHK,
Synergy and Lehman Brothers.


Broadband services forum

Converge Digest



Frost and Sullivan














WIMAX forum

August 21, 2007 75

Guide to Telecoms

Lehman Brothers Global Telecom Team

Figure 57: Global Telecoms Team

Asian Telecom Services & Equipment Wireless Equipment
Jeff Kvaal 1.212.526.2216
Paul Wuh 852.2252.6182 Tim Luke 1.212.526.4993
Sundeep Bihani 852.2252.6181 Noelle Swatland 1.212.526.3370
Danny Chu 852.2252.6209 Amir Rozwadowski 1.212.526.4043
Sachin Salgaonkar 852.2252.1400
Stanley Yang 822.317.5168 Data Networking & Wireline Equipment
Sophia Yoon 822.317.5165 Inder Singh 1.212.526.9085
Lei Tang 852.2252.6134 Tim Luke 1.212.526.4993
Lydia Ho 852.2252.6204 Scott McCabe 1.212.526.0866
Lynn Um 1.212.526.8109
U.S. Telecom Services
Tom Seitz 1.202.452.4717 Emerging Communications Technologies
Brett Feldman 1.202.452.4735 Marcus Kupferschmidt 1.212.526.5499
Nick Netchvolodoff 1.202.452.4748 Jack Monti 1.212.526.3063
Patrick Rien 1.202.452.4708
Francisco NavarroSertich 1.202.452.4737
Roshan Raj 1.212.320.7869 European Telecom Equipment
Stuart Jeffrey 44.20.710.24709
European Telecom Services Andrew Gardiner 44.20.710.28834
Graeme Pearson 44.20.710.21602 Ajay Ahuja 44.20.710.24307
Karen Egan 44.20.710.22438
Christian Kern 44.20.7102.1993
James Britton 44.20.7102.4571 Satellite Navigation
Henrik Nyblom 44.20.7102.1871 Noelle Swatland 1.212.526.3370
Hugh McCaffrey 44.20.7102.4272 Andrew Gardiner 44.20.7102.8834
Roshan Ranjit 44.20.7102.2994 Stuart Jeffrey 44.20.7102.4709
Source: Lehman Brothers

76 August 21, 2007

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Figure 58: Index

Topic Page No Topic Page No
10 B as e- T 55 Calling P arty P ays (CP P ) 10
3G licens e proces s 26 Capacitors 64
802.11 (WiF i) 29 Carrier Wave 60
802.11a 29 CDMA developm ent group (CDG) 71
802.11b 29 CDMA S ubs criber Identity Module (CS IM) 19
802.11g 29 CDMA2000- 1x R T T 6
802.11n 29 CDMA2000- E V - DO 6
ACCC 72 Cell S ites 14
Acces s point (AP ) 36 Cell S plitting 12
Acces s , L as t m ile, L ocal L oop 37 Cell- F i 34
ACMA 72 Central Office 66
Active Infras tructure S haring 16 Churn rate 10
Active Optical Com ponents 46 Circuit 54
Active telecom infras tructure 16 Circuit- S witched Network 54
Add- drop m ultiplexer (ADM) 63 Clas s 4 s witch 67
ADS L 2+ 41 Clas s 5 s witch 67
Advanced Mobile P hone S ervice (AMP S ) 3 Code Divis ion Multiple Acces s (CDMA) 5
Am erican National S tandards Ins titute (ANS I) 71 Code Divis ion Multiple Acces s (CDMA) 57
Am plifier 47 Com m on P ublic R adio Interface (CP R I) 72
Anglo- Dutch auction 26 Com m unity Antenna T elevis ion (CAT V ) 43
As cending auction 26 Com petitive L ocal E xchange Carrier (CL E C) 68
As ym m etrical Digital S ubs criber L ine (ADS L ) 40 Concentrator 63
AT M 61 Conditional Acces s S ys tem (CAS ) 43
Attenuation 52 Connection- Oriented network 54
Average revenue per unit (AR P U) 10 Connectors 64
Average s elling price (AS P ) 10 Contactles s card 19
Average wholes ale price (AWP ) 10 Converter 64
B ackbone 62 Cos t per gros s add (CP GA) 10
B ackhaul 14 Cros s talk 53
B adan R egulas i T elekom unikas i Indones ia (B R T I) 73 Cus tom er- prem is es equipm ent (CP E ) 37
B as e s tation controller (B S C) 15 Dark F iber 46
B as e s tation s ubs ys tem (B S S ) 15 Data L ocal E xchange Carrier (DL E C) 68
B as e T rans ceiver S tation (B T S ) 15 Decibel 52
B as eband 61 Dens e Wave Divis ion Multiplexing (DWDM) 57
B aud 37 Dial- Up Connection 39
B eauty Contes t 26 Digital Audio B roadcas ting (DAB ) 51
B illing and operational s upport s ys tem (B OS S ) 15 Digital Cros s Connect 63
B inary R un- tim e E nvironm ent for Wireles s (B R E W) 35 Digital L oop Carrier (DL C) 63
B it 37 Digital Multim edia B roadcas t (DMB ) 22
B lackberry 19 Digital S ignal P roces s or (DS P ) 64
B luetooth 35 Digital S ubs criber L ine Acces s Multiplexer (DS L AM) 42
B ridges 62 Digital V ideo B roadcas ting Handheld (DV B - H) 21
B roadband 39 Digital V ideo B roadcas ting T erres trial (DV B - T ) 23
B roadband over power lines (B P L ) 39 Digital video recorder (DV R ) 44
B roadband Wireles s L ocal L oop (B - WL L ) 39 Direct- s equence s pread- s pectrum tech (DS S S ) 59
B roadband- IS DN 56 Dis pers ion 53
B undling 10 DOCS IS 44
B us ines s s upport s ys tem (B S S ) 15 Downlink 51
B yte 37 DS 1/T 1 55
Cable Modem T erm ination S ys tem (CMT S ) 43 Dual m ode phone/hands ets 18
Source: Lehman Brothers

August 21, 2007 77

Guide to Telecoms

Figure 58: Index (Continued)

Topic Page No Topic Page No
Dual- band m obile phones 18 Handoff 12
Dual- band network 18 Hard Handoff 12
Duplex 54 HDS L 2 41
Dutch Auction 26 High B it R ate Digital S ubs criber L ine (HDS L ) 41
E - cas h (electronic cas h) 28 High s peed downlink packet acces s (HS DP A) 5
E nglis h Auction 26 High S peed OF DM P acket Acces s (HS OP A) 5
E nhanced Data R ates for Global E volution (E DGE ) 4 High- definition televis ion (HDT V ) 45
E P OC 32 21 High- S peed P acket Acces s (HS P A) 5
E rlang 10 Hom e L ocation R egis ter (HL R ) 15
E thernet 55 Hop 62
ETSI 71 Hot s pot 30
E V - DO R evis ion B 7 HS UP A (high- s peed uplink packet acces s ) 5
E V - DO R evis ion C 7 Hub/R epeater 62
E V - DO R evis ion- A 6 Hybrid (802.11a + g) 29
E - wallet (electronic wallet) 28 Hybrid F iber Coax (HF C) 44
F 2M s ubs titution (fixed to m obile s ubs titution) 11 IE E E 71
F acilities - bas ed Operators 11 i- m ode 9
F air T rade Com m is s ion (F T C) 73 IMS (IP Multim edia S ubs ys tem ) 60
F ar- end Cros s talk 53 IMT - 2000 9
F as t E thernet 55 IN (Intelligent Networking) 57
F DD (frequency- divis ion duplex) 54 Incum bent L ocal E xchange Carrier (IL E C) 67
F eliCa 19 Infocom m Developm ent Authority of S ingapore (iDA) 74
F em tocells 14 Infrared Data As s ociation (IrDA) 72
F iber 46 Integrated Digital E nhanced Network (iDE N) 4
F iber Data Dis tributed Interface (F DDI) 55 Integrated S ervices Digital B roadcas ting (IS DB - T ) 22
F iber to the B uilding (F T T B ) 47 Interconnection 11
F iber to the Curb (F T T C) 47 Interconnection rate 11
F iber to the Hom e (F T T H) 47 Interexchange Carrier (IX C) 68
F iber to the Node (F T T N) 47 International m obile equipm ent identifier (IME I) 19
F iber to the P rem is e (F T T P ) 47 International m obile s ubs criber identity (IMS I) 19
F ixed R adio Acces s (F R A) 36 International Mobile T elephony Advanced (IMT - A) 9
F ixed WiMAX (802.16- 2004) 30 International T elecom m unications Union (IT U) 71
F orward L ink Only (F L O) 22 Internet 69
F ourth generation (4G) 9 Internet P rotocol T V (IP T V ) 49
F ram e R elay 56 Internet T elephony 69
F reedom of Mobile Multim edia Acces s (F OMA) 9 Internet2 69
F requency Divis ion Multiple Acces s (F DMA) 56 Intranet 69
F requency Divis ion Multiplexing (F DM) 56 IP (Internet P rotocol) 69
F requency reus e 12 IP v4/IP v6 69
F requency- hopping s pread s pectrum (F HS S ) 59 IS (Interim S tandard) 4
FTTx 47 IS DN (Integrated S ervices Digital Network) 56
F ull- duplex 54 IS DN Digital S ubs criber L ine (IDS L ) 41
G.L ite 41 IS P (Internet S ervice P rovider) 69
Gateway 62 J 2ME (J ava 2 Micro E dition) 28
General P acket R adio S ervice (GP R S ) 4 J oint P hotographic E xperts Group (J P E G) 45
Global m obile pers onal com m (GMP CS ) 51 L as ers 47
Global P os itioning S ys tem (GP S ) 51 L ayer 2 S witch 62
Global S ys tem for Mobile Com m unications (GS M) 4 L ayer 3 S witch 62
Half- duplex 54 L ayer 4 S witch 63
Source: Lehman Brothers

78 August 21, 2007

Guide to Telecoms

Figure 58: Index (Continued)

Topic Page No Topic Page No
L E AP 33 Narrowcas ting 57
L eas ed L ine 63 National Com m unications Com m is s ion (NCC) 74
L ine- of- S ight 53 National Developm ent & R eform Com m is s ion (NDR C) 72
L it F iber 46 National T elecom m unications Com m is s ion (NT C) 74
L ocal Area Network (L AN) 57 National T elecom m unications Com m is s ion (NT C) 74
L ocal loop unbundling (L L U) or Unbundled Acces s 37 Near F ield Com m unication T echnology (NF C) 33
L ocal m ultipoint dis tribution s ervice (L MDS ) 39 Net new connections (a.k.a. Net adds ) 11
L ocation Interoperability F orum (L IF ) 72 Network Interface Card (NIC) 64
L ocation- bas ed s ervices (L B S ) 51 Next Generation Networking (NGN) 67
L ong T erm E volution (L T E ) 5 Node 64
L ong- haul Networks 57 OF DMA 34
Malays ian Com m & Multim edia Com m is s ion (MCMC) 73 Off net (off network calls ) 11
Mas ter tone or T rue tones 23 Office of the T elecom m unications Authority (OF T A) 73
M- com m erce (Mobile com m erce) 28 On net (on network calls ) 11
Mes h network 59 Open S ys tem Interconnection (OS I) 58
Metropolitan Area Network (MAN) 57 Operations S upport S ys tem s (OS S ) 15
Microwave 35 Optical Carrier (OC- x) 46
MIME (Multi- P urpos e Internet Mail E xtens ions ) 70 Optical Com ponents 46
Minis try of Inform ation and Com m unications (MIC) 73 Optical L ine T erm inals (OL T ) 49
Minis try of Inform ation Indus try (MII) 72 Optical Network T erm ination (ONT ) 49
Minutes of us e (MOUs ) 11 Optical Network Unit (ONU) 49
Mobile broadband wireles s (802.20) 33 Optical R eceiver 47
Mobile J ava 28 Original des ign m anufacturer (ODM) 21
Mobile Middleware 28 Original equipm ent m anufacturer (OE M) 21
Mobile Network Operator (MNO) 11 Orthogonal F requency- Divis ion Multiplexing (OF DM) 34
Mobile Num ber P ortability (MNP ) 11 P 2P (peer- to- peer) 60
Mobile portal 28 P acket 58
Mobile T V 21 P acket- s witched network 54
Mobile virtual network operator (MV NO) 11 P alm OS 21
Mobile WiMAX (802.16e- 2005) 31 P as s ive Com ponents 64
Mobis ode 51 P as s ive Infras tructure S haring 16
Modulation 60 P as s ive Optical Com ponents 47
Monophonic 23 P as s ive Optical network (P ON) 48
Motion P icture E xperts Group (MP E G) 45 P as s ive telecom infras tructure 16
M- paym ent (m obile paym ent) 28 P CMCIA 64
MP E G- 2 45 P enetration R ate 12
MP E G- 3 45 P erm anent V irtual Circuit (P V C) 56
MP E G- 4 45 P ers onal acces s s ys tem (P AS ) 3
Multi S ervice Operator (MS O) 43 P ers onal Com m unications S ervice (P CS ) 3
Multicas t 57 P ers onal Digital As s is tant (P DA) 20
Multichannel Multipoint Dis tributed S ervice (MMDS ) 43 P ers onal Digital Cellular (P DC) 3
Multim edia B roadcas t Multicas t S ervice (MB MS ) 34 P ers onal video recorder (P V R ) 44
Multim edia Mes s aging S ervice (MMS ) 8 P icocell 14
Multi- m ode fiber 46 P lain Old T elephone S ervice (P OT S ) 66
Multiple input/m ultiple output (MIMO) 35 P oint of P res ence (P OP ) 58
Multiple- input s ingle- output (MIS O) 35 P oint- to- P oint P rotocol (P P P ) 58
Multiplexing 56 P oint- to- P oint T unneling P rotocol 58
Multiprotocol label s witching (MP L S ) 60 P olyphonic 23
Naked DS L or Dry L oop DS L 42 P ortable navigation device 53
Narrowband 39 P ortal 69
Source: Lehman Brothers

August 21, 2007 79

Guide to Telecoms

Figure 58: Index (Continued)

Topic Page No Topic Page No
P os t T elephone and T elegraph (P T T ) 66 S ym bian OS 20
P owerband 39 S ym m etrical Digital S ubs criber L ine (S DS L ) 41
P ower- line internet 39 S ynchronous digital hierarchy (S DH) 58
P referential R oam ing 12 S ynchronous Optical Networking (S ONE T ) 58
P rivate B ranch E xchange (P B X ) 66 T CP (T rans m is s ion Control P rotocol) 60
P rotocol 59 T Dtv 23
P roxy S erver 69 T elecom Infras tructure S haring 16
P ublic Data Network (P DN) 58 T elecom regulatory authority of India (T R AI) 73
P ublic S witched T elephone Network (P S T N) 66 T elem atics 51
P us h m ail 20 T elephone exchange 66
P us h to- T alk (P T T ) 13 T erm ination R ate 12
Quadrature Am plitude Modulation (QAM) 61 T erres trial T runked R adio (T E T R A) 51
Quadrature P has e- s hift keying (QP S K ) 61 T he Departm ent of T elecom (DOT ) 73
R adio- frequency identification (R F ID) 33 T im e Dis tance of Arrival (T DOA) 51
R ate Adaptive Digital S ubs criber L ine (R ADS L ) 41 T im e divis ion duplex (T DD) 54
R efilling/T op- up 11 T im e Divis ion Multiple Acces s (T DMA) 57
R egional B ell Operating Com pany (R B OC) 68 T im e Divis ion Multiplexing (T DM) 56
R em ote Acces s 37 T im e Divis ion- S ynchronous CDMA (T D- S CDMA) 7
R em ote T erm ination Unit (R T U) 37 T rans ceiver (T R X ) 15
R em ovable Us er Identity Module (R - UIM) 19 T ri- band m obile phones 18
R es is tors 64 T runk 66
R es ource res ervation protocol (R R P ) 60 T runk lines 66
R F ID tag 34 T wis ted P air 64
R ing back tones 23 UDP (Uns igned Datagram P rotocol) 60
R ingtones 23 Ultra Mobile B roadband (UMB ) 34
R outer 62 Univers al Mobile T elephony S ys tem (UMT S ) 4
R outer P rotocol 60 Unlicens ed m obile acces s (UMA) 34
S AS AC 73 Uns hielded T wis ted P air (UT P ) 65
S ealed- bid Auction 26 Uplink 51
S hort Mes s aging S ervice (S MS ) 8 V alue- added s ervice (V AS ) 13
S ingle carrier F DMA (S C- F DMA) 34 V ery High Data R ate DS L (V DS L ) 41
S ingle- input m ultiple- output (S IMO) 35 V ery S m all Aperture T erm inal (V S AT ) 52
S ingle- input s ingle- output (S IS O) 35 V ideo on dem and (V oD) 44
S ingle- m ode fiber 46 V ideophone 45
S kype 70 V irtual Circuit 61
S m art antenna 14 V irtual P rivate Network (V P N) 60
S m art B ro 32 V is itor L ocation R egis ter (V L R ) 15
S m artphones 20 V oice- Over IP 69
S MS gateway 16 WAP Gateway 36
S oft Handoff 12 WDM (Wavelength Divis ion Multiplexing) 57
S ofts witch 67 Wide Area Network (WAN) 57
S ON- Acces s 33 Wideband Code Divis ion Multiple Acces s (W- CDMA) 4
S patial divis ion m ultiple acces s (S DMA) 34 WiMAX 30
S pectrum /bandwidth 12 WiMAX F orum 71
S pectrum - s haring 16 Wireles s Application P rotocol (WAP ) 28
S pread- S pectrum T echnology 59 Wireles s broadband (WiB ro) 32
S S 7 (S ignalling S ys tem 7) 59 Wireles s L ocal Area Network (WL AN) 36
S tandard- definition televis ion (S DT V ) 45 Wireles s local loop (WL L ) 36
S tream ing 52 Wireles s Mark- up L anguage (WML ) 28
S ubs criber acquis ition cos t (S AC) 12 xDS L 39
S ubs criber identity m odule (S IM) Card 18 ZigB ee 34
S witch 62
Source: Lehman Brothers

80 August 21, 2007

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82 August 21, 2007

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