GTM-Skype 2003 Sep

DAIWA
DAIWA INSTITUTE OF RESEARCH LTD.
September 2003 (No. of pages: 40)
Global Telecom Monthly
This month
• Global: We think the arrival of Skype, a distributed P2P VoIP application
from the original founders of KaZaA is something to be scared of, and is
probably set to become the biggest story of the year in the sector. We think
that it has unique features which will make regulatory challenges more
difficult than those posed elsewhere, and that it will benefit from the
association with the KaZaA phenomenon and general demographic trends.
• US: Regulatory pressure on VoIP at state public utility commissions – Lifting

of school cellphone bans to be a boon to growth? – Swift uptake for the
National Do Not Call Registry.
• Europe : FT moves to take out orange minorities – Vodafone upgraded to

rating 2 from 3 – Supply chain issues at 3 UK – BT Group makes headway
with streaming video over GPRS.
• AsiaPac : China Unicom 1H result comes in below our estimates –

Consolidation and horse-trading in Korea and Taiwan – Japan Telecom exits
fixed line business – MNP to hit Japan in 2005 – KDDI 1x base tops 10m.
IMPORTANT
North America
This report was prepared by Daiwa Institute of Research (Hong Kong) Limited (DIR) and distributed by Daiwa Securities America Inc. (DSA). It may not be accurate or complete and should not be relied upon as such. It reflects
DIR’s views at the time of its preparation, but it is provided with a time delay and does not reflect events occurring after its preparation, nor does it reflect DSA’s views at any time. Neither DSA nor DIR has any obligation to update
this report or to continue to prepare research on this subject. This report is not an offer to sell or the solicitation of any offer to buy securities. Unless this report says otherwise, any recommendation it makes is risky and appropriate
only for sophisticated speculative investors able to incur significant losses. Readers should consult their financial advisors to determine whether any such recommendation is consistent with their own investment objectives, financial
situation and needs.
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Global Equity Research

Contents
Regional/subsector investment stance summary
P. 3
Global perspective
From the people who brought us KaZaA, the first distributed P2P telephony network –
Skype. It traverses NATs and firewalls, it's heavily encrypted, and it's free. Brand affiliation,
user affinity and demographics seem to be on its side. Watch out voice market................P. 4
News
A round-up of global telecoms events over the past month P. 8
Statistics and valuations

Cellular Subs, Cellular Penetration, Cellular ARPU, Broadband Internet Subs,
Valuation – Integrated, Valuation – Cellular, Share Price Performance,
Corporate Earnings, Earnings Revisions, Rating Revision .................................................. P. 13
Monthly stats
P. 31
Forthcoming eve nts
P. 37
Appendix
Equity relationships among global telcos P. 38
CONTENTS
2 Global Telecom Monthly
Regional/subsector investment stance summary
Wtd. stock
Region/segment Stance recommendations* Top picks Comments/action
Europe Integrated NEUTRAL 2.84 France Telecom, Earnings momentum remains positive, but
Portugal Telecom relative valuations look toppy, and we are
growing more concerned about market
fragmentation and disruptive influences.
Europe Wireless OVERWEIGHT 2.53 Vodafone, mmO 2 Newsflow has been good and operating
performance sound
US Integrated WEAK NEUTRAL 3.57 n.a. Proactive stance towards product bundling and
some recent regulatory victories make us
marginally more positive, but line loss,
cannibalisation and regulatory uncertainty make
leave us cautious.
US Wireless OVERWEIGHT 2.28 AT&T Wireless Selectively overweight, but we are increasingly
concerned over the potential of pure-play
wireless operators to stave off bundled product
offering from integrated players. So me support
may come from consolidation speculation.
AsiaPac Integrated OVERWEIGHT 1.74 KT Corp, Impressive combination of value and balance
NTT, Telstra, sheet strength, though selectivity is essential.
China Telecom
AsiaPac Wireless OVERWEIGHT 1.56 China Mobile, Balance sheet strength coupled with a mixture
NTT DoCoMo, of secular growth and success in advanced
KDDI data services.
Source: DIR estimates
*Based on DIR 1 - 5 rating system
I NVESTMENT S TANCE
September 2003 3
16 September 2003 (No. of pages: 4)
Global perspective
Let’s telco!
James Enck
(44) 20 7597 8455
james.enck@dir.co.uk
• We think the arrival of Skype, a global P2P VoIP solution from the very
people who brought us KaZaA, is something to be scared of, and may turn out
to be the most significant story in the sector this year.
• KaZaA itself is the most downloaded application on the web, and appears to be
averaging around 400,000 downloads a day. At somewhere around 270m
downloads to date (our estimate), it would appear to have a nominal
penetration of 27% of internet users globally.
• KaZaA’s “bad boy” image in the P2P music world translates directly to the
voice telephony world, where similar questions are being asked as to why
voice services are metered in the 21st Century. Whether Skype has an explicit
relationship with KaZaA or not, the association between the two in the minds
of loyal KaZaA users is likely to be a powerful marketing tool.
• The Skype service (and whatever may follow) should ride a broad
demographic wave, in which the file-sharing, IM-tapping teens of today expect
to slide seamlessly into free voice communication in their adult lives.
• The Skype service beta version launched on 29th August, and by 10th
September boasted 110,000 downloads. At this writing the website counter
shows 240,000 downloads only six days later. This is already greater than our
estimate of SIP users on all platforms in the US and Europe combined.
GLOBAL P ERSPECTIVE
I’m a telco, you’re a telco
I’m gonna tear your Readers of this product, and particularly our European output, will recall that we have
playhouse down been tracking a number of developments in 2003, related to the issue of disruptive
influences in the sector. First and foremost among these has been the slow and steady
rise of SIP and IM-based voic e products and their potential to re-order the telecoms
“value chain”, driving traditional traffic toward lower revenue/zero revenue services,
and introducing a number of new (and in some cases financially powerful) players as
quasi-service providers. We’re now going to go out on a limb and say that perhaps the
most important story in the telecom sector globally in 2003 broke (for us anyway) on
9th September and has gone largely unnoticed in the wider financial media since. On
that day, an obscure IP Telephony newsletter, which we subscribe to, reported that the
founders of the global P2P music file-sharing site KaZaA had begun promoting a VoIP
service, based on a proprietary standard developed by their new company Skype
(www.skype.com).
Regulate this! What differentiates the Skype service from other VoIP-based services we have
witnessed to date is the fact that the technology used to run it is an updated version of
the FastTrack technology used to power KaZaA. As such, it avoids central servers,
using the nodes joining and leaving the network dynamically to establish routing of
traffic. Skype argues this is a more scalable and robust technology, and we leave that
argument to the networking experts, but we think this may remove one of the likely
regulatory complications to VoIP applications involving central servers (such as SIP
services). Use of these servers has, in recent deliberations before the FCC, been one
reason for opponents of unregulated VoIP to claim that SIP communications are in fact
a mediated service, as they are required to determine the presence of users online and
invite them to initiate a call. On this basis, critics have argued that SIP services are not
truly point-to-point transactions between two parties, but a service enabled by a third
party. Again, we leave this debate to the theoreticians, but at this point it appears that
the KaZaA/Skype solution sidesteps this objection. The other apparently new feature
here is the ability to traverse firewalls and NATs without any special configuration on
the part of the user. It is also highly encrypted, using AES 256, a standard employed by
the US government. This will no doubt provoke a heated debate over issues of national
security, as arose in the Pulver petition to the FCC earlier this year, when the FBI/DoJ
cited security as one reason for why VoIP services should not be free from regulation.
It’s child’s play In response to the Skype news we fully expect a chorus of “so what” from the
incumbents in the voice industry. Though the founders of Skype were associated with
the early success of KaZaA, they have sold up and moved on now, and there is no
evidence of an explicit relationship between the two (one e-mail newsletter stated that
KaZaA had been promoting the Skype service, but we have seen no sign of this in the
KaZaA site, at least not the part we can see – perhaps KaZaA users are being targeted
directly). Moreover, surely we all appreciate that KaZaA users are merely pimply,
discontented teenagers with a penchant for flouting copyright laws, or so we imagine
the public rhetoric will run. In fact, we think the whole concept deserves to be taken a
bit more seriously than that, for the following three reasons:
• Scale and growth – The last reported figures from KaZaA, on 26th May, 2003
showed that downloads of the file-sharing application had surpassed 230.3m
worldwide, overtaking ICQ as the most downloaded application on the web. The
company had broken the 200m barrier only 11 weeks earlier, on 11th March,
implying something like 400,000 downloads per day. This suggests that another
40m or so users may have downloaded the application in the intervening 16 weeks
between this writing and the last publicized numbers (KaZaA’s website says 2.6m
downloads last week). This works out at something like 5% of humanity having
downloaded the application. However, in terms of addressable market, the
implications are much more staggering. Nielsen//Netratings estimates a global
internet universe (based on home users) of 414m at the end of July, while the ITU
estimates total internet users in 2002 at 592m. Even the ITU numbers are likely, in
GLOBAL P ERSPECTIVE
September 2003 5
our view, to miss a significant number of users in business and academic/
governmental/institutional settings. Let’s go completely over the top and assume a
global audience of 1bn internet users, which is probably a bit high. Then we have
an apparent nominal penetration rate for KaZaA of something like 27%!
Obviously, we would like to have some audited figures on active users, but we
think the inescapable conclusion is that KaZaA has attained a global level of
entirely web-based “brand” recognition, which is far beyond anything a new
telecom service provider could hope for. Even if the actual relationship between
KaZaA and Skype is tenuous or non-existent, we believe that the strength of the
KaZaA phenomenon will ensure a blurring between the two services in the mind of
the media, and a rapid dissemination of information about Skype among KaZaA
users.
ITU estimates of global internet users and penetration, 2002

Internet users (m) Population penetration (%)
Africa 7.943 1.00
Americas 205.658 24.21
Asia 201.079 5.58
Europe 166.386 20.79
Oceania 10.500 33.30
Total 591.566 9.72
Source: ITU 2002
• Rebel affinity – Skype’s own website contains the following mission statement:
“Our vision is to bring communications into the 21st century, challenge the
outdated business models and rip-off tactics of legacy telecom companies and to
bring global unmetered communications to people all over the world. We will
achieve our vision by building a user-driven P2P network leveraging emerging
disruptive technologies.” This would be charmingly and laughably dismissable, if
the KaZaA P2P file-sharing service created by the very same people had not
established such a formidable user base. Arguably, the reason users flocked to
KaZaA in the first place was out of a sense that the music industry did not deserve
as much of their money has it had received traditionally, and we expect that the
same dynamic functions when it comes to voice telephony. It would appear that
Skype’s “bad boy” stance, and its association with KaZaA, is already a powerful
marketing tool. The beta version of Skype’s VoIP service was only launched on
29th August, and by 10th September the service claimed 110,000 downloads. As at
this writing, six days later, the website states 240,000 downloads and counting. If
accurate, this already makes Skype larger than all the other SIP-based VoIP
platforms in North America and Europe combined, by our estimate, after a little
more than two weeks.
Skype’s claims of superiority

Skype vs. all the rest
MSN Messenger,
ICQ, AIM, Other standard
Skype Net2Phone Yahoo Messenger VoIP clients
Works with ANY firewall/NAT setup
– nothing to configure ü r r r
Unlimited FREE calls to users of same application ü r ü Sometimes
Sound quality ««« « « «

Better than phones Worse than phones Worse than phones Worse than phones
Secure and encrypted communications ü r r r
100% ad-free ü r r Sometimes

Source: Skype
GLOBAL P ERSPECTIVE
• Demographics – Pimply and unhappy though many KaZaA users may be, they will
grow up eventually. A recent survey from American teen affinity site Angelfire
reported that 45% of its c.2,000 teenage survey respondents claimed to use instant
messaging to communicate with friends outside school hours, versus only 15%
who communicate face-to-face. We believe this familiarity with the IM platform
extends almost seamlessly into the voice telephony world, particularly in markets
(such as those outside North America) where local/national calls are still metered.
In other words, if the kids of today are keenly involved in communicating over
“closed” IM systems with friends who are part of the same system, then a
“telephony” service functioning on the same principle is an obvious extension to
their communications tools, and one which makes the conventional phone service
only meaningful if an “outsider” needs to be called, or if the user is mobile. Even in
the latter case, we think a service such as this one is likely to end up on a number
of portable devices, and is a natural fit with Wi-Fi “ubiquity.”
Honey, there’s trouble at Up to now, we have viewed VoIP as a gradual, but nevertheless serious, accelerator of
the mill market fragmentation and a source of added pressure for the telcos. What the new
Skype service brings to the party is a large stink bomb, in the form of potential for this
phenomenon to accelerate and expand at a rate far greater than that which could be
stimulated by a typical start-up’s marketing budget. It is important to remember that, as
our example below illustrates using European operators, the fixed voice segment is of
unparalleled importance to the ongoing cash flow generation of incumbent players,
accounting for around 50% of group EBITDA on average, but consuming only around
30% of group capex. We think valuations in the sector hinge on the level of visibility in
forecasting the erosion of this cash flow generation into the longer term, and from this
perspective, we think the Skype offering (and whatever may follow it) is akin to a giant
meteor hurtling on a collision course towards earth. We will return to our usual, more
mundane and conventional coverage next month.
PTT fixed line contribution to group EBITDA/consumption of group capex

(%)
% 70
% 60
% 50
% 40
% 30
% 20
% 10
% 0
DT FT KPN PT Swisscom TI Telefonica TeliaSonera
Fixed EBITDA contribution/group Fixed capex consumption/group

Source: DIR estimates based on last reported results
GLOBAL P ERSPECTIVE
September 2003 7
Europe
Orange has announced the launch of two new signature handsets: the Motorola
MPx200 running Microsoft’s Pocket PC OS and the Handspring Treo 600. Both
devices offer an enhanced Orange user experience.
O2 Germany will make a soft launch of 3G in November, with a commercial launch in

1Q2004. The licence mandates 25% population coverage by the end of 2003.
We reported in the May edition of the Global Telecom Monthly that BT had developed
a method of delivering streaming video over GPRS networks. BT is now working with
Vemotion, a video hosting group, and is reportedly close to announcing deals with TV
broadcasters. Charges will start at 30p for a 20 second clip. Prices aren’t immediately
comparable as 3 charges on a per event basis (25p for a comedy clip, 50p for a movie
clip or celebrity interview). The technology already works in the UK and the player is
available for download. We have yet to test its potential for cannibalising 3G’s current
‘killer app’.
3 has just one handset on sale in the UK and appears to be out of stock of all handsets
in Italy. New shipments are not expected until October (or even November according
to Vodafone). As of 20th August, Hutchison’s 3G business in Europe reported 470,000
customers and the company maintains a year end target of 2m. Assuming almost no
commercial activity during September in Italy and far lower activity in the UK, we
estimate that the run rate must rise to 53,000 in the UK and 47,000 in Italy. We doubt
that 3 can achieve its year end target no matter what promotions it offers. Please
contact us for further details.
At the beginning of the year, we wrote that Orange ’s TOP programme, if taken to its
logical conclusion, would see the reintegration of Orange into France Telecom. The
early publication of detailed 1H results supports the rationale for an FT bid for the
Orange minorities: stronger than expected reduction in net debt and the French tax
credit. The 12% rise in the share price tow ards the implied offer price would strongly
suggest that Orange’s days as an independent company (and our coverage) are
numbered. Please contact us for further details.
Detailed 1H03 results from TIM followed the release of headline numbers at the end
of July. In the 5 weeks since the end of June, TIM added 400,000 new customers in
Italy. H3G managed 300,000 additions during this period. With domestic handset sales
of 622,000 in July alone as part of the summer campaign, we expect some margin
slippage in 3Q from the 53.1% in 1H. Please contact us for further details.
We have upgraded Vodafone from 3 to 2. Following 3 month underperformance on

succession and competition concerns, we believe that several issues are likely to trigger
an improvement in sentiment towards the stock. Please contact us for further details.
As if to illustrate Vodafone’s operational focus on its core mobile businesses, closure

of its disposal of Japan Telecom – expected in early October – coincides with the
launch of Vodafone live! on J-Phone’s W-CDMA network and the completion of
J-Phone’s rebranding to Vodafone. Vodafone’s economic interest in J-Phone will
remain the same at 69.7%, with 39.7% held directly and Japan Telecom Holdings, in
which Vodafone owns 66.7%, holding 45.1%.
NEWS – EUROPE
US
The Dallas Morning News reported new growth momentum for the wireless industry
could come from a policy change by educational institutions. During the 1980s-90s
almost two dozen states introduced a ban on mobile phones or pagers in the classroom,
but on the back of concern about terrorism about half of those states have lifted the
ban. Recent research from the Yankee Group shows 30% of parents with children
under 18 years already have at least one mobile phone for their kids, with 75% of them
footing the bills. The Wall Street Journal also quotes Ms. Doreen Toben, Verizon
CFO, saying a recent surge in subscriber growth could be related to the lifting of these
bans.
CNET reported state governments are moving to regulate VoIP. While InStat / MDR
findings shows VoIP subscription is reaching 2.5m in the US, the federal government
has yet to regulate the new business. Recently, states such as Alabama, Colorado,
Illinois, Michigan, North Carolina, Pennsylvania and Virginia have instructed their
public service commissions to consider regulation for VoIP. Michigan PUC had asked
Vonage, a major VoIP provider, to apply for a telephone operator license if it wants to
continue its service in the state. The FCC also is moving to regulate VoIP as a
telecommunication service.
The Federal Trade Commission (FTC) announced 41.7m households have applied for
the National Do Not Call Registry, a new measure to prevent unwanted telemarketing
calls. That accounts for almost 40% of the 104m households that have telephone lines.
The Wall Street Journal quoted an FTC official as saying that the commission expects
60m households to register by the end of this year, thereby putting an end to 80% of
telemarketing calls. The National Do Not Call Registry will become effective on 1
October, and all telemarketing companies must purchase the list from the FTC.
Telemarketers will face tougher regulation starting from next year, when their
caller-IDs will no longer be allowed to remain anonymous. The popularity the registry
could be a threat to the long distance business, and MCI has revised its projections for
FY04 and FY05 to reflect this.
Businessweek reported merger talks between BellSouth and AT&T have collapsed
because of pricing issues. The magazine said AT&T was insisting on US$25 a share,
representing a 15% premium over the current shareprice, while BellSouth considers the
current price as fair value. Meanwhile, The Street.com reported that Sprint
Corporation has started informal discussions with BellSouth on a possible merger. All
the companies involved declined to comment. We believe fair value for AT&T would
be US$19.5 a share.
The Oklahoma attorney general has started criminal proceedings against six former
executives of MCI. The attorney general said MCI had misled the state regulators
and investors with improper information, and the office is suing the company
because the decision to use improper information was made by the company, not a
member of the board of the company. According to the Oklahoma securities law,
any person found guilty could face up to a US$10,000 fine or ten years in prison,
and the company could face up to a US$150,000 fine. However, the US Attorney
General and SEC, who are investigating MCI, have criticized the move for fear it
could get in the way of their investigation.
NEWS – US
September 2003 9
Japan
Japan Telecom Holdings announced it will sell its fixed-line business to Ripplewood
Holdings for ¥261.3bn, but this had been widely reported since the beginning of the
year.
The Telecommunications Carriers Association (TCA) said the number of mobile phone
subscribers in Japan increased 427,000 to 78.223m in August. Monthly net additions in
July and August were higher than the same months a year ago. Although August is
seasonally weak, KDDI (au) maintained net additions of around 200,000, regaining the
top position only one month after it dropped to the second place behind NTT
DoCoMo. High-end models launched by KDDI (au) from late June to mid-July
continued selling well.
The Nikkei Shinbun reported that mobile number portability (MNP) will be introduced
in 2005. According to a survey conducted by the Ministry of Public Management,
Home Affairs, Posts and Telecommunications (MPHPT), the number of subscribers
willing to port even if they have to pay to do so accounted for around 30% of overall
respondents. More than 90% of respondents regarded ¥3,000 as the maximum
reasonable charge for porting. Aside from the issue of the cost burden Japan is faced
with issues such as the portability of e-mail addresses and the impact on subsidy-driven
promotions.
NTT raised its FY03 parent net income projection from ¥74bn to ¥251bn, reflecting a
¥190bn extraordinary gain on the sale of a part of its stake in NTT DoCoMo to NTT
DoCoMo. NTT also expects an extraordinary gain of ¥49bn on a consolidated basis
after the share buyback by NTT DoCoMo. From 19 August through 8 September, NTT
DoCoMo bought back 716,558 shares (incl. 698,000 from NTT) at ¥272,000 per share.
Usen announced that the number of its broadband subscribers was 148,201 as of
end-August.
MPHPT announced the number of domestic DSL lines at end-August increased around
340,000 to 8,881,039. The market share of NTT East and West of total subscribers was
almost unchanged (37.5% vs. 37.4% in July).
Usen and SKY Perfect Communications announced a business alliance. SKY Perfect
Communications will broadcast its programmes over Usen’s optical fiber network,
while Usen will act as an agency promoting SKY Perfect Communications’
programmes. ¥500m worth of the new shares in UCOM, the subsidiary of Usen
providing broadband services over optical fiber, have been placed to SKY Perfect
Communications.
KDDI (au) announced its cdma2000 1x subscriber base exceeded 10 million on 16

September.
NEWS – JAPAN
Asia ex-Japan
UTStarcom and China Netcom officials denied (AFX-Asia) a recent media report
(21st Century Business Herald) which had suggested that China Netcom plans to slow
down the expansion of its PAS network in preparation for 3G. China Netcom has
reportedly (SCMP) started offering a landline service to residential and corporate users
in Shanghai to compete directly with China Telecom. The company launched a
telephone service for home and business users in Guangdong Province last month.
China Unicom reported a 1H03 net profit of Rmb2,385m, up 11.6% YoY, but 9%
below our forecast due mainly to a Rmb557m write-off of paging assets and higher-
than-expected selling and marketing expenses and interconnection costs. China
Unicom Group, parent of the listed China Unicom, will reportedly (Interfax-China)
have invested Rmb70bn in the construction of its nationwide CDMA network by the
end of 2004. According to the report, the company will be able to provide CDMA
mobile services to 50m subscribers upon completion of the third phase of construction
in the first half of 2004. China Telecom denied news reports (Hong Kong Economic
Times) that it expects to receive a 3G license by the end of this year. The company also
reported a 1H03 net profit of Rmb9.26bn, up 9% YoY and broadly in line with our
expectations. China Telecommunications Corp, parent of the listed China Telecom,
reportedly (Beijing Morning Post) expects the number of its broadband subscribers to
reach 7m by year-end, while China Netcom Group Corp aims to reach 3m. Datang
Telecom reportedly (SCMP) said commercial trials of TD-SCDMA technology could
begin early next year, adding that the standardisation and development of the
technology are progressing on schedule. The company denied giving an estimate of
when the trials would be completed as different equipment vendors have different
testing schedules.
OFTA reported that Hong Kong had a broadband subscriber base of 1.125m and a dial-
up Internet subscriber base of 1.35m by end-July. OFTA also said it will waive the
submission of performance bonds due in October 2003 from the four 3G licensees.
This is the second year OFTA has granted the waiver. The four licensees were to pay
HK$130m each on 22 October in respect of the 6th and 7th licence year. The waiver
does not affect total spectrum utilisation fees to be paid by each licensee. PCCW
reported a 1H03 net profit of HK$703m, which was substantially below our and the
market’s expectations. The lower-than-expected earnings can be attributed to weaker
than anticipated contributions from Reach and from local data services and business
e-Solutions. PCCW also reportedly (Bloomberg) said its new pay-TV service, NOW
Broadband TV, may break-even in three months. CSL reported a 16% YoY increase in
EBITDA to HK$1,614m for the 12 months ended June 2003, although its revenue saw
a 5% decline to HK$4,224m. The company has also launched Asia’s first commercial
EDGE service and management reportedly (Hong Kong Economic Journal) said it has
spent more than HK$100m on the EDGE network and installed 250 EDGE base
stations. CSL will first roll out the service in key locations such as main MTR and
KCRC routes, business districts, the airport and heavy data traffic areas, which
reportedly in total account for 40% of existing GPRS traffic.
AIG and Newbridge Capital (Reuters) have signed a contract to take a US$500m
39.6% stake in Hanaro. The deal has to be approved at a shareholders’ meeting
scheduled for 21 October at which the LG Group is expected to try to block the
transaction. SK Telecom bought W120bn worth of Hanaro commercial paper.
Thrunet rejected bids from Hanaro and Dacom on the basis of price. SK Telecom
and KT Freetel announced a 50% reduction in caller ID fees to W1,000 per month.
We believe SKT currently has around 12m subscribers to this service and KTF around
6m subscribers. LGT is expected to follow suit in due course.
TCC announced the appointment of Mr. Hui-Ming Cheng, formerly with Winbond
Electronics, as CFO. FarEasTone confirmed that merger talks with KGT are ongoing
and are focused on: 1) price, 2) accounting principles, 3) tax benefits and 4)
relationships with NTT DoComo.
NEWS – ASIA
September 2003 11
StarHub started charging users for its previously free Internet service as of 1
September because declining subscriber numbers have reduced advertising revenue.
StarHub is in the final stage of talking to bankers about its 3G funding requirement,
which has fallen from a previously estimated S$1bn to S$600m due to declines in
equipment prices. Deutsche Telekom is offering its 24.8% stake in Globe Telecom to
other parties after Ayala Corp and Singapore Telecom let their exclusive option to
purchase the stake expire.
NEWS – ASIA
Statistics and valuations
Cellular subs
2000A 2001A 2002A 2003F 2004F 2005F 2006F
Europe (m)
Western Europe 243.7 288.8 303.2 325.0 343.2 358.0 368.7
% change 58 18 5 7 6 4 3
UK 40.0 44.9 49.9 53.0 56.0 58.4 60.1
% change 68 12 11 6 6 4 3
France 29.7 37.0 38.6 41.0 42.5 43.0 43.6
% change 44 25 4 6 4 1 1
Germany 48.1 54.2 57.0 60.5 63.3 65.4 66.7
% change 106 13 5 6 5 3 2
Italy 42.1 49.9 52.9 56.2 58.8 60.7 61.9
% change 40 19 6 6 5 3 2
Spain 24.3 28.8 33.2 35.2 36.9 38.3 39.4
% change 62 19 15 6 5 4 3
Source: Mobile Communications/DIR forecasts
USA (m)
USA 109.5 128.4 140.8 155.0 156.4 157.7 159.1
% change 27 17 10 10 1 1 1
Japan (m)
Japan 58.0 67.1 73.5 79.5 84.2 87.7 n.a.
% change 20 16 10 8 6 4 n.a.
Asia (ex-Japan) (m)
China 85.3 144.8 206.6 251.4 284.1 316.5 350.7
% change 97 70 43 22 13 11 11
Hong Kong 5.2 5.7 6.2 6.4 6.5 6.7 6.8

% change 31 9 9 2 2 2 2
Singapore 2.4 2.9 3.2 3.5 3.6 3.7 3.9
% change 66 17 13 6 5 3 3
Korea 26.8 29.0 32.4 35.0 36.8 38.5 39.8
% change 14 8 12 8 5 5 3
Taiwan 17.9 21.6 23.9 25.8 26.2 26.7 27.3
% change 55 21 11 8 1 2 2
Australia 10.1 12.0 13.5 14.6 14.9 15.1 15.5
% change 30 18 12 8 2 2 3
Cellular penetration
2000A 2001A 2002A 2003F 2004F 2005F 2006F
Europe (%)
Western Europe 63.1 74.8 78.5 84.1 88.9 92.7 95.5
UK 68.1 76.4 84.9 90.2 95.2 99.3 102.3
France 53.3 66.4 69.3 73.6 76.2 77.2 78.3
Germany 58.5 65.9 69.3 73.6 77.0 79.6 81.1
Italy 73.4 87.2 92.3 98.0 102.6 105.9 108.1
Spain 61.3 72.7 83.7 88.9 93.0 96.6 99.5
Source: Mobile Communications/DIR forecasts
USA (%)
USA 39.8 46.2 50.2 54.8 54.8 54.8 54.8
Japan (%)
Japan 46.9 53.9 58.6 63.0 66.7 69.4 n.a.
Asia (ex-Japan) (%)

China 6.7 11.3 16.1 19.4 21.7 24.0 26.4
Hong Kong 78.0 84.4 91.1 92.1 93.1 94.1 95.1
Singapore 74.8 71.2 77.9 82.4 85.6 87.6 89.5
Korea 57.0 61.0 68.0 73.0 76.3 79.5 81.7
Taiwan 80.2 96.6 106.2 114.0 115.0 117.0 119.0
Australia 54.1 63.4 70.5 75.4 76.0 76.5 77.5
STATISTICS & VALUATIONS

September 2003 13
Cellular ARPU
GDP*
(US$ PPP/capita) 2000A 2001A 2002A 2003F 2004F 2005F 2006F Name of operator
Europe (US$)
UK 24,700 37.1 32.4 34.3 35.9 37.8 39.1 40.2 Orange UK
% change (20) (13) 6 5 5 4 3
% non-voice 4 11 14 17 19 20 22
Line yield (US$) 118 124 157 169 181 191 200
USA (US$)
USA 36,300 45.3 47.4 48.4 55.2 57.7 57.5 57.4 Industry average
% change 3 5 2 14 5 0 0
Line yield (US$) - - - - -
GDP*
(US$ PPP/capita) 2000A 2001A 2002F 2003F 2004F 2005F 2006F Name of operator
Japan (US$)
Japan 27,200 73.7 72.2 69.2 67.5 65.9 65.2 n.a. NTT DoCoMo
% change (1) (2) (4) (2) (2) (1) n.a.
% non-voice 10 18 22 23 25 27 n.a.
Line yield (US$) 372 375 371 364 357 353 n.a.
GDP*
(US$ PPP/capita) 2000A 2001A 2002A 2003F 2004F 2005F 2006F Name of operator
Asia (ex-Japan) (US$)
China 4,300 26.6 17.0 13.9 12.3 11.6 11.3 11.2 China Mobile (HK)
% change (26) (36) (18) (11) (6) (3) (1)
% non-voice 2 3 4 7 12 17 22
Line yield (US$) 178 127 99 87 81 79 80
Hong Kong 25,000 25.2 23.4 23.2 22.8 23.5 25.1 26.4 SmarTone
% change (43) (7) (1) (2) 3 7 5
% non-voice 1 2 4 8 15 21 26
Line yield (US$) 55 10 74 93 89 106 119
Singapore 24,700 44.4 30.3 32.2 30.8 31.4 31.5 31.6 SingTel
% change (17) (32) 6 (4) 2 1 0
% non-voice 0 0 13 18 21 26 28
Korea 18,000 33.6 34.7 37.1 37.2 39.5 40.0 41.9 SK Telecom
% change (10) 3 7 0 6 1 5
% non-voice 3 7 14 19 24 27 32
Line yield (US$) 146 168 213 211 223 226 247
Taiwan 17,200 32.7 21.6 19.3 17.7 17.0 16.5 16.2 Far EasTone
% change (18) (34) (11) (8) (4) (3) (2)
% non-voice 0 3 5 8 12 17 20
Line yield (US$) 120 114 112 99 102 99 99
Australia 24,000 26.9 25.8 25.5 26.6 27.2 28.8 30.1 Telstra
% change (17) (4) (1) 5 2 6 4
% non-voice 1 4 7 10 13 16 18
Note: Line yield (EBITDA per sub in US$) is only provided for operators that breakdown EBITDA by business segment.
* GDP PPP figures are for 2001 (Source: CIA Worldfactbook)

Broadband Internet subs
2000A 2001A 2002A 2003F 2004F 2005F 2006F
Europe (m)
UK 0.0 0.3 1.4 2.6 3.5 4.1 4.6
% change n.a. 817 303 90 35 17 12
Germany 0.7 2.5 3.4 4.2 4.8 5.2 5.7

% change n.a. 274 37 25 14 8 10
France 0.2 0.6 1.7 2.8 3.6 4.3 5.0

% change 249 271 178 66 29 19 16
Netherlands 0.2 0.5 1.1 1.7 2.1 2.5 270

% change n.a. 113 139 52 24 19 8
Western Europe total 1.8 6.5 13.6 21.0 26.0 30.0 33.0
% change n.a. 272 108 55 24 15 10
2000A 2001A 2002F 2003F 2004F 2005F 2006F

USA (m)
USA 7.1 12.8 19.9 26.7 43.0 75.0 102.6
% change 157 81 55 34 61 74 37
2000A 2001A 2002A 2003F 2004F 2005F 2006F

Japan (m)
Japan 0.6 2.8 7.8 15.0 20.0 22.0 24.0
% change 323 347 175 92 33 10 9
Asia (ex-Japan) (m)

China 0.3 1.0 3.3 10.9 15.6 20.7 24.6
% change n.a. 232 244 226 43 33 18
Hong Kong 0.4 0.6 1.0 1.3 1.5 1.7 1.9

% change 692 59 59 27 19 16 12
Singapore 0.1 0.1 0.2 0.4 0.5 0.6 0.7

% change 1,986 85 70 67 35 23 15
Korea 4.0 7.8 9.9 10.9 11.3 12.0 12.1

% change 402 94 26 10 4 6 1
Taiwan 0.2 1.1 2.1 3.0 3.9 5.1 6.3

% change n.a. 393 86 43 30 29 25
Australia 0.1 0.2 0.4 0.7 1.1 1.6 2.2

% change n.a. 235 64 69 57 46 38

September 2003 15
Valuation
–––––––––––––EV/EBITDA ––––––––––– –––––––––––––––EV/sales –––––––––––––
Company Rating Currency Price 2001 2002 2003 2004 2001 2002 2003 2004
Integrated operators
AT&T (T US) 4 US$ 22.30 2.1 2.4 3.2 3.2 0.7 0.7 0.8 0.8
BellSouth (BLS US) 3 US$ 25.57 5.0 5.0 4.7 4.3 2.3 2.2 2.1 1.9
BT Group (BT/A LN) 3 GBp 188.25 5.2 4.5 4.3 4.3 1.6 1.4 1.4 1.3
China Telecom (728 HK) 2 HK$ 2.00 6.0 4.7 3.9 3.5 3.0 2.4 2.1 1.9
Deutsche Telekom (DTE GR) 3 Eur 13.29 7.8 7.2 6.5 5.7 2.4 2.2 2.1 1.9
France Telecom (FTE FP) 2 Eur 22.38 9.8 9.3 6.8 5.9 2.8 3.0 2.5 2.2
KPN (KPN NA) 3 Eur 6.66 9.0 6.6 5.5 4.9 2.6 2.4 2.1 1.9
KT Corp (3020 KS) 1 Won 45,350 3.5 3.9 3.3 2.8 1.3 1.5 1.3 1.1
NTT (9432 JP) 2 Yen 511,000 5.1 3.4 3.4 3.1 1.2 1.2 1.2 1.1
PCCW (8 HK) 4 HK$ 4.90 8.9 7.3 7.3 7.0 3.0 2.9 2.8 2.6
Portugal Telecom (PTC PL) 2 Eur 6.60 6.5 5.5 5.2 4.4 2.4 2.2 2.1 1.8
Qwest (Q US) 4 US$ 3.92 4.3 5.5 5.7 5.2 1.6 1.7 1.6 1.5
SBC (SBC US) 4 US$ 23.41 5.3 5.6 5.7 5.5 1.9 1.9 1.8 1.7
Singapore Telecom (ST SP) 2 S$ 1.63 10.8 7.6 6.6 6.1 5.3 3.8 3.3 3.1
Sprint (FON US) 4 US$ 14.71 4.3 3.8 3.4 2.9 1.1 1.1 1.0 0.9
Swisscom (SCMN VX) 3 CHF 397.00 5.3 6.1 5.9 5.7 1.6 1.8 1.8 1.6
Telecom Italia ordinaries (TIT IM) 4 Eur 2.185 5.0 4.6 5.9 5.5 2.1 2.1 2.7 2.5
Telecom Italia savers (TITR IM) 3 Eur 1.522 5.0 4.6 5.9 5.5 2.1 2.1 2.7 2.5
Telefonica (TEF SM) 3 Eur 10.90 6.5 6.7 6.6 6.0 2.7 2.8 2.8 2.5
Telstra (TLS AU) 2 A$ 4.97 7.9 7.3 7.2 6.8 3.6 3.5 3.4 3.3
Verizon (VZ US) 3 US$ 35.51 5.7 5.5 5.3 4.7 2.4 2.2 2.1 1.9
Weighted average 5.9 5.5 5.1 4.6 2.2 2.1 1.9 1.8
Cellular/wireless -centric
AT&T Wireless (AWE US) 1 US$ 8.73 8.7 8.5 6.3 5.2 2.0 2.1 1.8 1.6
China Mobile (941 HK) 2 HK$ 21.00 7.1 5.9 4.7 4.1 4.3 3.5 2.8 2.4
China Unicom (762 HK) 3 HK$ 5.80 5.8 6.0 4.0 2.9 2.7 2.7 1.5 1.2
Far EasTone (4904 TT) 3 NT$ 22.20 5.0 4.1 4.0 3.4 1.7 1.7 1.6 1.5
Japan Telecom (9434 JP) 3 Yen 355,000 6.9 3.7 3.5 3.3 1.3 1.1 1.0 1.0
KDDI (9433 JP) 1 Yen 648,000 8.1 7.2 5.7 5.1 1.5 1.5 1.4 1.3
KT Freetel (3239 KS) 3 Won 23,150 5.3 5.0 4.7 4.5 1.5 1.7 1.6 1.6
M1 (M1 SP) 3 S$ 1.35 6.2 5.7 5.2 4.8 2.4 2.2 2.0 1.9
mmO 2 (OOM LN) 2 GBp 59.75 13.4 6.7 4.9 4.0 1.4 1.2 1.1 1.0
Nextel (NXTL US) 3 US$ 19.49 16.8 9.5 7.5 6.8 4.1 3.5 2.9 2.8
NTT DoCoMo (9437 JP) 1 Yen 291,000 9.3 8.3 7.9 7.3 3.4 3.2 3.1 2.9
Orange (OGE FP) 3 Eur 9.81 16.3 10.5 7.7 6.8 3.5 3.2 2.8 2.4
SK Telecom (1767 KS) 3 Won 200,000 4.4 3.5 2.8 2.2 2.1 1.7 1.3 1.0
SmarTone (315 HK) 3 HK$ 10.25 33.5 4.2 3.1 3.4 1.0 1.0 0.8 0.8
Sprint PCS (PCS US) 5 US$ 5.98 14.6 7.7 6.1 5.0 2.3 1.8 1.6 1.5
Taiwan Cellular (3045 TT) 3 NT$ 24.60 5.2 7.6 6.2 5.6 2.1 2.8 2.4 2.2
Telefonica Moviles (TEM SM) 4 Eur 7.24 12.0 10.2 8.3 7.5 4.8 4.2 3.7 3.3
Vodafone (VOD LN) 2 GBp 124.00 12.0 8.8 7.7 7.0 4.2 3.2 2.9 2.7
Note: Share price as of 16 September 2003

Valuation (cont’d)
––––––––– EV/Net PP&E ––––––– ––––– Capex/sales (%) –––––
AT&T (T US) 4 US$ 22.30 2.1 1.0 1.2 1.1 13.7 10.3 10.2 10.2
KPN (KPN NA) 3 Eur 6.66 2.8 2.8 2.8 2.8 23.9 9.3 11.3 12.5
KT Corp (3020 KS) 1 Won 45,350 1.2 1.4 1.3 1.2 24.6 19.7 22.4 19.4
NTT (9432 JP) 2 Yen 511,000 1.2 1.2 1.2 1.1 20.8 18.1 18.0 17.6
PCCW (8 HK) 4 HK$ 4.90 2.6 2.5 2.4 2.4 11.0 8.0 8.8 8.8
Qwest (Q US) 4 US$ 3.92 1.1 1.1 1.4 1.5 43.4 17.7 20.2 20.9
SBC (SBC US) 4 US$ 23.41 2.1 2.0 1.8 1.7 20.6 13.3 9.6 12.5
Sprint (FON US) 4 US$ 14.71 1.1 1.0 0.9 0.8 31.3 14.4 13.2 16.2
Telstra (TLS AU) 2 A$ 4.97 3.3 3.2 3.3 3.3 16.8 15.3 13.9 15.9
Verizon (VZ US) 3 US$ 35.51 2.2 2.0 1.9 1.9 25.9 17.7 17.6 16.8
Far EasTone (4904 TT) 3 NT$ 22.20 1.5 1.4 1.3 1.4 37.9 60.5 25.1 13.5
KDDI (9433 JP) 1 Yen 648,000 2.2 2.3 2.4 2.4 13.0 8.8 12.0 11.4
KT Freetel (3239 KS) 3 Won 23,150 1.9 1.8 1.8 1.8 21.0 20.5 18.2 16.6
M1 (M1 SP) 3 S$ 1.35 2.3 2.2 2.0 1.9 19.1 18.1 17.5 17.2
mmO 2 (OOM LN) 2 GBp 59.75 1.5 1.4 1.5 1.4 29.0 16.0 25.0 22.0
Nextel (NXTL US) 3 US$ 19.49 3.5 3.3 3.3 3.1 44.5 21.4 17.9 18.1
NTT DoCoMo (9437 JP) 1 Yen 291,000 6.4 5.8 5.7 5.4 22.2 17.8 16.5 15.6
Orange (OGE FP) 3 Eur 9.81 5.9 5.3 4.7 4.5 19.7 20.7 15.9 13.9
SK Telecom (1767 KS) 3 Won 200,000 4.6 3.4 2.7 2.2 22.8 20.5 14.8 16.5
SmarTone (315 HK) 3 HK$ 10.25 1.2 1.3 1.2 1.2 14.7 10.4 14.2 18.2

September 2003 17
––––––––– P/OFCF ––––––– ––––––––– PER (x) –––––––
AT&T (T US) 4 US$ 22.30 5.4 4.7 5.3 5.5 1.8 n.m. 8.7 9.6
China Telecom (728 HK) 2 HK$ 2.00 n.m. 13.1 10.0 8.6 15.6 13.5 12.5 11.0
Deutsche Telekom (DTE GR) 3 Eur 13.29 n.m. 10.6 7.2 6.8 n.m. n.m. 68.8 19.9
France Telecom (FTE FP) 2 Eur 22.38 17.1 16.3 8.2 6.4 n.m. n.m. 21.1 13.3
KPN (KPN NA) 3 Eur 6.66 n.m. 10.6 7.3 7.7 n.m. n.m. 18.4 15.0
KT Corp (3020 KS) 1 Won 45,350 37.0 9.0 22.0 10.2 12.4 7.4 5.5 5.5
NTT (9432 JP) 2 Yen 511,000 n.m. 6.4 7.2 6.6 n.m. 34.9 16.4 14.9
PCCW (8 HK) 4 HK$ 4.90 16.5 6.8 11.7 10.3 16.3 n.m. 17.9 20.3
Qwest (Q US) 4 US$ 3.92 n.m. 5.9 n.m. 109.2 n.m. n.m. n.m. n.m.
SBC (SBC US) 4 US$ 23.41 22.1 11.8 11.2 12.1 11.3 13.8 8.5 15.2
Singapore Telecom (ST SP) 2 S$ 1.63 n.m. 18.0 29.9 28.9 16.7 20.7 11.5 14.9
Sprint (FON US) 4 US$ 14.71 n.m. 6.8 6.4 7.3 n.m. 10.8 5.3 10.2
Telecom Italia ordinaries (TIT IM) 4 Eur 2.185 10.3 3.4 4.6 4.6 n.m. n.m. 16.2 34.7
Telecom Italia savers (TITR IM) 3 Eur 1.522 10.3 3.4 4.6 4.6 n.m. n.m. 16.2 34.7
Telefonica (TEF SM) 3 Eur 10.90 13.5 5.5 7.8 7.5 23.9 n.m. 39.5 31.3
Telstra (TLS AU) 2 A$ 4.97 16.9 15.1 14.1 14.1 17.5 16.4 15.5 14.9
Verizon (VZ US) 3 US$ 35.51 20.1 9.4 10.5 9.1 246.6 23.9 15.7 11.6
AT&T Wireless (AWE US) 1 US$ 8.73 n.m. n.m. 14.3 12.9 n.m. n.m. 31.9 23.0
China Unicom (762 HK) 3 HK$ 5.80 n.m. n.m. n.m. 8.5 17.3 16.9 16.1 11.5
Far EasTone (4904 TT) 3 NT$ 22.20 n.m. n.m. 10.2 4.7 5.5 6.4 8.4 6.5
Japan Telecom (9434 JP) 3 Yen 355,000 n.m. 8.5 10.6 8.1 n.m. 14.3 17.8 17.6
KDDI (9433 JP) 1 Yen 648,000 40.7 11.4 13.0 11.3 211.7 47.6 27.7 17.0
KT Freetel (3239 KS) 3 Won 23,150 n.m. 12.2 7.8 6.2 8.0 8.3 7.8 7.5
M1 (M1 SP) 3 S$ 1.35 n.m. 9.9 9.2 10.9 11.0 9.9 9.2 8.5
mmO 2 (OOM LN) 2 GBp 59.75 n.m. n.m. n.m. 38.6 n.m. n.m. n.m. n.m.
Nextel (NXTL US) 3 US$ 19.49 n.m. n.m. 17.1 14.5 n.m. 11.3 19.8 17.0
NTT DoCoMo (9437 JP) 1 Yen 291,000 65.5 21.2 18.0 16.1 n.m. 68.7 21.9 20.3
Orange (OGE FP) 3 Eur 9.81 n.m. 124.9 24.9 17.5 n.m. n.m. 11.0 20.1
SK Telecom (1767 KS) 3 Won 200,000 11.7 9.5 6.4 6.4 9.4 7.5 6.1 5.6
SmarTone (315 HK) 3 HK$ 10.25 n.m. 15.9 15.8 n.m. n.m. 52.4 15.2 17.8
Sprint PCS (PCS US) 5 US$ 5.98 n.m. n.m. 13.8 4.9 n.m. n.m. n.m. n.m.
Taiwan Cellular (3045 TT) 3 NT$ 24.60 19.3 n.m. 7.3 7.2 6.4 7.4 7.2 7.0
Telefonica Moviles (TEM SM) 4 Eur 7.24 45.6 n.m. 11.6 9.3 34.5 n.m. 18.1 17.9
Vodafone (VOD LN) 2 GBp 124.00 35.2 n.m. 19.5 16.9 n.m. n.m. n.m. n.m.

–––– EBITDA margin (%)––– –––––––– Yield (%) ––––––––
AT&T (T US) 4 US$ 22.30 31.8 28.2 25.9 24.5 3.6 3.2 3.4 3.4
KPN (KPN NA) 3 Eur 6.66 29.0 36.0 39.1 39.1 0.0 0.0 0.0 3.3
KT Corp (3020 KS) 1 Won 45,350 37.3 37.4 39.1 40.0 1.6 2.0 2.4 2.8
NTT (9432 JP) 2 Yen 511,000 24.2 36.3 34.5 35.3 1.0 1.0 1.0 1.0
PCCW (8 HK) 4 HK$ 4.90 33.7 40.4 37.8 37.9 0.0 0.0 0.0 0.0
Qwest (Q US) 4 US$ 3.92 37.4 30.3 27.6 29.5 0.0 0.0 0.0 0.0
SBC (SBC US) 4 US$ 23.41 36.1 33.7 31.2 30.9 4.3 4.6 5.8 6.5
Sprint (FON US) 4 US$ 14.71 25.2 29.6 30.7 32.7 3.4 3.3 3.4 3.4
Telstra (TLS AU) 2 A$ 4.97 46.0 47.9 47.5 48.8 4.4 5.4 5.2 5.6
Verizon (VZ US) 3 US$ 35.51 41.3 40.2 39.8 40.3 4.3 4.3 4.3 4.3
Far EasTone (4904 TT) 3 NT$ 22.20 33.5 41.3 40.9 44.4 4.5 3.9 4.5 5.4
KDDI (9433 JP) 1 Yen 648,000 19.2 20.5 24.4 25.0 0.3 0.3 0.4 0.4
KT Freetel (3239 KS) 3 Won 23,150 29.3 33.2 34.3 35.2 0.0 0.0 4.1 5.3
M1 (M1 SP) 3 S$ 1.35 38.8 39.1 38.3 39.0 5.4 6.0 5.4 5.9
mmO 2 (OOM L N) 2 GBp 59.75 10.1 17.6 23.2 25.5 0.0 0.0 0.0 0.0
Nextel (NXTL US) 3 US$ 19.49 24.6 36.3 38.7 41.1 0.0 0.0 0.0 0.0
NTT DoCoMo (9437 JP) 1 Yen 291,000 36.3 38.4 38.8 39.1 0.5 0.2 0.3 0.3
Orange (OGE FP) 3 Eur 9.81 21.4 30.1 35.5 36.1 0.0 0.0 0.0 0.0
SK Telecom (1767 KS) 3 Won 200,000 47.3 47.8 47.7 48.0 1.1 1.3 1.6 1.8
SmarTone (315 HK) 3 HK$ 10.25 3.0 23.7 25.1 24.0 0.0 0.7 4.3 3.7

September 2003 19
–––– Net debt/EBITDA ––––– –––– Net debt/equity (%) –––
AT&T (T US) 4 US$ 22.30 0.80 0.75 1.31 1.11 61 46 68 54
BellSouth (BLS US) 3 US$ 25.57 1.47 1.19 0.89 0.70 110 82 58 44
BT Group (BT/A LN) 3 GBp 188.25 2.38 1.65 1.27 1.20 200 n.m. n.m. 192
China Telecom (728 HK) 2 HK$ 2.00 0.82 0.23 n.m. n.m. 25 8 n.m. n.m.
Deutsche Telekom (DTE GR) 3 Eur 13.29 4.09 3.76 2.90 2.31 116 122 144 113
France Telecom (FTE FP) 2 Eur 22.38 5.15 4.56 2.63 1.96 234 n.m. 425 107
KPN (KPN NA) 3 Eur 6.66 4.39 2.82 1.90 1.44 118 150 130 73
KT Corp (3020 KS) 1 Won 45,350 1.26 1.71 1.21 0.84 65 108 84 48
NTT (9432 JP) 2 Yen 511,000 2.05 1.36 1.21 0.93 86 94 80 60
PCCW (8 HK) 4 HK$ 4.90 5.31 4.05 3.83 3.52 n.m. n.m. n.m. n.m.
Portugal Telecom (PTC PL) 2 Eur 6.60 2.57 1.80 1.46 1.02 121 103 101 71
Qwest (Q US) 4 US$ 3.92 3.36 4.15 4.08 3.70 63 114 n.m. n.m.
SBC (SBC US) 4 US$ 23.41 1.30 1.07 0.75 0.63 81 56 33 27
Singapore Telecom (ST SP) 2 S$ 1.63 2.79 1.90 1.41 1.20 87 65 49 40
Sprint (FON US) 4 US$ 14.71 1.22 0.83 0.30 n.m. 39 28 n.m. n.m.
Swisscom (SCMN VX) 3 CHF 397.00 n.m. 0.13 n.m. n.m. n.m. 6 n.m. n.m.
Telecom Italia ordinaries (TIT IM) 4 Eur 2.185 2.70 2.38 2.50 2.20 103 88 83 100
Telecom Italia savers (TITR IM) 3 Eur 1.522 2.70 2.38 2.50 2.20 103 88 83 100
Telefonica (TEF SM) 3 Eur 10.90 2.25 2.10 1.74 1.39 111 115 126 109
Telstra (TLS AU) 2 A$ 4.97 1.19 1.02 0.99 0.86 40 35 34 31
Verizon (VZ US) 3 US$ 35.51 2.21 1.86 1.75 1.43 183 155 148 126
Weighted average 2.19 1.84 1.41 1.11 106 n.m. 105 53
AT&T Wireless (AWE US) 1 US$ 8.73 1.1 2.3 1.2 0.8 15 45 28 19
China Mobile (941 HK) 2 HK$ 21.00 n.m. 0.2 n.m. n.m. n.m. 12 n.m. n.m.
China Unicom (762 HK) 3 HK$ 5.80 0.1 1.8 0.9 0.4 2 53 33 16
Far EasTone (4904 TT) 3 NT$ 22.20 0.6 0.5 0.5 0.3 23 22 19 12
Japan Telecom (9434 JP) 3 Yen 355,000 3.3 1.6 1.5 1.3 222 203 165 132
KDDI (9433 JP) 1 Yen 648,000 3.0 2.4 1.7 1.3 193 156 123 85
KT Freetel (3239 KS) 3 Won 23,150 2.5 2.5 2.4 2.3 170 154 143 134
M1 (M1 SP) 3 S$ 1.35 1.0 0.9 0.6 0.4 71 52 33 22
mmO 2 (OOM LN) 2 GBp 59.75 1.4 0.6 0.6 0.4 0 4 7 5
Nextel (NXTL US) 3 US$ 19.49 6.5 3.4 2.5 2.1 n.m. 942 284 176
NTT DoCoMo (9437 JP) 1 Yen 291,000 0.7 0.4 0.3 n.m. 34 20 17 n.m.
Orange (OGE FP) 3 Eur 9.81 1.9 1.4 0.3 n.m. 30 43 12 n.m.
SK Telecom (1767 KS) 3 Won 200,000 1.0 0.4 n.m. n.m. 71 32 n.m. n.m.
SmarTone (315 HK) 3 HK$ 10.25 n.m. n.m. n.m. n.m. n.m. n.m. n.m. n.m.
Sprint PCS (PCS US) 5 US$ 5.98 10.5 5.6 4.2 3.4 n.m. n.m. n.m. n.m.
Taiwan Cellular (3045 TT) 3 NT$ 24.60 0.6 2.4 1.6 1.1 27 84 58 35
Telefonica Moviles (TEM SM) 4 Eur 7.24 2.7 1.9 1.2 0.7 142 131 136 71
Vodafone (VOD LN) 2 GBp 124.00 1.5 1.2 0.8 0.4 9 11 8 5
Weighted average 1.4 1.1 0.7 0.4 40 37 28 14

Share price performance
Share Shares Market
Bloomberg price in issue cap Relative performance Absolute performance (US$)
Company code (16 Sep) (m) (US$m) 1 Wk 1-mth 3-mth 12-mth 1 Wk 1-mth 3-mth 12-mth
Europe
BT Group plc BT/A LN 1.883 8,670.0 25,906.0 (1.47) (3.88) (10.93) (8.68) (0.36) (2.50) (2.97) (5.27)
Cable & Wireless CW/ LN 1.223 2,382.1 4,622.3 (3.77) (3.57) 17.11 (17.06) (2.68) (2.18) 27.57 (13.97)
Deutsche Telekom DTE GR 13.29 4,203.1 62,434.0 2.37 (6.62) (2.99) 20.46 1.83 (3.62) 10.94 13.76
Equant EQU FP 7.00 282.1 2,207.1 (4.56) (2.33) 4.03 76.77 (3.95) 0.58 16.04 67.57
Europolitan Vodafone AB EURO SS 43.00 410.2 2,167.4 (0.07) (5.67) (11.15) (19.16) n.a. 2.09 (5.72) 12.38
France Telecom FTE FP 22.38 2,231.7 55,824.4 2.00 (9.55) 5.03 144.89 2.64 (6.86) 17.15 132.16
KPN KPN NA 6.66 2,491.0 18,542.7 6.52 2.24 4.00 22.71 5.86 5.58 20.44 7.67
KPNQwest KQIP NA 0.12 457.4 61.3 0.92 (10.87) (35.74) 138.34 0.30 (7.95) (25.58) 109.13
mmO2 OOM LN 0.598 8,670.0 8,222.5 1.74 4.94 0.41 29.35 2.89 6.46 9.38 34.17
Mobistar MOBB BB 40.20 62.5 2,809.0 3.36 (1.06) 1.20 67.33 (1.75) (0.36) 18.55 106.06
Orange OGE FP 9.81 4,814.6 52,790.2 2.71 11.76 24.29 64.85 3.36 15.09 38.64 56.28
Portugal Telecom SGPS SA PTC PL 6.60 1254.3 9,252.6 3.25 2.55 (0.62) 11.78 3.92 4.63 6.72 1.79
Stet Hellas STHLY US 11.000 83.2 818.8 0.13 1.81 10.88 75.14 0.73 5.78 12.82 106.38
Swisscom SCMN VX 397.00 66.2 18,914.5 (0.62) (0.22) (7.83) (9.51) 0.32 4.29 (5.78) 7.48
Tele2 AB TEL2B SS 332.00 125.8 5,130.5 3.36 (1.06) 1.20 67.33 3.51 7.09 7.38 132.62
Telecom Italia Mobile SpA TIM IM 4.059 8,434.0 38,262.9 0.26 (2.91) (5.98) (11.52) (0.07) (2.66) (1.67) (17.40)
Telecom Italia S.p.A. TIT IM 2.185 10,287.4 25,123.7 3.23 (5.64) (4.09) (6.71) 2.89 (5.39) 0.30 (12.92)
Telecom Italia- RNC TITR IM 1.522 5,795.9 9,859.7 4.90 (0.87) n.a. n.a. 4.56 (0.61) n.a. n.a.
Telefonica TEF SM 10.90 4,955.9 60,377.3 0.31 1.65 3.93 11.03 (0.61) 1.68 12.00 13.45
Telefonica Moviles TEM SM 7.24 4,330.6 35,043.5 (0.95) 3.11 (2.44) (2.31) (1.87) 3.14 5.14 (0.18)
TeliaSonera AB TLSN SS 34.90 4,675.2 20,047.9 (2.03) (0.84) (4.00) 6.77 (1.88) 7.32 1.87 48.43
UPC UPC NA 0.10 443.4 49.6 12.13 (3.44) 13.80 41.87 n.a. (0.28) 31.78 24.48
Vodafone VOD LN 1.240 67,895.1 133,630.4 0.81 (0.20) (1.73) 28.29 1.95 1.24 7.04 33.07
Vodafone Panafon PANF GA 0.06 543.3 3,643.6 (1.65) 8.35 1.30 29.40 (2.62) 0.73 10.59 16.70
USA
AT&T T US 22.30 788.1 17,573.7 0.76 2.06 9.31 (26.92) 1.36 6.04 11.22 (13.89)
AT&T Wireless AWE US 8.73 2,713.2 23,686.5 (1.72) 6.90 14.10 47.00 (1.13) 11.07 16.09 73.21
Bellsouth BLS US 25.57 1,847.4 47,237.0 0.23 (2.88) (6.30) (5.03) 0.83 0.91 (4.66) 11.90
Global Crossing GBLXQ US 0.023 888.6 20.4 3.92 22.98 7.64 (11.28) 4.55 27.78 9.52 4.55
Nextelcommunications NXTL US 19.49 999.9 19,487.6 (1.41) 7.13 15.38 101.95 (0.81) 11.31 17.40 137.97
Qwest Communication Q US 3.92 1,695.4 6,645.8 (5.42) (4.97) (22.79) 5.61 (4.85) (1.26) (21.44) 24.44
SBC Communications SBC US 23.41 3,323.6 77,805.1 1.53 (3.01) (9.95) (18.24) 2.14 0.77 (8.38) (3.66)
Sprint FON US 14.71 903.2 13,285.6 (1.40) (0.37) (0.63) 25.08 (0.81) 3.52 1.10 47.39
Sprint PCS PCS US 5.98 1,034.5 6,186.1 3.38 7.78 (0.04) 56.63 4.00 11.99 1.70 84.57
Verizon Communications VZ US 35.51 2,756.3 97,875.7 0.42 (4.59) (12.68) (1.33) 1.02 (0.87) (11.16) 16.27
WorldCom WCOEQ US 0.072 2,962.8 213.3 (20.92) 34.56 37.74 (51.12) (20.44) 39.81 40.13 (42.40)
Japan
Japan Telecom 9434 JP 355,000 3.2 9,762.5 (1.57) (7.75) (12.90) (5.21) (0.07) 3.38 5.24 12.31
KDDI 9433 JP 648,000 4.2 23,652.4 2.04 (2.50) 10.64 51.90 7.05 12.91 38.13 85.96
NTT 9432 JP 511,000 16.0 70,474.1 (1.31) (6.80) (5.24) 0.49 0.38 4.64 14.70 19.27
NTT DoCoMo 9437 JP 291,000 50.2 125,676.7 2.52 (4.60) (5.53) 16.68 1.82 4.60 11.65 35.24
Softbank 9984 JP 4,660 336.9 13,511.0 8.13 32.42 148.90 282.43 7.71 45.61 195.03 344.56
Usen 4842 JP 73,900 1.2 760.8 7.86 50.04 173.60 133.68 3.72 59.27 213.08 162.23
Yahoo! Japan 4689 JP 2,430,000 0.9 19,708.7 15.54 15.28 35.41 201.59 12.85 24.28 57.37 243.75
Source: Bloomberg

September 2003 21
Share price performance (cont’d)
Share Shares Market
Bloomberg price in issue cap Relative performance Absolute performance (US$)
Company code (16 Sep) (m) (US$m) 1 Wk 1-mth 3-mth 12-mth 1 Wk 1-mth 3-mth 12-mth
Hong Kong/China
APT Satellite 1045 HK 2.45 413.2 129.8 (18.21) (14.37) 13.83 2.10 (13.37) (4.05) 31.11 25.53
AsiaSat 1135 HK 12.75 390.3 638.0 (6.10) (8.44) (7.41) 10.92 (5.18) (2.19) 1.68 30.02
CCT 138 HK 1.01 422.1 54.7 (1.92) 16.23 2.00 (10.17) (0.21) 25.10 12.85 6.09
China Mobile 941 HK 21.00 19,671.7 52,966.2 0.18 5.00 (2.81) (5.70) 1.69 10.52 6.32 6.60
China Telecom 728 HK 2.00 8,027.4 2,058.5 (11.51) (10.70) 2.07 n.a. (11.11) (6.98) 10.49 n.a.
China Unicom 762 HK 5.80 12,553.0 9,335.0 0.53 4.26 (7.53) (1.04) 2.54 12.50 2.56 17.15
CTI 1137 HK 2.625 604.9 203.6 (0.99) (1.66) 16.82 52.63 2.73 7.94 31.81 83.81
Hutchison Whampoa 13 HK 57.75 4,263.4 31,567.8 (1.62) 5.82 8.05 1.97 0.34 14.17 19.84 20.71
i-Cable 1097 HK 2.025 2,019.2 524.3 (1.17) (11.79) (17.05) (49.54) 2.55 (3.18) (6.41) (39.23)
PCCW 8 HK 4.90 5,368.8 3,372.9 3.91 12.28 (16.20) (27.68) 6.19 21.38 (6.87) (14.22)
SmarTone 315 HK 10.25 583.0 766.2 (2.87) 3.62 7.73 13.38 (0.68) 12.10 19.79 34.58
Sunday 866 HK 0.33 2,990.0 126.5 4.96 14.09 88.68 158.56 7.28 23.36 109.71 206.74
Korea
Dacom 1594 KS 9,650 37.0 305.5 3.66 (2.42) (25.40) (46.03) 4.68 3.96 (13.92) (40.52)
Daum 3572 KS 63,700 14.7 801.0 0.94 (7.63) (9.71) 103.07 1.93 (1.59) 4.19 123.77
Dreamline 3543 KS 270 23.6 5.5 (13.74) (77.61) (83.43) (90.18) (12.89) (76.14) (80.88) (89.18)
Hanaro 3363 KS 3,510 279.3 838.0 (8.64) 14.44 2.66 (26.44) (7.75) 21.03 17.00 (22.17)
Hanaro (ADR) HANA US 3.07 279.3 857.5 (4.08) 26.69 8.98 (13.13) (3.14) 28.85 11.40 (8.64)
Korea Thrunet KOREQ US 0.001 25.9 0.0 (0.96) (99.62) (12.26) (99.95) 0.01 (99.60) 1.24 (99.94)
KT Corp (ADR) KTC US 19.35 581.4 11,249.5 4.27 2.05 1.67 (12.73) 5.28 3.04 2.65 (11.89)
KT Corp (local) 3020 KS 45,350 290.7 11,267.7 5.31 (1.99) (11.28) (21.78) 6.34 4.41 2.37 (13.80)
KT Freetel 3239 KS 23,150 191.1 3,782.1 (1.39) (5.66) (16.24) (35.64) (0.42) 0.51 (3.35) (29.08)
KT Hitel 3603 KS 8,940 34.5 263.6 11.09 4.35 (4.34) 178.88 12.19 11.18 10.38 207.32
LG Telecom 3264 KS 4,075 277.3 965.8 0.02 (3.07) (10.39) (34.94) 1.00 3.26 3.40 (28.30)
SK Telecom (ADR) SKM US 18.98 762.3 14,467.6 4.67 1.77 1.61 (12.57) 5.68 2.76 2.60 (11.72)
SK Telecom (local) 1767 KS 200,000 82.3 14,065.0 3.44 (2.78) (11.37) (21.40) 4.45 3.58 2.27 (13.38)
Taiwan
Chunghwa Telecom 2412 TT 48.30 9,647.7 13,665.3 (0.53) (3.29) (19.62) (14.40) 0.63 1.26 (7.12) 6.15
Far EasTone 4904 TT 22.20 2,697.8 1,756.3 (1.59) (6.59) (13.88) (30.18) 0.00 (1.76) (0.03) (13.03)
GigaMedia GIGM US 2.30 50.2 115.4 13.68 37.30 68.68 157.59 15.00 43.75 94.92 219.44
Taiwan Cellular 3045 TT 24.60 4,679.3 3,375.7 (1.55) (8.57) (15.49) (37.05) 1.22 (2.72) (0.76) (20.67)
Singapore
Keppel T&T KPTT SP 0.86 545.8 268.2 0.05 (3.36) (12.91) (18.50) 2.38 (2.83) (7.68) (9.09)
MobileOne (Asia) M1 SP 1.35 1,050.0 809.9 (1.55) (5.46) (4.71) n.a. 0.75 (4.94) 1.00 n.a.
Pacific Internet PCNTF US 8.05 12.8 103.2 (3.48) 32.44 (8.95) 246.70 (1.23) 35.52 (6.83) 254.78
Singapore Telecom ST SP 1.63 17,826.5 16,602.2 (2.87) (4.09) (4.49) 0.87 (0.61) (3.56) 1.24 12.53
Australasia
Telecom NZ TEL AU 4.40 1,914.9 5,586.6 (0.47) (2.79) (4.11) 2.71 (3.11) (3.13) (1.70) (15.07)
Telstra TLS AU 4.94 6,420.6 21,030.5 0.78 3.90 7.52 0.55 (1.11) 4.36 11.10 (16.20)
Malaysia
Digi.com * DIGI MK 3.80 750.0 750.0 (1.35) (6.33) (18.50) 9.19 0.00 (4.04) (11.22) 18.01
Telekom Malaysia T MK 7.85 3,198.7 6,607.8 0.56 2.14 (8.78) (5.08) 1.94 4.64 (0.63) 2.60
Thailand
Advanced Info Services ADVANC TB 56.50 2,937.8 4,096.8 (1.40) (7.89) (3.41) 64.48 0.46 (4.90) 6.28 83.49
TelecomAsia TA TB 6.95 2,994.8 513.7 (4.34) (3.34) 19.91 4.50 (2.53) (0.20) 31.94 16.58
Total Access Comms TAC SP 1.57 474.4 425.6 (2.60) (7.58) 24.57 39.67 (0.63) 1.29 60.20 121.13
Philippines
Globe Telecom GLO PM 695.00 151.9 1,918.6 (0.92) 0.78 2.11 18.25 0.61 6.20 3.02 27.33
PLDT TEL PM 635.00 169.3 1,953.6 1.44 20.56 16.54 93.04 (0.89) 22.23 13.12 99.98
Source: Bloomberg
* Price as of 15 Sep 03

Corporate earnings
Europe
Revenue Op. profit EBITDA Net profit EPS DPS CAPX
Y/E December (EURm) (%) (EURm) (%) (EURm) (%) (EURm) (%) (EUR) (EUR) (EURm)
France Telecom
FY01 43,026 27.8 2,879 (27.8) 12,320 14.0 (8,280) n.m. (7.51) 1.00 8,091
FY02 46,630 8.4 4,456 54.8 14,917 21.1 (20,736) n.m. (19.11) 0.00 7,441
FY03F 46,945 0.7 10,495 135.6 17,215 15.4 2,086 n.m. 1.06 0.00 5,601
FY04F 49,434 5.3 11,357 8.2 18,549 7.8 3,741 79.4 1.68 0.00 6,042
FY05F 51,960 5.1 11,765 3.6 19,264 3.9 5,012 34.0 2.25 1.00 6,247
Deutsche Telekom
FY01 48,309 18.0 1,762 n.m. 15,188 17.4 (3,454) n.m. (0.93) 0.63 9,847
FY02 53,689 11.1 829 (53.0) 16,314 7.4 (24,587) n.m. (5.86) 0.00 7,589
FY03F 54,994 2.4 5,032 507.0 17,916 9.8 810 n.m. 0.19 0.00 6,765
FY04F 58,364 6.1 6,886 36.8 19,073 6.5 2,805 246.1 0.67 0.20 7,235
FY05F 59,699 2.3 7,910 14.9 19,575 2.6 4,175 48.9 1.00 0.40 6,635
KPN
FY01 12,362 10.8 (153) n.m. 3,589 5.5 (7,495) n.m. (3.01) 0.00 2,949
FY02 12,170 (1.6) 1,614 n.m. 4,378 22.0 (9,542) n.m. (3.83) 0.00 1,136
FY03F 12,267 0.8 2,028 25.6 4,798 9.6 904 n.m. 0.36 0.00 1,391
FY04F 12,671 3.3 2,133 5.2 4,952 3.2 1,106 22.4 0.44 0.22 1,582
FY05F 12,886 1.7 2,493 16.9 5,258 6.2 1,532 38.5 0.62 0.46 1,445

Y/E December (CHFm) (%) (CHFm) (%) (CHFm) (%) (CHFm) (%) (CHF) (CHF) (CHFm)
Swisscom
FY01 14,174 1.4 2,230 22.0 4,409 9.3 4,955 57.1 67.49 11.00 1,236
FY02 14,526 2.5 2,404 7.8 4,410 0.0 820 (83.4) 11.86 12.00 1,222
FY03F 14,725 1.4 2,441 1.5 4,399 (0.2) 1,720 109.7 25.99 13.00 1,305
FY04F 15,095 2.5 2,190 (10.3) 4,329 (1.6) 1,692 (1.7) 25.55 14.00 1,302
FY05F 15,380 1.9 2,048 (6.5) 4,404 1.7 1,723 1.8 26.02 15.00 1,255

Y/E March (GBPm) (%) (GBPm) (%) (GBPm) (%) (GBPm) (%) (GBp) (GBp) (GBPm)
BT Group
FY02 18,447 7.6 2,655 (13.9) 5,748 (0.5) 995 n.m. 8.80 2.00 3,140
FY03 18,727 1.5 2,790 5.1 5,806 1.0 1,226 23.2 14.23 6.50 2,445
FY04F 19,151 2.3 2,932 5.1 6,043 4.1 1,469 19.8 17.03 10.00 2,635
FY05F 19,502 1.8 3,010 2.7 6,251 3.4 1,768 20.4 20.50 11.00 2,657
FY06F 19,682 0.9 3,057 1.6 6,138 (1.8) 1,807 2.2 20.95 11.52 2,789

Portugal Telecom
FY01 5,727 11.3 1,013 21.0 2,124 8.5 307 (43.1) 0.25 0.10 1,316
FY02 5,582 (2.5) 1,124 10.9 2,230 5.0 391 27.3 0.31 0.16 776
FY03F 5,587 0.1 1,230 9.5 2,236 0.3 388 (0.7) 0.31 0.21 709
FY04F 5,854 4.8 1,374 11.7 2,424 8.4 619 59.4 0.49 0.25 821
FY05F 6,091 4.1 1,507 9.7 2,551 5.2 766 23.7 0.61 0.31 755
Telefonica
FY01 31,053 9.0 5,430 9.5 12,804 7.4 2,107 (15.9) 0.46 0.00 6,771
FY02 28,411 (8.5) 4,366 (19.6) 11,724 (8.4) (5,577) n.m. (1.13) 0.25 3,789
FY03F 28,371 (0.1) 4,967 13.8 11,783 0.5 1,654 n.m. 0.33 0.25 4,640
FY04F 30,659 8.1 6,239 25.6 12,794 8.6 2,506 51.5 0.51 0.25 4,678
FY05F 32,058 4.6 6,785 8.7 13,391 4.7 3,210 28.1 0.65 0.31 4,670
Telecom Italia
FY01 32,016 12.8 5,308 n.a. 12,948 5.5 (3,090) n.m. (0.35) 0.03 6,990
FY02 31,408 (1.9) 5,989 12.8 13,257 2.4 (773) n.m. (0.09) 0.00 4,842
FY03F 30,772 (2.0) 7,138 19.2 13,357 0.8 2,174 n.m. 0.14 0.10 4,648
FY04F 31,320 1.8 7,589 6.3 13,851 3.7 1,009 (53.6) 0.06 0.10 4,857
FY05F 32,207 2.8 8,079 6.4 14,260 2.9 1,476 46.3 0.09 0.10 4,595
Note: All the forecasts are as of September 16th, please contact to analyst for the latest.

September 2003 23
Corporate earnings (cont’d)
Vodafone
FY02 22,845 52.3 (11,834) n.m. 8,031 62.6 (16,155) n.m. (23.77) 1.47 4,145
FY03 30,375 33.0 (5,451) n.m. 11,217 39.7 (9,819) n.m. (14.41) 1.69 5,289
FY04F 31,974 5.3 (4,269) n.m. 12,243 9.1 (8,879) n.m. (13.02) 1.95 5,035
FY05F 33,370 4.4 (4,297) n.m. 12,843 4.9 (8,678) n.m. (12.73) 2.25 5,172
FY06F 34,740 4.1 (4,282) n.m. 13,557 5.6 (8,498) n.m. (12.46) 2.44 5,036

Orange
FY01 15,330 27.1 1,502 292.2 3,400 92.6 (4,459) n.m. (0.94) 0.00 3,018
FY02 17,085 11.4 2,782 85.2 5,146 51.4 (4,536) n.m. (0.94) 0.00 3,538
FY03F 17,884 4.7 4,011 44.2 6,353 23.5 4,280 n.m. 0.89 0.00 2,852
FY04F 19,223 7.5 4,322 7.8 6,945 9.3 2,354 (45.0) 0.49 0.00 2,668
FY05F 20,355 5.9 4,889 13.1 7,594 9.3 2,855 21.3 0.59 0.00 2,719

mmO2
FY02 4,276 11.5 (856) n.m. 433 n.m. (850) n.m. (9.80) 0.00 1,240
FY03 4,874 14.0 (8,778) n.m. 859 98.4 (10,148) n.m. (117.00) 0.00 975
FY04F 5,179 6.3 (44) n.m. 1,204 40.2 (100) n.m. (1.15) 0.00 1,295
FY05F 5,618 8.5 (41) n.m. 1,431 18.8 (102) n.m. (1.18) 0.00 1,236
FY06F 6,091 8.4 48 n.m. 1,660 16.0 12 n.m. 0.13 0.00 1,096

Telefonica Moviles
FY01 8,411 13.6 2,076 47.0 3,334 36.0 894 51.3 0.21 0.00 1,696
FY02 9,140 8.7 2,419 16.6 3,736 12.1 (3,724) n.m. (0.86) 0.18 919
FY03F 9,868 8.0 2,924 20.9 4,330 15.9 1,718 n.m. 0.40 0.18 1,335
FY04F 10,448 5.9 2,957 1.1 4,576 5.7 1,732 0.9 0.40 0.18 1,281
FY05F 11,072 6.0 3,151 6.5 4,873 6.5 1,881 8.6 0.43 0.20 1,231
USA
Y/E December (US$m) (%) (US$m) (%) (US$m) (%) (US$m) (%) (US$) (US$) (US$m)
AT&T
FY01 42,196 (9.9) 7,831 (38.8) 13,426 (25.8) 9,148 13.7 0.09 0.80 5,767
FY02 37,827 (10.4) 4,361 (44.3) 10,686 (20.4) (13,083) n.m. 1.26 0.71 3,878
FY03F 35,270 (6.8) 4,207 (3.5) 9,147 (14.4) 2,026 n.m. 2.52 0.75 3,591
FY04F 35,199 (0.2) 3,707 (11.9) 8,608 (5.9) 1,848 (8.8) 2.32 0.75 3,600
FY05F 36,342 3.2 3,474 (6.3) 8,492 (1.4) 1,766 (4.4) 2.20 0.75 3,700
Bellsouth
FY01 29,589 7.8 7,716 6.4 13,260 7.3 4,265 28.0 2.26 0.76 5,997
FY02 28,497 (3.7) 7,106 (7.9) 12,488 (5.8) 3,818 (10.5) 2.04 0.78 3,785
FY03F 28,282 (0.8) 7,110 0.1 12,389 (0.8) 3,899 2.1 2.07 0.90 3,298
FY04F 29,410 4.0 7,545 6.1 13,291 7.3 4,307 10.4 2.28 0.92 3,503
FY05F 30,400 3.4 8,272 9.6 14,183 6.7 4,829 12.1 2.56 0.92 3,649
Qwest Communications International

FY01 16,741 6.5 (1,299) n.m. 5,175 (14.8) (4,786) n.m. (0.72) 0.00 8,543
FY02 15,487 (7.5) (18,176) n.m. 4,248 (17.9) (35,913) n.m. (0.48) 0.00 2,866
FY03F 14,750 (4.8) 802 n.m. 3,999 (5.9) (207) n.m. (0.30) 0.00 3,000
FY04F 15,204 3.1 1,149 43.3 4,409 10.3 (161) n.m. (0.09) 0.00 3,200
SBC Communications
FY01 45,908 (10.6) 10,508 (2.2) 19,585 (4.4) 7,007 (12.0) 2.29 1.00 11,189
FY02 43,138 (6.0) 8,621 (18.0) 17,199 (12.2) 5,650 (19.4) 2.17 1.07 6,808
FY03F 41,924 (2.8) 7,687 (10.8) 15,707 (8.7) 9,103 61.1 1.61 1.37 4,821
FY04F 43,597 4.0 7,851 2.1 16,114 2.6 5,100 (44.0) 1.54 1.53 6,540
FY05F 46,708 7.1 9,633 22.7 18,132 12.5 6,354 24.6 1.91 1.53 7,006

Y/E December (US$m) (%) (US$m) (%) (US$m) (%) (US$m) (%) (US$) (US$) (US$m)
Verizon Communications
FY01 67,190 3.8 11,533 (31.2) 27,781 9.9 391 (96.7) 3.02 1.54 17,371
FY02 67,304 0.2 15,004 30.1 27,099 (2.5) 4,080 944.3 3.04 1.53 13,058
FY03F 69,378 3.1 13,576 (9.5) 27,619 1.9 6,265 53.6 2.64 1.54 12,177
FY04F 74,747 7.7 16,087 18.5 30,132 9.1 8,439 34.7 3.07 1.54 12,534
FY05F 74,990 0.3 15,648 (2.7) 30,142 0.0 8,383 (0.7) 3.09 1.54 12,616
Sprint Corporation (FON Group)

FY01 16,940 (4.2) 8 n.m. 4,261 (16.5) (122) n.m. 1.14 0.50 5,295
FY02 15,227 (10.1) 1,612 n.m. 4,508 5.8 1,235 n.m. 1.15 0.49 2,181
FY03F 14,161 (7.0) 1,362 (15.5) 4,347 (3.6) 2,524 104.4 1.29 0.50 1,872
FY04F 14,227 0.5 1,853 36.0 4,653 7.0 1,317 (47.8) 1.44 0.50 2,300
FY05F 14,901 4.7 1,930 4.2 4,807 3.3 1,360 3.3 1.47 0.50 2,450
AT&T Wireless Services

FY01 13,622 30.4 248 n.m. 2,859 73.6 (963) n.m. (0.02) 0.00 5,205
FY02 15,631 14.7 (258) n.m. 3,822 33.7 (2,342) n.m. (0.02) 0.00 5,302
FY03F 16,628 6.4 1,739 n.m. 4,715 23.4 743 n.m. 0.27 0.00 3,074
FY04F 17,540 5.5 2,247 29.2 5,353 13.5 1,030 38.7 0.38 0.00 3,200
FY05F 18,907 7.8 3,063 36.3 6,261 17.0 1,646 59.9 0.61 0.00 3,200
Sprint Corporation (PCS Group)

FY01 9,725 53.4 (647) n.m. 1,513 n.m. (1,268) n.m. (1.27) 0.00 3,751
FY02 12,074 24.2 475 n.m. 2,880 90.4 (592) n.m. (0.62) 0.00 2,668
FY03F 12,532 3.8 913 92.2 3,400 18.1 (435) n.m. (0.39) 0.00 2,030
FY04F 12,728 1.6 1,343 47.1 3,899 14.7 (63) n.m. (0.06) 0.00 1,550
FY05F 12,130 (4.7) 1,451 8.0 4,062 4.2 94 n.m. 0.09 0.00 1,400
Nextel Communications
FY01 7,689 n.a. (1,715) n.m. 1,901 n.a. (2,858) n.m. (3.67) (1.06) n.a.
FY02 8,721 13.4 1,536 n.m. 3,166 66.5 1,660 n.m. 1.72 0.00 1,863
FY03F 10,064 15.4 2,205 43.6 3,899 23.1 1,037 (37.6) 0.99 0.00 1,801
FY04F 9,971 (0.9) 2,346 6.4 4,096 5.1 1,205 16.2 1.14 0.00 1,800
FY05F 10,192 2.2 2,341 (0.2) 4,141 1.1 1,255 4.2 1.19 0.00 1,870
Japan
Y/E March (¥m) (%) (¥m) (%) (¥m) (%) (¥m) (%) (¥) (¥) (¥m)
NTT
FY01 11,027,753 (3.4) 61,534 (93.2) 2,669,121 (28.6) (834,672) n.m. (51,734) 5,000 2,291,900
FY02 10,923,146 (0.9) 1,363,557 n.m. 3,966,557 48.6 233,358 n.m. 14,647 5,000 1,977,600
FY03F 10,975,000 0.5 1,390,000 1.9 3,781,000 (4.7) 490,000 110.0 31,147 5,000 1,980,000
FY04F 10,960,000 (0.1) 1,492,000 7.3 3,865,000 2.2 540,000 10.2 34,325 5,000 1,927,000
KDDI
FY01 2,833,799 24.9 102,297 15.2 522,697 5.2 12,979 (3.3) 3,061 1,790 369,300
FY02 2,785,343 (1.7) 140,652 37.5 569,752 9.0 57,358 341.9 13,561 2,095 246,200
FY03F 2,808,000 0.8 269,000 91.3 686,000 20.4 98,500 71.7 23,366 2,400 338,000
FY04F 2,860,000 1.9 298,000 10.8 716,000 4.4 160,800 63.2 38,144 2,400 326,000
Japan Telecom
FY01 1,704,039 16.3 89,134 (20.3) 312,734 7.0 (65,969) n.m. (20,646) 600 471,300
FY02 1,796,915 5.5 275,606 209.2 541,906 73.3 79,502 n.m. 24,882 1,200 279,300
FY03F 1,863,000 3.7 222,000 (19.5) 552,000 1.9 63,600 (20.0) 19,905 1,200 343,000
FY04F 1,912,000 2.6 225,000 1.4 572,000 3.6 64,600 1.6 20,218 1,200 331,000
NTT DoCoMo
FY01 4,659,254 (0.6) 1,000,887 28.8 1,679,987 17.6 (116,191.0) n.m. (11,577) 1,500 1,032,200
FY02 4,809,088 3.2 1,056,719 5.6 1,844,491 9.8 212,491 n.m. 4,235 500 854,000
FY03F 4,968,000 3.3 1,136,000 7.5 1,930,000 4.6 633,000 197.9 13,279 1,000 818,000
FY04F 5,090,000 2.5 1,192,000 4.9 1,991,000 3.2 682,000 7.7 14,307 1,000 795,000

September 2003 25
Asia (ex-Japan)
Y/E December (Rmb m) (%) (Rmb m) (%) (Rmb m) (%) (Rmb m) (%) (HK$)* (HK$)* (Rmb m)
China Mobile
FY01 100,331 54.4 42,606 53.6 60,270 60.7 28,015 55.4 1.42 n.a. 42,330
FY02 128,561 28.1 49,546 16.3 77,309 28.3 32,742 16.9 1.61 0.32 49,680
FY03F 156,021 21.4 55,256 11.5 91,702 18.6 35,522 8.5 1.70 0.34 44,322
FY04F 165,319 6.0 58,835 6.5 96,916 5.7 38,829 9.3 1.86 0.37 38,568
FY05F 174,833 5.8 65,027 10.5 102,877 6.2 43,523 12.1 2.09 0.42 35,717
China Unicom
FY01 29,393 24.1 5,263 0.8 13,526 23.4 4,457 37.8 0.335 n.a. 31,253
FY02 40,577 38.0 7,324 39.1 18,579 37.4 4,566 2.5 0.343 0.09 18,944
FY03F 67,260 65.8 8,635 17.9 25,128 35.2 4,800 5.1 0.361 0.10 19,766
FY04F 75,129 11.7 11,417 32.2 30,729 22.3 6,731 40.2 0.506 0.14 17,612
FY05F 80,298 6.9 10,983 (3.8) 32,623 6.2 6,490 (3.6) 0.488 0.13 16,595
China Telecom 1
FY01 62,256 (3.8) 13,147 (24.0) 30,950 (10.8) 9,289 (28.0) 0.128 n.a. 40,028
FY02 69,478 11.6 15,360 16.8 36,242 17.1 10,846 16.8 0.148 0.01 28,919
FY03F 75,644 8.9 18,529 20.6 40,297 11.2 12,800 18.0 0.160 0.07 25,000
FY04F 80,994 7.1 21,064 13.7 43,428 7.8 14,619 14.2 0.182 0.07 23,500
FY05F 83,571 3.2 22,784 8.2 45,389 4.5 16,071 9.9 0.201 0.07 19,577
*1 Converted at HK$1 = Rmb1.06
Numbers exclude amortised revenue on connection fee
Y/E December (HK$m) (%) (HK$m) (%) (HK$m) (%) (HK$m) (%) (HK$) (HK$) (HK$m)
PCCW
FY01 21,959 6.2 4,833 26.5 7,396 20.0 1,343 n.a. 0.300 0.00 2,415
FY02 20,112 (8.4) 5,288 9.4 8,120 9.8 (7,762) n.a. (1.685) 0.00 1,611
FY03F 20,156 0.2 4,797 (9.3) 7,623 (6.1) 1,363 n.a. 0.274 0.00 1,778
FY04F 20,199 0.2 4,809 0.2 7,650 0.4 1,298 (4.8) 0.242 0.00 1,778
FY05F 19,593 (3.0) 4,862 1.1 7,733 1.1 1,564 20.5 0.290 0.06 1,778

Y/E June (HK$m) (%) (HK$m) (%) (HK$m) (%) (HK$m) (%) (HK$) (HK$) (HK$m)
SmarTone
FY01 2,485 (14.1) (321) n.a. 75 (76.6) (284) n.a. (0.470) 0.00 367
FY02 2,401 (3.4) 145 n.a. 568 657.4 115 n.a. 0.196 0.07 250
FY03F 2,817 17.3 312 114.5 707 24.5 394 241.8 0.674 0.44 400
FY04F 2,754 (2.2) 260 (16.7) 662 (6.4) 337 (14.4) 0.577 0.38 500
FY05F 2,974 8.0 381 46.5 793 19.8 397 17.6 0.679 0.45 500

Y/E March (S$m) (%) (S$m) (%) (S$m) (%) (S$m) (%) (S$) (S$) (S$m)
Singapore Telecom 2
FY02 7,338 49.0 3,057 17.4 3,635 10.5 1,631 (18.7) 9.77 5.50 3,000
FY03 10,259 39.8 3,700 21.0 5,112 40.7 1,401 (14.1) 7.86 5.50 1,668
FY04F 11,138 8.6 4,047 9.4 5,630 10.1 2,519 79.9 14.13 5.50 1,683
FY05F 11,614 4.3 4,172 3.1 5,902 4.8 1,944 (22.8) 10.90 5.50 1,724
FY06F 11,711 0.8 4,193 0.5 6,177 4.7 2,195 12.9 12.31 5.50 1,714
2
EBITDA include IDA compensation & associate contribution.
Y/E December (S$m) (%) (S$m) (%) (S$m) (%) (S$m) (%) (S$) (S$) (S$m)
MobileOne
FY01 639 12.6 138 59.3 223 39.1 100 70.8 9.57 0.00 158
FY02 699 9.3 173 24.9 271 21.6 128 27.8 12.23 7.33 134
FY03F 744 6.5 192 11.3 291 7.3 143 11.0 13.57 8.10 135
FY04F 798 7.3 198 3.0 306 5.3 154 8.4 14.70 7.40 140
FY05F 827 3.5 210 6.0 322 5.3 166 7.8 15.85 7.93 142

Y/E December (Wonbn) (%) (Wonbn) (%) (Wonbn) (%) (Wonbn) (%) (Won) (Won) (Wonbn)
KT Corp
FY01 15,945 17.8 1,943 84.8 5,952 56.0 1,113 12.8 3,564 720 3,918
FY02 16,394 2.8 2,338 20.4 6,135 3.1 1,947 74.9 5,998 860 3,232
FY03F 16,823 2.6 2,641 13.0 6,576 7.2 1,983 1.9 8,015 1,037 3,762
FY04F 17,602 4.6 3,199 21.1 7,034 7.0 1,978 (0.3) 7,994 1,244 3,411
FY05F 18,425 4.7 3,565 11.4 7,319 4.0 2,280 15.3 9,216 1,493 3,407

Y/E December (Wonbn) (%) (Wonbn) (%) (Wonbn) (%) (Wonbn) (%) (Won) (Won) (Wonbn)
SK Telecom
FY01 6,227 8.1 2,203 34.7 3,301 28.9 1,141 20.1 13,180 690 1,244
FY02 8,635 38.7 2,673 21.3 4,087 23.8 1,512 32.6 16,963 1,696 1,973
FY03F 9,505 10.1 2,884 7.9 4,542 11.1 1,873 23.9 21,229 2,123 1,950
FY04F 10,396 9.4 3,271 13.4 4,959 9.2 2,266 21.0 25,949 2,595 1,535
FY05F 11,004 5.9 3,507 7.2 5,281 6.5 2,493 10.0 28,555 2,855 1,817
KT Freetel
FY01 5,018 15.5 788 452.0 1,407 134.0 435 n.m. 2,362 0 1,129
FY02 5,354 6.7 844 7.1 1,570 11.6 532 22.4 2,891 0 1,125
FY03F 5,257 (1.8) 918 8.7 1,743 11.0 506 (4.9) 2,782 0 1,080
FY04F 5,510 4.8 970 5.7 1,889 8.4 534 5.6 2,973 951 1,004
FY05F 5,811 5.4 1,037 6.8 2,048 8.4 551 3.2 3,067 1,227 967

Y/E December (NT$m) (%) (NT$m) (%) (NT$m) (%) (NT$m) (%) (NT$) (NT$) (NT$m)
Taiwan Cellular Corp
FY01 60,625 16.8 19,471 24.7 24,107 34.1 16,751 18.3 5.13 1.90 13,578
FY02 58,729 (3.1) 16,123 (17.2) 21,450 (11.0) 14,937 (10.8) 3.33 2.00 10,800
FY03F 63,101 7.4 17,933 11.2 24,309 13.3 15,428 3.3 3.43 2.07 7,800
FY04F 62,802 (0.5) 18,073 0.8 24,508 0.8 15,788 2.3 3.51 2.11 7,763
FY05F 63,911 1.8 18,722 3.6 25,260 3.1 16,621 5.3 3.69 2.23 7,900
Far EasTone
FY01 34,544 7.4 6,553 66.4 11,577 64.3 6,626 64.0 4.03 1.00 13,081
FY02 34,476 (0.2) 7,915 20.8 14,279 23.3 7,807 17.8 3.72 1.30 12,965
FY03F 35,820 3.9 7,937 0.3 14,661 2.7 7,295 (6.6) 2.88 1.01 8,998
FY04F 37,588 4.9 10,206 28.6 16,704 13.9 9,458 29.7 3.43 1.20 5,075
FY05F 37,784 0.5 10,266 0.6 16,891 1.1 9,534 0.8 3.46 1.21 7,429

Y/E December (NT$bn) (%) (NT$bn) (%) (NT$bn) (%) (NT$bn) (%) (NT$) (NT$) (NT$bn)
Chunghwa Telecom
FY01 184.4 n.a. 44.6 n.a. 83.5 n.a. 37.4 n.a. 3.87 3.50 52.9
FY02 179.4 (2.8) 55.7 24.7 96.0 14.9 44.1 17.7 4.57 4.00 43.3
FY03F 180.6 0.7 56.8 2.0 97.2 1.3 44.9 1.9 4.65 4.19 33.0
FY04F 180.7 0.0 59.4 4.7 99.4 2.2 46.9 4.4 4.86 4.37 24.3
FY05F 185.3 2.6 61.8 3.9 101.9 2.5 49.3 5.3 5.11 4.60 28.0

Y/E June (A$m) (%) (A$m) (%) (A$m) (%) (A$m) (%) (A$) (A$) (A$m)
Telstra
FY02 20,802 (9.5) 6,297 (11.9) 9,564 (4.5) 3,661 2.8 0.28 0.22 3,491
FY03 21,616 3.9 6,748 7.2 10,195 6.6 3,895 6.4 0.30 0.27 3,261
FY04F 21,557 (0.3) 6,529 (3.2) 10,240 0.4 4,063 4.3 0.32 0.26 3,000
FY05F 21,979 2.0 6,734 3.1 10,728 4.8 4,234 4.2 0.33 0.28 3,500
FY06F 22,622 2.9 7,044 4.6 11,347 5.8 4,508 6.5 0.36 0.29 3,605

September 2003 27
Earnings revisions
Europe
Orange Date of change: 1 Sep
––––––––––– Revenue (EURm) –––––––––– ––––––––– EBITDA (EURm) ––––––– ––––––– Net profit (EURm) –––––––
Y/E Dec Previous Revised % revision Previous Revised % revision Previous Revised % revision
FY03F 17,954 17,884 0 6,311 6,353 1 2,047 4,280 109
FY04F 19,298 19,223 0 6,855 6,945 1 2,514 2,354 (6)
FY05F 20,437 20,355 0 7,505 7,594 1 3,027 2,855 (6)
Reason for revision: 1H03 results, taxation adjustments.
Vodafone Date of change: 16 Sep

––––––––––– Revenue (GBPm) –––––––––– ––––––––– EBITDA (GBPm) ––––––– ––––––– Net profit ( GBPm) –––––––
Y/E March Previous Revised % revision Previous Revised % revision Previous Revised % revision
FY04F 32,936 31,974 (3) 12,527 12,243 (2) (8,764) (8,879) n.m.
FY05F 34,571 33,370 (3) 13,196 12,843 (3) (8,591) (8,678) n.m.
FY06F 36,430 34,740 (5) 14,000 13,557 (3) (8,390) (8,498) n.m.
Reason for revision: To reflect the deconsolidation of Japan Telecom, with effect from October.
USA
Qwest Communications Date of change: 4 Sep
Revenue (US$m) ––––––––––
––––––––––– ––––––––– EBITDA (US$m) ––––––– ––––––– Net profit (US$m) –––––––
FY03F 14,819 14,750 0 4,088 3,999 (2) (178) (207) n.m.
FY04F 15,278 15,204 0 4,515 4,409 (2) (115) (161) n.m.
Reason for revision: New forecasts reflect better than expected improvement in wireless business in 1H03, while we factored in
continued margin erosion from line loss.
Japan
NTT Date of change: 28 Aug
––––––––––––– Revenue (¥m) –––––––––––– –––––––––––––– EBITDA (¥m) –––––––––– ––––––––––––– Net profit (¥m) ––––––––––
FY03F 10,985,000 10,975,000 0 3,781,000 3,781,000 0 490,000 490,000 0
FY04F 10,976,000 10,960,000 0 3,865,000 3,865,000 0 540,000 540,000 0
Reason for revision: Although we lowered revenues due to the reduced subscriber net additions for FY03 and FY04, we ma intained
earnings thanks to the higher ARPU forecast.
KDDI Date of change: 28 Aug

FY03F 2,830,000 2,808,000 (1) 685,000 686,000 0 98,000 98,500 1
FY04F 2,860,000 2,860,000 0 707,000 716,000 1 156,000 160,800 3
Reason for revision: We lowered revenues for FY03 due to the sluggish revenues in fixed-line business in 1Q. However, we raised
earnings due to the higher subscriber net additions and ARPU forecasts.
Japan Telecom Date of change: 28 Aug

FY03F 1,866,000 1,863,000 0 552,000 552,000 0 63,600 63,600 0
FY04F 1,916,000 1,912,000 0 570,000 572,000 0 64,000 64,600 1
Reason for revision: The reduced ARPU forecast are more than offset by the declining subsidy costs in FY04.
NTT DoCoMo Date of change: 28 Aug

FY03F 4,978,000 4,968,000 0 1,930,000 1,930,000 0 633,000 633,000 0
FY04F 5,106,000 5,090,000 0 1,991,000 1,991,000 0 682,000 682,000 0
Reason for revision: Although we lowered revenues due to the reduced subscriber net additions for FY03 and FY04, we maintained
earnings thanks to the higher ARPU forecast.

Earnings revisions (cont’d)
Asia ex-Japan
China Unicom Date of change: 29 Aug
––––––––––– Revenue (Rmb m) –––––––––– EBITDA (Rmb m) ––––––––––
––––––––––– –––––––– Net profit (Rmb m) –––––––
FY03F 68,585 67,260 (1.9%) 25,691 25,128 (2.2%) 5,263 4,800 (8.8%)
FY04F 75,813 75,129 (0.9%) 31,307 30,729 (1.8%) 7,232 6,731 (6.9%)
FY05F 81,054 80,298 (0.9%) 33,156 32,623 (1.6%) 6,964 6,490 (6.8%)
Reason for revision: We have raised our forecasts of interconnection costs for the LD/Internet/Data operations as well as for the
sales and marketing costs for cellular operations, and have factored in the provision for the pag ing operations.
PCCW Date of change: 3 Sep

––––––––––– Revenue (HK$m) –––––––––– –––––––––––– EBITDA (HK$m) –––––––––– –––––––– Net profit (HK$m) ––––––––––
FY03F 19,323 20,156 4.3 8,271 7,623 (7.8) 2,164 1,363 (37.0)
FY04F 19,176 20,199 5.3 8,479 7,650 (9.8) 2,302 1,298 (43.6)
FY05F 19,163 19,593 2.2 8,764 7,733 (11.8) 2,604 1,564 (39.9)
Reason for revision: We have reduced our earnings forecasts for local data services and Reach and raised our cost of sales
forecast for the core Telecom services operation.
China Telecom Date of change: 18 Sep

––––––––––– Revenue (Rmb m) –––––––––– –––––––––– EBITDA (Rmb m) –––––––––– –––––––– Net profit (Rmb m) –––––––
FY03F 75,333 75,644 0.4 39,666 40,297 1.6 12,797 12,800 0.0
FY04F 80,823 80,994 0.2 42,450 43,428 2.3 14,463 14,619 1.1
FY05F 83,856 83,571 (0.3) 44,734 45,389 1.5 16,014 16,071 0.4
Reason for revision: We have revised up our forecasts for net interconnection and VAS revenue and revised down our forecasts for
network operations and support expenses but these are mostly offset by our downward revisions to local telephony, internet
services and leased line revenue and upward revisions to tax expenses.
SingTel Date of change: 28 Aug

––––––––––– Revenue (S$m) ––––––––––––– ––––––––––––– EBITDA (S$m) ––––––––––– –––––––––– Net profit (S$m) –––––––––––
Y/E Mar Previous Revised % revision Previous Revised % revision Previous Revised % revision
FY04F 11,138 11,138 0 5,619 5,630 0 2,511 2,519 0
FY05F 11,614 11,614 0 5,881 5,902 0 1,927 1,944 1
FY06F 11,711 11,711 0 6,157 6,177 0 2,178 2,195 1
Reason for revision: We have revised down our staff cost estimates marginally after Singapore government's announcement of CPF
(state pension fund) cut.
SK Telecom Date of change: 8 Sep

–––––––––––– Revenue (Wbn) –––––––––––– ––––––––––––– EBITDA (Wbn) –––––––––– –––––––––– Net profit (Wbn) –––––––––
FY03F 9,362 9,505 2 4,423 4,542 3 1,790 1,873 5
FY04F 10,172 10,396 2 4,788 4,959 4 2,141 2,266 6
FY05F 10,699 11,004 3 5,044 5,281 5 2,320 2,493 7
Reason for revision: Upward revisions to subscriber forecasts.
KT Freetel Date of change: 8 Sep

–––––––––––– Revenue (Wbn) –––––––––––– ––––––––––––– EBITDA (Wbn) –––––––––– –––––––––– Net profit (Wbn) –––––––––
FY03F 5,831 5,257 (10) 1,734 1,743 1 492 506 3
FY04F 6,597 5,510 (16) 1,950 1,889 (3) 583 534 (8)
FY05F 7,435 5,811 (22) 2,199 2,048 (7) 716 551 (23)
Reason for revision: Lower handset sales, lower subscriber growth, lower VAS revenues.
Telstra Date of change: 20 Aug

––––––––––– Revenue (A$m) ––––––––––––– ––––––––––––– EBITDA (A$m) ––––––––––– Net profit (A$m) –––––––––––
––––––––––
Y/E Jun Previous Revised % revision Previous Revised % revision Previous Revised % revision
FY04F 21,612 21,557 0 10,133 10,240 1 3,971 4,063 2
FY05F 22,046 21,979 0 10,453 10,728 3 4,049 4,234 5
FY06F 22,400 22,622 1 10,700 11,347 6 4,250 4,508 6
Reason for revision: We have upgraded our earnings forecasts for FY04, FY05 and FY06 on the back of expected cost savings
going forward.

September 2003 29
Rating revision
Date of 6-month rating
change Previous Revised Reason for revision
Vodafone 16 Sep 3 2 Following 3 month underperformance on succession and
competition concerns, we believe that several issues are likely to
trigger an improvement in sentiment towards the stock.
China Telecom 18 Sep 3 2 We believe the recent share price corrections have made the
valuations of the company more compelling.

Europe cellular subscribers
France UK Germany Italy Spain Others Western Europe
Subscribers (m)
Jan-02 37.5 45.9 56.4 51.4 29.9 70.3 291.4
Feb-02 38.0 46.1 56.6 51.5 30.1 70.8 293.1
Mar-02 37.3 46.1 54.0 50.5 29.9 70.2 287.9
Apr-02 35.5 46.4 53.8 50.6 30.1 70.1 286.5
May-02 35.7 46.4 54.0 50.7 30.2 70.2 287.3
Jun-02 35.8 46.8 54.3 51.0 30.8 71.0 289.7
Jul- 02 36.0 47.0 54.3 51.0 31.0 71.4 290.8
Aug-02 36.2 47.1 54.5 51.2 31.1 71.9 291.9
Sep-02 36.0 47.4 54.7 51.2 31.6 72.4 293.3
Oct-02 36.1 48.2 55.5 51.9 32.0 72.5 296.3
Nov-02 36.3 48.4 55.8 52.0 32.2 73.1 297.8
Dec-02 36.8 49.5 57.0 52.9 33.2 73.7 303.1
Jan-03 37.1 50.1 57.5 53.7 33.3 74.3 306.0
Feb-03 37.3 50.4 57.3 52.5 33.5 74.3 305.2
Mar-03 37.1 49.7 57.6 52.9 34.0 74.7 306.0
Apr-03 37.2 49.8 57.9 53.4 34.6 74.8 307.7
May-03 37.4 49.8 58.3 53.7 34.8 75.1 309.1
Jun-03 37.5 49.9 58.6 53.9 35.0 75.5 310.3
Jul- 03 39.3 50.3 59.5 53.0 34.8 76.7 313.6
Net additions (m)

Jan-02 0.50 0.21 0.51 0.59 0.26 0.53 2.60
Feb-02 0.49 0.17 0.25 0.15 0.18 0.47 1.70
Mar-02 (0.68) 0.04 (2.68) (1.04) (0.21) (0.60) (5.18)
Apr-02 (1.78) 0.32 (0.13) 0.13 0.19 (0.10) (1.38)
May-02 0.21 0.03 0.16 0.06 0.18 0.18 0.82
Jun-02 0.09 0.37 0.32 0.31 0.54 0.73 2.36
Jul- 02 0.16 0.24 0.00 0.04 0.19 0.47 1.10
Aug-02 0.18 0.10 0.17 0.14 0.12 0.43 1.13
Sep-02 (0.21) 0.26 0.19 0.05 0.51 0.54 1.33
Oct-02 0.14 0.82 0.84 0.73 0.41 0.10 3.04
Nov-02 0.15 0.19 0.34 0.09 0.14 0.56 1.47
Dec-02 0.58 1.11 1.16 0.88 1.03 0.58 5.33
Jan-03 0.23 0.61 0.46 0.82 0.12 0.63 2.87
Feb-03 0.21 0.24 (0.20) (1.18) 0.17 0.02 (0.73)
Mar-03 (0.18) (0.68) 0.36 0.33 0.47 0.44 0.75
Apr-03 0.13 0.07 0.31 0.54 0.61 0.08 1.73
May-03 0.13 0.07 0.34 0.24 0.25 0.32 1.35
Jun-03 0.13 0.06 0.30 0.21 0.15 0.36 1.21
Jul- 03 1.77 0.43 0.90 (0.83) (0.14) 1.15 3.28
Source: Mobile Communications
MONTHLY S TATISTICS
September 2003 31
Quarterly broadband stats (subscriber ‘000)
UK–––––––––––––––––––––––––––––––
––––––––––––––––––––––––––––––– France –––––––––––––––––––––––––––––––
–––––––––––––––––––––––––––––––
ADSL Cable Penetration (%) ADSL Cable Penetration (%)

2001 1Q 49,000 44,916 0.16 96,000 151,109 0.42
2Q 72,000 76,892 0.25 177,000 163,302 0.58
3Q 99,000 132,334 0.39 267,000 169,302 0.74
4Q 136,164 203,222 0.58 420,400 188,522 1.03
2002 1Q 170,250 309,200 0.81 587,472 208,663 1.35
2Q 300,800 452,994 1.28 730,800 233,579 1.63
3Q 404,500 596,773 1.65 882,150 250,053 1.92
4Q 590,100 779,319 2.30 1,415,800 276,000 2.87
2003 1Q 831,200 960,121 3.04 1,795,500 312,707 3.57
2Q 1,071,700 1,093,536 3.67 2,062,000 338,920 4.07
––––––––––––––––––––––––––––––––––Germany––––––––––––––––––––––––––––––– Italy–––––––––––––––––––––––––––––––––––––
–––––––––––––––––––––––––––––––––
ADSL Cable Penetration (%) ADSL FTTH Penetration (%)

2001 1Q 1,000,000 24,300 1.23 180,000 10,000 0.33
2Q 1,440,000 27,000 1.77 239,000 14,500 0.44
3Q 2,292,000 31,055 2.80 310,000 22,700 0.58
4Q 2,420,000 39,131 2.96 390,000 48,900 0.77
2002 1Q 2,440,000 45,000 3.23 505,000 76,700 1.02
2Q 2,660,000 49,000 3.50 615,000 104,000 1.25
3Q 2,860,000 49,000 3.63 700,000 131,500 1.45
4Q 3,295,000 53,800 4.06 925,000 176,100 1.71
2003 1Q 3,740,000 61,500 4.58 1,189,500 213,313 2.45
2Q 4,180,000 70,000 5.12 1,481,000 247,000 3.02
Spain–––––––––––––––––––––––––––––––––––
–––––––––––––––––––––––––––––––– Switzerland–––––––––––––––––––––––––––––
–––––––––––––––––––––––––––––
ADSL Cable Penetration (%) ADSL Cable Penetration (%)

2001 1Q 100,000 42,000 0.35 2,492 85,100 1.07
2Q 157,702 54,000 0.52 20,000 106,300 1.54
3Q 223,158 62,000 0.70 30,000 124,800 1.89
4Q 375,816 70,000 1.10 45,000 145,300 2.32
2002 1Q 527,604 115,000 1.58 62,966 168,000 2.82
2Q 661,261 141,000 1.98 101,177 185,000 3.49
3Q 847,769 165,000 2.49 132,617 200,000 4.06
4Q 951,100 195,000 2.82 195,220 214,000 4.57
2003 1Q 1,154,500 264,000 3.49 235,000 229,000 5.66
2Q 1,300,000 440,000 4.29 317,000 245,000 6.85
Netherlands –––––––––––––––––––––––––––
––––––––––––––––––––––––––– Sweden––––––––––––––––––––––––––––––––
–––––––––––––––––––––––––––––––––
ADSL Cable Penetration (%) ADSL Cable/FTTH Penetration (%)

2001 1Q 1,140 260,000 1.65 61,600 132,000 2.17
2Q 1,939 300,000 1.91 93,765 181,900 3.09
3Q 79,000 330,000 2.59 135,850 190,000 3.66
4Q 118,000 350,000 2.96 223,953 227,200 5.06
2002 1Q 151,000 390,000 3.43 304,611 252,200 6.25
2Q 208,000 427,000 3.78 345,200 263,080 6.83
3Q 239,000 460,000 4.40 383,400 269,020 7.32
4Q 356,000 650,000 6.29 436,000 283,300 8.07
2003 1Q 485,000 690,000 7.44 462,400 298,600 8.54
2Q 593,000 740,000 8.44 480,000 308,000 8.84
Source: DIR
N.B. FTTH = fibre to the home, penetration is population penetration
MONTHLY S TATISTICS
Japan monthly data (mobile)
NTT AU TU- KA J-phone Japan
Docomo–––––
–––––– KDDI Group––––
–––– KDDI Group–––
–––– Japan Telecom total ––––––––––––––
–––––––––––––––
Subscribers (m) Total i-mode Total EZ- Web Total EZ- Web Total J-Sky Total Internet access
Jul- 02 41.8 34.1 12.8 9.2 3.9 1.5 12.8 10.8 71.2 55.6
Aug-02 41.9 34.4 12.9 9.4 3.9 1.5 12.9 10.9 71.6 56.3
Sep-02 42.2 34.9 13.1 9.6 3.9 1.6 13.0 11.1 72.1 57.1
Oct-02 42.3 35.2 13.2 9.8 3.9 1.6 13.1 11.2 72.4 57.8
Nov-02 42.5 35.6 13.3 9.9 3.9 1.6 13.2 11.3 72.8 58.4
Dec-02 42.9 36.2 13.5 10.1 3.8 1.6 13.3 11.5 73.5 59.5
Jan-03 43.0 36.6 13.6 10.3 3.8 1.6 13.5 11.7 73.9 60.2
Feb-03 43.2 36.9 13.7 10.5 3.8 1.7 13.6 11.9 74.4 60.9
Mar-03 43.9 37.8 14.0 10.9 3.8 1.7 14.0 12.2 75.7 62.5
Apr-03 44.1 38.1 14.3 11.1 3.8 1.7 14.2 12.3 76.3 63.3
May-03 44.2 38.3 14.5 11.3 3.8 1.7 14.3 12.4 76.7 63.8
Jun-03 44.4 38.6 14.7 11.5 3.7 1.7 14.4 12.5 77.2 64.4
Jul- 03 44.7 39.1 14.9 11.8 3.7 1.8 14.5 12.6 77.8 65.2
Aug-03 44.9 39.4 15.1 12.0 3.7 1.8 14.6 12.6 78.2 65.8
NTT AU TU- KA J-phone Japan

Net new Docomo–––––
–––––– KDDI Group––––
–––– KDDI Group–––
–––– Japan Telecom total ––––––––––––––
–––––––––––––––
additions (m) Total i-mode Total EZ- Web Total EZ- Web Total J-Sky Total Internet access
Jul- 02 0.3 0.6 0.1 0.2 (0.0) 0.0 0.1 0.1 0.5 0.9
Aug-02 0.2 0.4 0.1 0.2 (0.0) 0.0 0.1 0.2 0.4 0.8
Sep-02 0.2 0.4 0.1 0.2 (0.0) 0.0 0.1 0.1 0.5 0.8
Oct-02 0.1 0.3 0.1 0.2 (0.0) 0.0 0.1 0.1 0.4 0.7
Nov-02 0.2 0.4 0.1 0.2 (0.0) 0.0 0.1 0.1 0.4 0.7
Dec-02 0.4 0.6 0.2 0.2 (0.0) 0.0 0.2 0.2 0.7 1.1
Jan-03 0.2 0.4 0.1 0.2 (0.0) 0.0 0.1 0.2 0.4 0.7
Feb-03 0.2 0.4 0.1 0.2 (0.0) 0.0 0.2 0.2 0.5 0.7
Mar-03 0.6 0.8 0.3 0.4 (0.0) 0.0 0.3 0.3 1.3 1.5
Apr-03 0.2 0.3 0.2 0.3 (0.0) 0.0 0.2 0.2 0.7 0.8
May-03 0.1 0.2 0.2 0.2 (0.0) 0.0 0.1 0.1 0.4 0.5
Jun-03 0.2 0.3 0.2 0.2 (0.0) 0.0 0.1 0.1 0.5 0.6
Jul- 03 0.3 0.5 0.2 0.2 (0.0) 0.0 0.1 0.1 0.6 0.8
Aug-03 0.2 0.3 0.2 0.2 (0.0) 0.0 0.1 0.0 0.4 0.6
Source: NTT DoCoMo, KDDI, Japan Telecom, DIR
Japan broadband subscribers

Subscribers ('000) ADSL CATV FTTH Total
Jul- 02 3,610.2 1,710 84.9 5,405
Aug-02 3,915.7 1,758 99.4 5,773
Sep-02 4,223.2 1,800 114.6 6,138
Oct-02 4,639.5 1,852 138.0 6,630
Nov-02 5,117.9 1,901 172.3 7,191
Dec-02 5,645.7 1,954 206.2 7,806
Jan-03 6,119.8 1,992 233.1 8,345
Feb-03 6,589.9 2,028 263.1 8,881
Mar-03 7,023.0 2,069 305.4 9,397
Apr-03 7,477.9 2,135 346.9 9,960
May-03 7,907.4 2,183 398.3 10,489
Jun-03 8,257.1 2,224 458.3 10,939
Jul- 03 8,541.3 2,283 531.3 11,356
Aug-03 8,881.0 n.a. n.a. n.a.
Source: Ministry of Public Management, Home affairs, Posts and Telecommunications
MONTHLY S TATISTICS
September 2003 33
China monthly data
Subscribers (m) CMHK Unicom China Mobile (parent) Unicom Group (parent) China total
Jun-02 80.3 34.1 43.0 18.8 176.2
Jul- 02* 107.4 35.4 18.1 19.3 180.3
Aug-02 109.4 36.9 18.6 20.0 184.9
Sep-02 111.4 38.4 19.1 21.5 190.4
Oct-02 113.6 40.1 19.5 22.7 195.8
Nov-02 115.6 41.6 19.9 23.3 200.3
Dec-02 117.7 43.1 20.8 25.1 206.6
Jan-03 119.8 61.7 21.6 9.4 212.4
Feb-03 121.8 63.1 21.9 9.6 216.4
Mar-03 123.8 64.9 22.6 10.2 221.5
Apr-03 125.5 66.6 23.0 10.6 225.7
May-03 127.2 68.1 23.6 11.2 230.1
Jun-03 129.1 69.6 24.1 11.6 234.5
Jul- 03 131.0 71.4 24.9 12.2 239.5
Aug-03 132.9 73.0 25.4 12.7 244.1
Net new additions (m)

Jul- 02* 27.1 1.3 (24.9) 0.5 4.1
Aug-02 1.9 1.4 0.5 0.7 4.5
Sep-02 2.1 1.6 0.4 1.5 5.5
Oct-02 2.1 1.6 0.4 1.3 5.4
Nov-02 2.0 1.5 0.4 0.6 4.5
Dec-02 2.1 1.6 0.9 1.8 6.3
Jan-03 2.1 18.6 0.8 (15.6) 5.8
Feb-03 2.0 1.4 0.4 0.2 4.0
Mar-03 2.0 1.8 0.7 0.6 5.1
Apr-03 1.7 1.7 0.4 0.4 4.2
May-03 1.7 1.5 0.6 0.6 4.3
Jun-03 1.9 1.5 0.5 0.4 4.4
Jul- 03 1.9 1.7 0.7 0.6 5.0
Aug-03 1.9 1.7 0.6 0.5 4.7
Source: Companies, DIR estimates
Notes: For year 2001, Jan to May and July to Nov are as the 20th of each month
For June and December figures are as of month end. For year 2002, all figures are as of month end
* For CMHK, subscribers of the eight newly acquired networks have been included since July 1, 2002
The eight networks had a subscriber base of 25.1m by end-June, 2002
* For Unicom, subscribers of the nine newly accquired network have been included since January 1, 2003. The nine networks had a
subscriber base of 16.6m by end-2002
MONTHLY S TATISTICS
Korea monthly broadband subscriber data
Korea Telecom Hanaro Thrunet Dreamline Dacom Other Total
Subscribers (m)
Jul- 02 4.39 2.73 1.31 0.18 0.15 0.10 8.86
Aug-02 4.47 2.80 1.32 0.18 0.15 0.34 9.26
Sep-02 4.56 2.85 1.31 0.18 0.15 0.40 9.46
Oct-02 4.67 2.88 1.30 0.18 0.15 0.49 9.67
Nov-02 4.80 2.89 1.31 0.18 0.15 0.51 9.83
Dec-02 4.92 2.87 1.30 0.18 0.77 0.37 10.41
Jan-03 5.05 2.90 1.30 0.18 0.78 0.36 10.57
Feb-03 5.13 2.93 1.30 0.18 0.79 0.38 10.71
Mar-03 5.25 2.97 1.30 0.18 0.79 0.38 10.87
Apr-03 5.30 2.98 1.30 0.18 0.79 0.38 10.92
May-03 5.35 2.97 1.30 0.18 0.79 0.44 11.03
Jun-03 5.39 2.96 1.29 0.18 0.79 0.49 11.10
Jul- 03 5.45 2.97 1.49 0.18 0.79 0.34 11.22
Aug-03 5.45 n.a. n.a. n.a. n.a. n.a. n.a.

Jul- 02 0.06 0.00 0.00 0.00 0.00 (0.00) 0.06
Aug-02 0.07 0.07 0.02 (0.00) 0.00 0.24 0.40
Sep-02 0.09 0.05 (0.01) (0.00) 0.00 0.06 0.19
Oct-02 0.11 0.03 (0.01) (0.00) (0.00) 0.09 0.22
Nov-02 0.12 0.01 0.00 0.00 - 0.02 0.15
Dec-02 0.13 (0.02) (0.00) - (0.07) (0.14) 0.58
Jan-03 0.13 0.02 0.00 - 0.01 (0.01) 0.16
Feb-03 0.08 0.04 0.00 - 0.00 0.02 0.14
Mar-03 0.12 0.04 - - - (0.00) 0.16
Apr-03 0.05 0.00 - - - 0.00 0.06
May-03 0.05 (0.01) - - - 0.06 0.10
Jun-03 0.04 (0.01) (0.02) - - 0.05 0.07
Jul- 03 0.06 0.01 0.20 - - (0.15) 0.12
Aug-03 (0.00) n.a. n.a. n.a. n.a. n.a. n.a.
Source: Companies, MIC, National Statistics Office, DIR estimates
Korea monthly cellular subscriber data

SK Telecom, STI KT Freetel LG Telecom Korea total
Total 2.5G Total 2.5G Total 2.5G Total 2.5G
Subscribers (m)
Jul- 02 16.62 7.36 10.08 3.17 4.31 0.94 31.01 11.46
Aug-02 16.79 7.97 10.13 3.55 4.41 1.18 31.33 12.69
Sep-02 17.00 8.51 10.38 4.08 4.71 1.43 32.08 14.02
Oct-02 17.11 8.81 10.49 4.45 4.73 1.58 32.32 14.83
Nov-02 17.15 9.46 10.50 4.86 4.78 1.69 32.43 16.01
Dec-02 17.22 9.94 10.33 4.86 4.79 1.74 32.34 16.54
Jan-03 17.36 10.37 10.28 5.05 4.78 1.80 32.42 17.21
Feb-03 17.50 10.71 10.33 5.36 4.80 1.87 32.63 17.94
Mar-03 17.63 11.17 10.38 5.66 4.86 1.99 32.86 18.82
Apr-03 17.72 11.60 10.43 5.92 4.84 2.06 32.99 19.58
May-03 17.77 12.00 10.47 6.17 4.84 2.13 33.07 20.30
Jun-03 17.86 12.38 10.49 6.40 4.82 2.25 33.17 21.02
Jul- 03 17.90 12.76 10.47 6.59 4.79 2.34 33.16 21.69
Aug-03 17.96 13.17 10.45 6.78 4.75 2.45 33.16 22.41

Jul- 02 0.15 0.69 (0.05) 0.28 0.02 0.18 0.12 1.14
Aug-02 0.17 0.62 0.05 0.38 0.09 0.24 0.32 1.23
Sep-02 0.21 0.54 0.25 0.54 0.30 0.25 0.76 1.32
Oct-02 0.11 0.30 0.11 0.37 0.02 0.15 0.24 0.81
Nov-02 0.04 0.65 0.01 0.41 0.05 0.11 0.11 1.18
Dec-02 0.07 0.48 (0.16) - 0.01 0.05 (0.09) 0.53
Jan-03 0.14 0.43 (0.06) 0.19 (0.01) 0.06 0.08 0.67
Feb-03 0.13 0.35 0.06 0.31 0.03 0.07 0.21 0.73
Mar-03 0.13 0.46 0.04 0.30 0.06 0.12 0.23 0.88
Apr-03 0.09 0.43 0.05 0.26 (0.01) 0.07 0.13 0.76
May-03 0.04 0.40 0.04 0.25 (0.01) 0.07 0.07 0.72
Jun-03 0.09 0.38 0.02 0.22 (0.01) 0.08 0.10 0.69
Jul- 03 0.05 0.38 (0.02) 0.20 (0.04) 0.09 (0.01) 0.67
Aug-03 0.05 0.41 (0.02) 0.19 (0.04) 0.12 (0.00) 0.72
Source: MIC, SK Telecom, KT Freetel, LG Telecom, DIR estimates
MONTHLY S TATISTICS
September 2003 35
Taiwan cellular subscribers
Chunghwa Taiwan TCC KG
Telecom Cellular Transasia Group Far EasTone Telecom FET+KGT Mobitai Total
Subscribers (‘000)
Jun-02 6,940 5,625 1,375 7,000 4,163 4,256 8,419 651 23,010
Jul- 02 7,058 5,820 1,429 7,249 4,151 4,151 8,302 671 23,280
Aug-02 7,144 5,972 1,513 7,485 4,040 4,183 8,223 689 23,540
Sep-02 7,229 5,974 1,623 7,597 4,200 3,932 8,133 708 23,666
Oct-02 7,294 6,132 1,743 7,875 4,226 3,715 7,942 715 23,825
Nov-02 7,340 6,141 1,805 7,946 4,278 3,512 7,791 722 23,799
Dec-02 7,422 6,240 1,876 8,116 4,341 3,306 7,647 721 23,905
Jan-03 7,510 6,326 1,946 8,272 4,353 3,340 7,693 721 24,197
Feb-03 7,563 6,479 1,994 8,473 4,380 3,343 7,723 721 24,480
Mar-03 7,619 6,626 2,053 8,678 4,384 3,336 7,720 721 24,738
Apr-03 7,676 6,626 2,112 8,738 4,358 3,358 7,716 722 24,851
May-03 7,726 6,633 2,178 8,811 4,344 3,387 7,731 721 24,989
Jun-03 7,765 6,633 2,246 8,879 4,327 3,417 7,744 721 25,109
Jul- 03 7,825 6,635 2,332 8,968 4,305 3,442 7,747 721 25,260
Net additions ('000)

Jun-02 162 54 68 123 23 (99) (76) 16 225
Jul- 02 118 195 54 248 (12) (105) (117) 20 269
Aug-02 86 152 84 236 (112) 32 (79) 18 260
Sep-02 85 2 110 112 161 (251) (90) 19 126
Oct-02 65 158 120 278 26 (217) (191) 7 160
Nov-02 46 9 62 71 52 (203) (151) 7 (27)
Dec-02 82 99 71 170 62 (206) (144) (0) 107
Jan-03 89 86 70 157 13 34 47 (0) 292
Feb-03 53 153 48 201 27 2 29 (0) 283
Mar-03 57 147 58 205 4 (7) (3) 0 259
Apr-03 56 0 59 60 (26) 22 (4) 0 113
May-03 50 7 66 73 (14) 29 15 (1) 138
Jun-03 39 - 68 68 (17) 30 13 - 120
Jul- 03 60 2 86 89 (22) 25 3 0 151
Source: Ministry of Transport and Communications (MoTC), DIR estimates
Singapore cellular subscribers (‘000)

Date Postpaid Prepaid Subs % change Net adds % change
Jun-02 2,250 791 3,041 0 14 (35)
Jul- 02 2,307 779 3,087 2 46 231
Aug-02 2,291 811 3,102 1 16 (66)
Sep-02 2,307 815 3,122 1 20 25
Oct-02 2,330 802 3,132 0 10 (48)
Nov-02 2,362 816 3,178 1 46 355
Dec-02 2,404 841 3,245 2 67 45
Jan-03 2,416 856 3,272 1 27 (59)
Feb-03 2,421 874 3,295 1 23 (16)
Mar-03 2,422 890 3,313 1 18 (24)
Apr-03 2,419 877 3,296 0 (16) n.m.
May-03 2,437 883 3,320 1 23 n.m.
Jun-03 2,440 896 3,336 1 17 (27)
Jul- 03 2,443 914 3,356 1 20 16
Source: IDA, DIR estimates
MONTHLY S TATISTICS
Europe
1 October J-Phone rebranding
7 October Global release of Nokia n-Gage
7 October Closure of FT offer to Orange minorities
9-10 October Telefonica investor conference
12-18 October Telecom 2003 Geneva
16 October Nokia 3Q results
16 October Cesky Telecom 3Q results
21 October Tele2 AB 3Q results
29 October TeliaSonera 3Q results
30 October Telenor 3Q results
30 October Alcatel 3Q results
30 October Ericsson 3Q results
Early November BT 1H results
3 November TIM 3Q results
4 November TDC 3Q results
Mid November FT 3Q results
13 November DT 3Q 2003 report
17 November mmO2 1H04
18 November Vodafone 1H04
19-20 November Alcatel analysts day
20 November Swisscom 3Q results
24-25 November Nokia year end strategy update
USA
1 October Do Not Call Registry takes effect
11-15 October United Stated Telecommunication Association annual conference & exhibition
15 October Final date for the FCC to evaluate SBC’s section 271 application in Illinois, Indiana, Ohio
and Wisconsin
21 October SBC Communications 3Q03 results announcement and conference call
28 October Verizon Communications 3Q03 results announcement and conference call
13 November SBC Communications Analyst Day
24 November Wireless Number Portability takes effect
Japan
End-September Number of Internet users as of end-August to be announced
7 October Number of mobile phone subscribers in September to be announced
Around 10 October Number of DSL users as of end-September to be announced
Around 10 October Number of subscribers to broadband services at Usen as of end-September to be announced
Around 10 October Number of subscribers Yahoo BB broadband service service (operated by Softbank BB) as of
end-September to be announced
End-October Usen FY03 (FY ended August) results
From early to
mid-November Interim results announcements from NTT, NTT DoCoMo, and KDDI
Asia
1 October Singapore Telecom – Investor Day (full-day analyst event)
20 October China Mobile (HK) – 3Q03 Results
20 October China Unicom – 3Q03 Results
21 October Telstra – First quarter market update
28 October SK Telecom to announce 3Q03 results
14 November Telstra – AGM
FORTHCOMING EVENTS
September 2003 37
Equity relationships among global telcos
China Mobile (HK) (China) Connex GSM TIW (Canada)

55
(Romania)
3.3
20 75
75 Proximus Belgacom (Belgium)
Swiscom (Swiss) Swisscom Mobile (Belgium)
(Swiss) 25 25
77 20 Polkomtel
OPI (Italy) Vodafone (UK) (Poland)
20
45
20 18
23
Verizon Wireless 30
55 (USA) TDC
SFR (France)
(Denmark)
Verizon Communications 67
40 80
(USA)
Cegetel (France) 42
Rogers Communications Japan Telecom J-Phone

(Canada) (Japan) 45 (Japan) SBC Communications
(USA)
51 9
Far EasTone
Rogers Wireless (Canada) Telmex (Mexico)
(Taiwan) 60
34
23 40
BellSouth Cingular Wireless
AT&T Wireless (USA) Hutchison Telephone (USA) (USA)
16 24
NTT DoCoMo KPN Mobile 97.8 KPN

(Japan) (Netherland) (Netherland)
2.2
67
NTT 15 PLDT TelecomAsia
(Japan) (Philippine) Corporation
41
86 49
France Telecom (France) Orange (France) BITCO (Thailand)
7.7 29 99.8
Sprint PCS (USA) MobilCom (Germany) TA Orange (Thailand)
50 50
Sprint Corporation (USA) Virgin Mobile USA (USA) Virgin Mobile (UK)
4.7 56
Telefonica (Spain) Portugal Telecom (Portugal) Telecom Italia (Italy) TIM (Italy)
15 49
Telekom Austria (Austria) IS-TIM (Turkey)
Source: DIR
Note 1: Telecom Italia will divest its stake in Telekom Austria in 2003.
Note 2: In March 2003, Orange announced to sell its stake in Wind to Enel.
Note 3: Verizon and Vodafone sold their holdings in Iusacell to Mr. Ricardo Salinas Pliego.
Note 4: In September 2003, France Telecom announced its intension to buy out minority stake of Orange.
APPENDIX
DIR telecom contacts
Global Co-ordinator Kaoru Uchida (813) 5683 5989 k.uchida@rc.dir.co.jp
Global Telecom Strategy James Enck (44 20) 7597 8455 james.enck@dir.co.uk
Analyst Coverage Telephone E-mail
Europe
James Enck Integrated Operators (44 20) 7597 8455 james.enck@dir.co.uk
Matthew Lewis Cellular Operators/Equipment Manufacturers (44 20) 7597 8453 matthew.lewis@dir.co.uk
Jacqueline Millan Integrated Operators (44 20) 7597 8460 jacqueline.millan@dir.co.uk
USA
Kenji Nishimura Integrated/Cellular/Equipment Manufacturers (1 212) 612 6108 nkenji@dira.com
Japan
Shinji Moriyuki Integrated/Cellular (813) 5683 6958 s.moriyuki@rc.dir.co.jp
Jun Hasebe Alternative Operators (813) 5683 5109 j.hasebe@rc.dir.co.jp
Hiroyuki Masuko Equipment Manufacturers (813) 5683 6957 h.masuko@rc.dir.co.jp
Asia (ex-Japan)
Andrew Jobson Regional/Taiwan/Korea (852) 2848 4463 andrew.jobson@dir.com.hk
Jenny Szeto, CFA Hong Kong/China (852) 2848 4465 jenny.szeto@dir.com.hk
Brenda Lee, CFA Singapore (65) 6321 3039 brenda@dir.com.sg
Jerry Yeu Australia (613) 9916 1354 jerry.yeu@daiwasmbc.com.au
DIR main global offices
London 1st Floor, 5 King William Street, Tel: (44 20) 7597 8000 Fax: (44 20) 7597 8654
London EC4N 7AX, United Kingdom
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New York NY1005-3538, USA
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Hong Kong Level 26, One Pacific Place, 88 Queensway, Tel: (852) 2848 4974 Fax: (852) 2845 2190
Hong Kong
Singapore #25-08, DBS Building Tower Two, 6 Shenton Way, Tel: (65) 6220 3666 Fax: (65) 6224 7606
Singapore 068809, Singapore
Taipei (Representative Office) 13th Floor, 200 Kee-Lung Road, Section 1, Tel: (886) 2 2758 8754 Fax: (886) 2 2345 3699
Taipei 106, Taiwan R.O.C.
September 2003 39
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North America
This research report was prepared by Daiwa Institute of Research (Hong Kong) Limited (“DIR”), and is being distributed by Daiwa Securities America Inc.
(“DSA”). DIR and DSA are affiliates. Except as otherwise stated, all disclosures are effective as of the date of this report.
Ownership of Securities. DSA and its affiliates beneficially own one percent or more of a class of common equity securities of the following issuers: Belx Co.,
Ltd.; Daiko Denshi Tsushin Ltd.; Ehime Bank Ltd.; Estore Corporation; Imperial Hotel, Ltd.; Japan Securities Finance Co. Ltd.; Japan Securities Agents, Ltd.;
Kokusai Densetu Co., Ltd.; Livin’ on the Edge Co., Ltd.; Meisei Electric Co., Ltd.; NIF Ventures Co. Ltd.; Nomura Co., Ltd.; Shinkin Central Bank; Usen Corp.;
Taitao Corporation; Taiyo Life Insurance Company.
Investment Banking Relationships. DSA or an affiliate has managed or co-managed a public offering of securities in the past 12 months, or has received
compensation for investment banking services in the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the
next three months, for or from the following issuers: ABC -Mart, Inc.; ABN Amro; AC Real Estate; Acom Co. Ltd.; A&D Co Ltd.; Admiral Systems; Advance Create Co.
Ltd.; Aeon Credit Service Co. Ltd.; Aeon Fantasy Co. Ltd.; Aiful Corp.; Alliance & Leicester Plc; All Nippon Airways Co. Ltd.; Ajinomoto Co, Inc.; Alpha Credit Group,
Inc.;, Inc.; Amiyaki Tei Co. Ltd.; Anritsu Corp.; AOL Time Warner, Inc.; A-One Seimitsu Inc.; Apamanshop Co. Ltd.; Arata Corp.; Arisaka Co. Ltd.; Arrk Corp.; Asahi
Breweries Ltd.; Asahi Broadcasting Corp.; Asahi Glass Co. Ltd.; Asahi Pretec Corp.; Asatsu-DK, Inc.; ASB Bank Ltd.; Associant Technology, Inc.; A&T Corp.; Au
Optronics Corp.; Australia and New Zealand Banking Group Ltd.; Banca Comerciala Romana SA; Bandai Co Ltd.; Bandai Visual Co. Ltd.; The Bank of Fukuoka Ltd.;
Bank of Nova Scotia Ltd.; Bank of Western Australia; BAT International Finance; BCP Finance Bank; Belluna Co. Ltd.; BHP Finance USA Ltd.; BHP Billiton Ltd.;
BHW Bausparkasse AG; BMW AG; BNP Paribas; Boeing Co.; BOS International Australia Ltd.; Bradford & Bingley; Bunadarbanki Islands; C4 Technology Inc.;
Calsonic Kansei Corp.; CAM Global Finance; Caixa Catalunya International Finance; Canopus Co. Ltd.; Cassina Ixc. Ltd.; Cawachi Ltd.; Central Japan Railway Co.;
Chiba Bank Ltd./The; Chubu Electric Power Co. Inc.; Chugoku Electric Power Co Inc/The; Chunghwa Telecom; Citigroup Inc.; Citizen Watch Co. Ltd.; Cleanup Corp.;
CNA Co. Ltd.; CNOOC Ltd; Cognis Group; Commonwealth Bank of Australia; Concorde Securities; Cosworth Tech/LDV/ MSX Int.; Cota Co. Ltd Credit Saison Co.
Ltd.; Crymson Co. Ltd.; Culture Convenience Club Co. Ltd.; CVS Bay Area, Inc.; Daibiru Corp.; Daicel Chemical Industries Ltd.; Daikin Industries Ltd.; Daikoku Denki
Co. Ltd.; Dainippon Ink and Chemicals Incorporated; Dainippon Screen Mfg; Daio Paper Corp.; Denkodo Co. Ltd.; Denso Corp.; Dentsu, Inc.; Depfa Deutsche
Pfandbriefbank AG; Deutsche Bank Finance; Dexia Credit Local; Diamond City Co. Ltd.; Dorma Holding GmbH & Co.; Dow Chemical Company; Dowa Mining Co.
Ltd.; Dreamtime Holdings; Dydo Drinco, Inc.; E-Liberty Inc.; East Japan Railway Co.; EFG Hellas plc; The Eighteenth Bank Ltd.; Elecom Co. Ltd.; Endo
Manufacturing Co. Ltd.; Eneserve Corp.;. Exel; Faith, Inc.; Finconsumo SPA; First Financial Holding Co., Ltd.; Ford Credit Australia Limited; F T Communications Co.
Ltd.; Fuji Co. Ltd.; Fujicco Co. Ltd.; Fuji Country; Fuji Electric Co Ltd.; Fuji Heavy Industries Ltd.; Fuji Logistics Co Ltd.; Fujio Food System Co. Ltd.;Fujitsu Ltd.;
Furukawa Electric Co. Ltd.; Gambro, GECC; GE Capital Australia Funding; Gentosha; Glory Ltd.; GM; GMAC; G-mode Co. Ltd.; Goldman Sachs Group, Inc.; Gulliver
International Co. Ltd.; Haba Laboratories, Inc.; The Hachijuni Bank Ltd.; Hamakyorex Co. Ltd.; Hankyu Corp.; Harakosan Co. Ltd.; Heiwa Real Estate Co. Ltd.;
Henkel; Hikari Tsushin, Inc.; Hiroshima Bank Ltd./The; Hitachi Ltd.; Hitachi Construction Machinery Co. Ltd.; Hokkaido Electric Power; Hokkaido Gas Co. Ltd.;
Hokuriku Electric Power Co.; Hokuyu Lucky Co. Ltd.; Hon Hai Precision Industry Co Ltd.; Hoosiers Corp.; Hopewell Highway Infrastructure Ltd.; Horiba Ltd.;
Hosokawa Micron Corporation; HSH N Finance; IBE Inc.; IK Co. Ltd.; Impexbank; International Business Machine Corp; Ishikawajima-Harima Heavy Industries Co.
Ltd.; Itochu Corp.; Ito-Yokado Co. Ltd.; JFE Holdings Inc.; Japan Prime Realty Investment Corp.; Japan Pulp & Paper Co. Ltd.; Jastec Co. Ltd.; KGaA; Kajima Corp.;
Kanebo; Kansai Electric Power Co.; Kato Sangyo Co. Ltd.; KBC IFIMA NV; Keihan Electric Railway Co.; Keisei Electric Railway Co. Ltd.; Keyence Corp.; Kinki
Nippon Railway Co. Ltd.; Kintetsu World Express, Inc.; Kisoji Co. Ltd.; KOGAS; Kohnan Shoji Co. Ltd.; Komatsu Ltd.; Kourakuen Corp.; Koyo Futures Co. Ltd.; Koyo
Seiko Co. Ltd.; Kubotek Corp.; Kyushu Electric Power Co. Ltd.; Leopalace21 Corp.; Link Consulting Associates -Japan Corp.; Maeda Corp.; Macquarie Bank Limited;
Mainichi Comnet Co. Ltd.; Malzen Co. Ltd.; Mandom Corp.; Marubeni Corp.; Marvelous Entertainment, Inc.; Mazda Motor Corp.; MDM Holdings GmbH;
Meadwestvaco Corp.; Media Lynks Corp.; Meiji Seika Kaisha Ltd.; Meisei Electric Co. Ltd.; Meitetsu Transportation Co.; MG Technologies; Millennium America;
Mitsubishi Corp.; Mitsubishi Chemical Corp.; Mitsubishi Electric Corp;. Mitsubishi Estate Co. Ltd.; Mitsubis hi Heavy Industries Ltd Mitsubishi International GmbH;
Mitsubishi Tokyo Financial Group Inc.; Mitsui & Co. Ltd.; Mitsui Chemicals, Inc.Mitsui Mining & Smelting Co Ltd.; Miyoshi Oil & Fat Co. Ltd.; MobileOne Ltd.; Moc
Corp.;Modec, Inc.; Nagoya Railroad Co. Ltd.; Nankai Electric Railway Co. Ltd.; Nanya Technology Corporation; National Bank of Canada; Nationwide Building
Society; NEC; NEC Electronics Corp.; NEC Fielding Ltd.; Nestle Australia Limited; Nichii Gakkan Co.; Nichirei Corp.; Nihon Trim Co. Ltd.; Nihon Unisys Ltd.; Niitaka
Co Ltd.; Nikon Corp.; Nippon Cable System Inc.; Nippon Herald Films, Inc.; Nippon Information Development; Nippon Oil Corp.; Nippon Restaurant Corp.; Nippon
Restaurant System, Inc.; Nippon Sanso Corp.; Nippon Steel Corp.; Nippon Telegraph & Telephone Corp; Nippon Unipac Holding; Nippon Yusen Kabushiki Kaisha;
Nishimatsu Construction Co. Ltd.; Nissin Food Products Co. Ltd.; Nittyu Co. Ltd.; Niws Co. Ltd.; Noritz Corp; North Corp.; Northern Rock Plc.; NS Solutions Corp.;
NSK Ltd.; NTN Corp.; NTT DoCoMo Inc.; Obayashi Corp.; Odakyu Electric Railway Co. Ltd.; O&H Capital; OJI Paper Co. Ltd.; Okinawa Electric Power; Okuwa Co.
Ltd.; ORIX Corp.; Osaka Gas C. Ltd.; OX Information; Petrolub International Co.; PHH Corp.; Phoenix Electric; Pia Corp.; Pixela Corp.; Plenus Co. Ltd.; Point, Inc.;
Postabank rt; Premier Investment Co.; Promise Co. Ltd.; Rabobank Nederland; R.S. 2 Software; Rann International; Renown; Renown; Rentokil Initial; Rinnai Corp.;
Royal Bank of Scotland; Ryowa Life Create Co. Ltd.; S Ishimitsu & Co. Ltd.; Sanko Marketing Foods Co. Ltd.; Sanyo Electric Co. Ltd; Sanyo Shokai Ltd.; Sapporo
Breweries Ltd.; Sawai Pharmaceutical Co. Ltd.; Sega Toys Ltd.; Seiko Epson Corp.; Sekiwa Real Estate Kyushu Ltd.; Senko Co. Ltd.; Shikoku Electric Power Co.
Inc.; Shimamura Co. Ltd.; Shinohara System of Construction Co. Ltd.; Shiomi Co Ltd.; Showa Shell Sekiyu KK; Shuei Yobiko Co. Ltd.; Siliconware Precision
Industries Company; Singapore Telecommunications Ltd.; Skylark Co. Ltd.; Softbank Inves tment Corp.; Softfront; Sohgo Security Services Co. Ltd.; Sohken Homes
Co. Ltd.; Sotsu Agency; Sparebanken Rogaland; Studio Alice Co. Ltd.; Sumitomo Chemical Co. Ltd.; Sumitomo Metal Industries Ltd.; Sumitomo Metal Mining Co.
Ltd.; Sumitomo Mitsui Banking Corp.; Sumitomo Mitsui Financial Group Inc.; Sumitomo Osaka Cement Co. Ltd.; Sumitomo Realty & Development Co. Ltd.;
Sumitomo Rubber Industries; Sumitomo Trust & Banking Co Ltd/The; Sumitomo Wiring Systems Ltd.; Sunpot Co. Ltd.; Suruga Corp.; Suzumo Machinery Co Ltd.;
System Technology -i Co. Ltd.; Tac Co. Ltd.; Taisei Corp.; Taiyo Life Insurance Company; Takara Holdings, Inc.; Takefuji Corp; Takeuchi Manufacturing Co. Ltd.;
Tanaka Co. Ltd/Tokyo; Telemedia; Telstra; Telstra Corp Ltd.; Toho Gas Co. Ltd.; Tohoku Electric Power; Tokki Corp.; Tokyo Electron Device Ltd.; Tokyo Electric
Power Co.; Tokyo Gas Co. Ltd.; Tokyu Corp.; Tokyu Store Chain; Tomen Cyber-Business Solutions Inc.; Tomen Electronics Corp.; Toray Industries Inc.; Toray
Medical; Toshiba Corp.; Tow Co. Ltd.; Toyo Suisan Kaisha Ltd.; Toyoda Boshoku Corp.; Toyoda Gosei Co Ltd.; Toyoda Machine Works Ltd.; Toyota Credit Canada,
Inc.; Toyota Finance Australia Ltd.; Toyota Industries Corp.; Toyota Motor Corp.; Toyota Motor Credit Corporation; Toyota Tsusho Corp.; Toyo Tire & Rubber Co Ltd.;
Trans Genic Inc.; TT Electronics; Tullet & Tokyo; UFJ Holdings Inc.; Ulvac Inc.; Union Oil Co. of California; Union Pacific Corp.; United Microelectronics Corporation;
Valor Co. Ltd; Verizon Global Funding Corp.; Viacom Inc.; Vivanco Gruppe AG/Vivanco Electronic; Volkswagen Financial Services AG; Volkswagen International
Finance NV; Wacom Co Ltd./Japan; Wella AG; Westpac Banking Corporation; Win International Co. Ltd.; World Co. Ltd.; XNET Corp.; Yahoo Japan Corp.;
Yokogawa Electric Corp.; Yokohama Rubber Co. Ltd./The; Yumeshin Co Ltd.; Yusen Air & Sea Service Co. Ltd.
The statements in the two preceding paragraphs are made as of September 1, 2003.
DSA Market Making. DSA made a market in securities or ADRs of the following issuers at the time this report was published: Mitsui & Co.; NEC; Millea Holdings;
Trend Micro; Crayfish; Makita; Internet Initiative Japan; Fuji Photo Film; Kirin Brewery; Nissan Motor; Sanyo Electric; CSK Corp.; Daiei Inc.; Wacoal Corp.; All Nippon
Airways; Bandai; Bridgestone; Casio; Fujitsu; Isuzu; Sega; Sharp; Shiseido; Q.P. Corp.; and Sumitomo Corporation.
Research Analyst Conflicts. The principal research analysts who prepared this report have no financial interest in securities of the issuers covered in the report
and are not aware of any material relevant conflict of interest involving the analyst or DSA, except as noted: no exceptions.
The following explains the rating system in the report as compared to relevant local indices, based on the beliefs of the author of the report.
"1": the security could outperform the local index by more than 15% over the next six months.
"2": the security is expected to outperform the local index by 5-15% over the next six months.
"3": the security is expected to perform within 5% of the local index (better or worse) over the next six months.
"4": the security is expected to underperform the local index by 5-15% over the next six months.
"5": the security could underperform the local index by more than 15% over the next six months.
Additional information may be available upon request.

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DAIWA

DAIWA INSTITUTE OF RESEARCH LTD.

September 2003 (No. of pages: 40)

Global Telecom Monthly

• US: Regulatory pressure on VoIP at state public utility commissions – Lifting

• Europe : FT moves to take out orange minorities – Vodafone upgraded to

• AsiaPac : China Unicom 1H result comes in below our estimates –

Global Equity Research

Regional/subsector investment stance summary

A round-up of global telecoms events over the past month P. 8

Statistics and valuations

Forthcoming eve nts

Equity relationships among global telcos P. 38

ITU estimates of global internet users and penetration, 2002

Skype’s claims of superiority

Unlimited FREE calls to users of same application ü r ü Sometimes

Sound quality ««« « « «

Secure and encrypted communications ü r r r

100% ad-free ü r r Sometimes

PTT fixed line contribution to group EBITDA/consumption of group capex

Fixed EBITDA contribution/group Fixed capex consumption/group

O2 Germany will make a soft launch of 3G in November, with a commercial launch in

We have upgraded Vodafone from 3 to 2. Following 3 month underperformance on

As if to illustrate Vodafone’s operational focus on its core mobile businesses, closure

KDDI (au) announced its cdma2000 1x subscriber base exceeded 10 million on 16

Hong Kong 5.2 5.7 6.2 6.4 6.5 6.7 6.8

Asia (ex-Japan) (%)

STATISTICS & VALUATIONS

STATISTICS & VALUATIONS

Germany 0.7 2.5 3.4 4.2 4.8 5.2 5.7

France 0.2 0.6 1.7 2.8 3.6 4.3 5.0

Netherlands 0.2 0.5 1.1 1.7 2.1 2.5 270

2000A 2001A 2002F 2003F 2004F 2005F 2006F

2000A 2001A 2002A 2003F 2004F 2005F 2006F

Asia (ex-Japan) (m)

Hong Kong 0.4 0.6 1.0 1.3 1.5 1.7 1.9

Singapore 0.1 0.1 0.2 0.4 0.5 0.6 0.7

Korea 4.0 7.8 9.9 10.9 11.3 12.0 12.1

Taiwan 0.2 1.1 2.1 3.0 3.9 5.1 6.3

Australia 0.1 0.2 0.4 0.7 1.1 1.6 2.2

STATISTICS & VALUATIONS

STATISTICS & VALUATIONS

STATISTICS & VALUATIONS

STATISTICS & VALUATIONS

STATISTICS & VALUATIONS

STATISTICS & VALUATIONS

STATISTICS & VALUATIONS

STATISTICS & VALUATIONS

Revenue Op. profit EBITDA Net profit EPS DPS CAPX

Revenue Op. profit EBITDA Net profit EPS DPS CAPX

Revenue Op. profit EBITDA Net profit EPS DPS CAPX

STATISTICS & VALUATIONS

Revenue Op. profit EBITDA Net profit EPS DPS CAPX

Revenue Op. profit EBITDA Net profit EPS DPS CAPX

Revenue Op. profit EBITDA Net profit EPS DPS CAPX

Qwest Communications International

STATISTICS & VALUATIONS

Sprint Corporation (FON Group)

AT&T Wireless Services

Sprint Corporation (PCS Group)

STATISTICS & VALUATIONS

Revenue Op. profit EBITDA Net profit EPS DPS CAPX

Revenue Op. profit EBITDA Net profit EPS DPS CAPX

Revenue Op. profit EBITDA Net profit EPS DPS CAPX