The 2010 Telecom Industry Review summarizes current conditions across the global telecommunications industry, providing analysis of over a dozen infrastructure and service segments. From fundamental background issues to detailed five-year forecasts accompanied by practical strategic advice, this study provides a sweeping examination of the telecom marketplace.

The Review provides up-to-date information in such key areas as high-speed access, optical networking, VoIP, operations support systems, gateways, cable telephony, residential and business communications trends, and new opportunities such as fixed
mobile convergence, various IP-based applications delivered as services, and IPTV.

Whether you are an industry veteran or new to telecom, The 2010 Telecom Industry Review will serve as a frequently referenced yearbook, supplying hard data and sound analysis on pressing service and equipment issues. Concise, clear, and current, the review is a detailed strategic tool that amasses a year’s worth of telecom research—over a dozen segments—into one comprehensive resource.

Report Excerpt

1.1 Telecommunications Industry Economic Conditions

At the beginning of 2010, global financial markets remain unsteady, though signs are appearing that the greatest economic downturn since the Great Depression of the 1930s may soon be over. The sharp drop in credit markets worldwide was directly tied to problems in the US mortgage industry, which ground to a halt during 2008. Because US business and private investors got too complacent about risk, the amount of mortgages that were sold by banks to investment banks and then sold as US mortgage-related securities to investors grew from approximately $67 billion in 1996 to $773 billion in 2006. This is one of the key reasons that set off the lending crisis and created serious concern about the health of the global economy. Another precipitating factor in the credit squeeze was the legalization of credit default swaps in 2000 which allowed investors to “bet” that the mortgage market would fail.

In October of 2008, it was necessary for the Federal government to introduce a $700 billion bailout plan for the economy so that things would not worsen, and other governments followed suit with their own plans to spur lending. Over the past few months there are signs that the use of continued deficit spending and other “pump priming” measures may have had an effect and that a global Depression on the order to the 1930s has indeed been averted.

Even amidst so much economic uncertainty, the fact remains that telecommunications is a key input factor in economic growth. Telecommunications is a facilitator of socio-economic advancement and is a critical utility for economic development, much like water and energy. This fact is reflected in its growing share of world output and of household spending. The World Bank estimates global telecommunications spending as a share of global GDP to have been 2.5 percent in 1990. Insight Research estimates that in 2006 it had grown to 4.8 percent, which we forecast to grow to 5.9 percent by 2013—even in the face of the current credit crisis.

It is on this basis—that telecommunications is a lynchpin in the recovery— that Insight Research projects carrier revenue.......

Market Segmentation

Telecommunications Industry Markets
By Geography
North America
Europe/Middle East/Africa
Latin America/Caribbean
Asia/Pacific

Global Carrier Revenue by Region,
Distribution of Global Carrier Revenue by Region
Service Provider Revenue By Provider Type
Worldwide Telecom Revenue Forecast by Services Category
Broadband Service Revenue Distribution by Service Type
North American Broadband Wireline Revenue
Impact of New Wireless Data Service Usage on ARPU
EMEA Broadband Wireline Revenue
Asia Pacific Broadband Wireline Revenue
LAC Broadband Wireline Revenue

Distribution of Wireless Networks by Technology Type
Regional Narrowband Wireless Subscribers
Regional Narrowband Wireless Penetration by Population
Revenue for 2G, 2.5G, and 3G Market Segments by Region

CATV
Growth in Cable Subscribers by Service Type

Next Generation Network Infrastructure
Total Number of SS7 Queries for U.S. Access Line Calls
US VoIP Subscribers
US VoIP Segment Size and SIP Invite Transaction Growth
Total US Public Ethernet Revenues
Worldwide Gateway Revenue Forecast
Total Worldwide Services Delivery Platform Revenues
Worldwide Services Delivery Platform Revenues by Provider Type
Worldwide Optical Equipment Sales
Worldwide Fiber Sales
Wavelength Services Revenue Totals

Access Network
US Wireline End User Switched Access Lines
Landline Telephone Penetration Percentage US
US Wireline Telephone Calls
High Speed Data over Copper Service Provider Revenue
Regional Narrowband Wireless Subscribers
Wireline vs. Mobile Phone Growth
Total Worldwide FMC Carrier & Equipment Vendor Revenue
Number of Consumer Broadband Lines with Wireless Home Networking

OSSes, BSSes & Outsourcing
Total Worldwide OSS Sales Revenue
Worldwide OSS Sales Distribution by Region
Worldwide Professional Services Revenue
Outsourced Services Market Estimate for Wireline and Wireless
Global Telecommunications Equipment Market by Type
Global Operator CAPEX Spending by Region

Present & Future Services
IP-Based Application Services
Worldwide Residential Video Telephony Service Revenues
Worldwide File Sharing/File Downloading Services Revenues
Worldwide Wireline File Sharing/File Downloading Srvcs Rev.
Worldwide Wireless File Sharing/File Downloading Srvcs Rev.
Worldwide Audio/Video Streaming Services Revenues
Worldwide Location-Based Services Service Revenues
Worldwide Presence-Based Services Revenue
International VoIP Traffic By Region
North American Inbound MOUs with VoIP
North American Outbound MOUs with VoIP
Caribbean Inbound MOUs with VoIP
Caribbean Outbound MOUs with VoIP
Central America Inbound MOUs with VoIP
Central America Outbound MOUs with VoIP
Latin America Inbound MOUs with VoIP
Latin America Outbound MOUs with VoIP
Europe Inbound MOUs with VoIP )
Europe Outbound MOUs with VoIP
Asia Inbound MOUs with VoIP
Asia Outbound MOUs with VoIP
Africa Inbound MOUs with VoIP
Africa Outbound MOUs with VoIP
Oceania Inbound MOUs with VoIP
Oceania Outbound MOUs with VoIP
Global Total Revenue Opportunity for Mobile Financial Applications

Enterprise Markets
Classification of US Businesses
US Business Distribution: All Business Sizes
Business Establishments by Industry Sector and Business Size
Business Lines: Distribution by Industry Sector
Total Private Line Revenue
US Managed Services Revenues
Total US Telecom Wireline Market
Top-Tier Expenditures for Telecom Wireline Services
Total US Telecom Wireless Services
Top-Tier Expenditures for Telecom Wireless Services
Total US Healthcare Telecom Service Revenues: Wireline vs. Wireless
Total US Mobile Enterprise Application Service Revenues
Total Global Market for All UC Segments: Solutions,
Services, and Carrier Revenues

Chapter I
EXECUTIVE SUMMARY
1.1 Telecommunications Industry Economic Conditions
1.2 Report Structure

Chapter II
BACKGROUND: Telecommunication Industry Markets
2.1 Telecommunications Market Conditions
2.1.1 Broadband Market Trends
2.1.1.1 North American Wireline Broadband Revenue Trends
2.1.1.2 European Broadband Revenue Trends
2.1.1.3 Asia Pacific Broadband Revenue Trends
2.1.1.4 LAC Broadband Revenue Trends
2.2 Wireless Industry Markets
2.2.1 Differences Between Wireless Mobile Technologies
2.2.1.1 UMTS and HSPA
2.2.1.2 LTE
2.2.1.3 WiMAX
2.2.2 Wireless Market Trends
2.3 Cable Industry Markets
2.3.1 Cable Industry Evolution
2.3.2 IP Cable Telephony
2.3.2.1 Data over Cable Service Interface Specification
2.3.2.2 DOCSIS 1.1 & 2.0
2.3.2.3 DOCSIS 3.0
2.3.2.4 PacketCable
2.3.2.5 PacketCable 1.1 & 1.2
2.3.3 US Cable Subscriber Growth

Chapter III
THE NEXT-GENERATION COMMUNICATIONS NETWORK:
Improvements to the Infrastructure
3.1 Overview of Network Topology
3.1.1 End-Users
3.1.2 Access Networks
3.1.3 Metro Networks
3.1.4 Core Networks
3.2 Transmission Improvements
3.3 Overview of Switching Technologies
3.3.1 Circuit Switching vs. Packet Switching
3.4 The Public Switched Telephone Network
3.4.1 Evolution of the PSTN
3.4.2 Changes to the PSTN?
3.4.3 Central Offices
3.5 Data Networks and VoIP
3.5.1 Broadband Switches
3.5.2 Data Core Networks
3.5.2.1 MPLS
3.5.3 Data Metro Networks
3.5.4 Data Access Networks
3.5.5 Signaling and Support Structures for Data Networks
3.5.6 Voice over Internet Protocol
3.5.7 VoIP as Transport
3.5.8 VoIP Operational Advantage
3.5.9 VoIP as Value-Added Stage
3.6 Carrier Ethernet Networks
3.6.1 E-line
2.6.2 E-LAN
3.6.3 Other Typologies: Dedicated vs. Switched
3.6.4 Carrier Ethernet Market Forecast
3.7 The Next Generation Network
3.7.1 Gateways
3.7.1.1 Gateways Market Revenue Worldwide
3.7.2 Softswitches
3.7.2.1 Economic Motivations
3.7.3 Service Delivery Platforms
3.7.3.1 SDP Platform Revenue Forecast
3.7.4 IP Multimedia Subsystems
3.8 Optical Networking
3.8.1 Baseline Optical Transport Technologies
3.8.1.1 SONET/SDH
3.8.1.2 WDM
3.8.1.3 MPLS
3.8.1.4 Metro Ethernet
3.8.2 Optical Transport Technology Overview
3.8.2.1 SONET/SDH
3.8.2.2 WDM
3.8.2.3 MPLS
3.8.2.4 Metro Ethernet
3.8.3 Current Gaps in Baseline Transport Technologies
3.8.3.1 SONET/SDH
3.8.3.2 WDM
3.8.3.3 MPLS
3.8.3.4 Ethernet
3.8.4 The Hybrid Approach to Optical Transport Technologies
3.8.4.1 Carrier Ethernet
3.8.4.2 GMPLS
3.8.4.3 ROADM
3.8.5 Optical Equipment Market Revenue Estimates
3.8.5.1 Worldwide Optical Equipment Sales
3.8.5.2 Worldwide Optical Fiber Sales
3.8.6 Wavelength Service Market Trends

Chapter IV
THE ACCESS NETWORK: Narrowband and Broadband
4.1 Narrowband: The Decline of US Landlines
4.2 Broadband Access Networks
4.2.1 Broadband Access Forecasts
4.3 Access Network Technology Options
4.3.1 DSL
4.3.2 Cable
4.3.3 Bonded Copper
4.3.3.1 Technology
4.3.3.2 Market Forecast
4.3.4 Fiber
4.3.5 Fixed Mobile Convergence
4.3.6 WiFi
4.3.7 WiMAX

Chapter V
SUPPORTING THE INFRASTRUCTURE:
OSSes, BSSes Equipment, and Outsourcing
5.1 Operations Support Systems Overview
5.2 Operations Support Applications
5.2.1 Business Operations Support
5.2.1.1 Customer Care
5.2.1.2 Service Orders
5.2.1.3 Billing Mediation
5.2.1.4 Rating
5.2.1.5 Billing
5.2.2 Network Operations Support
5.2.2.1 Engineering and Planning
5.2.2.2 Provisioning
5.2.2.3 Trouble/Repair
5.2.3 Network Management
5.3 OSS Market Structure: Demand Side View
5.4 Outsourcing
5.4.1 Vendor Activity Summary
5.4.2 The Market for Outsourcing Services
5.5 Spending in Global Telecom Equipment Markets

Chapter VI
PRESENT AND FUTURE COMMUNICATIONS SERVICES MARKETS
6.1 IP-Based Application Services
6.1.1 Introduction & Definitions
6.1.2 VoIP as a Non-Starter
6.1.3 Key IP Service Trends
6.1.3.1 Residential Video Telephony Market
6.1.3.2 Fixed Mobile Convergence
6.1.3.3 File Sharing/Downloading & Multimedia Messaging
6.1.3.4 Streaming Services
6.1.3.5 Location-Based Services
6.1.3.6 Presence Based Services
6.1.4 Market Forecast
6.2 Worldwide VoIP Adoption
6.2.1 North America International VoIP Traffic
6.2.1.1 Terminating Traffic
6.2.1.2 Originating Traffic
6.2.2 Caribbean International VoIP Traffic
6.2.2.1 Terminating Traffic
6.2.2.2 Originating Traffic
6.2.3 Central America International VoIP Traffic
6.2.3.1 Terminating Traffic
6.2.3.2 Originating Traffic
6.2.4 Latin America International VoIP Traffic
6.2.4.1 Terminating Traffic
6.2.4.2 Originating Traffic
6.2.5 Europe International VoIP Traffic
6.2.5.1 Terminating Traffic
6.2.5.2 Originating Traffic
6.2.6 Asia International VoIP Traffic
6.2.6.1 Terminating Traffic
6.2.6.2 Originating Traffic
6.2.7 Africa International VoIP Traffic
6.2.7.1 Terminating Traffic
6.2.7.2 Originating Traffic
6.2.8 Oceania International VoIP Traffic
6.2.8.1 Terminating Traffic
6.2.8.2 Originating Traffic
6.3 Telecommunications Role in Improving the Environment
6.3.1 Modeling the Benefits of Green
6.4 Mobile Phones and Financial Applications
6.4.1 Core Banking Solutions and Mobile Phones
6.4.2 Financial Applications for Mobile Phones
6.4.3 Revenue Potential of Financial Applications for Mobile Phones
6.5 The Future of Telecommunications
6.5.1 IP Changes Everything
6.5.2 Convergence Cuts Both Ways
6.5.3 The Road Ahead for Operators
6.5.4 The Road Ahead for OEMs

Chapter VII
ENTERPRISE TELECOMMUNICATIONS MARKETS
7.1 The Classification of Businesses by Size
7.1.1 Distribution of Business by Size
7.1.2 The Business Line Market Methodology and Analysis
7.1.3 The Business Line Market in Small Enterprises
7.2 Private Lines
7.2.1 Evolution in the Private Line Services Market
7.2.2 Circuit Types
7.2.2.1 56 Kbit/s Circuits
7.2.2.2 64 Kbit/s Clear-Channel Circuits (DS0)
7.2.2.3 Fractional T1 Circuits
7.2.2.4 T1 Circuits (DS1)
7.2.2.5 Fractional T3 Circuits (Fractional DS3)
7.2.2.6 T3 Circuits (DS3)
7.2.2.7 Optical Carrier Circuits
7.2.3 SONET, IP and Private Lines
7.2.4 Private Line Circuit Layout
7.2.5 Redundancy & Restoration
7.2.6 Private Line Alternatives
7.2.7 Private Line Market Analysis
7.3 Managed Services & the Enterprise
7.3.1 Why Managed Services?
7.3.2 Industry Structure
7.3.3 Managed Service Industry Forecast
7.4 Vertical Industry Spending on Telecommunications Services
7.4.1 Telecommunications and Vertical Marketing
7.4.2 Healthcare as a Fast Growing Vertical Industry
7.4 2.1 Healthcare Industry Structure Ready for Change
7.4.2.2 Market Estimate of Healthcare Telecom Spending
7.5 The Mobile Workforce and Enterprise Applications
7.5.1 Mobile Enterprise Market Forecasts
7.6 Enterprise Unified Communications
7.6.1 Defining Unified Communications
7.6.2 The Benefits of Unified Communications
7.6.3 Unified Communications: Dedicated versus Hosted
7.6.3.1 Dedicated Implementation
7.6.3.2 Hosted Implementation
7.6.4 The Stakeholders
7.6.4.1 Solution Providers
7.6.4.2 Service Providers
7.6.4.3 Carriers
7.6.5 Unified Communications Markets and Revenue

Table of Figures

Chapter I
I-1 Global Carrier Revenue by Region, 2010-2015

Chapter II
II-1 Broadband Services Revenue Distribution, 2010-2015
II-2 EMEA Broadband Wireline Revenue, 2010-2015
II-3 Asia Pacific Broadband Wireline Revenue, 2010-2015
II-4 LAC Broadband Wireline Revenue, 2010-2015
II-5 Worldwide Distribution of In-Service Networks by Type
II-6 Impact of New Wireless Data Service Usage on Average Revenue per User
II-7 Circuit Switched with Hybrid IP Network Architecture
II-8 Cable IP Telephony
II-9 Basic DOCSIS
II-10 Basic PacketCable Architecture

Chapter III
III-1 Public Communication Network Architecture
III-2 SONET Ring Configuration
III-3 Hierarchy of Broadband Switch Functions
III-4 Typical National Data Core Network
III-5 E-Line Point-to-Point Service Type
III-6 E-LAN Multipoint-to-Multipoint Service Type
III-7 Total US Public Ethernet Revenues, 2009-2014
III-8 Worldwide Gateway Revenue Forecast, 2008-2013
III-9 Softswitch Architecture Diagram
III-10 Circuit vs. Packet Switching of Internet Traffic
III-11 SDP Service Provider Network Architecture
III-12 Total Worldwide Services Delivery Platform Revenues
III-13 STS-1 Frame Structure
III-14 STM-1 Frame Structure
III-15 Four-Channel DWDM System
III-16 Schematic of an MPLS Network
III-17 Label Header Structure
III-18 MPLS over WDM Core
III-19 Worldwide Optical Equipment Sales, 2008-2013
III-20 Worldwide Fiber Sales, 2008-2013
III-21 Managed Wavelength Service Evolution Path

Chapter IV
IV-1 Landline Telephone Penetration Percentage US
IV-2 Historical Landline vs. Wireless Penetrations
IV-3 US VoIP Households, 2007-2012
IV-4 HFC Architecture Providing Video and Voice Services
IV-5 Typical Backhaul Configuration
IV-6 Typical DSLAM Backhaul Application
IV-7 High Speed Data over Copper Service Provider Revenue
IV-8 Cell Phone Penetration as a Percentage of All Phone Subscribers, by Region
IV-9 Cellular and Wireline Phone Penetration Per Capita by Global Region
IV-10 Wireline vs. Mobile Phone Growth 1988-2006
IV-11 Common Fixed Mobile Convergence Scenarios
IV-12 Total Worldwide FMC Carrier & Equipment Vendor Revenue

Chapter V
V-1 Operations Support Systems Dataflow
V-2 Business Operations Systems Dataflow
V-3 Total Worldwide OSS Sales Revenue, 2007-2012
V-4 Worldwide OSS Sales Distribution by Region
V-5 Worldwide Professional Services Revenue

Chapter VI
VI-1 Worldwide IP Services Market by Service Type
VI-2 Worldwide Green Communications Technologies Revenues
VI-3 Global Total Revenue Opportunity for Mobile Financial Applications
VI-4 Telecom Networking Before and After IP
VI-5 Worldwide Telecommunications Operators Capital Expenditures

Chapter VII
VII-1 Capacities of 64 Kbit/s, T1, and T3 Circuits
VII-2 Typical Layout for a Full Circuit
VII-3 ISDN Switched Backup
VII-4 SONET Rings
VII-5 Fiber-to-Fiber Redundancy
VII-6 Cable-to-Cable Physical Redundancy (Diverse Cable Redundancy)
VII-7 Total Private Line Revenue, 2008-2013
VII-8 Managed Services Gross Margins
VII-9 US Managed Services Revenues, 2008-2013
VII-10 Drivers of Telecom Expenditures in Vertical Markets
VII-11 Total US Telecom Wireline Market, 2008 and 2013
VII-12 Top-Tier Business Expenditures for Telecom Wireline Services
VII-13 Total US Telecom Wireless Services, 2008 and 2013
VII-14 Top-Tier Business Expenditures for Telecom Wireless Services
VII-15 Total US Healthcare Telecom Service Revenues
VII-16 Employment Growth by Major Sector
VII-17 Percentage Growth by Occupational Title and Mobility
VII-18 Total US Mobile Application Service Revenues
VII-19 Breakdown of UC Market According to Implementation Methodologies
VII-20 Total Global Market for All UC Segments: Solutions, Services & Carrier Revenues

Table of Tables

Chapter I
I-1 Worldwide Telecom Revenue Forecast by Services Category

Chapter II
II-1 Global Carrier Revenue by Region
II-2 2010 and 2015 Distribution of Global Carrier Revenue by Region
II-3 Worldwide Service Provider Revenue
II-4 Worldwide Telecom Revenue Forecast by Services Category
II-5 Broadband Consumer Applications and Required Bandwidth
II-6 North American Broadband Wireline Revenue by Market Segment
II-7 Regional Narrowband Wireless Subscribers
II-8 Regional Narrowband Wireless Penetration by Population
II-9 Wireless Data Technologies Comparison
II-10 Worldwide In-Service Networks by Mobile System Type
II-11 Revenue for 2G, 2.5G, and 3G Market Segments by Region
II-12 DOCSIS Evolution: Service Comparison
II-13 DOCSIS Evolution: Customer Equipment Supported
II-14 DOCSIS Evolution: Upload/Download Speeds Supported
II-15 Growth in Cable Subscribers by Service Type

Chapter III
III﷓1 Definitions of Digital Private Line Services
III﷓2 SONET Data Rates
III﷓3 Distinctions between POTS and Data Networks
III-4 Network Locations of Broadband Switches
III-5 Downstream DSL Bit-rates vs. Reach
III-6 Total Number of SS7 Queries for U.S. Access Line Calls
III-7 Percent of Broadband Consumers Adopting VoIP
III-8 US VoIP Subscribers
III-9 US VoIP Segment Size and SIP Invite Transaction Growth
III-10 Characteristics of Ethernet Service Varieties
III-11 Gateway Definitions
III-12 Softswitch Advantages/Disadvantages
III-13 Economic Benefits of Softswitch Technology
III-14 Strategies to Increase Network Service Margins
III-15 Worldwide Services Delivery Platform Revenues by Provider Type
III-16 Interrelationship between STM, STS, OC, and Gbit/s
III-17 ITU’s Laser Grid
III-18 Worldwide Fiber Sales, 2008-2013
III-19 Wavelength Market Segments
III-20 Wavelength Services Revenue Totals

Chapter IV
IV-1 US Wireline End User Switched Access Lines 1999-2006
IV-2 US Wireline Telephone Calls 1999-2005
IV-3 Broadband Communication Network Access Solutions
IV-4 Broadband Penetration as a Percentage of Households
IV-5 Worldwide Broadband Lines, 2008-2013
IV-6 The Versions and Features of xDSL
IV-7 Regional Narrowband Wireless Subscribers
IV-8 Consumer VoWLAN/Cellular Service Scenario: Advantages & Disadvantages
IV-9 Number of Consumer Broadband Lines with Wireless Home Networking

Chapter V
V-1 OSS Definitions Summary
V-2 Characteristics of Broadband Network Management
V-3 Distinct Characteristics of Packet Broadband Network Management
V-4 Vendor Activity Summary
V-5 Outsourced Services Market Estimate for Wireline and Wireless
V-6 Global Telecommunications Equipment Market by Type, 2008-2013
V-7 Global Operator CAPEX Spending by Region, 2008-2013

Chapter VI
VI-1 North American Inbound MOUs with VoIP, 2002-2011
VI-2 North American Outbound MOUs with VoIP, 2002-2011
VI-3 Caribbean Inbound MOUs with VoIP, 2002-2011
VI-4 Caribbean Outbound MOUs with VoIP, 2002-2011
VI-5 Central America Inbound MOUs with VoIP, 2002-2011
VI-6 Central America Outbound MOUs with VoIP, 2002-2011
VI-7 Latin America Inbound MOUs with VoIP, 2002-2011
VI-8 Latin America Outbound MOUs with VoIP, 2002-2011
VI-9 Europe Inbound MOUs with VoIP , 2002-2011
VI-10 Europe Outbound MOUs with VoIP, 2002-2011
VI-11 Asia Inbound MOUs with VoIP, 2002-2011
VI-12 Asia Outbound MOUs with VoIP, 2002-2011
VI-13 Africa Inbound MOUs with VoIP, 2002-2011
VI-14 Africa Outbound MOUs with VoIP, 2002-2011
VI-15 Oceania Inbound MOUs with VoIP, 2002-2011
VI-16 Oceania Outbound MOUs with VoIP, 2002-2011
VI-17 Green Communications Portfolio of Product Domains, Services & Applications

Chapter VII
VII-1 US Business Distribution: All Business Sizes
VII-2 Business Establishments by Industry Sector and Business Size: Small Enterprises vs. All Other Segments
VII-3 Business Lines: Distribution by Industry Sector
VII-4 Business Lines by Industry Sector and Business Size: Small Enterprises vs. Large and Medium Enterprises
VII-5 Digital Services Hierarchy
VII-6 SONET/Optical Carrier Hierarchy
VII-7 Managed Services Segments
VII-8 Managed Service Solutions by Business Size
VII-9 Healthcare Market Segments
VII-10 Healthcare Segment Dimensions and Trends
VII-11 Total US Mobile Application Service Revenues