Social messaging has

cost telcos over $13bn

since 2011, due to a sharp

decrease in voice revenues

The world’s last telegram was sent on the 14th of July 2013. Ending 144 years of service.

TELEGRAM

9000

8000

7000

6000

5000

4000

3000

2000

1000

02005 2006 2007 2008 2009 2010 2011 2012* 2013*

Source: http://www.itu.int/en/ITU-D/Statistics/Documents/statistics/2013/ITU_Key_2005-2013_ICT_data.xls http://en.wikipedia.org/wiki/History_of_the_telephone#Invention_of_the_telephone_exchange *estimate

http://www.itu.int/en/ITU-D/Statistics/Documents/facts/ICTFactsFigures2013.pdf

The first telephone exchange opened with just 21 subscribers in 1878

Fixed telephone subscriptions

Mobile cellular subscriptions

Mill

ions

700

600

500

400

300

200

100

02000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Global wired broadband subscriptions

Mill

ions

New services continue to place direct demands on networks for capacity, speed and reach. In addition service providers face the challenge of compensating for falling revenues from existing services. So how can they remain competitive?

550

500

450

400

350

300

250

200

150

100

50

02005 2006 2007 2008 2009 2010 2011 2012

Source: http://asset2.cbsistatic.com/cnwk.1d/i/tim/2013/02/14/ILD_vs_Skype_normal.png

International Skype traffic

International phone traffic

Inte

rnat

iona

l tra

ffic

(bill

ions

of m

inut

es)

The service provider business mix is changing. Vodafone’s 2013 annual report shows mobile data revenue growing from 8% in 2007 to 25% of revenues in 2013, with predicted 33% by 2015.

In 2013, there were 6.8 billion mobile subscriptions – that is approaching one subscription per person.

Global IP Traffic Growth

The equivalent of

DVDs of video content will travel across the Internet in 2013

Networks need to survive huge surges in demand.

Daily video traffic increased 19% during the London 2012 Olympic games.

2012’s mobile data traffic was nearly twelve times the size of the entire global Internet’s traffic in 2000

20122000Source: http://www.slideshare.net/MarketResearchReports/telecommunication-industry-update-2013 (slides 5 and 6)

Source: http://www.vodafone.com/content/annualreport/annual_report13/downloads/vodafone_annual_report_2013.pdf (page 21)

Revenue from data 2007 - 8%2013 - 25%2015 - 33%

http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-520862.html

http://www.btplc.com/news/Articles/ShowArticle.cfm?ArticleID=C126735D-1732-4B7C-A14A-4CA971DF3DE9

9,000,000,000

How the world of the

Service Providerhas changed

The last decade in telecoms

Source: Mobile-cellular penetration,2013 chart bottom of page 1 (http://www.itu.int/en/ITU-D/Statistics/Documents/facts/ICTFactsFigures2013.pdf

Source: ITU World Telecommunication/ICT Indicators database

Across the world’s population, it is increasingly likely that the first phone call a person makes will be on a mobile phone.

Africa63m

Asia and Pacific 89m

Arab States 105mThe Americas

109m

Europe 126m

Values are the number of mobile subscribers per 100 inhabitants

Source: http://support.apple.com/kb/ht1577 with http://www.download-time.com/ and http://en.wikipedia.org/wiki/Telebit

http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-520862.html and http://download-time.com/

The first dial-up public Internet services launched in 1989. Back then downloading today’s average MP3, would have taken almost 4 hours on then standard 2400 bit/s modems

Time remaining

4 hours

MP3 download

The average mobile network downstream speed in 2012 was 526 kilobites per second, bringing you the same Mp3 fileto your phone in around 1 minute

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

0 200 400 600 800 1000 1200 1400 1600

Source: Cisco VNI Global IP Traffic Historical and Forecast, 2005 - 2017

ForecastActual

Peta

byte

s pe

r yea

r