THE 2006 TELECOMMINICATIONS INDUSTY REVIEW
TABLE OF CONTENTS

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
      2.2.2 Wireless Market Trends
            2.2.2.1 North America Wireless Trends
            2.2.2.2 Europe, Mid-East, Wireless Trends
            2.2.2.3 Asia Pacific Wireless Trends
            2.2.2.4 Latin America/Caribbean Wireless Trends
2.3 Cable Television
      2.3.1 History of Cable TV
      2.3.2 Cable Telephony
            2.3.2.1 Small Business Cable Telephony

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 by 2007
      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 Changes in Data Core Networks by 2007
      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 the Internet Protocol
      3.5.7 VoIP as Transport
      3.5.8 VoIP Operational Advantage
      3.5.9 VoIP as Value-Added Stage
3.6 The Next Generation Network
      3.6.1 Gateways
      3.6.2 Softswitches
            3.6.2.1 Economic Motivations
      3.6.3 IP Multimedia Subsystems
3.7 Optical Networking
      3.7.1 Overview
      3.7.2 Add Drop Multiplexers
            3.7.2.1 ADM Market Opportunity
      3.7.3 Optical Cross Connects
      3.7.4 Present and Future DWDM Systems
            3.7.4.1 Long-Haul Systems
            3.7.4.2 Metropolitan Systems
            3.7.4.3 Wavelength Service Market Trends
      3.7.5 Market Analysis of SONET/SDH & DWDM Systems
3.8 Optical Components
      3.8.1 Optical Transmitters
            3.8.1.1 Tunable Lasers Diodes
            3.8.1.2 Modulators
      3.8.2 Optical Receivers
      3.8.3 Market Analysis of Optical Subsystem and Components
3.9 Optical Fiber
      3.9.1 Development of Fiber
            3.9.1.1 Dispersion-Shifted Fiber
            3.9.1.2 Non-Zero Dispersion-Shifted Fiber
      3.9.2 Future Fiber Design
      3.9.3 Market Analysis of Fiber Deployment

Chapter IV
THE ACCESS NETWORK:
Narrowband and Broadband
4.1 Narrowband Access Networks
      4.1.1 Primary and Secondary Access Line Growth
      4.1.2 Narrowband Access Line Forecast
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 Fiber
      4.3.4 Fixed Mobile Convergence
            4.3.4.1 Fixed Mobile Convergence Market Forecast
      4.3.5 WiFi

Chapter V
SUPPORTING THE INFRASTRUCTURE:
Network and Customer Support
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
      5.2.4 OSS Market Structure: Demand Side View
            5.2.4.1 Professional Services and OSSes

Chapter VI
PRESENT AND FUTURE COMMUNICATIONS
SERVICES MARKETS
6.1 US Telecommunications Carrier Subscriber Growth
      6.1.1 Wireless Overview
            6.1.1.1 Wireless Market Size
            6.1.1.2 Trends in the Wireless Segment
      6.1.2 CLEC Overview
            6.1.2.1 CLEC Market Size
            6.1.2.2 Trends in the CLEC Market
      6.1.3 ILEC Overview
            6.1.3.1 ILEC Market Size
            6.1.3.2 Trends in the ILEC Market
      6.1.4 IXC Overview
            6.1.4.1 IXC Market Size
            6.1.4.2 Trends in the IXC Market
      6.1.5 Cable Companies Overview
            6.1.5.1 Cable Market Size
            6.1.5.2 Trends in the Cable Market
6.2 US Telecommunications Subscriber Forecasting Model
      6.2.1 Wireless Subscribers
      6.2.2 ILEC Subscribers
      6.2.3 CLEC Subscribers
      6.2.4 IXC Subscribers
      6.2.5 Cable Subscribers
            6.2.5.1 VoIP Subscribers
            6.2.5.2 Cable TV Subscribers
            6.2.5.3 Cable Modem Subscribers
      6.2.6 Other VoIP Subscribers
6.3 Worldwide VoIP Adoption
      6.3.1 North America International VoIP Traffic
            6.3.1.1 Terminating Traffic
            6.3.1.2 Originating Traffic
      6.3.2 Caribbean International VoIP Traffic
            6.3.2.1 Terminating Traffic
            6.3.2.2 Originating Traffic
      6.3.3 Central America International VoIP Traffic
            6.3.3.1 Terminating Traffic
            6.3.3.2 Originating Traffic
      6.3.4 Latin America International VoIP Traffic
            6.3.4.1 Terminating Traffic
            6.3.4.2 Originating Traffic
      6.3.5 Europe International VoIP Traffic
            6.3.5.1 Terminating Traffic
            6.3.5.2 Originating Traffic
      6.3.6 Asia International VoIP Traffic
            6.3.6.1 Terminating Traffic
            6.3.6.2 Originating Traffic
      6.3.7 Africa International VoIP Traffic
            6.3.7.1 Terminating Traffic
            6.3.7.2 Originating Traffic
      6.3.8 Oceania International VoIP Traffic
            6.3.8.1 Terminating Traffic
            6.3.8.2 Originating Traffic
6.4 IP-Based Application Services
      6.4.1 Conferencing Services
      6.4.2 Unified Messaging
      6.4.3 Instant Messaging (IM)
      6.4.4 Mobility Management
6.5 Streaming Media
      6.5.1 Infrastructure Requirements for Streaming Media
      6.5.2 Streaming Media Markets Analysis
6.6 WiFi
       6.6.1 Comparing WiFi in NA and Europe
       6.6.2 WiFi Market Drivers
             6.6.2.1 Internet Growth
             6.6.2.2 Home Computing Devices
             6.6.2.3 Mobile Computing Devices
             6.6.2.4 Wireless Internet Access
      6.6.3 WiFi Market Segments
      6.6.4 WiFi Market Forecasts

Chapter VII
Enterprise Telecommunications Markets
7.1 Private Lines
      7.1.1 Evolution in the Private Line Services Market
      7.1.2 Circuit Types
            7.1.2.1 56Kbit/s Circuits
            7.1.2.2 64Kbit/s Clear-Channel Circuits (DS0)
            7.1.2.3 Fractional T1 Circuits
            7.1.2.4 T1 Circuits (DS1)
            7.1.2.5 Fractional T3 Circuits (Fractional DS3)
            7.1.2.6 T3 Circuits (DS3)
            7.1.2.7 Optical Carrier Circuits
      7.1.3 SONET, IP and Private Lines
      7.1.4 Private Line Circuit Layout
      7.1.5 Redundancy & Restoration
      7.1.6 Private Line Alternatives
      7.1.7 Private Line Market Analysis
7.2 800 Services & Call Centers
      7.2.1 The Growth of Toll-Free Calling
      7.2.2 Call Centers and Toll-Free Calling
      7.2.3 The Rise of the Contact Center
      7.2.4 Toll Free Market Forecast
7.3 Enterprise Adoption of IP PBX and IP Centrex
      7.3.1 Market Segments
      7.3.2 Centrex
      7.3.3 IP PBX
      7.3.4 IP PBX and IP Centrex Market Analysis
7.4 Grid Computing
      7.4.1 Grid Computing Implications for Telecom
      7.4.2 Grid Computing Market Analysis

Appendix
GLOSSARY

Table of Figures

Chapter I
I-1 Wireless Subscribers Growth 2005-2011 (Millions)

Chapter II
II-1 Broadband Services Revenue Distribution, 2005-2010 (Percentage)
II-2 EMEA Broadband Wireline Revenue, 2005-2010 ($Millions)
II-3 Asia Pacific Broadbands Wireline Revenue, 2005-2010 ($Millions)
II-4 LAC Broadband Wireline Revenue, 2005-2010 ($Millions)
II-5 Distribution of Wireless Networks by Technology Type, 2005
II-6 Impact of New Wireless Data Service Usage on Average Revenue per User
II-7 Cable Service Provider Telephone Service Delivery Model: Total Potential for Small Businesses, 2003 and 2009 ($Millions)

Chapter III
III-1 Public Communication Network Architecture
III-2 SONET Ring Configuration
III-3 Hierarchy of Broadband Switch Functions
III-4 US Broadband Switches Compared with Increase in Throughput, 2000-2006
III-5 US Broadband Switch Revenue, 2001-2006 ($Millions)
III-6 Typical National Data Core Network
III-7 Core Network Configurations by Type of Traffic Pattern
III-8 Worldwide Gateway Revenue Forecast, 2005-2010 ($Thousands)
III-9 Softswitch Architecture Diagram
III-10 Circuit vs. Packet Switching of Internet Traffic
III-11 Switched Optical/Electrical Networks vs. All-Optical IP Meshed Networks
III-12 Total ADM Revenue, 2003 and 2008 ($Millions)
III-13 Origins of the Digital Cross Connect
III-14 Evolution of the Digital Cross Connect
III-15 Long-Haul DWDM System
III-16 Two Ways to Expand DWDM Capacity
III-17 Total SONET/SDH Terminal Market, 2000-2008 ($Billions)
III-18 Total DWDM Sales, 2000-2008 ($Billions)
III-19 ITU-T Wavelength Spacing Grid for DWDM Systems (Nanometers)
III-20 DWDM Bands Around 1550 Nanometers
III-21 Worldwide Optical Components Market, 2000-2008 ($Billions)
III-22 Four-Wave Mixing
III-23 Fiber Deployment Percentage of Total by Region, 2000 vs. 2008

Chapter IV
IV-1 US Access Line Annual Additions, 1985-2002 (Millions)
IV-2 US LEC Access Line Quarterly Additions, 1999-2003 (Thousands)
IV-3 US Wireline Access Annual Reductions, 2001-2008 (Thousands)
IV-4 HFC Architecture Providing Video and Voice Services
IV-5 Total RBOC Cash Expense Per Line In Service
IV-6 Cell Phone Penetration as a Percentage of All Phone Subscribers, by Region
IV-7 Wireline vs. Mobile Phone Growth 1995-2004 (Millions)
IV-8 SIP-Based Network Application Server Approach
IV-9 US Primary Residential Access Line Forecast, 2005-2010 (Millions)
IV-10 WiFi Hotspot Locations by Gloal Region, 2003-2008

Chapter V
V-1 OSS Dataflow
V-2 Business Operations Systems Dataflow
V-3 Worldwide Total OSS Sales Revenue Forecast 2005-2010 ($Millions)
V-4 Worldwide Professional Services Revenue by Region, 2005-2010 ($Millions)

Chapter VI
VI-1 Wireless Subscriber Distribution (Percent)
VI-2 CLEC Access Line Distribution (Percent)
VI-3 ILEC Residential Access Line Distribution
VI-4 IXC Residential Subscriber Distribution (Percent)
VI-5 High Speed Data over Cable Distribution (Percent)
VI-6 US Total Streaming Media Market, 2003-2008 ($Millions)
VI-7 Years to reach 50 Million Users (Radio, TV, PCs, Internet)
VI-8 Global Internet Usage by Region, 2003-2008 (Millions of Internet Users)
VI-9 Growth of Global Mobile Computing Usage by Region, 2003-2008
VI-10 Global Handheld Usage by Region, 2003-2008 (Millions of Devices in Use)

Chapter VII
VII-1 Capacities of 64Kbit/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, 2005-2010 ($Millions)
VII-8 Milestones in Toll-Free Services, 1967-2004
VII-9 Spare Toll-Free Numbers, 1993-2002 (Numbers Millions)
VII-10 Single Site Call Center Components
VII-11 Multi-Site Call Center Components
VII-12 Total Toll-Free Revenue, 1997-2009 ($Billions)
VII-13 Legacy Centrex Installed Base, 1995-2003 (Extensions Millions)
VII-14 Comparison of Total Premises vs. Centrex Installed Base 1995-2009
VII-15 Total Addressable Market: Premises Equipment Revenue ($Billions)
VII-16 Grid Computing as Part of the IT Evolution
VII-17 Worldwide Grid Spending by Type of Organization, 2005-2010 ($Billions)

TABLE OF TABLES

Chapter I
I-1 Global Carrier Revenue by Region, 2005-2010 ($Millions)

Chapter II
II-1 Global Carrier Revenue by Region, 2005-2010 ($Millions)
II-2 2005 and 2010 Distribution of Global Carrier Revenue by Region
II-3 Service Provider Revenue, 2005-2011 ($Millions)
II-4 Worldwide Telecom Revenue Forecast by Services Category, 2005-2010
II-5 Broadband Consumer Applications and Required Bandwidth
II-6 North American Broadband Wireline Revenue by Market Segment 2005-2010
II-7 Wireless Subscribers by Global Region 2002-2011 (Thousands)
II-8 Typical Frequencies Used for Mobile Services (US vs. International)
II-9 Mobile Wireless Standards (First, Second, and Third Generation)
II-10 Wireless Network Deployment Status, 2005 (Number of Networks)
II-11 Examples of 2.5G and 3G Services
II-12 Revenue for 2G, 2.5G, and 3G Market Segments by Region, 2005-2010
II-13 Four MSO Voice Delivery Options
II-14 Top 30 Cable Service Providers: SME Businesses in All US Markets

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 Wireline SS7 Queries 2003-2008 (Thousands)
III-6 Impacts of VoIP on International Telecommunications Services Revenue ($Billions)
III-7 Gateway Functions
III-8 Softswitch Advantages/Disadvantages
III-9 Economic Benefits of Softswitch Technology
III-10 Strategies to Increase Network Service Margins
III-11 OADM Applications
III-12 Typical Features of First Generation Metropolitan vs. Long-Haul DWDM Networks
III-13 Wavelength Market Segments
III-14 Typical Service Providers Offers for Native Wavelength Services
III-15 Typical Service Providers Offers for Wavelength Services Over SONET
III-16 Wavelength Services Revenue Totals, 2001-2010 ($Millions)
III-17 ITU-T Frequency and Wavelength Grid for DWDM Systems
III-18 Fiber Deployment by Region, 2000-2008 (Gigameters)

Chapter IV
IV-1 Broadband Communication Network Access Solutions
IV-2 Worldwide Broadband Subscribers per 100 Inhabitants, by Technology
IV-3 The Versions and Features of xDSL
IV-4 US Access Lines, Residential and Business, 2005-2010 (Millions)
IV-5 US Primary Residential Access Line Forecast, 2005-2010 (Millions)

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 Worldwide OSS Sales by Region, 2005-2010 ($Millions)
V-5 Worldwide OSS Sales Distribution by Region, 2005 and 2010
V-6 Worldwide OSS Sales Revenue, Wireline vs. Wireless, 2005-2010 ($Millions)
V-7 Worldwide OSS Sales Revenue by Service Type, 2005-2010 ($Millions)

Chapter VI
VI-1 Mergers and Acquisitions
VI-2 Residential and Business Access Lines By Company (Millions)
VI-3 Growth in Subscribers All Segments (Millions) 2005-2010
VI-4 Growth in Wireless Subscriber (Millions) 2005-2010
VI-5 Growth in ILEC Subscribers by Line Type (Millions) 2005-2010
VI-6 Growth in CLEC Subscribers (Millions) 2005-2010
VI-7 Growth in IXC Subscribers (Millions) 2005-2010
VI-8 Growth in Cable Subscribers by Service Type (Millions) 2005-2010
VI-9 Growth in Other VoIP Subscribers (Millions) 2005-2010
VI-10 North American Inbound MOUs with VoIP  2002-2011
VI-11 North American Outbound MOUs with VoIP 2002-2011
VI-12 Caribbean Inbound MOUs with VoIP  2002-2011
VI-13 Caribbean Outbound MOUs with VoIP  2002-2011
VI-14 Central America Inbound MOUs with VoIP 2002-2011
VI-15 Central America Outbound MOUs with VoIP  2002-2011
VI-16 Latin America Inbound MOUs with VoIP  2002-2011
VI-17 Latin America Outbound MOUs with VoIP  2002-2011
VI-18 Europe Inbound MOUs with VoIP  2002-2011
VI-19 Europe Outbound MOUs with VoIP  2002-2011
VI-20 Asia Inbound MOUs with VoIP  2002-2011
VI-21 Asia Outbound MOUs with VoIP  2002-2011
VI-22 Africa Inbound MOUs with VoIP  2002-2011
VI-23 Africa Outbound MOUs with VoIP  2002-2011
VI-24 Oceania Inbound MOUs with VoIP 2002-2011
VI-25 Oceania Outbound MOUs with VoIP  2002-2011
VI-26 US Total Streaming Media Market, 2003-2008
VI-27 802.11 Standards Definitions
VI-28 Total Worldwide WiFi Revenue, 2003-2008 ($Billions)

Chapter VII
VII-1 Digital Services Hierarchy
VII-2 SONET/Optical Carrier Hierarchy
VII-3 Call Center Toll-free Usage by Transaction Type
VII-4 Total Toll-Free Revenue, 1997-2009 ($Billions)
VII-5 Pure IP Centrex Service Provider Comparison
VII-6 Grid Market Segmentation by Resource
VII-7 Grid Market Segmentation by Organization

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