OECD Communications Outlook 2001.

283 Pages·2001·2.107 MB·English

by  OECD

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INFORMATION SOCIETY
OECD Communications Outlook 2 OECD
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Communications
The 2001 Communications Outlook presents the most recent comparable data on the
performance of the communication sector in OECD countries and on their policy
frameworks. The data provided in this report map the first two years of competition for many Outlook
OECD countries that fully opened their market to competition in 1998. The 2001 edition
analyses major changes and trends in the communications sector and explores future
developments.
The OECD Communications Outlook provides an extensive range of indicators for the
development of different communications networks and compares performance indicators,
such as revenue, investment, employment and prices for service throughout the OECD area.
These indicators are essential for industry and for regulators who use benchmarking to
evaluate policy performance. INFORMATION SOCIETY
This book is based on the data from the Telecommunications Database 2001 which provides
time series of telecommunications and economic indicators, such as network dimension,
revenues, investment and employment for OECD countries from 1980 to 1999. For more
information on trends in information technology, globalisation and the impact on the way
people live and work, refer to the OECD Information Technology Outlook, published every
other year.
All OECD books and periodicals are now available on line
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ISBN 92-64-18630-1
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2001 2001
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Communications
Outlook
2001
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
ORGANISATION FOR ECONOMIC CO-OPERATION
AND DEVELOPMENT
Pursuant to Article1 of the Convention signed in Paris on 14thDecember 1960, and which came into
force on 30thSeptember 1961, the Organisation for Economic Co-operation and Development (OECD)
shall promote policies designed:
– to achieve the highest sustainable economic growth and employment and a rising standard of
living in Member countries, while maintaining financial stability, and thus to contribute to the
development of the world economy;
– to contribute to sound economic expansion in Member as well as non-member countries in the
process of economic development; and
– to contribute to the expansion of world trade on a multilateral, non-discriminatory basis in
accordance with international obligations.
The original Member countries of the OECD are Austria, Belgium, Canada, Denmark, France,
Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain,
Sweden, Switzerland, Turkey, the United Kingdom and the United States. The following countries
became Members subsequently through accession at the dates indicated hereafter: Japan (28thApril 1964),
Finland (28thJanuary 1969), Australia (7thJune 1971), New Zealand (29thMay 1973), Mexico (18thMay
1994), the Czech Republic (21stDecember 1995), Hungary (7thMay 1996), Poland (22ndNovember 1996),
Korea (12thDecember 1996) and the Slovak Republic (14thDecember 2000). The Commission of the
European Communities takes part in the work of the OECD (Article13 of the OECD Convention).
Publié en français sous le titre:
PERSPECTIVES DES COMMUNICATIONS 2001
© OECD 2001
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FOREWORD
This report, the sixth in a series of biennial Communications Outlooks, was prepared in the context of
the OECD’s work on the analysis of communication policy in Member countries.
The report has been drafted by the staff working in the OECD’s Science, Technology and Industry
Directorate. They are grateful for the contribution of the Public Telecommunication Operators who
provided information, and that of national delegations which responded, during2000, to an OECD
questionnaire relating to industry regulation and data.
The assistance and co-operation of the International Telecommunication Union, particularly in
regard to data on non-OECD countries, is also gratefully acknowledged. In addition, the OECD now
works with Teligen Ltd. to provide tariff comparisons, quarterly updates of which are available directly
from Teligen. Many of the other indicators in this report are available on diskette from the OECD’s
Telecommunications Database2001, covering the period1980 to1999.
A draft of the report was presented to the Working Party on Telecommunication and Information
Services Policies at its meeting on 4-6December 2000. Subsequently the Committee for Information,
Computer and Communications Policy recommended that the report be made available to the general
public. It is published on the responsibility of the Secretary-General of the OECD.
3
© OECD 2001
TABLE OF CONTENTS
Chapter 1. Introduction ............................................................................................................................................... 11
The communications market.......................................................................................................................................... 11
Telecommunication market structure........................................................................................................................... 11
Leading telecommunication carriers............................................................................................................................. 13
Mergers, acquisitions and restructuring........................................................................................................................ 14
Benefits for users............................................................................................................................................................. 16
Chapter 2. Recent Communication Policy Developments .................................................................................... 25
Development of competition......................................................................................................................................... 25
Wireless licensing............................................................................................................................................................ 26
IMT-2000 (UMTS).............................................................................................................................................................. 26
Regulatory safeguards..................................................................................................................................................... 26
Foreign ownership........................................................................................................................................................... 27
Interconnection................................................................................................................................................................ 27
Numbering........................................................................................................................................................................ 27
Local loop unbundling.................................................................................................................................................... 28
Regulation and the Internet........................................................................................................................................... 28
Future regulatory challenges.......................................................................................................................................... 28
Chapter 3. Telecommunication Market Size .......................................................................................................... 47
Mobile communications.................................................................................................................................................. 48
International..................................................................................................................................................................... 50
Leased lines..................................................................................................................................................................... 54
Research and development........................................................................................................................................... 54
Chapter 4. Network Dimensions and Development .............................................................................................. 69
Mobile communications.................................................................................................................................................. 72
Digitalisation and fibre.................................................................................................................................................... 74
Investment........................................................................................................................................................................ 76
Chapter 5. Internet Infrastructure ............................................................................................................................ 97
Internet subscribers......................................................................................................................................................... 97
Internet hosts.................................................................................................................................................................... 100
Web sites........................................................................................................................................................................... 101
Secure servers.................................................................................................................................................................. 103
E-commerce access and supply..................................................................................................................................... 105
Domain names.................................................................................................................................................................. 106
Regional development of Internet................................................................................................................................ 108
Chapter 6. Broadcasting Services ............................................................................................................................. 119
Structural changes............................................................................................................................................................ 119
Regulatory framework...................................................................................................................................................... 126
Chapter 7. Main Trends in Pricing ............................................................................................................................ 171
Internet access pricing..................................................................................................................................................... 174
Business residential and international baskets........................................................................................................... 178
Mobile communications.................................................................................................................................................. 181
Leased lines..................................................................................................................................................................... 184
Chapter 8. Quality of Service ..................................................................................................................................... 209
Connections...................................................................................................................................................................... 211 5
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Communications Outlook 2001
Payphones......................................................................................................................................................................... 212
Network faults and maintenance.................................................................................................................................... 213
Billing and directory assistance...................................................................................................................................... 214
Answer seizure ratios........................................................................................................................................................ 215
Chapter 9. Employment and Productivity ................................................................................................................. 229
Employment...................................................................................................................................................................... 229
Productivity........................................................................................................................................................................ 233
Chapter 10. Trade in Communication Equipment .................................................................................................... 249
Exports of communication equipment........................................................................................................................... 249
Imports of communication equipment.......................................................................................................................... 251
Balance of trade in communication equipment........................................................................................................... 254
Demand indicators........................................................................................................................................................... 254
Monitoring and interpreting communication equipment trade................................................................................. 257
Chapter 11. The International Digital Divide ............................................................................................................ 265
Access infrastructure......................................................................................................................................................... 269
The digital divide and the Internet................................................................................................................................ 272
The digital divide, electronic commerce and content................................................................................................. 272
List of Tables
1.1. Major public telecommunication operators in the OECD area
with revenues greater than USD1billion, 1999............................................................................................... 18
1.2. Major mobile telecommunication operators in the OECD area, 1999........................................................... 21
1.3. Main indicators for incumbent and new public telecommunication operators in the OECD.................... 24
2.1. Telecommunication facilities competition in the OECD area........................................................................ 29
2.2. National long-distance market shares of new operators................................................................................. 30
2.3. International market share of new market entrants......................................................................................... 31
2.4. Local market share by competitive new entrants............................................................................................ 32
2.5. Cellular mobile competition in the OECD, 2000.............................................................................................. 33
2.6. Wireless in the local loop (WLL) licensing........................................................................................................ 34
2.7. IMT-2000 (UMTS) allocation methods and licensing....................................................................................... 35
2.8. Government ownership of incumbent telecommunication network operator............................................. 36
2.9. Foreign ownership restrictions in telecommunications.................................................................................. 38
2.10. Interconnection frameworks................................................................................................................................ 39
2.11. Carrier number portability and carrier pre-selection...................................................................................... 42
2.12. Regulatory requirements for local loop unbundling....................................................................................... 44
2.13. Treatment of Internet telephony........................................................................................................................ 45
3.1. Telecommunication revenue in the OECD area............................................................................................... 56
3.2. Telecommunication revenue as a percentage of GDP.................................................................................... 57
3.3. Globalisation of telecommunication revenues................................................................................................ 58
3.4. Major growth areas in telecommunication revenue: mobile telecommunication....................................... 59
3.5. Telecommunication revenue ratios................................................................................................................... 60
3.6. Cellular mobile telecommunication revenue per cellular mobile subscriber............................................. 61
3.7. International telecommunication revenue....................................................................................................... 62
3.8. International telecommunication traffic............................................................................................................ 63
3.9. Leased line revenue............................................................................................................................................ 64
3.10. R&D expenditures for PTOs and telecommunications equipment manufacturers..................................... 65
3.11. US Patent and Trademark Office: number of patents granted to selected
telecommunication operators............................................................................................................................ 66
3.12. Electric communication technique patents granted by the USPTO,
and filed to the EPO and the JPO....................................................................................................................... 67
4.1. Telecommunication channels in the OECD area.............................................................................................. 80
4.2. Telecommunication channels per 100 inhabitants in the OECD area........................................................... 81
4.3. Standard telecommunication access lines in the OECD area........................................................................ 82
4.4. ISDN subscribers in the OECD area.................................................................................................................. 83
4.5. Cellular mobile subscribers in the OECD area................................................................................................. 85
4.6. Cellular mobile penetration, 1999..................................................................................................................... 86
6 4.7. Mobile subscriptions and monthly usage (selected companies/countries)................................................. 87
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4.8. Digitalisation in the OECD area......................................................................................................................... 89
4.9. Deployment of fibre optic cable in the OECD area........................................................................................ 90
4.10. Public telecommunication investment in the OECD area............................................................................. 91
4.11. Telecommunication investment by region...................................................................................................... 92
4.12. Public telecommunication investment as a percentage of revenue............................................................ 92
4.13. Public telecommunication investment as a percentage of GFCF................................................................. 93
4.14. Public telecommunication investment per access channel........................................................................... 94
4.15. Public telecommunication investment per access path................................................................................ 95
4.16. Public telecommunication investment per capita.......................................................................................... 96
5.1. Internet subscribers, 1stJanuary 2000.............................................................................................................. 111
5.2. Internet hosts by country, 1997-2000................................................................................................................ 112
5.3. Web sites by domain.......................................................................................................................................... 113
5.4. Secure servers in OECD countries.................................................................................................................... 114
5.5. Links to secure servers from top-level domains, July2000............................................................................ 115
5.6. Domain name registrations under top-level domains, July2000.................................................................. 116
5.7. Domain name registry prices, July2000........................................................................................................... 117
5.8. Regional development of the Internet, July2000............................................................................................ 118
6.1. Television broadcasting revenue in OECD countries..................................................................................... 129
6.2. Television broadcasting revenue as a share of GDP and revenue per inhabitant..................................... 130
6.3. Turnover of the 50 leading audio-visual companies in the world, 1998....................................................... 131
6.4. Means of receiving television services............................................................................................................. 132
6.5. Advertising revenue in the television broadcasting market......................................................................... 133
6.6. Subscription revenue in the television broadcasting market....................................................................... 134
6.7. Public funding in the television broadcasting market.................................................................................... 135
6.8. Penetration rate of cable television in OECD countries................................................................................ 136
6.9. Number of direct broadcast satellite (DBS) subscribers in OECD countries.............................................. 137
6.10. Number of subscribers to major satellite pay TV packages.......................................................................... 138
6.11. Number of subscribers to pay television services.......................................................................................... 139
6.12. Relative size of public broadcasters................................................................................................................. 140
6.13. Number of terrestrial broadcasting companies in the OECD area............................................................... 141
6.14. Status of major terrestrial television broadcasting companies in OECD countries.................................... 142
6.15. Broadcasting services available on satellite.................................................................................................... 147
6.16. Size of digital TV market..................................................................................................................................... 148
6.17. Digital cable services and concentration of ownership in European countries, 1999................................ 149
6.18. Characteristics of DTTV services operating in January 2001.......................................................................... 150
6.19. Broadcasting administration and regulation in the OECD area.................................................................... 151
6.20. Definition of “broadcasting” in OECD countries............................................................................................. 155
6.21. “Must-carry” rules in the OECD area................................................................................................................. 156
6.22. Major domestic and local content requirements in the OECD area............................................................. 158
6.23. Specific cross-sector ownership restrictions in OECD countries................................................................... 160
6.24. Ownership restrictions on television services in OECD countries................................................................ 162
6.25. Cross-media ownership restrictions in OECD countries................................................................................ 165
6.26. Foreign ownership restrictions on broadcasting services in OECD countries............................................. 167
6.27. Regulatory treatment of “webcasting service” in OECD countries............................................................... 169
7.1. PSTN charging structure for residential users in the OECD area, 2000........................................................ 188
7.2. OECD Internet access basket for 20hours at peak times using discounted PSTN rates........................... 189
7.3. OECD Internet access basket for 20hours at off-peak times using discounted PSTN rates..................... 190
7.4. OECD Internet access basket for 40hours at peak times using discounted PSTN rates........................... 191
7.5. OECD Internet access basket for 40hours at off-peak times using discounted PSTN rates..................... 192
7.6. OECD Internet access basket for 20hours using discounted PSTN rates.................................................... 193
7.7. OECD Internet access basket for 40hours using discounted PSTN rates.................................................... 194
7.8. OECD basket of residential telephone charges, August 2000....................................................................... 195
7.9. OECD composite basket of residential telephone charges, August 2000.................................................... 196
7.10. OECD basket of business telephone charges, August 2000.......................................................................... 197
7.11. OECD composite basket of business telephone charges, excluding VAT, August 2000............................ 198
7.12. OECD time series for telephone charges......................................................................................................... 199
7.13. Rebalancing in business telephone charges, 1997-2000................................................................................ 199
7.14. OECD basket of international telephone charges, August 2000................................................................... 200
7.15. Trends in international collection charges per minute at peak rates........................................................... 201
7.16. International collection charges per minute at peak rates, August 2000..................................................... 202
7.17. International collection charges per minute at off-peak rates, August2000............................................... 203
7.18. OECD basket of consumer mobile telephone charges, August 2000........................................................... 204 7
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Communications Outlook 2001
7.19. OECD basket of business mobile telephone charges, August 2000.............................................................. 205
7.20. OECD basket of national leased line charges, August2000........................................................................... 206
7.21. Trends in leased line pricing over different distances, 1992-2000................................................................ 207
8.1. Network access: waiting time for new connection............................................................................................ 217
8.2. Network access: outstanding applications for connection.............................................................................. 218
8.3. Payphones in the OECD area............................................................................................................................. 219
8.4. Quality of service: payphones............................................................................................................................ 220
8.5. Quality of service: fault incidence and repair time.......................................................................................... 221
8.6. Itemised billing.................................................................................................................................................... 223
8.7. Cost of itemised billing....................................................................................................................................... 224
8.8. Directory assistance charges............................................................................................................................... 225
8.9. Answer seizure ratios........................................................................................................................................... 227
9.1. PTO employment, 1989-99.................................................................................................................................. 240
9.2. Mobile employment and indicators, 1995-99................................................................................................... 241
9.3. PTO employment as a share of national employment, 1989-99..................................................................... 242
9.4. PTO expenditure on personnel.......................................................................................................................... 243
9.5. PTO fixed and mobile access paths per employee, 1989-99.......................................................................... 244
9.6. PTO revenue per employee, 1989-99................................................................................................................ 245
9.7. PTO labour productivity by company, 1999...................................................................................................... 246
9.8. Occupational change in telecommunications in the United States, 1998-2008........................................... 247
10.1. Communication equipment exports by value, 1990-98................................................................................... 258
10.2. Communication equipment exports by category, 1998................................................................................... 259
10.3. Communication equipment imports by value, 1990-98.................................................................................. 260
10.4. Communication equipment imports by category, 1998.................................................................................. 261
10.5. Communication equipment trade balance by category, 1998........................................................................ 262
10.6. Composition of UStelecommunication equipment trade, 1998-99.............................................................. 263
11.1. Selected communication data for SriLanka..................................................................................................... 276
11.2. The international digital divide and access infrastructure............................................................................. 277
11.3. Internet hosts and the international digital divide......................................................................................... 278
11.4. Non-OECD countries with the largest number of Internet hosts................................................................... 279
11.5. Secure servers and the digital divide................................................................................................................ 280
11.6. Non-OECD countries with the largest number of secure servers.................................................................. 281
11.7. Web sites and the digital divide........................................................................................................................ 282
Statistical Annex
A1. Average annual exchange rates.......................................................................................................................... 284
A2. Purchasing power parities................................................................................................................................... 285
A3. Total population................................................................................................................................................... 286
A4. Gross domestic product...................................................................................................................................... 287
A5. Households........................................................................................................................................................... 288
List of Figures
1.1. Fixed network infrastructure competition in OECD countries....................................................................... 12
1.2. Cellular mobile infrastructure competition...................................................................................................... 12
1.3. Number of equivalent cellular mobile operators in OECD markets............................................................. 13
1.4. Incumbents and new entrants: share of key indicators, 1999......................................................................... 14
1.5. Internet access development and e-commerce............................................................................................... 17
3.1. Trends in public telecommunications revenue, investment and access paths, 1980-1999........................ 47
3.2. Mobile telecommunication revenue in OECD countries, 1999...................................................................... 49
3.3. Public telecommunication revenue per access path, 1998 and1999............................................................ 49
3.4. Public telecommunication revenue per capita, 1990 and1999...................................................................... 50
3.5. Cellular mobile telecommunication revenue per cellular mobile subscriber, 1997 and1999.................. 51
3.6. Share of mobile revenue in public telecommunication revenue.................................................................. 52
3.7. Minutes of outgoing international telecommunication traffic (MiTT), 1999.................................................. 53
3.8. US Patent and Trademark Office: Number of patents granted in the electronic
equipment and components industry............................................................................................................... 55
4.1. Access channels per 100 inhabitants in OECD countries, 1990, 1995 and1999 .......................................... 69
4.2. Cellular mobile subscribers in OECD countries............................................................................................... 71
8 4.3. Cellular mobile subscribers per 100 inhabitants, 1999 .................................................................................. 71
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4.4. ISDN subscribers, 1999 ...................................................................................................................................... 73
4.5. Digitalisation in the OECD area, 1990-99 ........................................................................................................ 75
4.6. Public telecommunications investment by region, 1990-1999...................................................................... 77
4.7. Public telecommunication investment as a percentage of PTO revenue
and of gross fixed capital formation (GFCF), 1999.......................................................................................... 77
4.8. Public telecommunication investment per access path................................................................................ 78
4.9. Public telecommunication investment per capita.......................................................................................... 78
5.1. Internet subscribers per 100 inhabitants, January2000................................................................................. 98
5.2. Average hours spent on line by subscribers per month, 1999...................................................................... 99
5.3. Hours spent on line (average per month per subscriber)............................................................................. 99
5.4. Internet hosts in OECD countries per 1 000 inhabitants, October2000....................................................... 100
5.5. Number of Web sites by country, July2000..................................................................................................... 102
5.6. Web sites per 1 000 inhabitants, July2000....................................................................................................... 102
5.7. Secure servers per 100 000 inhabitants, July2000 ......................................................................................... 104
5.8. Links to secure servers by domain, July2000.................................................................................................. 104
5.9. Links to secure servers by language, July2000............................................................................................... 105
5.10. Hosts and secure servers per population, July2000....................................................................................... 106
5.11. Domain names in OECD per 1 000 inhabitants, July2000.............................................................................. 107
5.12. Cost of registering domain names, July2000................................................................................................... 109
5.13. Regional share of routes announced to Internet, July2000........................................................................... 110
7.1. OECD Internet access basket for 40 hours at peak times using discounted PSTN rates,
September2000, including VAT........................................................................................................................ 176
7.2. OECD Internet access basket for 40 hours at off-peak times using discounted PSTN rates,
September2000, including VAT........................................................................................................................ 176
7.3. OECD Internet access basket for 20 hours per month, using discounted PSTN rates,
USD PPP, including VAT, 1998-2000.................................................................................................................. 177
7.4. OECD residential tariff basket, USD PPP, including VAT, August2000........................................................ 177
7.5. OECD composite basket of residential telephone charges, VAT included, August2000.......................... 179
7.6. OECD business tariff basket, USD PPP, excluding VAT, August2000........................................................... 179
7.7. OECD composite basket of business telephone charges, excluding VAT, August2000............................ 181
7.8. Time series for telephone charges.................................................................................................................... 182
7.9. a. Call charges as a percentage of all usage charges....................................................................................... 183
7.9. b. Distribution of total rental and usage charges............................................................................................. 183
7.10. OECD basket of international telephone charges for business and residential users,
August2000.......................................................................................................................................................... 184
7.11. Trends in average OECD international collection charges per minute at peak rates,
USD, 1995-2000.................................................................................................................................................... 185
7.12. OECD basket of consumer mobile telephone charges, August2000........................................................... 185
7.13. OECD basket of business mobile telephone charges, August2000............................................................. 186
7.14. Trends in leased line pricing over different distances, 1992-2000 (2Mbit/sec.).......................................... 187
8.1. Payphones per 100 inhabitants in the OECD area, 1995 and1999............................................................... 210
8.2. Average OECD directory assistance charges, in USD PPP............................................................................. 214
8.3. Answer seizure ratios, 1999................................................................................................................................ 215
8.4. Answer seizure ratios, 1990-99........................................................................................................................... 216
9.1. Employment in incumbent PTOs and new entrants, 1995-99........................................................................ 230
9.2. a. Staff age breakdown (Optimus1999)............................................................................................................ 231
9.2. b. Staff category breakdown (Optimus1999)................................................................................................... 231
9.2. c. Staff deployment (Optimus1999).................................................................................................................. 231
9.3. Employment in communication services in OECD countries, 1989-99......................................................... 232
9.4. Fixed and mobile access paths per employee in the OECD, 1989-99......................................................... 234
9.5. Fixed and mobile access paths per employee in OECD countries, 1999.................................................... 234
9.6. Revenue per employee in OECD countries, 1999........................................................................................... 235
9.7. Personnel costs per employee by company, USD, 1999................................................................................ 236
9.8. Access paths per employee by company, 1999.............................................................................................. 236
9.9. Revenue per employee by company, USD, 1999............................................................................................ 237
9.10. Annual average number of employees in US telecommunication services, 1984-99................................. 238
10.1. OECD trade in communication equipment, 1990-98..................................................................................... 249
10.2. Composition of communication equipment exports from OECD countries, 1998...................................... 250
10.3. Communication equipment exports per capita, 1998.................................................................................... 251
10.4. Cisco Systems net sales, income and R&D expenditure, 1995-2000............................................................ 252
10.5. Composition of communication equipment imports into OECD countries, 1998....................................... 252 9
© OECD 2001