Operator group ranking shows ongoing consolidation

Top 20 operator groups account for 58% of global mobile connections in 1Q09

LONDON, UK, 29 June 2009: New analysis from Wireless Intelligence reveals that the top 20 mobile operators and operator groups ranked by total connections represented over 58 percent of global mobile connections in 1Q09. This collective footprint totals 2.4 billion connections and spans 118 of the 223 global markets tracked by Wireless Intelligence.

In first position is China Mobile, which accounts for 11.5 percent of the total global connections across its fully-owned interests in China and Hong Kong. With a combined 479 million connections, China Mobile surpasses any other aggregated group in the global study by a factor of two. Vodafone Group takes second position with 247 million total connections across the 19 markets in which its hold a majority stake in an operator. Vodafone's most recent expansion comes via Ghana, India and the imminent commercial launch in Qatar. UK-based Vodafone has majority-holdings in 10 markets in its home region of Western Europe, the remainder falling across Eastern Europe, Asia and Africa.

Two groups are in close contention for third and fourth place: Spain's Telefónica and Mexico's América Móvil. The two group's respective footprints outline the intense competition between the two; Telefónica and América Móvil operate in 13 of the same markets in Latin America with the latter running a close second place for connections worldwide, despite Telefónica's heavy European presence.

Overall within the top 20, our study found that the next-generation connections base represents less than 20 percent of total connections. This is due to two main factors. Firstly, certain groups have footprints in regions where next-generation network deployment is at an early stage (China), or the majority of license awards have yet to take place (India). Secondly, it highlights the expansion of the predominately European-based groups into the emerging markets.

"High penetration in mature markets is slowing the opportunity for organic growth as operators push for multiple connections per customer and secondary data connections," commented Will Croft, an analyst at Wireless Intelligence. "At the other end of the spectrum, the emerging markets still produce lucrative profit-making ventures and phenomenal growth. We are seeing more consolidation than ever before as mergers and acquisitions drive non-organic growth in the mature markets, while expansion into the emerging markets remains a key priority for the larger operator groups."

Aggregated top 20 operators and operator groups*, Q1 2009
Source: Wireless Intelligence, company data
* Operators are consolidated at 100% of all connections within a group
that holds a 50% or greater economic interest in its operation.

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About Wireless Intelligence:

Wireless Intelligence is the global cellular industry's leading reference source for operator data and analysis. It is the de facto industry tool for market intelligence with a subscriber base of over 550 of the world's mobile operators, leading equipment manufacturers, software vendors, content suppliers and consultancies. The service covers all cellular technologies and includes 2,215,000 individual data points spanning 800 mobile network operators in over 200 countries. www.wirelessintelligence.com