Executive Summary

This report has 14 profiles covering some of the major telecommunications companies in Greater China, Japan and South Korea. Each profile provides a descriptive overview of the business of the particular company as well as the latest available financial and operational statistics.

China Mobile (Hong Kong) Ltd – China Mobile (Hong Kong) has the world’s largest mobile subscriber base (over 230 million) and the largest geographically contiguous mobile network. The company also has a strategic alliance with Vodafone.
China Netcom Group – China Netcom Group is the second largest fixed-line operator in China. The group owns 30% of the country’s fixed-line infrastructure and serves 35% of its fixed-line customers. As part of its infrastructure it has a 360Gb/s IP backbone network and the Asia Netcom submarine network. It was the last of the major telcos in China to go public, conducted an IPO in November 2004.
China Telecom Group – China Telecom Corporation commenced operations in September 2002 under a structure assigned following the government splitting it off from the state-owned China Telecom Group. It went public on HKSE and NYSE in November 2002. Although it has been predominantly a fixed-line service provider, more recently its revenue growth engines have included its PHS mobile service and broadband Internet.
China Unicom Ltd – China Unicom is the third largest mobile provider in the world and the second largest provider of Code Division Multiple Access (CDMA) mobile services. Its principal activity continues to be GSM and CDMA mobile services, but is the country’s only operator licensed full service telco. The company is focusing on its rapidly expanding 2.5G CDMA 1X service and has also launched a dual-mode GSM-CDMA system.
Hutchison Whampoa Ltd – Hutchison Whampoa, a huge Hong Kong based conglomerate, has become heavily involved in telecommunications and is now a serious global player. As well as its Hong Kong business, it has a presence in 19 countries throughout Asia, Europe, Australasia, the Middle East and South America. Specialising in mobile communications, the company has invested billions in Third generation (3G) licences and infrastructure and has been at the forefront of the global 3G roll-out.
KDDI Corporation – KDDI is a Japan’s second largest telecommunications carrier after NTT Corporation. The company provides local, domestic long-distance and international fixed-line as well as mobile telecom services nationwide. It also offers Internet and IP services, dial-up access, and broadband through Asymmetrical Digital Subscriber Line (ADSL) and Fibre-to-the-Home (FttH). It launched its 3G mobile phone offerings in April 2002 and November 2003.
KT Corporation – South Korea’s KT Corporation was listed on the local and New York stock exchanges in 1998. The previously state-owned monopoly Korea Telecom was fully privatised in May 2002. The company owns the county’s fixed-line and satellite infrastructure, and also operates the country’s second largest mobile business through its subsidiary KTF. KT is one of the world’s largest broadband providers, claiming half the country’s saturated broadband market. Its expansion into new broadband products includes such services as WiFi hotspots, VDSL at 50Mb/s and broadband content delivery including TV and Video-on-Demand (VoD).
NTT Corporation/ NTT Communications Corporation – Nippon Telegraph and Telephone Corporation (NTT Corp) functions primarily as a holding company for the NTT Group, which is the largest telecommunications operator in Japan. The Japanese government continues to be a major shareholder. The Group, with its many subsidiaries and affiliates, provides fixed-line local, long-distance and international telecommunications services, wireless telephony, data communications and Internet-based services. NTT Communications (NTT Com) is a wholly owned subsidiary of NTT Corp, and is the group’s provider of domestic long-distance and international telecom services. NTT Com also offers ISP dial-up and broadband services in Japan, as well as global IP services.
PCCW Ltd – PCCW has been Hong Kong’s dominant fixed-line telecommunications provider since it acquired the incumbent, Cable and Wireless HKT, in 2000. Since the takeover, the company has been struggling with debt and organisational restructuring in its effort to remain viable. In January 2005, China Netcom reached an agreement with PCCW on the purchase of a 20% stake in PCCW for US$1 billion.
REACH – REACH is a 50/50 joint venture between Australia’s Telstra and Hong Kong-based PCCW. It is one of Asia’s largest international carriers of voice, IPLC and IP data traffic and has a major global transmission network enabling access to around 240 countries. REACH has suffered from aggressive price-cutting and a global glut in international capacity. The partners, Telstra and PCCW, have continued to put considerable effort into restructuring the business and weathering the commercial difficulties.
SK Telecom Co Ltd – SK Telecom (SKT) is the largest operator in the dynamic South Korean mobile market, with a more than 50% share. The company provides 2G and 3G mobile services, handset manufacturing and Internet services. SKT also has mobile telephone interests in China, Mongolia, Vietnam and Cambodia. In 2002, SKT launched the world’s first CDMA2000 network with data speeds of 2.4Mb/s.

1. EXECUTIVE SUMMARY
2. CHINA MOBILE (HONG KONG) LTD
2.1 Company information
2.1.1 Operating results – 2004
2.1.2 Financial results – 2004
2.1.3 Company history
2.2 Parent company
2.2.1 China Mobile Communications Corp
2.3 China Mobile (HK) Subsidiaries
2.3.1 Regional subsidiaries
2.3.2 Aspire Holdings (Aspire)
2.4 Vodafone strategic alliance
2.5 Competition
2.5.1 China Unicom
2.5.2 China Telecom and China Netcom
2.6 Network
2.6.1 GSM voice network
2.6.2 Data and Internet network
2.6.3 IP telephony network
2.7 Services
2.7.1 Brands
2.7.2 Basic voice services
2.7.3 SMS and MMS data services
2.7.4 WAP services
2.7.5 GPRS services
2.7.6 VoIP telephony services
2.8 Contact details
3. CHINA NETCOM GROUP
3.1 Company information
3.1.1 Operating results – 2004
3.1.2 Financial results – 2004
3.2 History and development
3.2.1 Industry restructuring
3.2.2 Corporate restructuring
3.2.3 Initial Public Offering (IPO)
3.2.4 Company history
3.3 Organisational structure
3.3.1 Ten regional telecom divisions
3.3.2 China Netcom Corporation
3.4 Subsidiaries
3.4.1 Shanghai Netcom
3.4.2 China Online and 116.com.cn
3.4.3 Tiantian Online
3.4.4 Asia Netcom
3.5 Networks
3.5.1 China Netcom Group network
3.5.2 CNCnet
3.5.3 MobileOffice Wireless Local Area Networks (WLANs)
3.5.4 Xiao Ling Tong PHS network
3.5.5 Fibre-to-the-Building (FttB) network
3.5.6 3G network
3.6 Services
3.6.1 China Netcom services
3.6.2 Asia Netcom services
3.7 Contact details
4. CHINA TELECOM GROUP
4.1 Company information
4.1.1 Operating results – 2003
4.1.2 Financial results – 2003
4.1.3 Company history
4.2 Little Smart mobile services – Analysis April 2004
4.3 Subsidiaries
4.3.1 China Telecom Corporation
4.3.2 China Telecom (USA) Corporation
4.3.3 Regional subsidiaries
4.3.4 Xizang (Tibet) Autonomous Region
4.4 Networks
4.4.1 Backbone network
4.4.2 Switching network
4.4.3 ChinaNet Internet network
4.4.4 CMNet – VoIP telephony network
4.4.5 Data networks
4.4.6 International fibre optic cable network
4.4.7 WLAN WiFi network
4.5 Services
4.5.1 Voice services
4.5.2 Limited mobility services
4.5.3 VoIP telephony
4.5.4 Internet services
4.5.5 Business services
4.5.6 Other services
4.5.7 Managed network services
4.6 Contact details
5. CHINA UNICOM LTD
5.1 Company information
5.1.1 Operating results – 2004
5.1.2 Financial results – 2004
5.1.3 Company history
5.2 Parent company
5.2.1 Unicom Group
5.3 Subsidiary companies
5.4 Fixed-line networks
5.4.1 Local access
5.4.2 National backbone
5.4.3 International long-distance
5.5 GSM mobile network
5.6 CDMA mobile network
5.6.1 CDMA strategic partners
5.6.2 CDMA global roaming
5.6.3 CDMA data services
5.7 GSM-CDMA dualmode system
5.8 Data and Internet networks
5.9 VoIP network
5.10 Satellite network
5.11 Services
5.11.1 Local telephone networks
5.11.2 Long-distance communications
5.11.3 VoIP telephony
5.11.4 GSM
5.11.5 CDMA
5.11.6 Internet and data services
5.12 Contact details
6. HUTCHISON WHAMPOA LTD
6.1 Company information
6.1.1 Group financial results – 2004
6.1.2 Initial Public Offering
6.2 Telecommunications group
6.2.1 Operating results – 2004
6.2.2 Financial results – 2004
6.2.3 Company history (outside of Hong Kong)
6.3 3G telecommunications
6.3.1 3G services
6.4 Hong Kong operations
6.5 International operations
6.5.1 Australia and New Zealand
6.5.2 Europe
6.5.3 Asia
6.5.4 South America
6.5.5 Middle East
6.5.6 Africa
6.6 Contact details
7. KDDI CORPORATION
7.1 KDDI Corporation company information
7.1.1 Financial results – 2005
7.1.2 Company history
7.2 Subsidiaries
7.2.1 KDDI Network & Solutions Inc
7.2.2 Overseas businesses
7.3 Research & development
7.4 The network
7.4.1 National
7.4.2 International
7.4.3 IP Network
7.5 Operations
7.5.1 Mobile
7.5.2 BBC & Solutions Business
7.6 Services
7.6.1 Fixed-line telephone services
7.6.2 Mobile telephone services
7.6.3 Internet and broadband services
7.6.4 Services for corporate users
7.7 Contact details
8. KT CORPORATION
8.1 Company information
8.1.1 Operating results – 2004
8.1.2 Financial results – 2004
8.1.3 Company history
8.2 Company analysis
8.3 Subsidiaries
8.3.1 KTF/KT Freetel
8.3.2 KT Hitel
8.4 International operations
8.5 Network
8.5.1 Fixed-line network
8.5.2 Asian Internet Network (AIN)
8.5.3 Submarine cable networks
8.6 Operations
8.6.1 Fixed-line telephone
8.6.2 Internet
8.6.3 Broadband
8.6.4 Business and data communications operations
8.6.5 Satellite
8.7 Services
8.7.1 Telephone services
8.7.2 Internet services
8.7.3 Broadband services
8.7.4 Business and data communications services
8.7.5 Satellite communications services
8.8 Contact details
9. NTT COMMUNICATIONS CORPORATION
9.1 Company information
9.1.1 Financial results – 2005
9.1.2 Company history
9.1.3 Acquisitions
9.2 Subsidiaries and international operations
9.3 Networks
9.4 Operations
9.4.1 Voice transmission
9.4.2 Internet
9.4.3 Business services
9.5 Services
9.5.1 Voice
9.5.2 Internet dial-up
9.5.3 Broadband services
9.5.4 IP services
9.5.5 Network services
9.6 Other developments
9.6.1 Year 2002
9.6.2 Year 2003
9.6.3 Year 2004
9.7 Subsidiaries and International Operations
9.7.1 Company information
9.7.2 Subsidiaries and investments
9.7.3 Other international activities
9.8 Contact details
10. NTT CORPORATION JAPAN
10.1 Company information
10.1.1 Operating results – 2005
10.1.2 Financial results – 2005
10.1.3 Company history
10.2 Company structure
10.3 Regulatory developments
10.3.1 Interconnection rates and price-cap system
10.3.2 Local loop opened to competitors
10.3.3 Issues around cross-subsidies
10.4 Restructuring – 1999 - 2004
10.5 Research and development
10.6 NTT Corporation Subsidiaries
10.6.1 Company information
10.6.2 Subsidiaries
10.6.3 NTT East and NTT West
10.6.4 NTT Communications Corp
10.6.5 NTT DoCoMo
10.6.6 NTT Data Corporation
10.6.7 NTT Resonant / NTT Broadband Initiative (NTT-BB)
10.6.8 Contact details
11. PCCW LTD
11.1 PCCW Company information
11.1.1 Operating results – 2004
11.1.2 Financial results – 2004
11.1.3 Company history – 1988 - 2004
11.2 PCCW company organisation
11.3 PCCW network
11.4 PCCW operations
11.4.1 Telecommunications
11.4.2 Business eSolutions
11.4.3 Infrastructure and property
11.5 Overseas ventures
11.5.1 China
11.5.2 India
11.5.3 Japan
11.5.4 Taiwan
11.5.5 UK
11.6 CyberWorks ventures
11.7 Telstra alliance
11.7.1 Reach
11.7.2 Regional Wireless Company
11.8 Services
11.8.1 Telecommunications
11.8.2 Business eSolutions
11.9 Contact details
12. REACH
12.1 REACH Ltd company information
12.1.1 REACH’s network assets
12.1.2 Financial results – 2003
12.1.3 Company history
12.2 Analysis (by Paul Budde)
12.2.1 The original REACH deal
12.2.2 Ongoing problems (updated mid-2004)
12.2.3 The saga continues - January 2005
12.2.4 PCCW does deal with China Netcom
12.3 Services
12.4 Contact details
13. SK TELECOM CO LTD
13.1 SK Telecom company information
13.1.1 Financial results – 2004
13.1.2 Merger with Shinsegi Telecom
13.1.3 Mobile number portability – 2004 analysis
13.1.4 SKT kept in check by the government – mid-2004 analysis
13.1.5 Company history
13.2 Subsidiaries
13.2.1 SK IMT
13.2.2 SK Telink
13.2.3 SK Teletech
13.2.4 SK Communications
13.2.5 TU Media Corp
13.3 International activities
13.3.1 Cambodia
13.3.2 China
13.3.3 Mongolia
13.3.4 Vietnam
13.4 Network
13.5 Operations
13.5.1 Mobile phone operation
13.5.2 Global roaming
13.5.3 Short Message Service (SMS)
13.5.4 Multimedia Messaging System (MMS)
13.5.5 NATE mobile data services
13.5.6 MONETA m-commerce
13.5.7 MBank m-banking service
13.5.8 M-government / Gyeonggi Net Mobile Service
13.6 Services
13.6.1 Mobile phone services
13.6.2 Mobile Internet and data services
13.7 Contact details
14. LIST OF TELECOMMUNICATIONS COMPANIES
14.1 Major Asian telecommunications companies - Greater China, Japan and South Korea
15. GLOSSARY OF ABBREVIATIONS


Exhibit 1 – China Mobile (Hong Kong) at a glance
Exhibit 2 – China Mobile Communications Corp at a glance
Exhibit 3 – Major regional subsidiaries – 2004
Exhibit 4 – China Network Communications Group Corporation at a glance
Exhibit 5 – Division of China Telecom’s national assets
Exhibit 6 - China Telecom Group at a glance
Exhibit 7 – Transfer of China Telecom regional subsidiaries 2002 - 2004
Exhibit 8 – China Unicom Ltd at a glance
Exhibit 9 – Major subsidiaries
Exhibit 10 – Hutchison Whampoa Ltd at a glance
Exhibit 11 – 3G licences and business partners – December 2004
Exhibit 12 – Hutchison Whampoa international operations – 2004
Exhibit 13 – Hutchison spectrum licences in Australia
Exhibit 14 – Hutchison Whampoa Indian operations – March 2005
Exhibit 15 – KDDI Corporation at a glance
Exhibit 16 – Subsidiaries – mobile communication businesses
Exhibit 17 – Subsidiaries – broadband and consumer and solutions-related businesses
Exhibit 18 – Subsidiaries – Japan – domestic telecom infrastructure construction
Exhibit 19 – Subsidiaries – Japan – domestic sales of IT equipment and systems
Exhibit 20 – Subsidiaries – Japan – other services
Exhibit 21 – Subsidiaries – Asia/Oceania
Exhibit 22 – Subsidiaries – Europe
Exhibit 23 – Subsidiaries – America
Exhibit 24 – KT Corporation at a glance
Exhibit 25 – Major KT subsidiaries – March 2005
Exhibit 26 – KT interests in submarine cable networks
Exhibit 27 – NTT Com at a glance
Exhibit 28 – International networks
Exhibit 29 – NTT Com at a glance
Exhibit 30 – Summary of NTT Com’s major international subsidiaries and their services
Exhibit 31 – NTT’s major affiliates in the Asia Pacific region
Exhibit 32 – NTT Corporation at a glance
Exhibit 33 – NTT Core Group structure – March 2005
Exhibit 34 – NTT Corporation at a glance
Exhibit 35 – Selected major consolidated subsidiaries
Exhibit 36 – NTT East at a glance
Exhibit 37 – NTT West at a glance
Exhibit 38 – NTT East and NTT West service areas
Exhibit 39 – PCCW Ltd at a glance
Exhibit 40 – PCCW business units – 2004
Exhibit 41 – PCCW Japan business units
Exhibit 42 – REACH Ltd at a glance
Exhibit 43 – SK Telecom at a glance
Exhibit 44 – Major subsidiaries-Dec 2002
Exhibit 45 – Selected companies and market segments listed by country




Table 1 – Subscribers, annual change, percent prepaid, market share – 1998 - 2004
Table 2 – Total network usage – 1998 - 2004
Table 3 – Data subscribers – 2000 - 2004
Table 4 – SMS volume – 2000 - 2004
Table 5 – Operating revenue and annual change – 1996 - 2004
Table 6 – Revenue by service – 2004
Table 7 – Network statistics – 2004
Table 8 – Overall subscriber base – 2004
Table 9 – Fixed-line subscribers + annual change – 2002 - 2004
Table 10 – Little Smart* subscribers + annual change – 2002 - 2004
Table 11 – Broadband subscribers + annual change – 2002 - 2004
Table 12 – Revenue by service – 2004
Table 13 – Network statistics – 2003
Table 14 – Subscribers – 2003
Table 15 – Operating revenue and annual change for 21 regions – 2001 - 2003
Table 16 – Historical operating revenue and annual change – 1995 - 2001
Table 17 – China Telecom Group network – 2003
Table 18 – Combined CDMA and GSM mobile subscribers – 1998 - 2004
Table 19 – GSM mobile subscribers – 1998 - 2004
Table 20 – CDMA mobile subscribers – 2001 - 2004
Table 21 – International and long-distance business (PSTN & IP) – 2000 - 2004
Table 22 – Operating revenue and annual change – 1997 - 2004
Table 23 – Revenue by service – 2004
Table 24 –Network statistics – 2004
Table 25 – Metropolitan local access fibre optic networks – 2000 - 2004
Table 26 – National fibre optic backbone network – 2000 - 2004
Table 27 – Group operating revenue and annual change – 1993 - 2004
Table 28 – Group revenue by business segment – 2004
Table 29 – Group revenue by region – 2004
Table 30 – 2G mobile subscribers in Hong Kong, Australia, India, Israel, etc – 1998 - 2004
Table 31 – 3G mobile subscribers – March 2005
Table 32 – 3G infrastructure CAPEX and annual change – 2001 - 2004
Table 33 – Orange 2G CDMA subscribers – 2000 - 2005
Table 34 – Hutchison 3G Australia subscribers – 2003 - 2005
Table 35 – HWL’s combined India 2G subscribers – 2000 - 2005
Table 36 –Partner Communications 2G subscribers – 2000 - 2004
Table 37 – Revenue for year ending March – 1996 - 2005
Table 38 – Revenue by segment – 2005
Table 39 – Telecom business revenue breakdown – 2005
Table 40 – au subscribers (millions) and market share – 1997 - 2005
Table 41 – TU-KA group overview – 1997 - 2005
Table 42 – PHS subscribers – 1997 - 2004
Table 43 – EZweb subscribers – 2000 - 2005
Table 44 – KDDI’s registered Myline customers – March 2005
Table 45 – DION subscribers – 1999 - 2005
Table 46 – Fixed-line subscribers and annual change – 1998 - 2004
Table 47 – Broadband subscribers, annual change and market share – 1999 - 2004
Table 48 – Nespot WiFi- subscribers and annual change – 2002 - 2005
Table 49 – Operating revenue and annual change – 1997 - 2004
Table 50 – Network overview – 1996 - 2002
Table 51 – KT’s WiFi hotspots – 2002 - 2004
Table 52 – Operating revenue – 2000 - 2005
Table 53 – Revenue by segment – 2005*
Table 54 – NTT Com’s registered Myline customers – March 2005
Table 55 – OCN customers – 2001 - 2005
Table 56 – Total network service customers – 2001 - 2005
Table 57 – Customers by network service – 2001 - 2005
Table 58 – Data Centre overview – 2001 - 2005
Table 59 – Subscribers – March 2005
Table 60 – Operating revenue and annual change – 2000 - 2005
Table 61 – Operating revenue by subsidiary – 2005
Table 62 – Operating revenue by service – 2005
Table 63 – Telephone subscriber lines – 1998 - 2005
Table 64 – NTT East and NTT West registered MYLINE customers – September 2004
Table 65 – DoCoMo mobile subscribers – March 2005
Table 66 – Local exchange lines in service – 2000 - 2004
Table 67 – Operating summary – December 2004
Table 68 – Operating revenue and annual change – 2000 - 2004
Table 69 – Revenue by business units – 2004
Table 70 – Breakdown of telecommunications services revenue – 2004
Table 71 – Revenue by geographical region – 2004
Table 72 – Capital expenditure – 2000 - 2004
Table 73 – Revenue and annual change – 2001 - 2003
Table 74 – Revenue and annual change – 1996 - 2004
Table 75 – Revenue by services – 2004
Table 76 – Mobile subscribers – 1996 - 2005