Global Telecommunications Primer - csd.uoc.grhy490-05/projects/bandwidth/papers/glprimer4.pdf · 118 MORGAN STANLEY DEAN WITTER This memorandum is based on information available to

MORGAN STANLEY DEAN WITTER

Global Telecommunications Primer

Equity ResearchGlobal Telecommunications

June 1999

A Guide to the Information Superhighway

The Global Telecommunications Team

118 MORGAN STANLEY DEAN WITTER

This memorandum is based on information available to the public. No representation is made that it is accurate or complete. This memorandum is not an offer to buy or sell or asolicitation of an offer to buy or sell the securities mentioned. Please refer to the notes at the end of this report.

Telecommunications Service Providers: A Guide

The major difference among carriers is whether they arewireless or wireline operators. Some carriers specialize inone service, but many wireline companies overlap in thatthey have units or subsidiaries that operate in the wirelessmarket. These companies are grouped in the wireline cate-gory, since that still forms the primary component of theirbusiness. The wireless companies can be further dividedbetween those providing mobile telephony and those offer-ing paging services. Some wireless providers offer bothmobile telephony and paging.

We have put telecommunications service providers into oneof seven categories, and in some cases more than one cate-gory. Throughout the world, the names of the categoriesmay differ, but the fundamental qualities of those inhabitingthat realm of the telecom market are the same. The sevencategories are: incumbent local exchange carrier, incumbentlong distance carrier, competitive local exchange carrier,long haul fiber provider, competitive international carrier,wireless phone carrier, and paging services companies.

Incumbent carriers are those that have been in the marketfor a long period of time. Typically, they were monopolylicensed and often run by the state. This is changing asthese state-owned incumbents are privatized and regulatorsloosen their monopolistic hold.

The incumbents can be further divided between local ex-change carriers and long distance carriers. Incumbent localexchange carriers (ILECs) held (and, in some cases, stillhold) the dominant position in the local calling market. Inmost markets, this dominant position is being eroded by theentrance of competitors. Like the dominant local players,the incumbent long distance carriers once (and often still do)held a dominant or monopolistic position. Long distancecarriers, regardless of whether they are incumbents or not,are considered to be interexchange carriers (IXCs). Unlessthey simply resell another IXC’s lines, interexchange carri-ers own the switching and transmission equipment (fiberoptic cables, microwave towers, multiplexing equipment,and switches) that carry long distance calls. In many mar-kets, the state-run monopoly in the local market is the samestate-run monopoly in the long distance market. Both localand long distance incumbents are being threatened by whatwe have termed alternative carriers.

Alternative carriers are the new entrants to the telecom mar-kets. Through deregulation, or the breakup of monopolyplayers, potential profit opportunities have been opened up.New entrants have seized upon this opportunity and are en-tering the global telecom markets. The rapidity with whichthey are entering varies across regions, depending on theregulatory status of the market. Alternative carriers have

Figure 1

Telecommunications Service Provider Classification

Telecommunications Service Providers

Incumbent Service Providers Alternative Service Providers Wireless Service Providers

Local Carrier(ILEC)

Long-DistanceCarrier (IXC)

Competitive LocalCarrier (CLEC)

Long-Haul FiberProvider

CompetitiveInternational Carrier

CellularServiceProvider

PagingProvider

Source: Morgan Stanley Dean Witter Equity Research

MORGAN STANLEY DEAN WITTER 119


typically entered the telecom markets in one of three areas:local, long distance, or international long distance.

Competitive local exchange carriers (CLECs) are new en-trants in the local market, directly challenging the incum-bent local provider. They mount a challenge typicallythrough one of three strategies. First, a local competitormay simply resell the incumbent’s service. Resale typicallyresults in slim margins. In addition, the reseller is depend-ent on the incumbent. Second, a local competitor may in-stall some of its own equipment, giving it slightly highermargins and a bit more independence from the incumbent.Third, a local competitor may build out its own facilities.This strategy requires a great deal of capital expenditures,but offers the greatest margins and independence from theincumbent carrier.

Another type of alternative carrier is the long haul fiber pro-vider in the long distance market. Fiber providers challengethe incumbent long distance providers by constructing their

own lines. Fiber providers may simply lay fiber optic linesand sell them to interexchange carriers, they may lay linesand resell service from IXCs, or they may lay lines and offertheir own service over these lines. The huge growth in datatraffic has caused an explosion in the long haul fiber pro-vider market, as competitors rush to meet demand expecta-tions.

The third type of alternative carrier is the competitive inter-national carrier. These competitors challenge the traditionalinternational long distance companies (which are usually thelargest of the incumbent domestic long distance carriers).Typically, competitive international carriers run lines be-tween countries or continents. Like the long haul fiber pro-viders, competitive international carriers may simply sell thefiber they have installed, or they may offer telephone serv-ice over their lines. When offering service, they typicallymake their profit from the tariff differentials between coun-tries.

Table 1

Asian Telecom Carrier Breakout

Competitive Local Long Compeitive Long-Haul International

Market Distance Local Fiber Carrier Mobile (ILEC) (IXC) (CLEC) Provider (CIC) Telephony Paging

Advanced Info Service X XChina Telecom (HK) XChunghwa Telecom X X XHongkong Telecom X X XIndosat XMTNL XPhil. Long Distance Tel. X XPT Telkom X XSingapore Telecom X X X XSK Telecom X XSmarTone Mobile Comm. XTechnology Resource Ind. X X X XTelecomAsia XTelecom Corp. of New Zealand X X X XTelekom Malaysia X X XTelstra X X XThai Telephone & Telecom. XTotal Access Comm. XVSNL X

Incumbent Carrier Alternative Carrier Wireless Carrier




Table 2

Japanese Telecom Carrier Breakout



Astel XDDI X XDigital Tuka XIDC XIDO XITJ (now merged with Japan Telecom) XJapan Telecom XJ-Phone XKDD (International) XLocal Regional NCCs (TTNet) XNTT XNTT (Domestic) XNTT DoCoMo X XRegional players XTeleway (now merged with KDD) XTuka X





Table 3

European Telecom Carrier Breakout

Competitive Local Long Competitive Long-Haul International


British Telecom X X X XCable & Wireless Communications X X XCable & Wireless (see main subsidiaries)- Optus (Australia) X X X X- One2One X- see also CWC (above)- see also Hongkong Telecom (Asia)COLT Telecom X XDeutsche Telekom X X X XEnergis X XEquant (NB: price in US$) XEuropolitan XFrance Telecom X X XKPN X X X XMannesmann X X XMATAV X X X XNetcom XNetcom Systems XNTL X X XOrange X XOTE X X X XPortugal Telecom X X X XRostelecom XSamara Svyazinform X X XSecuricor XSPT X X X XSwisscom X XTelecel XTelecom Italia X XTelecom Italia Mobile XTelefonica X X X XTelekommunikacja Polska X X X XTeleWest X XUralsiazinform X X XVimpelcom XVodafone X X





Table 4

Latin American Telecom Carrier Breakout

Incumbent Carrier Alternative Carrier Wireless CarrierCompetitive

Local Long Compeitive Long-Haul InternationalMarket Distance Local Fiber Carrier Mobile (ILEC) (IXC) (CLEC) Provider (CIC) Telephony Paging

CANTV X X X XCTC X X X XEmbratel XIusacell X XT. C. Sul X XT. N. Leste X XTel. del Peru X X X XTele Cel. Sul XTele Centro Oeste XTele Leste Cel. XTele Nordeste Cel. XTele Norte Cel. XTele Sudeste Cel. XTelecom Argentina X X X XTelefónica de Argentina X X X XTelemig Cel. XTelesp X XTelesp Cel. XTelmex X X X XTricom X X X X




Table 5

North American Telecom Carrier Breakout



AirTouch XAliant Communications XAlltel X XAmeritech Corporation X XArch Communications XAT&T X XBCT.Telus XBell Atlantic X XBell Canada XBellsouth X XCall-Net Enterprises XCellNet Data Systems* XCentury Telephone XCitizens Utility XClearnet Communications XElectric Lightwave XFrontier Corp. XGlobal Crossing XGST Telecommunications XICG Communications XIDT Corporation XIntermedia XIXC Communications XMCI Worldcom XMcLeod USA XMetrocall XMetroNet Communications XNextel XPacific Gateway Exchange XPaging Network XPowertel XPrimus XQwest Communications XRogers Cantel XRSL Communications XSBC Communications X XSprint Corporation XSprint PCS XUS West X XViatel, Inc. XWinstar Communications X





Glossary of Terms

Access: Point at which entry is gained into a circuit or anetwork interconnection; may be switched or dedicated.

Access Charge: Fee paid by long distance carriers to localtelephone companies for use of local facilities; amount paidby telephone subscribers to obtain access to local networks.

Access Line: Circuit between a subscriber and a switchingcenter.

Active: Using electricity for generation or regeneration ofsignals. See “passive.”

ADSL (Asymmetric Digital Subscriber Line): A memberof the digital subscriber line family of copper loop enhanc-ing technologies (see “DSL”), ADSL is asymmetric, mean-ing that it provides faster transmission rates downstreamthan upstream. It is therefore well suited to fast Internetaccess, where requests for Web pages and e-mail sent gen-erally require less bandwidth than the receipt of multimediaand Web pages. ADSL is not well suited for business appli-cations that require symmetric communication, such asvideoconferencing and two-way file transfer.

Adjacent Channel Interference: Refers to interferencecaused by the energy from a transmitting channel spillingover into an adjacent channel.

Advanced Intelligent Network (AIN): An advanced ar-chitecture for a telephone network. Its foundations are builton the evolution of computer-based switches and SignalingSystem 7.

Airtime: Actual time spent talking on a cellular telephone.Most carriers bill customers based on how many minutes ofairtime they use each month.

Alert: Constant 10 KHz signaling tone sent on the reversevoice channel (by the mobile), in an analog conversation,while the mobile phone is ringing.

All-optical networks: Networks that are entirely optical,and therefore avoid the cost and time delays inherent inconverting optical signals to electric signals and vice versa.

Alphanumeric: A message or other type of readout con-taining both letters (“alphas”) and numbers (“numerics”). Incellular, “alphanumeric memory dial” is a special type ofdial-from-memory option that displays both the name of theindividual and that individual’s phone number on the cellu-lar phone handset.

Alternate Access Carriers: Local exchange carriers indirect competition with the regional Bell operating compa-nies (RBOCs). Normally found only in the larger metro-politan areas.

Alternative Operator Services: Operator services pro-vided by an authorized company other than a local exchangecarrier, regional Bell operating company, or AT&T.

AM (Amplitude Modulation): The simplest carriermodulation technique, where the radio frequency carrier’samplitude envelope is modulated.

AMPS: Advanced mobile phone system. The current ana-log cellular FM system in North America. It uses 30 KHzchannels, and signaling is done superaudio.

Analog: The traditional method of modulating radio signalsso that they can carry information. Analog signals aremeasured by their frequency, or, the number of times persecond that an electromagnetic wave swings back and forthin a complete cycle. The higher the speed/frequency, themore cycles of waves are completed in a period of time.This speed is measured in hertz (Hz).

ARPU (Average Revenue Per User): A primary elementof valuation and analysis of wireless companies. It reflectsthe average amount of revenue generated by each sub-scriber.

Asynchronous Transmission: Mode of data communica-tions transmission in which time intervals between trans-mitted characters may be of unequal length.

ATM (Asynchronous Transfer Mode): A high-bandwidthpacket switching and multiplexing technique. Each cell in astream is presented to the network on a “start-stop” basis



(asynchronously), rather than having a circuit or a regulartime slot reserved for the stream.

Attenuation: Weakening of the radio frequency signal dueto being partially blocked or absorbed.

ATU-C: ADSL terminal unit central office. Terminalnearer the central office or remote network node.

ATU-R: ADSL terminal unit remote. ADSL terminalnearer to the subscriber.

Automatic Call Distributor (ACD): Device that handlesheavy incoming call volume.

Backbone: Network of broadband connections betweenswitches.

Back-haul: Routing of a call that appears to take an illogi-cal path through a communications network.

Bandwidth: A measure of data sent through a connection.

Base Station: A multi-circuit transceiver located at thecenter of a cell whose primary purpose is to handle all in-coming and outgoing calls within the cell.

Bell Operating Company: The local (or regional) tele-phone company that owns and operates lines to customerlocations and central office switches. BOCs have connec-tions to other companies, Tandem (Class 4 Toll) offices, andmay connect directly to interexchange carriers like MCIWorldCom, AT&T, and Sprint.

Beta Test: A secondary product test performed by a se-lected set of “early support” end-user(s) or customer(s) (un-der special contract) prior to the general availability of thatproduct.

Block Calls: Prevent calls from being completed to therequested destination.

Bottleneck: A system capacity constraint that may reducetraffic during peak load conditions.

Broadband: Transmission facility having a bandwidthgreater than 20 KHz; capable of high-speed data transmis-sion.

Cable Modem: Offers high-speed, broadband access serv-ice over hybrid coaxial cable, providing up to 27Mbps ofbandwidth.

CAP (Competitive Access Provider): A company, otherthan a local exchange carrier, regional Bell operating com-pany, or AT&T, that provides its customers with an alterna-tive to the local telephone company for local transport ofprivate line, special access, and interstate transport ofswitched access telecommunications services. CAPs ini-tially built out their own facilities, requiring a great deal ofcapital expenditures. With the Telecommunications Act of1996, competitive carriers were offered more options —building out their own facilities (what CAPs did) and re-selling local service. Today, competitive carriers in the lo-cal market are broadly termed CLECs (competitive localexchange carriers).

Call Detail Record (CDR): Computer record containingdata unique to a specific call.

Call Forwarding: A feature allowing the subscriber toforward a call to another telephone number.

Call Processing: The complete process of routing, origi-nating, and terminating cellular telephone calls, along withthe necessary billing and statistical collection processes.

Call Setup: The call processing events that occur duringthe time a call is being established, but not yet connected.

Call Waiting: A feature that alerts the subscriber if anothercall comes in during a current conversation. The user cananswer the call waiting, but cannot connect all parties (con-necting all parties is considered a conference call).

Capacity: The highest possible reliable transmission speedthat can be carried on a channel, a circuit, or piece ofequipment.

Carrier: The operating frequency of a wireless system.

Carrier Pre-selection: a standard regulatory mechanism forallowing consumers access to a selected long distance op-erator’s services through nomination.

Carrierless Amplitude Modulation/Phase Modulation.A technology that can be used in ADSL. Current standardsput emphasis on discrete multitone (DMT) technology.



CDMA (Code Division Multiple Access): In a CDMAsystem, each voice circuit is labeled with a unique code andtransmitted on a single channel simultaneously with manyother coded voice circuits. This allows for greater band-width

CDPD (Cellular Digital Packet Data): Sending digitaldata over the existing advanced mobile phone system bytransmitting dense packets on vacant analog channels.

Cell: The radio frequency coverage area in the cellularsystem resulting from operation of a single multiple-channelset of base station frequencies.

Cell Splitting: A means of increasing the capacity of acellular system by subdividing or splitting cells into two ormore smaller cells.

Central Office (CO): The switching office that connectsthe mobile telephone switching office (MTSO) to the publicswitched telephone network (PSTN).

Centrex: A service that offers features similar to those of aprivate branch exchange (PBX), except the equipment islocated at the carrier’s premises and not at the premises ofthe customer.

Centrex Resale: A means for competitive carriers to enterthe local market, reselling the centrex switching service thatthe incumbent would typically provide.

CGSA (Cellular Geographic Service Area): The actualarea in which a cellular company provides cellular service.

Channel: A unique radio frequency that is used for com-munication between subscriber unit and cell site base sta-tion.

Circuit Switching: Method of communications where anelectrical connection between calling and called stations isestablished on demand for exclusive use of the circuit untilthe connection is released.

CLEC (Competitive Local Exchange Carrier): A com-petitive access provider (see CAP) that also providesswitched local telecommunications services. (Also seeLEC)

Clear Channel: Channel in which the full bandwidth (e.g.,64 Kbps) is used for transmission; no portion of the channelis set aside for control, framing, or signaling.

Click Tone: A particular progress tone injected onto theforward voice channel (mobile unit receive, base stationtransmit) to indicate to the subscriber that the call has notbeen abandoned by the system.

Coaxial Cable: Cable capable of carrying much higherbandwidth than copper wire due to its fabrication with oneor more pairs in a single sheath.

Co-carrier Status: A relationship between a CLEC and anincumbent LEC that gives each entity the same access to theother’s network and provides access and services on anequal basis.

Cochannel Interference: The interference caused betweentwo cells transmitting on the same frequency within a net-work.

Coder: Transforms analog signals into digital signals.

Collocation: The ability of a CAP to connect its network tothe LEC’s central offices.

Common Carrier: Government-regulated, private com-pany that furnishes the public with telecommunicationsservices and facilities (e.g., telephone or telegraph com-pany).

Competitive Access Provider: See CAP.

Competitive Checklist: Fourteen points laid out by theFederal Communications Commission that the regional Belloperating companies (RBOCs) must comply with beforethey are allowed to sell long distance services. The “Com-petitive Checklist” is designed to ensure that the RBOCshave opened their networks to competition.

Connection-Oriented Service: The transport of packets ofinformation from one network node to a destination nodefollowing an established network connection.

Connectionless Service: The transport of a singledatagram or packet of information from one network nodeto a destination node or multiple nodes without establishinga network connection.



Constructive Interference: Interference that occurs whenwaves occupying the same space combine to form a singlestronger wave.

Contention: The process whereby multiple users makerequests for transmission bandwidth across a transmissionlink but the pool of bandwidth is less than the aggregateamount of bandwidth the users could request.

Control Channel: A unique channel used by each basestation dedicated to the transmission of digital control in-formation from the base station to the mobile unit.

Copper Twisted Pair: A standard phone line made up oftwo copper wires wrapped around each other.

Correlator: The receiver component that demodulates aspread spectrum signal; a device that measures the similarityof an incoming signal and a stored reference code.

Coupler: A component used to combine or split an opticalsignal.

Cross-Correlation: A measure of the similarity of twodifferent signals.

Cross-Talk: Interference of one phone call with another.

Customer Premises Equipment (CPE): All telecommuni-cation devised (except pay phones) and wiring that are at theuser’s location.

Decoder: Transforms digital signals into analog signals.

Dedicated Access: Connection between a customer’spremises and a long distance carrier.

Dedicated Lines: Telecommunications lines dedicated toor reserved for use by particular customers along predeter-mined routes (in contrast to telecommunications lines withinthe LEC’s public network).

Destructive interference: Interference that occurs whenwaves occupying the same space combine to form a singleweaker wave.

Dialing Parity: Customers’ ability to access their telecomvendor without having to dial extra digits.

Dial-Up Line: Communications circuit that is establishedby a switched circuit connection.

Digital: A method of storing, processing, and transmittinginformation through the use of distinct electronic or opticalpulses that represent binary digits (0 and 1).

Digital Modulation: A method of encoding informationfor transmission that we expect will eventually replace ana-log transmission.

Digital Transmission System: Information is transmittedin a series of pulses, and the signal can be regenerated.

Direct Sequence: A pseudorandom code is added to thedata signal that increases the modulation rate and signalbandwidth.

Divestiture (AT&T): On January 8, 1982, AT&T signed aconsent decree with the U.S. Department of Justice. Itstipulated that as of January 1, 1984, AT&T would divestitself of its 22 telephone operating companies, which werethen formed into seven regional holding companies ofroughly equal size.

DMT (Discrete Multitone): A version of multi-carriermodulation that allows allocation of payload data bits andtransmitter power among more than one subchannel, de-pending on loss and interference among each subchannel. Acandidate technology for ADSL.

Downstream Transmission: The transmission coming intoa consumer’s residence or business. Often used with cablemodems and DSLs to describe the data rate that can beachieved by the line coming into the home or office.

Drop: Portion of an outside telephone plant that extendsfrom the telephone distribution cable to the subscriber’spremises.

Drop Out: A momentary loss of the carrier and sound, or abuildup of background noise when the transmitter is in acertain location in the room.

Drop Wire: Last part of the loop connecting distributioncable to the customer premises.



DSL (Digital Subscriber Line): A family of technologiesthat provides high-bandwidth transmission over standardtwisted copper wires (regular telephone lines).

DS0 (Digital Signal 0): A single voice-grade 64 Kbps cir-cuit.

DS1 (Digital Signal 1): 1.544 Mbps with a payload of1.536 Mbps bi-directional.

DS2 (Digital Signal 2): 6.312 Mbps, which can transportfour DS1s asynchronously.

DSP: Digital signal processing.

DTMF (Dual Tone Multi Frequency): Commonly knownas “touch-tones,” this in-bank signaling is made up of twotones (out of a group of 8) and is used to translate dialeddigits.

Dual Mode: Personal communication service (see PCS)telephone compatible with both analog and digital cellularphone systems.

Dual Tone Multifrequency (DTMF): Type of signalingthat combines two distinct frequencies for each indicateddigit.

DWDM (Dense Wavelength Division Multiplexing): Ahigh-speed version of wavelength division multiplexing.(See WDM).

ECH: Echo canceler with hybrid. Used in DSL and HDSLsystems.

EDFA (Erbium Doped Fiber Amplifier): EDFAs are usedfor amplifying optical signals in long-haul optical networks.Unlike electro-optic repeaters, which convert light to elec-tricity, amplify the signal, and then reconvert it to light,EDFAs amplify the light signal itself. EDFAs have advan-tages that make them critical components of optical net-works: they are fast, very simple, and are not frequency-dependent, meaning that networks may be upgraded by in-stalling new wavelength division multiplexing (WDM)equipment without changing fiber or amplifiers betweennodes.

Electronic Serial Number (ESN): A 32-bit code that isunique to each mobile unit. Used to validate mobile.

Equal Access: Concept made into law by the 1984 Modi-fied Final Judgment (MFJ) that all long distance carriersmust have the same access to local facilities as AT&T has.

Erlang: A dimensionless quantity used in the measurementof traffic in the cellular system.

ESMR (Enhanced Specialized Mobile Radio): Digitalmobile telephone services offered to the public over chan-nels previously used only for analog two-way dispatch.

Ethernet: A proprietary bus network developed by Xerox,Digital Equipment Corporation, and Intel that provides fasttransmission speeds.

ETSI (European Telecommunications Standards Insti-tute): The mission of ETSI is “to produce the technicalstandards that are necessary to achieve a large unified Euro-pean telecommunications market.”

Execute Source: An order sent to the mobile on the For-ward Voice Channel telling mobile to change channels.

Execute Target: An order sent to the cell that a mobile isbeing handed off to, informing the cell of a pending arrivalof a mobile.

Fade: A drop in the received signal strength as a result ofthe transmission’s interactions with the transmission envi-ronment.

FCC (Federal Communications Commission): The gov-ernment agency responsible for regulating telecommunica-tions in the United States; located in Washington, D.C.

FDMA (Frequency Division Multiple Access): Systemsthat transmit one voice circuit per channel. Each conversa-tion gets its own, unique radio channel.

Fiber Mile: The number of route miles installed (excludingpending installations) along a telecommunications pathmultiplied by the number of fibers along that path.

Fiber Optics: Means of providing a high-speed transmis-sion, using light to send images through a flexible bundle ofglass fibers.



Flat Network: Architecture in which every switch is con-nected to every other switch, enhancing routing options aswell as survivability.

FM (Frequency Modulation): Modulation of the radiofrequency based on the frequency of signals (vs. the ampli-tude).

Follow-Me Roaming: The ability of the cellular system toautomatically forward calls to a roaming mobile that has leftits primary service area.

Forced Disconnect: A call processing function that forcestermination of a call, usually not at the mobile subscriber’srequest.

Forward Control Channel (FOCC): A control channelused for the base station-to-subscriber direction, also knownas the control channel downlink.

Forward Voice Channel (FVC): A voice channel used inthe base station-to-subscriber direction, also known as thevoice channel downlink.

Four-Wire Line: A two-way transmission circuit usingtwo pairs of conductors, to allow full duplex (simultaneous)conversation without multiplexing.

Frame Relay: Form of packet switching that employs sta-tistical multiplexing over a shared network, intended for usebetween intelligent end-points and implemented over high-quality transmission facilities that connect programmableswitches.

Free Space Loss: The loss of a signal’s power as a result ofthe signal spreading out as it travels through space.

Frequency Hopping: The transmitter hops to one of manychannels. The receiver knows the sequence of the fre-quency hopper and follows each hop.

Frequency Reuse: The ability to use the same frequenciesrepeatedly within a single system, made possible by the ba-sic design approach for cellular.

Frequency Shift Keying (FSK): The form of frequencymodulation that used two separate audio frequencies totransmit binary ones and zeros.

Front-End: The first stage of filtering in a receiver. Thefirst circuit stage following the antenna input to the receiver.

FTTC (Fiber to the Curb): Provision of fiber optic cablesto the street cabinet, from where copper lines are alreadyconnected to buildings. A cheaper alternative to FTTH.

FTTH (Fiber to the Home): Deployment of direct fiberoptic connections to consumers’ homes, allowing for widebandwidth connections. FTTH faces technical hurdles (am-plification of signals in the upstream direction), but the mostsignificant factor holding it back is the cost of laying fiberoptic cables. As such, FTTH is not expected to be the onlywideband access solution, but will be deployed selectivelyand will co-exist with DSL access solutions over copperpairs. FTTO (fiber to the office) is more prevalent, as largeoffice buildings contain enough users and demand for serv-ices to justify the cost of laying fiber.

Full Duplex: Refers to a communications system that usestwo separate transmit and receive paths to allow simultane-ous conversation in two directions.

GEO (Geosynchronous Earth Orbit satellite): Satellitesthat orbit the earth’s equator at about 22,300 miles aboveearth. In a geosynchronous orbit, the satellite travels at thesame speed as the earth’s rate of spin, so geostationary sat-ellites remain at a fixed position in relation to a point onearth. Geosynchronous systems include Inmarsat and Om-niTRACS.

Grade-of-Service: A measure of what percentage of callsplaced through an exchange fail to be completed due tocongestion of that exchange.

GSM (Global System for Mobiles): The most maturedigital wireless standard, usually referred to as the “Euro-pean” digital standard.

Half-Rate: A variant on GSM; doubles capacity by moreefficient coding using speech compression.

Handoff (inter-cell): The process by which wireless sub-scribers traveling throughout the system coverage area areswitched from cell to cell (and different channels) with bet-ter coverage for that particular area when poor-quality con-versation is detected.



Handoff (intra-cell): The process by which cellular sub-scribers traveling throughout the system coverage area areswitched from cell sector-to-sector (and different channels)with better coverage for that particular area when poor-quality conversation is detected.

Hands-Free: A feature included with most of today’s carphones. It permits the driver to use his cellular car phonewithout lifting or holding the handset to his ear.

Hard-Handoff: A handoff that occurs when the subscriberis already using the TPC (three-party-conference) card, andthe TPC card cannot be used to aid in a smooth handoff.

Handshaking: A set of signals that coordinate the transferof data from one device to another.

Harmonic Filter: Used in the base-station and subscribertransmitter circuits to remove unwanted harmonics frombeing transmitted and radiated by the antenna.

HDSL: High data rate DSL service that symmetrically de-livers 1.544 Mbps over two sets of copper twisted pair,which is the same rate as a T-1 type connection.

Hybrid: A circuit used in telephony to convert two-wire tofour-wire operation and vice-versa.

IDEN technology (Integrated Digital Enhanced Net-work): Technology developed by Motorola for use byESMR operators.

Idle Channel: A channel that is assigned for use by a basestation but is not currently in service (being used).

IEC (Independent Exchange Carrier): A local carrierthat was never part of the AT&T monopoly. IECs oftenserve smaller, less populated markets than the Baby Bells.When serving this function, the independents are sometimesreferred to as rural local exchange carriers (RLECs).

IF (Intermediate Frequency): Refers to the resulting sig-nal in a supernet receiver after the incoming carrier is mixedwith the oscillator.

ILEC (Incumbent Local Exchange Carrier): ILECs gen-erally at one time or another were franchised as a monopolyservice provider. In most areas of the world, the incumbentcarriers still dominate the local market. In the U.S., these

former monopolists are now facing significant competitionfrom long distance carriers, competitive carriers, cable com-panies, and others that would like to break into the localmarket.

Image Rejection: A measure of the ability of the receiverto reject radio frequency signals present on the image fre-quency of the receiver. Image rejection is one of the pur-poses of front-end filtering in a supernet receiver.

Incumbent Carriers: Both local and long distance carriersthat dominate their respective markets. These carriers arenow facing significant competition from alternative carriers.

Infrastructure: All parts of the cellular system, excludingthe subscriber. Includes the MTSO, base stations, cell sites,and all links among them.

Interface: A common boundary between two or more sys-tems, integrated circuits, or pieces of equipment that ensuresa proper connection between them.

Integrated Services Digital Network (ISDN): Switchednetwork providing end-to-end digital connectivity for thesimultaneous transmission of voice, data, video, imaging,and fax over several multiplexed communications channels.

InterLATA Calls: Calls that pass from one local accessand transport area (LATA) to another.

Intermodulation: Also referred to as “IM.” The mixing oftwo or more signals, producing sums, differences, and har-monic multiples.

IP Address: The Internet protocol address, which is a 32-bit address assigned to an Internet host.

IP (Internet Protocol): A standard that keeps track of net-work addresses for different nodes, routes outgoing mes-sages, and recognizes incoming messages.

IntraLATA: IntraLATA calls, also known as short haulcalls, are local calls that originate and terminate within thesame local access and transport area (LATA).

Isolator: A component used to prevent light signals fromtraveling in a second, unwanted direction.



ISP (Internet Service Provider): A company that providesInternet access to customers.

IXC (Interexchange Carrier): A long distance serviceprovider. The term “interexchange carrier” derives fromlocal markets being divided into sub-groups, termed localexchanges. Calls between local exchanges are interex-change calls and are carried by interexchange carriers.

J-TACS (Japan Total Access Communication System):Narrowband analog cellular FM system used in Japan.

Kilobit (Kbs): One thousand bits of information.

LAN (Local Area Network): A narrow range data networkusing packet switching and multiple access technology.

Last Mile: A telecommunications network’s final connec-tion to customers. It is still most often a copper line carry-ing an analog signal. This final signal is not a large problemfor voice communications, but the explosion in data com-munications (faxes, e-mail, Web surfing, etc.) has made thislast mile bottleneck a major issue in the telecommunicationsindustry.

LATAs: The geographically defined local access andtransport areas in which LECs are authorized to providelocal exchange services.

Late Target Channel Keyup: A condition when the targetcell does not receive the execute target order in time for thearriving mobile, caused by link delays between the mobiletelephone switching office and target cell site.

LEO (Low Earth Orbit satellite): Satellites that circle theearth at an altitude of 435–1,000 miles. Iridium and Global-star are based upon LEO systems.

Line Side and Trunk Side: Line side is the circuit from asubscriber’s telephone to an end or central office; trunk sideis circuit termination that connects other central offices andthe toll network.

Little LEO: Relatively small and inexpensive satellites thatprovide low-cost, low-data rate, two-way digital communi-cations, and location positioning to small handheld termi-nals.

LEC (Local Exchange Carrier): Local exchange carriersare typically the first and final link between customers andthe party that is called. Also see CLEC and ILEC.

Local Loop: Communications lines/services between thetelephone subscriber and the phone company switchingcenter.

Mbps: 1 million bytes per second.

Megahertz (Mhz): 1 million cycles per second.

MEO: Medium earth orbit satellite. These satellites fall inthe range between LEOs and GEOs.

Message Telephone System (MTS): Generic name forswitched long distance service offered by all long distancecarriers.

MFJ (Modified Final Judgment): See “Equal Access.”

Microwave Radio: A means of transmitting signals. It isused to send long distance signals through the air betweenmicrowave towers. Before 1976, these microwave signalswere only analog. In 1976, this service was upgraded sothat digital signals could be transmitted as well.

MOIC (Micro-Optic Integrated Component): Integratestwo or more individual single-function components.

MTSO: Mobile telephone switching office.

Multiplexing: The transmission of two or more signals overa single channel.

Number Portability: The ability of an end-user to changelocal exchange carriers while retaining the same telephonenumber.

Off-Net: A customer that is not physically connected to aservice provider’s network.

On-Net: A customer that is physically connected to aservice provider’s network.

Optical Amplifier: An amplifier of optical signals. Themost popular optical amplifiers are EDFAs.

Out-of-Band Signaling: Use of a separate data link that isnot in the voice circuit to transmit call set-up and automatic



number identification (ANI) information from carrier tocarrier, or from carrier to customer.

Packet Switching: The method used to transmit data ondata networks. Unlike the public switched telephone net-work, packet-switched networks do not reserve a circuitbetween end points. Instead, they break up messages orfiles into many small packets. Each message packet maytake a different route from origin to destination, travelingalong network circuits that are shared with packets fromother messages.

Passive: without using electricity. Passive components in-clude splitters and isolators. A key goal of the fiber opticindustry is to increase penetration of passive components,because they do not require power, are reliable, and arefaster than active components because they stay within theoptical realm.

PBX (Private Branch Exchange): A switching systemwithin an office building that allows calls from outside to berouted directly to the individual instead of through a centralnumber.

PDM (Packet Division Multiplexing): Different applica-tions are assigned to different packets within the messageframe, instead of different time slots, as with TDM.

Personal Communication Services (PCS): Emergingtechnologies providing wireless users with a completecommunications system. Users receive all of the features ofdigital wireless telephony, plus enhanced features such asvoice mail, alphanumeric paging, and others.

Physical Collocation: Occurs when a CAP or CLECplaces its own network connection equipment inside theLEC central office.

POTS (Plain Old Telephone Service): Voice telephoneservice as we know it today.

Point of Presence (POP): Physical location within a localaccess and transport area (LATA) at which a long distancecarrier’s trunk lines are linked to the local carrier’s network.

POP: Short for population. Commonly used as a measureof the potential market for a cellular or PCS provider.

Portability, 800: Result of a Federal CommunicationsCommission ruling to provide equal access for 800 users.As of May 1, 1993, subscribers became owners of their 800numbers.

Post, Telephone, and Telegraph (PTT): Internationaladministration, usually government controlled, that managesand operates postal and telecommunications services outsidethe country; typically a monopoly operation.

Private Line: Point-to-point telephone line for the exclu-sive use of one party.

Protocol: The conventions used in a network for establish-ing communications comparability between terminals, andfor maintaining the line discipline while they are connectedto the network.

RADSL (Rate Adaptive DSL): This high-speed form ofdata transmission is derived from ADSL technologies and isgeared toward the residential market, with a few added fea-tures. RADSL automatically adjusts line speed based on thecondition of the line. In areas where there is a large vari-ance in the distance between the central office and the sub-scriber, RADSL helps to provide a more consistent servicefor subscribers.

RBOCS (Regional Bell Operating Companies): Localexchange carriers. The seven regional Bell operating com-panies formed as a result of the breakup of AT&T. EachRBOC was granted a distinct geographic territory, or localaccess transport area (LATA), in which they could operate.Ameritech, Bell Atlantic, BellSouth, NYNEX, Pacific Tele-sis, Southwestern Bell Communications (SBC), and U.S.West retained the Bell logo and the right to sell local andtoll calling within the LATA.

RFI: Radio frequency interference.

Reciprocal Compensation: An arrangement that providesfor equal compensation for CAPs and LECs when termi-nating local calls on their respective networks.

RLEC (Rural Local Exchange Carriers): These carriersare incumbents in local markets. They were never part ofthe AT&T monopoly system.

Roaming: Occurs when cellular customers leave their cel-lular carrier’s home area. This used to result in significantly



higher per-minute rates; however, with the advent ofAT&T’s and now other’s one-rate plans, these roamingcharges are being eliminated.

Service Control Point (SCP): Special computers thatmanage call processing; stores and sends instructions tocommunications network switches to provide specific serv-ices.

Service Switching Point (SSP): Computerized switches ina local exchange carrier network that distinguish 800 callsfrom ordinary telephone calls.

Signaling System 7 (SS7): Sophisticated network signalingsystem that uses out-of-band signaling, where signaling in-formation is sent over a channel separate from the call itself.

Smart-Build: A strategy competitors use to enter the localmarket. The competitor owns the switching equipment,which allows it to switch incoming calls and receive feesfrom long distance carriers, and leases the incumbent’s lines(which would require a great deal of time and money tobuild).

Switched Access: Method to test telecommunications cir-cuits using electromechanical circuitry.

SDH (Sychronous Digital Hierarchy): A set of fiber opticcommunication standards, similar to SONET but establishedby the ITU (International Telecommunication Union).

SONET (Synchronous Optical NETwork): A fiber opticcommunications standard established by the American Na-tional Standards Institute (ANSI) that covers multiple datatransfer rates from 51.84 Mbps to 13.22 Gbps. It defines aphysical interface, optical line rates known as Optical Car-rier (OC) signals, frame format, and an OAM&P (opera-tions, administration, maintenance, and provisioning) proto-col.

Special Access Services: The lease of private dedicatedtelecommunications lines or “circuits” along the network ofa LEC or a CAP, to which lines or circuits run from the longdistance carrier’s point of presence.

Splitter: Used to split an optical signal.

Switch: A sophisticated computer that accepts instructionsfrom a caller in the form of a telephone number.

Switched Access Transport Services: Transportation ofswitched traffic along dedicated lines between the LECcentral offices and long distance carrier’s point of presence.

Switched Traffic: Telecommunications traffic along thepublic switched network. The traffic is switched at the localexchange carrier’s central office.

T-1 Line: A copper connection that allows for speeds up to1.544 Mbps through the use of multiplexing technology.

TDMA (Time Division Multiple Access): A form of mul-tiplexing in which different packets of data are assigned todifferent time slots, allowing for much greater transmissionspeeds.

Telecommunications Act of 1996: The primary focus ofthis legislation is laying out guidelines for opening up com-petition in the local market.

Telecommunications Relay Service (TRS): Provideshearing-impaired individuals the ability to communicatewith others via 800 access using a telephone or terminal.

Telco: A telephone company.

TCP (Transmission Control Protocol): Data applicationprotocol used on the Internet to automatically retransmitpackets that are lost during transmission.

Total Service Resale: A strategy used to enter the localmarket. It is the resale of all of the incumbent’s services.The competitive entrant uses none of its own equipment;rather, it relies entirely on the incumbent — typically, oneof the RBOCs. The competitor leases the lines that theRBOC already has in place. Since it leases a large numberof these lines, it receives a discount from the RBOCs, whichis passed on to customers.

Trunk: Group of circuits that carry call traffic in and out ofthe switch.

Trunk Line: Interexchange carrier lines that carry trafficbetween their points of presence.

Unbundled Access: As laid out in the Telecom Act of1996, unbundled access allows competitors to purchase onlythe pieces of the regional Bell operating companies’ net-work services that they need to provide local service.



Universal Service Fund (USF): Organized by the federalgovernment to ensure that rates charged to high-cost ruralcustomers are consistent with the rates charged to relativelylow-cost customers in urban and suburban areas. The USFis funded primarily by monthly customer fees charged tolong distance carriers and local carriers in more urban areas.The Federal Communications Commission administers thefund, distributing funds on a monthly basis based on thecost of providing local service. The FCC has committed tothis methodology until 2001.

Universal Service Subsidies: Government-granted subsi-dies for providing rural service.

Upstream Transmission: The transmission from a con-sumer’s home or office to the network.

Value-Added Network (VAN): Data transmission networkthat routes messages according to available paths. Assuresthat messages are received as sent; provides user security,high-speed transmission, and conferencing among terminals.

VDSL (Very high rate Digital Subscriber Line): A mem-ber of the DSL family of copper loop enhancing technolo-gies (see “DSL”), VDSL is envisaged as the fastest coppertransmission technology for the local loop. While VDSLprotocols have yet to be standardized, it is likely that VDSL

will be symmetric and suitable only for shorter distancesthan ADSL (asymmetric digital subscriber line). VDSL,ADSL, and FTTH will likely coexist with each other andcable modems as broadband access technologies.

Virtual Collocation: An alternative to physical collocationin which the CAPs connect their equipment to the LECs’facilities from a remote location and request that the LECinstall the necessary electronics in its central office, which isthen leased by the LEC to the CAP for charges generallyhigher than the charges for physical collocation.

VPN (Virtual Private Network): A private network deliv-ered over a service provider’s shared infrastructure.

Voice Grade Equivalent Circuit: One DS-0. One voicegrade equivalent circuit is equal to 64 kilobits of bandwidth.

WDM (Wavelength Division Multiplexing): The multi-plexing of optical signals by transmitting them at differentwavelengths over the same fiber. Signals are separated bywavelength at the receiving end.

Wide Area Telecommunications Service (WATS): Spe-cial direct distance dialing toll service whereby a subscriberinstalls a dedicated line arranged for either inward or out-ward calls (not both) between the customer’s premises and aspecific geographic area.



Morgan Stanley Dean Witter Equity Coverage Universe

Company Ticker Rating Price* Target Price Currency

APT Satellite Holdings 1045.HK Neutral 4.00 14.80 Hong Kong DollarAT&T T.N Neutral 53.25 NA American DollarAT&T Canada Inc. ATTC.O Outperform 59.88 60.00 American DollarAdvanced Info Service ADVA.BK Neutral 320.00 275.00 Thailand BahtAirTouch ATI.N NAV 108.56 NA American DollarAliant Communications ALNT.O Neutral 49.00 NA American DollarAlltel Corporation AT.N Outperform 72.69 79.00 American DollarAmeritech Corp. AIT.N Neutral 68.44 NA American DollarArch Comms. APGR.O Neutral 2.59 NA American DollarAsatsu 9747.T Neutral 3,120.00 NA Japanese YenAsatsu(C) 9747.T Neutral 3,120.00 NA Japanese YenAsia Satellite Communications 1135.HK Strong Buy 17.55 21.00 Hong Kong DollarAt Home Corporation ATHM.O NAV 103.75 NA American DollarBCE Inc. BCE.TO Outperform 71.20 86.00 Canadian DollarsBajaj Auto Ltd. BJAT.BO Outperform 543.10 647.00 Indian RupeeBell Atlantic BEL.N Strong Buy 55.44 78.00 American DollarBellSouth Corp. BLS.N Neutral 46.88 NA American DollarBritish Telecom BT.L Strong Buy 1,100.90 1,350.00 British PenceCANTV VNT.N Outperform 27.38 33.00 American DollarCSG Systems International CSGS.O Strong Buy 26.25 50.00 American DollarCable & Wireless CW.L Outperform 790.00 1,000.00 British PenceCable & Wireless Communications CWZ.L Outperform 578.75 800.00 British PenceCablevision Sys. CVC.A Strong Buy 70.50 NA American DollarCall-Net Enterprises CN.TO Strong Buy 10.25 18.00 Canadian DollarsCellNet Data Systems CNDS.O Strong Buy 9.50 30.00 American DollarCentury Telephone Enterprises CTL.N Outperform 39.31 51.00 American DollarChina Telecom 0941.HK Neutral 18.35 14.20 Hong Kong DollarChubu Electric Power 9502.T Neutral 2,055.00 NA Japanese YenChubu Electric Power(C) 9502.T Neutral 2,055.00 NA Japanese YenCincinnati Bell CSN.N Outperform 24.06 28.00 American DollarCitizens Utilit. CZN.N Neutral 10.00 NA American DollarClearnet Communications CLNTF.O Strong Buy 12.38 21.00 American DollarComcast Corporation CMCSK.O Strong Buy 36.44 NA American DollarCox Comm. COX.N Outperform 36.50 NA American DollarDDI 9433.T Underperform 635,000.00 NA Japanese YenDDI(C) 9433.T Underperform 635,000.00 NA Japanese YenDestia Communications Inc. DEST.O Strong Buy 12.50 17.00 American DollarDigital Telecommunication Corp. DGTL.PS Neutral 2.16 1.60 Philippino PesoElectric Lightwave ELIX.O Neutral 11.75 NA American DollarEmbratel EMT.N Outperform 14.06 NA American DollarEnergis EGS.L Neutral 1,622.80 1,700.00 British PenceEquant SA ENT.N Outperform 88.00 98.00 American DollarEuropolitan EURO.ST Neutral 76.50 82.00 Swedish KronaFox Entertainment Group FOX.N Strong Buy 27.69 30.00 American DollarFrance Telecom FTE.PA Neutral 74.45 NA EuroFuji Television 4676.T Outperform 642,000.00 756,000.00 Japanese YenFuji Television(C) 4676.T Outperform 642,000.00 756,000.00 Japanese YenGST Telecommunications GSTX.O Outperform 12.19 15.00 American DollarGTS (Global Telesystems Group) GTSG.O Strong Buy 80.00 120.00 American DollarGlobo Cabo GLCBY.O Neutral 2.75 NA American DollarGrupo Televisa TV.N Outperform 41.81 53.00 American DollarHero Honda HROH.BO Outperform 980.00 750.00 Indian RupeeHongkong Telecom 0008.HK Neutral 18.50 NA Hong Kong DollarICG Communications ICGX.O Strong Buy 20.06 32.00 American DollarIDT Corp. IDTC.O Outperform 20.38 21.00 American DollarITC Delta Com ITCD.O Strong Buy 24.88 36.00 American DollarIntermedia ICIX.O Outperform 24.75 32.00 American DollarIridium World Communications IRID.O Neutral 8.06 NA American DollarIusacell CEL.N Outperform 11.25 14.00 American DollarJapan Telecom 9434.T Neutral 1,710,000.00 NA Japanese YenJapan Telecom(C) 9434.T Neutral 1,710,000.00 NA Japanese YenJones Intercable JOINA.O Neutral 52.88 NA American DollarKDD 9431.T Neutral 6,950.00 NA Japanese Yen



Morgan Stanley Dean Witter Equity Coverage Universe (continued)


KDD(C) 9431.T Neutral 6,950.00 NA Japanese YenKPN KPN.AS Outperform 48.00 55.00 EuroKansai Electric Power 9503.T Neutral 2,480.00 NA Japanese YenKansai Electric Power(C) 9503.T Neutral 2,480.00 NA Japanese YenLML Ltd. LMLL.BO Neutral 52.40 76.00 Indian RupeeLiberty Media LMGa.N Strong Buy 69.38 75.00 American DollarLodgenet Entertainment LNET.O Outperform 12.00 11.00 American DollarMATAV MTAV.BU Outperform 1,335.00 1,600.00 Hungarian forintMCI WorldCom WCOM.O Outperform 91.31 105.00 American DollarMahanagar Tel Nigam MTNL.BO Outperform 202.00 206.00 Indian RupeeMahindra & Mahindra MAHM.BO Neutral 230.00 240.00 Indian RupeeMannesmann MMNG.F Strong Buy 140.30 165.00 EuroMcLeodUSA Inc. MCLD.O Strong Buy 52.50 65.00 American DollarMediaOne UMG.N Outperform 71.88 80.00 American DollarMetrocall MCLL.O Strong Buy 2.97 11.00 American DollarNTL Inc. NTLI.O Strong Buy 99.00 105.00 American DollarNTT 9432.T Outperform 1,210,000.00 1,450,000.00 Japanese YenNTT DoCoMo 9437.T Outperform 6,900,000.00 8,600,000.00 Japanese YenNTT DoCoMo(C) 9437.T Outperform 6,900,000.00 8,600,000.00 Japanese YenNTT(C) 9432.T Outperform 1,210,000.00 1,450,000.00 Japanese YenNetCom NTC.OL Neutral 260.00 NA Norwegian KroneNetCom Systems AB NCOMb.ST Neutral 284.00 NA Swedish KronaNews Corp. NWS.N Strong Buy 36.38 40.00 American DollarNippon Television 9404.T Neutral 44,600.00 NA Japanese YenNippon Television(C) 9404.T Neutral 44,600.00 NA Japanese YenOrange ORA.L Neutral 887.16 890.00 British PenceOrbital Sciences ORB.N Neutral 22.38 NA American DollarOsaka Gas 9532.T Outperform 406.00 475.00 Japanese YenOsaka Gas(C) 9532.T Outperform 406.00 475.00 Japanese YenPLDT TEL.PS Neutral 1,120.00 1,050.00 Philippino PesoPT Indosat ISAT.JK Neutral 16,825.00 NA Indonesian RupiahPT Telekomunikasi TLKM.JK Neutral 4,275.00 NA Indonesian RupiahPacific Gateway Exchange Inc. PGEX.O Outperform 35.50 NA American DollarPaging Network PAGE.O Outperform 3.50 15.00 American DollarPilipino Telephone Corp. PLTL.PS Underperform 2.60 2.00 Philippino PesoPixar Inc. PIXR.O Neutral 44.19 NA American DollarPortugal Telecom PTCO.IN Strong Buy 42.86 51.00 EuroPowertel PTEL.O Strong Buy 24.00 30.00 American DollarPrimus Telecommunications PRTL.O Strong Buy 23.00 27.00 American DollarQwest Communications Int’l QWST.O Strong Buy 45.06 55.00 American DollarRCN Corporation RCNC.O Outperform 47.31 70.00 American DollarRSL Communications RSLC.O Strong Buy 23.25 38.00 American DollarRogers Cantel RCN.N Outperform 18.00 24.00 American DollarRogers Communications RG.N Outperform 19.13 28.00 American DollarRostelecom RTKM.RTS Underperform 1.20 NA American DollarSBC Communications Inc. SBC.N Outperform 54.00 66.00 American DollarSK Telecom 17670.KS Outperform 1,528,000.00 750,000.00 South Korean WonSPT SPTT.PR Neutral 567.50 NA Czech KronaSamara Svyazinform SVIC.RTS Neutral NA American CentsSecuricor SCR.L Strong Buy 549.00 762.00 British PenceSingapore Telecom TELE.SI Neutral 2.70 2.85 Singapore DollarSmarTone 0315.HK Outperform 26.00 29.00 Hong Kong DollarSonera SRA1V.HE Outperform 20.25 23.00 EuroSprint FON Group FON.N Outperform 57.06 60.00 American DollarSprint PCS Group PCS.N Neutral 51.38 NA American DollarSwisscom SCMZn.S Neutral 551.00 NA Swiss FrancsT V S-Suzuki TVSS.BO Neutral 496.00 0.00 Indian RupeeTELUS BTS.TO Neutral 35.95 40.00 Canadian DollarsTata Engineering & Locomotive Company Ltd. TELC.BO Outperform 196.00 260.00 Indian RupeeTechnology Resources Industries TRIB.KL NAV 2.63 NA Malaysian RinggitTel. de Chile CTC.N Outperform 23.56 32.00 American DollarTele Celular Sul TSU.N Outperform 19.19 23.00 American DollarTele Centro Oeste TRO.N Neutral 3.56 NA American Dollar



Morgan Stanley Dean Witter Equity Coverage Universe (continued)


Tele Centro Sul Part. TCS.N Outperform 53.75 70.00 American DollarTele Leste Celular TBE.N Neutral 29.69 NA American DollarTele Nordeste Celular TND.N Neutral 29.75 NA American DollarTele Norte Celular TCN.N Neutral 28.38 NA American DollarTele Sudeste Celular TSD.N Outperform 24.50 33.00 American DollarTeleWest Communications TWT.L Strong Buy 272.97 350.00 British PenceTelecom Corp. of New Zealand TEL.NZ Outperform 8.40 9.95 New Zealand DollarsTelecom. Argentina TEO.N Outperform 29.56 NA American DollarTelecomAsia TA.BK Underperform 32.75 15.00 Thailand BahtTelefon. Argentina TAR.N Outperform 33.31 NA American DollarTelefonica TEF.MC Outperform 47.65 51.00 EuroTelefonica del Peru TDP.N Neutral 14.94 NA American DollarTelegate TGTG.F Outperform 34.50 40.00 EuroTelekom Malaysia TLMM.KL NAV 12.90 NA Malaysian RinggitTelekomunikacja Polska S.A (TPSA) TPSAq.L Neutral 6.05 NA American DollarTelemig Celular Par. TMB.N Neutral 26.06 NA American DollarTelephone and Data Systems Inc. TDS.A Outperform 67.38 85.00 American DollarTelesp Celular Part. TCP.N Outperform 22.25 30.00 American DollarTelesp Part. TSP.N Strong Buy 24.13 34.00 American DollarTelmex TMX.N Outperform 76.00 94.00 American DollarTelstra Corporation TLS.AX Neutral 7.63 NA Australian DollarThai Telephone & Telecom TTNT.BK Underperform 11.25 3.00 Thailand BahtTime Engineering TENG.KL NAV 0.93 NA Malaysian RinggitTime Warner TWX.N Strong Buy 67.13 82.00 American DollarTodd-AO TODDA.O Outperform 10.50 11.00 American DollarTokyo Broadcasting System 9401.T Neutral 1,550.00 NA Japanese YenTokyo Broadcasting System(C) 9401.T Neutral 1,550.00 NA Japanese YenTokyo Electric Power 9501.T Neutral 2,670.00 NA Japanese YenTokyo Electric Power(C) 9501.T Neutral 2,670.00 NA Japanese YenTokyo Gas 9531.T Outperform 313.00 380.00 Japanese YenTokyo Gas(C) 9531.T Outperform 313.00 380.00 Japanese YenTotal Access Communication TACC.SI Underperform 108.59 2.00 Thailand BahtTricom TDR.N Outperform 10.00 9.00 American DollarUnited States Cellular Corporation USM.A Neutral 48.50 NA American DollarUralsiazinform URSI.RTS Outperform 0.90 NA American CentsViacom VIA.N Neutral 40.06 NA American DollarViatel Inc. VYTL.O Strong Buy 49.50 57.00 American DollarVidesh Sanchar Nigam VSNL.BO Neutral 870.00 NA Indian RupeeVimpelcom VIP.N Neutral 20.94 NA American DollarVodafone VOD.L NAV 1,284.22 NA British PenceWalt Disney DIS.N Strong Buy 30.88 39.00 American DollarWinstar Comm. WCII.O Neutral 56.88 NA American DollarZee Telefilms Ltd. ZEE.BO Outperform 1,512.00 2,050.00 Indian Rupee

* Price is as of June 8, 1999.



The information and opinions in this report were prepared by Morgan Stanley & Co. Incorporated (“Morgan Stanley Dean Witter”). Morgan Stanley DeanWitter does not undertake to advise you of changes in its opinion or information. Morgan Stanley Dean Witter and others associated with it may make mar-kets or specialize in, have positions in and effect transactions in securities of companies mentioned and may also perform or seek to perform investmentbanking services for those companies.

Within the last three years, Morgan Stanley & Co. Incorporated, Dean Witter Reynolds Inc. and/or their affiliates managed or co-managed a public offeringof the securities of Ameritech Corp., @Home Corporation, Bell Atlantic, Bellsouth, British Telecom, Cable &Wireless, Call-Net Enterprises, Chubu Elec-tric power, Cincinnati Bell, Citizens Utilit, DDI, Electric Lightwave, France Telecom, GST Telecommunications, IDT Corp, Intermedia, Iridium WorldCommunications, Kansai Electric Power, Mannesmann, Metrocall, Metronet Communications, NTL Inc, NetCom Systems AB, Orange, Osaka Gas, Pri-mus Telecommunications, RSL Communications, Rogers Cantel, Swisscom, Telstra Corporation, Tokyo Electric Power, Tokyo Gas, Total Acess Com-munication, Tricom, US West, Viatel Inc, Videsh Sanchar Nigan, Winstar Comm, Aliant, AT&T, Southwestern Bell, Deutsche Telecom, Equant, KPN,OTE, Telecom Italia, Telefonica de Espana, Telecom Argentina, Telefonica de Argentina, PLDT, Telecom New Zeland, Time Warner, VSNL, NTT, Fron-tier, Global Crossing, ICG, McLeod Inc, MediaOne Group, Cable & Wireless Communications, Equant, Airtouch, Clearnet, NexTel, PageMart, NetcomGSM, China Telecom, Piltel, NTT DoCoMo and APT.

Morgan Stanley & Co. Incorporated, Dean Witter Reynolds Inc. and/or their affiliates make a market in the securities of @Home Corporation, AT&T, AliantCommunications, Bajaj Auto Ltd., British Telecom, CellNet Data Systems, China Telecom, Clearnet Communications, Energis, ICG Communications, IDTCorp, ITC DeltaCom, Intermedia, Kansai Electric Power, MCI World Com, Mahindra & Mahindra, McLeod USA Inc, Metrocall, NetCom Systems AB,Nextel, OTE (Hellenic Telecoms.), Orange, Orbital Science, Pacific Gateway Exchange Inc, Powertel, Qwest Communications Int’l, SK Telecom, Tele-fonica del Peru, Tokyo Electric Power, Viatel Inc, MCI World Com, Southwestern Bell, MediaOne Group, Cable & Wireless, MATAV, Telecom Italia,Telecom Argentina, Telefonica de Argentina, Telefonos de Mexico, Hong Kong Telecom, NTT, Electric Lightwave, Global Crossing GST Telecom, IXCCommunications, WinStar, Colt, Cable & wireless Communications, TeleWest, Time Warner , AirTouch, Paging Network, Mannesmann, Vodafone.

Morgan Stanley & Co. Incorporated, Dean Witter Reynolds Inc. and/or their affiliates or their employees have or may have a long or short position or hold-ing in the securities, options on securities, or other related investments of issuers mentioned herein.

An employee or director of Morgan Stanley & Co. Incorporated, Dean Witter Reynolds Inc. and/or their affiliates is a director of GST Telecommunications,Ameritech, PageMart, and Time Warner, or a subsidiary thereof.

The investments discussed or recommended in this report may be unsuitable for investors depending on their specific investment objectives and financialposition. Where an investment is denominated in a currency other than the investor’s currency, changes in rates of exchange may have an adverse effect onthe value, price of, or income derived from the investment. Past performance is not necessarily a guide to future performance. Income from investmentsmay fluctuate. The price or value of the investments to which this report relates, either directly or indirectly, may fall or rise against the interest of investors.

To our readers in Australia: This publication has been issued by Morgan Stanley & Co. Inc. but is being distributed in Australia by Morgan Stanley Austra-lia Limited, a licensed dealer, which accepts responsibility for its contents. Any person receiving this report and wishing to effect transactions in any secu-rity discussed in it may wish to do so with an authorised representative of Morgan Stanley Australia Limited.

To our readers in the United Kingdom: This publication has been issued by Morgan Stanley & Co. Incorporated and approved by Morgan Stanley & Co.International Ltd., regulated by the Securities and Futures Authority Limited. Morgan Stanley & Co. International Limited and/or its affiliates may be pro-viding or may have provided significant advice or investment services, including investment banking services, for any company mentioned in this report.The investments discussed or recommended in this report may be unsuitable for investors depending on their specific investment objectives and financialposition. Private investors should obtain the advice of their Morgan Stanley & Co. International Limited representative about the investments concerned.

To our readers in Spain: AB Asesores Bursatiles Bolsa SVB, S.A., a Morgan Stanley Dean Witter group company, supervised by the Spanish SecuritiesMarkets Commission (CNMV), hereby states that this document has been written and distributed in accordance with the rules of conduct applicable to finan-cial research as established under Spanish regulations.

This publication is disseminated in Japan by Morgan Stanley Japan Limited and in Singapore by Morgan Stanley Dean Witter Asia (Singapore) Pte.

Additional information on recommended securities is available on request.

© Copyright 1999 Morgan Stanley Dean Witter & Co.

1585 Broadway Canary Wharf 20-3, Ebisu 4-chome 3 Exchange SquareNew York, NY 10036 25 Cabot Square Shibuya-ku Hong Kong(212) 761-4000 London E14 4QA Tokyo 150-6008 (852) 2848-5200

(44171) 513-8000 (813) 5424-5000(44171) 425-8000

MORGAN STANLEY DEAN WITTER

Documents

Global Telecommunications Primer - csd.uoc.grhy490-05/projects/bandwidth/papers/glprimer4.pdf · 118 MORGAN STANLEY DEAN WITTER This memorandum is based on information available to