2.5 GHz refers to the frequency band covering the range 2500-2690 MHz. The 2.5 GHz band is being distributed to mobile operators via an auction scheduled to take place in April/May 2010. The 2.5 GHz band is well suited for the launch of an LTE service, as it does not currently carry any other traffic, and as the LTE equipment currently supports only 2.5 GHz frequencies.
2G refers to second-generation mobile networks, including GSM networks that can deliver voice and limited data communications such as fax and SMS.
3G refers to third-generation mobile networks that can deliver voice, data and multimedia content at high speed.
Add-on service refers to any extra service that may be added to the basic offering.
ADM service or Application Development and Maintenance service refers to the development and maintenance of software applications.
ADSL refers to Asymmetric Digital Subscriber Line and is based on DSL technology.
ARPU refers to Average Revenue per User, and is stated per month. TDC calculates ARPU for a given product group as its total revenue divided by the average customer base in the period.
ATM or Asynchronous Transfer Mode refers to a dedicated connection switching technology for LANs and WANs that supports real-time voice and video as well as data.
Avoidable cost refers to a method where the pricing of a specific service is only based on the traffic related costs that would be avoided if the service is no longer produced. The avoidable cost method differs from the prevalent LRAIC/LRIC principles by not including costs which are joint across more services and which do not increase in a response to an increase in the volume of the specific service.
Barcode refers to an optical machine-readable representation of data. Typically, barcodes represent data in the widths (lines) and the spacings of parallel lines, and may be referred to as linear or one-dimensional barcodes or symbologies.
Best Practice analysis refers to a pricing regulation method that implies that the interconnect price for SMP operators are set equal to the prices for comparable operators, either domestic or international. Until 2009, mobile termination prices for TDC, Sonofon and TeliaSonera was fixed on the basis of a best practice analysis. From 2009, only the mobile termination prices of Barablu are set according to a best practice analysis.
Broadband refers to data communication forms of a certain bandwidth that depending on the relevant context is perceived to be significantly high or 'wide' in terms of information-carrying capacity. The most common broadband technologies are cable modem, DSL, mobile broadband and optical fiber. TDC applies NITA's definition in which broadband implies bandwidths higher than 144 kbps.
BSA or Bitstream access refers to the situation where the incumbent installs a high-speed access link at the customer's premises (e.g. by installing its preferred DSL equipment and configuration in its local access network) and then makes this access link available to third parties, to enable them to provide high-speed services to customers.
Cash conversion as defined by TDC, refers to the proportion of operating profit that is converted into operating free cash flow. For the purposes of TDC, this is defined as the operating free cash flow divided by EBITDA.
Churn rate refers to the percentage of yearly customer turnover, e.g. wireless subscribers are said to churn when they cancel their mobile service with their current wireless provider (and either move to a different provider or simply choose not to have a wireless service). TDC calculates churn by dividing the gross decrease in the number of customers for a period by the average number of customers for that period. The average number of customers for a period is calculated by adding together the number of customers at the beginning of the period, the number of customers at the end of each intermediate month, the number of customers at the end of the period and dividing the previous term by the number of intermediate months plus 2. Different telcos calculate churn using different methods.
CLV or Customer Lifetime Value, in marketing, refers to the 'present value' of future cash flows attributed to the customer relationship.
CMT refers to TDC's Corporate Management Team.
COMCO refers to The Competition Commission; the state antitrust authority of Switzerland (in German, Wettbewerbskommission, WEKO). It decides and decrees on matters concerning concerted practices and abuse of dominant position or merger.
ComCom refers to The Federal Communications Commission (in German, Die Eidgenössische Kommunikationskommission); the independent regulatory authority for the Swiss telecommunications market.
Content service refers to a service, typically in terms of information or entertainment, broadcasted or provided on-line.
CPE refers to Customer Premises Equipment. Equipment that resides at the customer's premises. CPE includes the hardware required to handle telephony and data traffic. Products handling telephony traffic range from large PABXs for the largest business corporations, to single telephone apparatuses sold to small business customers. Products handling data traffic consist mainly of routers, switches, DSL modems and other bridging equipment used to create LAN and WAN solutions.
Customer base refers to the end-of-period customers and includes customers with subscriptions and customers without subscriptions according to the following general principles: Landline customers who have generated traffic in the previous month; Mobile customers active within the last 3 months; Internet customers active within the last 3 months. TDC's customer statement includes the number of main products sold by TDC's residential, business and wholesale divisions. An individual buying the HomeTrio offer will therefore enter into the customer statement as three customers. Moreover, an enterprise with 100 mobile voice subscriptions from TDC will be included as 100 customers in the customer statement. As regards wholesale customers, a broadband provider with 20,000 Bit Stream Access (BSA) connections from TDC will be included as 20,000 customers in the customer statement. In contrast, additional supplementary products such a digital TV services, in addition to the cable-TV subscriptions, are not included in the customer statement. For Other Networks and Data connections, the customer category that is part of TDC's customer base includes ULL, leased lines, fiber and data connection customers. Mobile broadband customers include mobile data cards and mobile broadband customers. Dual- and triple-play bundles are included as two and three customers, respectively, in the total customer figures. All Fullrate xDSL customers are included as dual-play customers. The term 'customer' does not reflect the number of actual end-users, e.g. an ISDN30 connection counts only as one customer in TDC's customer base even though this product may involve 30 end-users. The concept 'customer base' in TDC Nordic differs from that used elsewhere in that it denotes the number of landline and internet sites counted rather than the number of products.
CVR or Det Centrale Virksomhedsregister refers to a central registry of Danish businesses. The abbreviation, followed by an eight digit number, is used as a unique identifier of any company incorporated under Danish jurisdiction.
DCS6 refers to a specific license to establish and operate a public mobile communications network (DCS1800) with associated basic services in Denmark, issued pursuant to section 3 and section 11(1)-(2) of Act No. 468 of 12 June 1996 on Public Mobile Communications.
DCS1800 or Digital Cordless Standard 1800 refers to GSM operated in the 1800 MHz range.
Dial-up refers to an internet connection that uses a traditional landline connection.
DOCSIS or Data over Cable Service Interface Specification refers to communications and operation support interface requirements for a data-over-cable system. It permits the addition of high-speed data transfer to an existing cable TV (CATV) system. Three international DOCSIS standards have been adopted: DOCSIS 1.1, DOCSIS 2.0 and DOCSIS 3.0.
DSL or Digital Subscriber Line refers to a technology that enables a local-loop copper pair to transport high-speed data between an exchange building and the customers' premises.
DSLAM or Digital Subscriber Line Access Multiplexer refers to a network device, usually at a telecommunications company's exchange building or one of its nodes, that receives signals from multiple customer DSL connections and puts the signals on a high-speed backbone line using multiplexing techniques, ultimately allowing telephone lines to make faster connections to the Internet.
DTT refers to Digital Terrestrial Television, which is a digital signal broadcast to standard aerials that are utilized to replace the, in Denmark, soon-to-be-discontinued analog signal.
Dual-play refers to the bundling of telephony and internet through one access channel only. Dual-play bundles are included as two customers in the total customer figures. All Fullrate xDSL customers are included as dual-play customers. A dual-play subscription must entail both services.
DWDM or Dense Wavelength Division Multiplexing refers to an optical technology used to increase bandwidth over existing fiber-optic backbone networks.
EBITDA refers to the earnings before interest, tax, depreciation, amortization.
EBITDA margin refers to the ratio between EBITDA and revenue.
EDGE or Enhanced Data rates for GSM Evolution refers to the GSM network coding that enables data to be sent and received seven times faster than over GSM, which allows interactive transmission of pictures, video postcards via email and other airborne multimedia. The coding technology has also been named 2.5G implying the inherence of some 3G-like qualities although it utilizes (parts of) the existing GSM infrastructure.
Employees (number of) refers to end-of-year full-time employee equivalents, including permanent employees, trainees and temporary employees.
Equity free cash flow refers to EBITDA adjusted for non-cash items, pension contributions, provisions payments, changes in net working capital, net interest paid, corporate income tax paid and cash flows relating to capital expenditures (in all cases excluding Special Items).
Ethernet refers to a type of networking technology for LANs and is increasingly used in the IP networks.
EUL, Enhanced Uplink or High-Speed Uplink Packet Access (HSUPA) refers to a 3G mobile telephony protocol in the HSPA family with up-link speeds up to 5.76 Mbit/s. The 3rd Generation Partnership Project (3GPP) does not support the name 'HSUPA', but instead uses the name Enhanced Uplink.
Frame-relay refers to a data communication service well suited for transmitting traffic between LANs or terminal points in a WAN. With frame-relay data is sent in packets of varying sizes, called frames and error corrections occur in the terminal points yielding a higher bit rate for the aggregate data transmission.
Fiber Optics Communication or Fiber refers to a technology used to transmit telephone signals, internet communications, and cable television signals. Due to much lower loss of intensity and interference, optical fiber has advantages over existing copper wire in long-distance and high-demand applications.
Flat-rate refers to a price-structure that charges a single fixed fee for a service, regardless of usage.
FTTH or Fiber To The Home refers to the fiber-optic technology linking residential customers directly to the fiber network.
GSM or Global System for Mobile Communications refers to a comprehensive digital network for the operation of all aspects of a cellular telephone system.
HDTV or High-Definition Television refers to a digital television broadcasting system with a higher resolution than traditional television systems.
HFC or Hybrid Fiber Coax refers to a type of broadband network that combines optical fiber with coaxial cable hallmarked by higher data carrying capacities than the traditional DSL technology.
Homes passed refers to households where a particular technology (e.g. Fiber or Coax) has been rolled out enabling the reception of services associated with that technology. It follows that the number of homes passed constitutes the sum of actual and potential Group customers for the given service.
HSDPA, High Speed Downlink Packet Access or Turbo 3G refers to an enhancement of UMTS 3G technology that is expected to increase the available download speeds by a multiple of 5 or more.
HSUPA or High Speed Uplink Packet Access is expected to improve the performance of uplink-dedicated transport channels, i.e. to increase capacity and throughput while reducing delays. HSUPA employs link adaptation methods similar to those used by HSDPA.
Hub refers to a device that splits one network cable into a set of separate cables, each connecting to a different computer; used in a LAN to create a small-scale network by connecting several computers together.
Incumbent refers to the existing telecommunications company often first established a monopoly.
IN or Intelligent Network refers to a service-independent telecommunications network. Interconnection refers to the process of connecting a telephone call to another operator's network. This connection is accompanied by an interconnect rate which must be paid to the operator for the use of that operator's network.
International roaming is a means of accessing a foreign operator's network that enables customers to automatically make and receive voice calls, send and receive data, or access other services, when traveling abroad. Operators in various countries will have to arrange mutual cross-border covenants to facilitate such roaming.
IP or Internet Protocol refers to a standard protocol whereby internet-user data is divided into packets to be sent onto the correct network pathway. In addition, IP gives each packet an assigned number so that the message completion can be verified. Before packets are delivered to their destination, the protocol carries unifying procedures so that they are delivered in their original form.
IP-VPN or IP-based Virtual Private Network refers to a network that enables organizations to use a shared network to connect remote sites or users together. Instead of using only dedicated connections (such as a leased line), a VPN uses virtual connections routed across a shared network to remote sites or employees.
ISDN or Integrated Services Digital Network refers to a means of providing more channels of 64 kbps over the existing regular phone line, which can be used for either integrated voice and data or solely data transmission. An ISDN modem is necessary to connect to the network. The ISDN technology enables 2-30 channels on the same line.
ISP or Internet Service Provider refers to a company that provides access to the internet.
LAN or Local Area Network refers to a short-distance data communications network (typically within a company) used to link computers, which allows data and printer sharing.
LRAIC (Long Run Average Incremental Cost) and LRIC (Long Run Incremental Cost) refer to the most-applied pricing regulation methods used to fix operators' interconnect prices for SMP operators. With the LRAIC/LRIC method, prices are set equal to the costs of producing the regulated services in a modern and fully efficient telecommunication network at the same size as the SMP operator. In practice, there are only minor differences between the LRAIC method used in Denmark and the LRIC method used in for instance Sweden and Switzerland. Danish LRAIC prices for switched interconnection, ULL, colocation, bitstream access and mobile termination are calculated by models developed by NITA. The LRAIC models are updated annually.
LTE or Long Term Evolution refers to the latest generation of mobile networks - sometimes referred to as 3.8G or 4G - that can deliver data and multimedia content at signifi-cantly higher speed than the 3G network.
Market shares shown in TDC's Annual Report are based mainly on internal TDC estimates. Among other sources, TDC uses NITA's telecoms statistics to estimate the total market. TDC also uses NITA's differentiation between business and residential markets. End users with CVR numbers are included as business customers, whereas end users without CVR numbers are included as residential customers. The source for the five-year development table in voice subscribers in "TDC's Transformation since 2005" is NITA's telecom statistics until 1H 2009, and a TDC estimate of NITA's 2H 2009 market share. However, TDC's own market shares on the PSTN/ISDN market differ from NITA's, as, unlike NITA, TDC does not include landline telephony in housing associations in the PSTN/ISDN market.
Mbps refers to megabits per second.
MMS or Multimedia Messaging Service refers to a store and-forward messaging service that allows mobile customers to exchange multimedia messages with other mobile customers. It can be seen as an evolution of SMS, with MMS supporting the transmission of additional media types: picture, audio, video and combinations of them.
MNO or Mobile Network Operator refers to a company that has frequency allocation(s), as opposed to a MVNO, and all the required infrastructure to run an independent mobile network.
Mobile termination refers to the delivery of traffic to a mobile operator for the purpose of terminating the relevant traffic to any end-user who is connected to the operator's network. The mobile termination service covers all type of calls to a mobile handset, including calls from landline network, calls from another mobile network or international calls.
MoU or Minutes of Usage refers to minutes used per Subscriber per month.
MPLS or Multiprotocol Label Switching refers to a versatile solution for addressing the problems faced by present day networks such as speed, scalability, quality of service management and traffic engineering. The MPLS technology is used in the IP-Core.
MVNO or Mobile Virtual Network Operators refers to a mobile operator that does not own its own spectrum but to some extent has its own network infrastructure. MVNOs have business arrangements with traditional mobile operators to buy traffic and data for sale to their own customers.
NFC or Near Field Communication refers to a short-range high frequency wireless connectivity technology which enables the exchange of data between devices over a distance of about 10 cm.
NITA refers to the Danish National IT and Telecom Agency (in Danish, IT- og Telestyrelsen).
Non-ionizing radiation refers to any type of electromagnetic radiation that does not carry enough energy to completely remove an electron from an atom or molecule.
Operating free cash flow as defined by TDC refers to the sum of EBITDA, adjustments for items with no cash flow effect, pension contributions, payments related to provisions, change in net working capital and cash flow related to Capex.
PABX or Private Automatic Branch Exchange which is an automatic telephone switching system within a private enterprise. Originally, such systems - called private branch exchanges (PBX) - required the use of a live operator. As today almost all private branch exchanges are automatic, the abbreviation PBX has been extended to PABX.
Penetration refers to the measurement, usually as a percentage, of the take-up of services. As of any date, the penetration is calculated by dividing the number of subscribers by either the population of households or the number of inhabitants to which the service is available.
PoP or Point of Presence refers to a local access point to a communications network, e.g. the internet.
Postpaid refers to subscriptions that are paid for at the beginning of the period, whereas the usage charge, which varies depending on the tariff plan selected by the subscriber, is paid at the end of the period.
Prepaid refers to when the customer pays for a specified amount of credit for services upfront. The credit then diminishes as the customer uses the service.
PSTN or Public Switched Telephone Network refers to the telecommunications network based on copper lines carrying analog voice data - traditional landline telephony.
PVR or Personal Video Recorder refers to a device that records video in a digital format to a disk drive or other memory media within a device. The term includes standalone set-top boxes, portable media players and software for personal computers which enables video capture and playback to and from disk.
Quadruple-play refers to the bundling of triple play (telephony, internet and TV services) with mobile telephony.
Quality of Service refers to a collective measure of the level of service delivered to the customer, and reflects the network's transmission quality and service availability.
RGU or Revenue Generating Unit refers to a the total number of customer relationships that generate revenue to TDC. Copper RGU's are total number of customer relationsship on the copper network, see also customer base.
SDH or Synchronous Digital Hierarchy refers to a standard technology for synchronous data transmission on optical media and provides faster and less-expensive network interconnection than traditional PDH (Plesiochronous
Digital Hierarchy) equipment. In digital telephone transmission, synchronous means the bits from one call are carried within one transmission frame. Plesiochronous means 'almost synchronous' or a call that must be extracted from more than one transmission frame.
SHDSL or Symmetric High-speed Digital Subscriber Line refers to DSL technology with symmetric data transmission.
SMP or Significant Market Power refers to a designation assigned to operators having a dominant market position in a specific submarket. As a rule of thumb in NITA's market analyses, shares greater than 50% automatically trigger an SMP designation while 25-50% will call for the fulfilment of additional criteria.
SMS or Short Message Service refers to short text messages that can be sent or received on mobile phones.
SoHo or Small Office/Home Office refers to a category of businesses which is defined by, among others, being fewer than two employees and with limited revenue during the last year (< DKK 30,000).
Telemetric communication between two machines is also referred to as an M2M (machine-to-machine) solution, and is based mainly on mobile communication. M2M solutions are used for 'Dankort'-terminals (debit cards), GPS monitoring, distant reading, alarms etc.
Terrestrial Network refers to a ground-based telecommunications network.
Transfer-pricing refers to the determination of prices concerning the transfer of goods and services between intra-group entities.
Triple-play refers to the bundling of telephony, internet and TV services through one access channel only. Triple-play bundles are included as three customers in the total customer figures. A triple-play subscription must entail all three services.
Turbo 3G refers to the HSDPA technology.
TVoIP or TV over Internet Protocol refers to TV programming provided over the internet.
ULL or Unbundled Local Loop refers to raw copper lines to which competing carriers have been granted access by the incumbent operator, allowing such alternative carriers to offer data transmission capacity and/or telephony to the incumbent's subscriber base.
UMTS or Universal Mobile Telecommunications Systems refers to a 3G network designed to provide a wide range of voice, high-speed data and multimedia services
VoD or Video on Demand refers to transmission delivery of video via broadband at the time requested by the customer.
VoIP or Voice over Internet Protocol refers to a telephone call over the internet.
VPN or Virtual Private Network refers to a large network that operates in the same way as a LAN allowing geographically spread offices or computers to communicate with the same protection, speed and accessibility as with a LAN.
VDSL or VHDSL (Very High Bitrate DSL) is a DSL technology that provides faster data transmission than other DSL technologies over copper wires.
WAN or Wide Area Network refers to a long-distance data communications network and is a geographically dispersed collection of LANs. The internet, for instance, is a WAN, but a network between a company's divisions can also be WAN.
WAP or Wireless Application Protocol refers to an open international standard for application layer network communications in a wireless communication environment. Its main use is to enable access to the Internet from a mobile phone or PDA.
xDSL is a family of technologies that provides digital data transmission over copper wires. See also ADSL, VDSL and SHDSL.