TDC Group Annual Report 2011(6,4MB) - TDC Annual Report 2011

Terminology
Glossary and definitions
2G refers to second-generation mobile networks, including
GSM networks that can deliver voice and limited data
communications.
2.5 GHz refers to the frequency band with frequencies in
the range 2500-2690 MHz. TDC owns 20 MHz of the
2.5GHz frequency and uses it for LTE services.
3G refers to third-generation mobile networks that can
deliver voice, data and multimedia content at high speed.
4G refers to fourth-generation mobile networks that can
deliver voice, data and multimedia content at speeds of up
to 10 times faster than 3G (see also LTE).
Access network refers to the fine-meshed and widespread
part of the telecom infrastructure that connects every single
customer to the network. The access network begins at the
customer’s premises and ends at the local exchange where
traffic is exchanged with the backbone network.
ADSL refers to Asymmetric Digital Subscriber Line, based
on DSL technology.
ARPU refers to Average Revenue Per User and is calculated
per month. TDC calculates ARPU for a given product group
as its total revenue divided by the average RGUs in the
period. Average number of customers/RGUs 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 that figure by the number of
intermediate months plus two. ARPU includes gross traffic
revenue unless otherwise stated.
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 based solely on the traffic-related costs
that would be avoided if the service were no longer
produced. The avoidable cost method differs from the
prevalent LRAIC/LRIC methods as it does not include costs
that are shared between several services and do not
increase in proportion to an increase in the volume of the
specific service.
TDC Group Annual Report 2011
Backbone network refers to the part of the telecom
infrastructure that interconnects various parts of networks,
e.g. local access networks, different operators’ networks or
national networks. The backbone network capacity is very
large compared with the access network capacity.
Blended ARPU refers to a weighted ARPU across segments
or sub-products.
Brand partner refers to partners who sell mobility services
based on TDC infrastructure under their own brands to end
users. TDC owns the customer relationship.
Broadband refers to data communication forms of a certain
bandwidth that, depending on the relevant context, are
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 fibre. TDC applies the Danish
Business Authority definition in which broadband implies
bandwidths higher than 144 kbps.
BSA or Bitstream access refers to the situation where a
provider installs a high-speed access link at the customer’s
premises and then makes this access link available to third
parties to enable them to provide high-speed services to
customers. ‘Naked BSA’ means BSA without a PSTN
subscription delivered on the same subscription line.
CaaS or Communications-as-a-Service is an outsourcing
model for business communications. Such communications
can include VoIP, instant messaging, collaboration and
video-conferencing applications using landline and mobile
devices. The CaaS vendor is responsible for all hardware
and software management. CaaS allows businesses to
selectively deploy communications devices on a pay-asyou-go,
as-needed basis.
Capital expenditure (capex) refers to capital expenditures
excluding investments in mobile licences and share
acquisitions.
Churn rate refers to yearly customer turnover expressed as
a percentage. TDC calculates churn by dividing the gross
decrease in the number of customers for a given period by
the average number of customers for that period.
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