TDC Group
RGU development
TDC had 8.9m RGUs in 2010, down 0.8% compared with 2009.
The number of domestic RGUs decreased from 8,767,000 in 2009 to 8,647,000 in 2010, corresponding to a decrease of 1.4% [1], which reflected mainly:
- 7.7% fewer landline voice RGUs due to the migration from landline to mobile. However, this was a deceleration compared with previous years [2] due to pro-active churn control on PSTN/ISDN and a 21.9% increase in the number of VoIP RGUs, which was due mainly to the popularity of multi-play bundles.
- 4.4% fewer mobile voice RGUs due to fewer low ARPU prepaid-card RGUs, which rose at the end of 2009 following a Christmas campaign. The decrease was partly counteracted by more telemetrics, and mobile broadband RGUs, which increased by 12.2% and 28.5%, respectively. TDC's acquisitions of M1 and Unotel did not affect TDC's total number of RGUs, as these RGUs were included in wholesale's RGUs in 2009.
- 0.3% more internet RGUs as the increase in broadband RGUs in the Fullrate brand was almost offset by a decline in non-broadband RGUs. The number of business broadband RGUs decreased due to the economic downturn and the introduction of the multimedia tax in January 2010.
- 4.9% more TV RGUs due to the success of HomeTrio [3] and continued growth in YouSee, in part related to the demand for add-on services.
- The number of RGUs in TDC Nordic increased by 28.7% from 181,000 in 2009 to 233,000 in 2010. The development in TDC Nordic was affected mainly by growth in both its landline and mobile RGUs.
| RGU base ('000 end-of-period) | 31 Dec. 2010 | 31 Dec. 2009 | 31 Dec. 2008 | Change in % 2010 vs. 2009 | Change in % 2009 vs. 2008 |
| Domestic, retail and wholesale: | |||||
| Landline voice | 1,836 | 1,990 | 2,113 | (7.7) | (5.8) |
| PSTN/ISDN | 1,407 | 1,638 | 2,002 | (14.1) | (18.2) |
| Retail | 1,196 | 1,397 | 1,705 | (14.4) | (18.1) |
| Wholesale | 211 | 241 | 297 | (12.4) | (18.9) |
| VoIP | 429 | 352 | 111 | 21.9 | - |
| Mobile voice | 2,903 | 3,038 | 2,792 | (4.4) | 8.8 |
| Retail voice | 2,716 | 2,726 | 2,590 | (0.4) | 5.3 |
| Prepaid cards | 229 | 373 | 338 | (38.6) | 10.4 |
| Subscriptions (incl. Telmore/M1) | 2,487 | 2,353 | 2,252 | 5.7 | 4.5 |
| Wholesale voice | 187 | 312 | 202 | (40.1) | 54.5 |
| Telemetrics | 387 | 345 | 226 | 12.2 | 52.7 |
| Mobile broadband | 257 | 200 | 116 | 28.5 | 72.4 |
| Landline internet | 1,513 | 1,508 | 1,371 | 0.3 | 10.0 |
| Broadband, retail | 1,295 | 1,296 | 1,151 | (0.1) | 12.6 |
| Broadband, wholesale | 154 | 139 | 124 | 10.8 | 12.1 |
| Non-broadband | 64 | 73 | 96 | (12.3) | (24.0) |
| Other networks and data connections | 287 | 291 | 365 | (1.4) | (20.3) |
| Retail | 54 | 51 | 52 | 5.9 | (1.9) |
| Wholesale | 233 | 240 | 313 | (2.9) | (23.3) |
| Total TV | 1,464 | 1,395 | 1,245 | 4.9 | 12.0 |
| YouSee Clear | 1,176 | 1,153 | 1,113 | 2.0 | 3.6 |
| YouSee Plus | 160 | 146 | 105 | 9.6 | 39.0 |
| TDC TV | 128 | 96 | 27 | 33.3 | - |
| Domestic RGUs, total | 8,647 | 8,767 | 8,228 | (1.4) | 6.6 |
| Dual-play bundles | 304 | 213 | - | 42.7 | - |
| Triple-play bundles | 116 | 86 | - | 34.9 | - |
| TDC Nordic | |||||
| Landline | 80 | 55 | 47 | 45.5 | 17.0 |
| Mobile | 67 | 44 | 24 | 52.3 | 83.3 |
| Landline internet | 86 | 82 | 94 | 4.9 | (12.8) |
| TDC Nordic RGUs, total | 233 | 181 | 165 | 28.7 | 9.7 |
| TDC Group RGUs, total | 8,880 | 8,948 | 8,393 | (0.8) | 6.6 |
Financial review
Revenue
2009-2010
The TDC Group's revenue rose by 0.3% to DKK 26,167m compared with 2009.
Revenue was positively affected by forex and the net impact from acquisitions and divestments, which were partly offset by negative impact from the regulation of MTR, landline interconnection charges, and international roaming charges.
- Decreasing landline revenue related to the decline in the number of PSTN/ISDN RGUs and shift towards VoIP (which generates lower ARPU).
- Increasing mobility service revenue was driven by mobile voice traffic and more mobile broadband customers.
- Decreasing domestic internet and network revenue was driven by increased market competition, the recent economic downturn and the introduction of the Danish multimedia tax in January 2010.
- Decreasing terminal equipment revenue reflected fewer customers visiting TDC Shop, and lower sales in NetDesign due to reduced investment levels among business customers.
- Increasing TV revenue was driven by increased revenue from YouSee Clear and YouSee Plus, following the increased demand for add-on services. Revenue also increased following the success of the TDC TV product, due to the popularity of HomeTrio.
- Increasing revenue in TDC Nordic was due mainly to increased sales of mobility services to existing landline and data customers, and higher revenue from the integrator business, which partly recovered from the recent economic downturn.
- Decreasing revenue related to Other activities resulted primarily from increased intra-group sales.
2008-2009
In 2009, TDC's revenue was DKK 26,079m, a decrease of DKK 838m, or 3.1%, compared with 2008.
Revenue was negatively affected by forex and the negative impact from regulation of MTR and international roaming charges, which was partly counteracted by the net impact from acquisitions and divestments.
- Decreasing landline revenue related to fewer traditional domestic telephony RGUs and was somewhat mitigated by the success of the HomeTrio and HomeDuo packages.
- Increasing mobility revenue related primarily to more mobile voice subscription customers (with relatively high ARPU compared with prepaid cards), and the growing number of mobile broadband customers.
- Decreasing terminal equipment revenue related primarily to the divestment and outsourcing of CPE sales to business customers.
- Increasing TV revenue, primarily as a result of customers' increased demand for content and add-on services and the success of the HomeTrio product, was reflected in more RGUs and higher ARPU.
- Lower revenue from TDC Nordic, due to a decrease in Swedish integrator business.
| Revenue | DKKm |
| TDC Group | 2010 | 2009 | 2008 | Change in % 2010 vs. 2009 | Change in % 2009 vs. 2008 |
| Consumer | 9,389 | 9,711 | 9,901 | (3.3) | (1.9) |
| TDC Business | 7,546 | 7,926 | 8,546 | (4.8) | (7.3) |
| TDC Nordic | 4,087 | 3,515 | 3,854 | 16.3 | (8.8) |
| Operations & Wholesale | 2,550 | 2,582 | 2,748 | (1.2) | (6.0) |
| YouSee | 4,012 | 3,597 | 3,188 | 11.5 | 12.8 |
| Other activities | (1,417) | (1,252) | (1,320) | (13.2) | 5.2 |
| TDC Group | 26,167 | 26,079 | 26,917 | 0.3 | (3.1) |
| Adjusted revenue¹ | 26,167 | 26,316 | 26,400 | (0.6) | (0.3) |
- Revenue for 2009-2010 has been adjusted for the acquisitions of Fullrate, A+, AinaCom's fibre network, DONG Energy's fibre network, M1 and Nordit, the divestment of the satellite business, currency effects, and regulation of landline interconnection, international roaming and mobile termination charges. Revenue for 2008-2009 was adjusted for the acquisitions of Fullrate, A+ and DONG Energy's fibre network; the divestments of Business Phone, Digital Signatur, Connect Partner, International Carrier Services, LG, Rejsekort, the satellite business and business customer centres as well as the divestment and outsourcing of CPE sales to business customers; currency effects; and regulation of international roaming and mobile termination charges.
Gross profit
2009-2010
TDC's gross profit was DKK 19,420m, a decrease of DKK 215m, or 1.1%, compared with 2009.
- This decrease, which was due mainly to the decline in domestic landline voice and internet and network, terminal equipment and regulation of international roaming and landline interconnection, was only partly counteracted by the acquisition of Fullrate, A+, M1, AinaCom's fibre network and DONG Energy's fibre network, increased gross profit from domestic TV and mobility services as well as growth in TDC Nordic.
- TDC's gross profit margin decreased from 75.3% in 2009 to 74.2% in 2010 This was mainly a result of product mix shift with growth in relatively lower margin areas such as the TV business and TDC Nordic as well as the activity decrease in high margin areas such as landline voice, broadband and operator services.
2008-2009
In 2009, TDC's gross profit declined by DKK 43m, or 0.2% to DKK 19,635m.
- This related mainly to lower project sales in the Swedish integrator business, lower activity in Operations & Wholesale, the divestment of Digital Signatur and Business Phone, the divestment and outsourcing of CPE and regulation of international roaming, which was only partly counteracted by increased gross profit from TV and the acquisitions of Fullrate and A+.
- TDC's gross profit margin increased from 73.1% in 2008 to 75.3% in 2009. The increased gross profit margin reflects primarily the lower MTR which have negative revenue impact but no negative gross profit impact, the divestment and outsourcing of CPE sales to business customers, the sale of other low-margin businesses by TDC Business and lower activity in the low-margin Swedish integrator business.
| Gross profit | DKKm |
| TDC Group | 2010 | 2009 | 2008 | Change in % 2010 vs. 2009 | Change in % 2009 vs. 2008 |
| Consumer | 6,510 | 6,721 | 6,744 | (3.1) | (0.3) |
| TDC Business | 5,198 | 5,338 | 5,387 | (2.6) | (0.9) |
| TDC Nordic | 1,694 | 1,609 | 1,726 | 5.3 | (6.8) |
| Operations & Wholesale | 1,985 | 2,061 | 2,191 | (3.7) | (5.9) |
| YouSee | 2,357 | 2,072 | 1,844 | 13.8 | 12.4 |
| Other activities | 1,676 | 1,834 | 1,786 | (8.6) | 2.7 |
| TDC Group | 19,420 | 19,635 | 19,678 | (1.1) | (0.2) |
EBITDA
2009-2010
The TDC Group's EBITDA rose by DKK 236m, or 2.2%, to DKK 10,772m. The EBITDA margin increased from 40.4% in 2009 to 41.2% in 2010.
- EBITDA was positively affected by lower wages, salaries and pension costs and lower employee-related costs due to fewer full-time employees (the number of average FTEs decreased by 5.7% from 2009 to 2010) despite the acquisition of some minor enterprises. EBITDA was also positively affected by the higher pension income related to the domestic defined benefit plans (DKK 150m) and currency movements. Savings related to lower subscriber acquisition costs, lower information technology costs and lower costs related to bad debt also had a positive influence on EBITDA.
- Besides the gross profit reduction, EBITDA was negatively affected by the accounting gains from the divestment of the satellite business and the field force operation in TDC Sweden, both in 2009.
2008-2009
TDC's EBITDA rose by DKK 482m to DKK 10,536m in 2009. The EBITDA margin increased from 37.4% in 2008 to 40.4% in 2009.
- EBITDA was positively affected by lower wages, salaries and pension costs and lower employee-related costs due to fewer full-time employees (from 2008 to 2009, the number of average FTEs decreased by 11.5%) and lower information technology costs and facility management costs.
- Besides the gross profit reduction, EBITDA was negatively affected by foreign exchange-rate developments in TDC Sweden and TDC Norway.
| EBITDA | DKKm |
| TDC Group | 2010 | 2009 | 2008 | Change in % 2010 vs. 2009 | Change in % 2009 vs. 2008 |
| Consumer | 4,041 | 3,995 | 3,902 | 1.2 | 2.4 |
| TDC Business | 3,644 | 3,721 | 3,659 | (2.1) | 1.7 |
| TDC Nordic | 564 | 497 | 458 | 13.5 | 8.5 |
| Operations & Wholesale | 1,114 | 1,413 | 1,500 | (21.2) | (5.8) |
| YouSee | 1,353 | 1,141 | 954 | 18.6 | 19.6 |
| Other activities | 56 | (231) | (419) | 124.2 | 44.9 |
| TDC Group | 10,772 | 10,536 | 10,054 | 2.2 | 4.8 |
| Adjusted EBITDA¹ | 10,767 | 10,458 | 9,778 | 3.0 | 7.0 |
- EBITDA for 2009-2010 has been adjusted for the acquisitions of Fullrate, A+, AinaCom's fibre network, DONG Energy's fibre network, M1 and Nordit as well as the divestment of the satellite business and the gain related to the divestment of the field force operation in TDC Sweden, sale of assets (sale of property, plant and equipment and intangible assets); currency effects and regulation of landline interconnection and international roaming charges. EBITDA for 2008-2009 was adjusted for the acquisitions of Fullrate, A+ and DONG Energy's fibre network; the divestments of Uppsala Stadsnät, Business Phone, Digital Signatur, International Carrier Services, Connect Partner, LG, the satellite business customer centres and TDC Produktion as well as the gain related to the divestment of the field force operations in TDC Sweden, the sale of property, plants and equipment, currency effects and regulation of international roaming charges.
Depreciation, amortisation and impairment losses
2009-2010
In 2010, depreciation, amortisation and impairment losses rose by DKK 697m, or 15.0% to DKK 5,356m. This increase was due mainly to higher amortisation of the value of customer relationships, reflecting the implementation of a revised customer segmentation method for calculating the amortisation. On an isolated basis, the adjusted customer segmentation method resulted in an increase in amortisation of approximately DKK 500m compared with 2009. In addition, the increased depreciation, amortisation and impairment losses were due mainly to the acquisitions of Fullrate, A+, DONG Energy's fibre network, M1 and Unotel. On an isolated basis, these acquisitions resulted in an increase in depreciation, amortisation and impairment losses of approximately DKK 100m compared with 2009.
2008-2009
In 2009, depreciation, amortisation and impairment losses rose by DKK 112m, or 2.5%, to DKK 4,659m compared with 2008. This increase reflected mainly the acquisition of Fullrate and was partly offset by lower depreciation due to certain assets relating to the landline network being fully depreciated during 2008 and the write-down of the Song and Dotcom brands in 2008. These brands were replaced by the TDC brand.
Special items
The table below shows the TDC Group's Special items for the periods indicated. Special items from continuing operations are shown together with a reconciliation of profits from continuing operations excluding and including Special items.
Special items include significant amounts that cannot be attributed to normal operations such as provisions for restructuring costs and special write-downs for impairment of intangible assets and property, plant and equipment, as well as any reversals of such impairment write-downs. Special items also include gains and losses related to asset divestments of enterprises and properties, and adjustments to such gains and losses and divestment of enterprises, as well as transaction costs relating to the acquisition of enterprises.
Special items from continuing operations amounted to expenses after tax of DKK 1,084m in 2010, compared with an expense after tax of DKK 766m in 2009 and DKK 2,950m in 2008.
2010
In 2010, Special items comprised primarily restructuring costs and loss from rulings related to a Swedish court ruling in an interconnect fee dispute with TeliaSonera. Restructuring costs resulted largely from redundancy programmes, including costs related to surplus office capacity following a reduction of full-time employees, as well as costs related to a one-time grant to all employees of TDC shares (DKK 145m) and accelerated amortisation of borrowing costs (DKK 106m) due to the expected refinancing of TDC's Senior Loans in early 2011.
2009
In 2009, Special items comprised primarily restructuring costs, which were due largely to redundancy programmes and the resulting costs related to surplus office capacity. Impairment losses were attributable to the write-down of software. Special items in joint ventures and associates related to an adjustment to the loss from the divestment of shares in Polkomtel in 2008.
2008
In 2008, Special items comprised primarily impairment losses relating to goodwill and other intangible assets in TDC Sweden and TDC Finland. These impairments resulted primarily from reduced cash flow expectations for these businesses. Restructuring costs related largely to the restructuring of TDC's information technology activities, including a write-down of software, as well as redundancy programmes and the resulting costs related to surplus office capacity. Special items in joint ventures and associates related mainly to a loss from the divestment of shares in Polkomtel.
| Special items | DKKm |
| TDC Group | 2010 | 2009 | 2008 |
| Profit for the year from continuing operations excl. special items | 2,888 | 2,727 | 2,959 |
| Consolidated enterprises: | |||
| Gain/(loss) from divestments of enterprises and property, net | (38) | (18) | (2) |
| Impairment losses | (50) | (119) | (1,972) |
| Income/(loss) from rulings | (85) | 0 | 0 |
| Restructuring costs, etc. | (1,172) | (982) | (1,238) |
| Costs related to acquisition of enterprises | (2) | 0 | 0 |
| Special items before income taxes | (1,347) | (1,119) | (3,212) |
| Income taxes related to special items | 253 | 276 | 284 |
| Special items after income taxes in consolidated enterprises | (1,094) | (843) | (2,928) |
| Joint ventures and associates | 10 | 77 | (22) |
| Special items from continuing operations | (1,084) | (766) | (2,950) |
| Profit for the year from continuing operations | 1,804 | 1,961 | 9 |
Profit from joint ventures and associates
2009-2010
In 2010, Profit from joint ventures and associates was DKK 13m compared with DKK 76m in 2009. The profit in both 2010 and 2009 comprised primarily special items due to adjustment of gains from the divestment Polkomtel and One, respectively.
2008-2009
Profit from joint ventures and associates was DKK 76m, a decrease of DKK 124m compared with 2008. In 2009, loss from joint ventures and associates, excluding Special items, was DKK 1m in 2009, a decrease of DKK 223m compared with 2008. The decrease reflected lower profit following the divestment of TDC's shares in Polkomtel.
Net financials
2009-2010
Net financials represented an expense of DKK 1,496m, a decrease of DKK 568m compared with 2009, driven by:
- A positive development of DKK 368m in fair value adjustments of derivative financial instruments related to hedging of EUR denominated Senior Facilities.
- A positive development of DKK 237m in currency translation adjustments, reflecting gains on intra-group debt denominated in SEK, partly offset by losses on long-term EUR debt (Senior Facilities and EMTNs) and hedging arrangements.
- An increase in net financial expenses of DKK 37m, reflecting lower interest income from lower cash positions, which were partly offset by lower interest expenses on the Senior Facilities, due mainly to lower interest rates.
2008-2009
In 2009, TDC's net financials rose by DKK 16m compared with 2008 to an expense of DKK 2,064m. This increased expense was due mainly to:
- A negative development of DKK 1,027m in foreign currency adjustments due to currency movements of intra-group loans denominated in NOK and SEK.
- A positive development of DKK 433m in fair value adjustments of variable interest-rate hedging arrangements entered into in connection with the Senior Facilities Agreement.
- A DKK 578m decrease in net financial expenses reflecting lower interest expenses due to redemptions of long-term debt and lower applicable interest rates on long-term debt.
Income taxes
Income taxes related to profit for the year, excluding Special items, represented an expense of DKK 1,035m in 2010, compared with DKK 1,085m in 2009 and DKK 722m in 2008.
The effective tax rate, excluding Special items, was 26.4% in 2010 compared with 28.5% in 2009 and 19.6% in 2008. The development in both years was due largely to the impact from the limitation of tax deductibility of interest expenses under Danish tax legislation.
Total income taxes amounted to an expense of DKK 782m in 2010, compared with DKK 809m in 2009 and DKK 438m in 2008.
Profit for the year from discontinued operations
The following table shows the profit from discontinued operations, which comprises profit from operations as well as Special items.
Profit for the year from discontinued operations was DKK 1,203m in 2010, compared with DKK 422m in 2009 and DKK 548m in 2008.
2010
In 2010, profit for the year from discontinued operations related largely to operations in Sunrise (including hedging activities) and a gain resulting from the divestment of Sunrise in October 2010.
2009
Profit for 2009 reflected mainly the results from operations in Sunrise (including hedging activities) and Invitel, partly offset by a loss resulting from the divestment of Invitel in November 2009.
2008
Profit for 2008 comprised primarily the results of operations in Sunrise (including hedging activities) and Invitel, as well as Special items in Sunrise relating largely to the divestment of Sunrise Business Communications in July 2008.
| Profit from discontinued operations | DKKm |
| TDC Group | 2010 | 2009 | 2008 |
| Profit/(loss) from operations: | |||
| Sunrise | 413 | 839 | 778 |
| Invitel | 0 | (264) | (426) |
| Talkline | 0 | 0 | 0 |
| Profit/(loss) from operations | 413 | 575 | 352 |
| Special items: | |||
| Sunrise | 762 | (53) | 137 |
| Invitel | 0 | (119) | 0 |
| Talkline | 0 | 0 | 0 |
| Adjustments regarding earlier divestments in previous years | 28 | 19 | 59 |
| Total Special items related to discontinued operations | 790 | (153) | 196 |
| Profit from discontinued operations | 1,203 | 422 | 548 |
Profit for the year
2009-2010
Profit for the year from continuing operations, excluding Special items, amounted to DKK 2,888m in 2010, up by DKK 161m, or 5.9%, compared with 2009. The increase was due largely to improved EBITDA and the positive development in currency adjustments and fair value adjustments, which was only partly offset by increased depreciation and amortisation.
In 2010, Profit for the year, including Special items, increased by DKK 624m to DKK 3,007m from DKK 2,383m in 2009. This increase related mainly to improved EBITDA and the positive development in currency adjustments and fair value adjustments, which were partly offset by increased amortisation of the value of customer relationships from acquisitions (due mainly to adjusted customer segmentation for calculating amortisation), and Special items relating to higher restructuring costs.
2008-2009
Profit from continuing operations, excluding Special items, amounted to DKK 2,727m in 2009, down by DKK 232m, or 7.8%, compared with 2008. The decrease reflected higher income taxes in 2009, lower profit from joint ventures and associates relating to the divestment of Polkomtel in December 2008, and increased expenses from net financials due to the negative impacts of foreign currency movements. This was partly offset by increased EBITDA.
In 2009, Profit for the year, including Special items, increased by DKK 1,826m, from DKK 557m in 2008, reflecting primarily lower expenses related to Special items.
Comprehensive income
Total comprehensive income amounted to DKK 2,636m compared with DKK 3,458m in 2009, and a loss of DKK 108m in 2008.
2009-2010
The decrease of DKK 822m from 2009 to 2010 reflected mainly a negative development in actuarial gains and losses, which totalled a loss of DKK 515m in 2010 compared with a gain of DKK 588m in 2009, in particular as a result of a decreasing discount rate [4]. In addition, currency translation adjustments of foreign enterprises developed negatively, although this was partly offset by higher Profit for the year.
2008-2009
The DKK 3,566m increase from 2008 to 2009 reflected mainly a positive development related to currency translation adjustments of foreign enterprises (before tax). Such adjustments resulted in a gain of DKK 631m in 2009 and a loss of DKK 2,111m in 2008. In addition, profit for the year increased whereas actuarial gains from defined benefit pension plans decreased.
Equity
2009-2010
Equity aggregated DKK 20,855m at year-end 2010, down by DKK 6,223m compared with DKK 27,078m at year-end 2009. The decrease reflected largely the acquisition of treasury shares, DKK 9,000m, which more than offset Total comprehensive income of DKK 2,636m.
2008-2009
In 2009, equity was down by 4,602m compared with DKK 31,680m at year-end 2008. Dividend payments of DKK 8,060m more than offset total comprehensive income of DKK 3,458m.
Net interest-bearing debt
The Senior Facilities Agreement (SFA) and the Euro Medium Term Notes (EMTN) are TDC's main debt-financing instruments representing 75% and 23%, respectively, of the total loans (in terms of net carrying value).
TDC may occasionally continue to make buy-backs and prepay its debt, including the Senior Facilities and EMTNs.
TDC expects to refinance the Senior Facilities Agreement in early 2011 provided terms and conditions are deemed fa-vourable.
2009-2010
Net interest-bearing debt totalled DKK 22,607m at year-end 2010, down DKK 10,854m compared with year-end 2009. The decline is attributable mainly to the proceeds from the divestment of Sunrise and the positive net cash flow from operating and investing activities, which were partly offset by the DKK 9.0bn share buy-back in December 2010.
2008-2009
Net interest-bearing debt totalled DKK 33,461m at year-end 2009, down DKK 1,412m compared with year-end 2008. The divestment of Invitel had a positive impact of approximately DKK 5bn. However, the payment of dividends more than offset the positive net cash flow from operating and investing activities in 2009.
| Net interest-bearing debt¹ | DKKm |
| TDC Group | 2010 | 2009 | 2008 |
| Senior loans | 17,737 | 26,173 | 28,415 |
| Euro Medium Term Notes (EMTN) | 5,342 | 5,325 | 7,316 |
| Other loans | 565 | 2,900 | 6,019 |
| Loans | 23,644 | 34,398 | 41,750 |
| Interest-bearing payables | 2 | - | - |
| Gross interest-bearing debt | 23,646 | 34,398 | 41,750 |
| Interest-bearing receivables | (208) | (174) | (159) |
| Cash and cash equivalents | (831) | (763) | (6,718) |
| Net interest-bearing debt | 22,607 | 33,461 | 34,873 |
- 1 Net carrying value measured at amortised cost, ensures the difference between the proceeds received and the nominal value is recognised in the Statements of Income over the term of the loan.
| Senior Facilities | Facilities | ||||
| A | B | C | Total | ||
| Maturity | 31 Dec 2011 | 30 Jan 2014 | 30 Jan 2015 | ||
| Fixed/Floating rate | Floating | Floating | Floating | ||
| Margin | 1.250% | 1.500% | 2.125% | ||
| Outstanding amount¹ 1 January 2010 | EURm | 497 | 1,401 | 1,670 | 3,568 |
| Mandatory prepayment 30 June 2010 | EURm | (75) | (75) | ||
| Mandatory prepayment 12 November 2010 | EURm | (211) | (46) | (49) | (306) |
| Voluntary prepayment 12 November 2010 | EURm | (211) | (581) | (792) | |
| Outstanding amount¹ 31 December 2010 | EURm | - | 1,355 | 1,040 | 2,395 |
| Outstanding amount¹ 31 December 2010 | DKKm | - | 10,099 | 7,753 | 17,852 |
| Euro Medium Term Notes (EMTN) | Bonds | ||||
| 2012 | 2015 | Total | |||
| Maturity | 19 Apr 2012 | 16 Dec 2015 | |||
| Fixed/Floating rate | Fixed | Fixed | |||
| Coupon | 6.500% | 5.875% | |||
| Outstanding amount¹ 1 January 2010 | EURm | 457 | 274 | 731 | |
| Outstanding amount¹ 31 December 2010 | EURm | 457 | 274 | 731 | |
| Outstanding amount¹ 31 December 2010 | DKKm | 3,410 | 2,039 | 5,449 | |
- Nominal value.
Capital expenditure
2009-2010
In 2010, capital expenditure fell by DKK 357m compared with 2009 to DKK 3,534m. This decrease resulted primarily from lower investments in information technology and network infrastructure, the latter due mostly to postponement of work as a result of adverse weather conditions at the beginning of 2010. In 2010, network investments (excluding cable) represented 65.4% of total capital expenditure.
The capital expenditure-to-revenue ratio decreased to 13.5% in 2010, from 14.9% in 2009.
2008-2009
In 2009, compared with 2008, capital expenditure decreased by DKK 84m to DKK 3,891m. Investments in Danish landline networks increased due to the popularity of TDC HomeDuo and TDC HomeTrio, which were only partly offset by lower information technology investments. Network investments (excluding cable) represented 66.9% of total capital expenditure in 2009.
The capital expenditure-to-revenue ratio increased to 14.9% in 2009 from 14.8% in 2008.
| Capital expenditure | DKKm |
| TDC Group | 2010 | 2009 | 2008 | Change in % 2010 vs. 2009 | Change in % 2009 vs. 2008 |
| TDC Group excl. TDC Nordic and YouSee 1 | 2,667 | 3,036 | 3,212 | 12.2 | 5.5 |
| TDC Nordic | 401 | 375 | 411 | (6.9) | 8.8 |
| YouSee | 466 | 480 | 352 | 2.9 | (36.4) |
| Capital expenditure | 3,534 | 3,891 | 3,975 | 9.2 | 2.1 |
- As domestic infrastructure (excl. YouSee) is based in Operations & Wholesale, domestic capex cannot be allocated to the separate domestic business divisions apart from YouSee.
Statements of Cash Flows
2009-2010
- In continuing operations, Cash flow from operating activities decreased by 2.7%, to DKK 7,238m in 2010, which reflected primarily higher income tax payments in 2010 compared with 2009. Danish corporate tax is paid on account on a current year basis in two on account instalments on 20 March and 20 November during the tax year, with a final settlement due on 20 November following the end of the tax year. Accordingly, a substantial part of the taxes have been paid in Q4 in the year following the tax year. In 2010, the payment for the previous year was higher than in 2009. In addition the on account payment for the current year in 2010 was higher than in 2009.The higher tax payments were partly counterbalanced by a positive change in net working capital, due mainly to optimisation of billing cycles, which included billing mobile subscription in advance and other billing cycle optimisations, and improved creditor payment terms. Increased EBITDA and lower net interest payments also contributed positively to the cash flow development.
- Cash outflow from investing activities in continuing operations decreased by DKK 922m or 19.2% from 2009 to 2010. The improvement reflected primarily the acquisitions of DONG Energy's fibre network, Fullrate and A+ in 2009 and lower investments in property, plant and equipment.
- Cash outflow from financing activities in continuing operations amounted to DKK 20,091m, reflecting a higher outflow of DKK 9,830m or 95.8%. The higher outflow was due largely to the buy-back of shares in 2010 and higher net repayments of the principal of long-term loans and short-term bank loans. This was only partly counterbalanced by dividend payments made in 2009.
- Operating free cash flow increased by 15.0% and cash conversion improved by 7.6 percentage points to 69.0% in 2010, both due mainly to the lower investments in property, plant and equipment and the positive development in net working capital.
- Equity Free Cash Flow increased by 2.0%, to DKK 4,515m driven by the positive development in change in net working capital as well as the lower investments in property, plant and equipment and net interest payments. The increase was partly offset by higher income tax payments.
- Total cash flow from discontinued operations increased by DKK 15,133m, to DKK 16,810m and related mainly to Sunrise.
2008-2009
- In 2009, cash flow from operating activities in continuing operations increased by DKK 1,697m, or 29.5%, compared with 2008. The increase was due mainly to lower taxes paid, higher EBITDA, lower pension contributions and lower net interest paid. This was partly offset by higher cost related to special items concerning mainly redundancy and vacant office space. Also, cash flow was further negatively affected by the DKK 147m improvement in working capital in 2009, which was lower than the DKK 847m improvement in 2008.
- In 2009, cash flow from investing activities in continuing operations constituted an outflow of DKK 4,811m, compared with an inflow of DKK 2,096m in 2008. The decrease reflected primarily the divestment of TDC's shares in Polkomtel in 2008 and, to a lesser extent, the acquisitions of Fullrate, A+ and DONG Energy's fibre network in 2009.
- In 2009, cash outflow from financing activities in continuing operations increased by DKK 755m compared with 2008, to DKK 10,261m. The higher outflow was due primarily to higher dividends paid, partly offset by lower loan repayments.
- The lower increase in operating free cash flow than in EBITDA was driven mainly by the lower working capital increases in 2009. TDC's cash conversion decreased from 62.9% in 2008 to 61.4% in 2009.
- Equity Free Cash Flow increased by 82.6%, to DKK 4,426m driven mainly by higher EBITDA, lower pension contributions and lower income tax and net interest payments. The increase was partly offset by the more limited improvement in net working capital in 2009 than in 2008.
- Total cash flow from discontinued operations increased by DKK 1,589, to DKK 1,677m and related mainly to Sunrise and Invitel.
| Cash flow key figures | DKKm |
| TDC Group | 2010 | 2009 | 2008 | Change in % 2010 vs. 2009 | Change in % 2009 vs. 2008 |
| Cash flow from operating activities | 7,238 | 7,440 | 5,743 | (2.7) | 29.5 |
| Cash flow from investing activities | (3,889) | (4,811) | 2,096 | 19.2 | - |
| Cash flow from financing activities | (20,091) | (10,261) | (9,506) | (95.8) | (7.9) |
| Total cash flow from continuing operations | (16,742) | (7,632) | (1,667) | (119.4) | - |
| Total cash flow from discontinued operations | 16,810 | 1,677 | 88 | - | - |
| Operating free cash flow | 7,437 | 6,469 | 6,324 | 15.0 | 2.3 |
| Equity free cash flow | 4,515 | 4,426 | 2,424 | 2.0 | 82.6 |
| Cash conversion (%) | 69.0 | 61.4 | 62.9 | 7.6 | (1.5) |
- When adjusted for the large decrease in low-ARPU prepaid cards, domestic RGUs increased by 0.3%
- The lower RGU decrease from 2008 to 2009 was a consequence of the acquisition of Fullrate in 2009.
- Dual-play- and triple-play bundles increased by 42.7% and 34.9%, respectively, due to the success of TDCDuo and TDCTrio.
- The discount rate, which is applied to TDC's domestic defined benefits plans, decreased from 5.00% at 31 December 2009, to 4.95% at 31 December 2010.
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- refers to the frequency band with frequencies in the range 2500-2690 MHz. The 2.5 GHz band is well suited for launch of an LTE service, as it does not currently service any other traffic, and as the LTE equipment currently only supports 2.5 GHz frequencies.
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- refers to second-generation mobile networks, including GSM networks that can deliver voice and limited data communications.
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- refers to third-generation mobile networks that can deliver voice, data and multimedia content at high speed.
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- refers to any extra service that may be added to the basic offering.
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- (Application Development and Maintenance service) refers to the development and maintenance of software applications.
-
- refers to Asymmetric Digital Subscriber Line, based on DSL technology.
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- refers to Average Revenue Per User is calculated per month. TDC calculates ARPU for a given product group as its total revenue divided by the average RGUs in the period. ARPU in Wholesale for mobility services includes inbound roaming revenue; for Pay-TV ARPU includes revenue from sale/lease of equipment.
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- (Asynchronous Transfer Mode, ATMs) refers to a dedicated connection switching technology for LANs and WANs that supports real-time voice and video as well as data.
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- 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 were no longer produced. The avoidable cost method differs from the prevalent LRAIC/LRIC methods by not including costs which are shared between several services and which do not increase in proportion to an increase in the volume of the specific service.
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- refers to an optical machine-readable representation of data. Typically, barcodes represent data in the widths (lines) and the spacing of parallel lines, and may be referred to as linear or one-dimensional barcodes or symbolism.
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- refers to a pricing regulation method that implies that the interconnection price for Significant Market Power providers are equal to the prices charged by comparable operators, either domestic or international.
-
- refers to a weighted ARPU across segments or sub-products, i.e. ARPU across prepaid cards and mobile voice subscriptions or across Wholesale broadband products.
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- 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 fibre. TDC applies NITA's definition in which broadband implies bandwidths higher than 144 kbps.
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- (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.
-
- refers to compound annual growth rate.
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- (Capital expenditure) refers to capital expenditures excluding investments in mobile licences and excluding share acquisitions.
-
- refers to operating free cash flow divided by EBITDA.
-
- 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. The average number of customers for a given 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 by the number of intermediate months plus 2. Different telecommunication companies calculate churn by using different methods.
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- (Customer Lifetime Value, in marketing) refers to the 'present value' of future cash flows attributed to the customer relationship.
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- refers to TDC's Corporate Management Team.
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- refers to a cable modem termination system.
-
- refers to a technology based on coaxial cables - electrical cables with an inner conductor surrounded by a flexible, tubular insulating layer, surrounded by a tubular conducting shield. Coax is used to transmit radio frequency signals and distributing cable television signals, etc.
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- refers to a service that typically includes information or entertainment, broadcasted or provided on-line.
-
- refers to the net loss of copper lines in a given period in the TDC Group, including Wholesale lines. The number of copper lines is calculated as the sum of RGUs provided with PSTN, ISDN, VoIP, naked-BSA/xDSL and full ULL products and services.
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- refers to the net loss of copper RGUs in a given period in the TDC Group, including Wholesale RGUs. The total number of RGUs is calculated as the sum of PSTN, ISDN, VoIP, BSA/xDSL, TV and full ULL customers.
-
- reflect the total number of RGU's on the copper network.
-
- (Customer Premises Equipment) refers to equipment that is implemented or installed at a customer's premises. CPE includes the hardware required to handle TV, telephony and data traffic. Products handling telephony traffic range from large PABXs for the largest business customers, to single telephones sold to small business customers and retail customers. Products handling data traffic consist mainly of routers, switches, DSL modems and other equipment used to create LAN and WAN solutions.
-
- refers to content provider services.
-
- (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 registered in Denmark.
-
- (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-as-you-go, as-needed basis.
-
- refers to a specific licence to establish and operate a public mobile communications network (DCS1800) with associated basic services in Denmark, issued 12 June 1996, pursuant to section 3 and section 11(1)-(2) of Act No. 468 of 12 June 1996 on Public Mobile Communications.
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- (Digital Cordless Standard 1800) refers to GSM operated in the 1800 MHz range.
-
- refers to a specific licence to establish and operate a public 2G mobile communications network with associated basic services in Denmark, issued December 21, 2000, pursuant to section 3 and section 11(1)-(2) of Act No. 468 of June 12, 1996 on Public Mobile Communications.
-
- refers to an internet connection that uses a traditional landline connection.
-
- (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.
-
- refers to a USB stick containing a modem used to obtain access to mobile broadband.
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- (DOCSIS-Passive Optical Network) referes to a FTTH solution specifically designed for DOCSIS-based service providers. D-PON provides the benefits of a FTTH PON while maintaining the existing hybrid fibre-coaxial (HFC) back office systems, and thereby enables delivery of a full suite of DOCSIS 3.0 services over either HFC or fibre-based infrastructure.
-
- (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.
-
- (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.
-
- (direct-to-home) refers to digital TV transmitted directly to households via satellite. Subscribers need a satelite dish to receive signals.
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- refers to Digital Terrestrial Television, which is a digital signal broadcast to standard aerials that are utilised to replace the discontinued analogue signal.
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- 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.
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- (Dense Wavelength Division Multiplexing) refers to an optical technology used to increase bandwidth over existing fibre-optic backbone networks.
-
- refers to profit before interest, tax, depreciation, amortisation and special items.
-
- refers to the ratio between EBITDA and revenue.
-
- refers to the European Customer Satisfaction Index, a standardised methodology for measuring customer satisfaction. It is based on customer telephone interviews by an external party, Rambøll; defined as a 3 months rolling average score.
-
- (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 utilises (parts of) the existing GSM infrastructure.
-
- refers to services where an enterprise provides its employees with broadband for private use.
-
- refers to full-time employee equivalents, including permanent employees, trainees and temporary employees, excluding temporary staff.
-
- 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).
-
- refers to a type of networking technology for LANs that is increasingly used in the IP networks.
-
- (Enhanced Uplink or High-Speed Uplink Packet Access,HSUPA) refers to a 3G mobile telephony protocol in the HSPA family with up-link speeds of up to 5.76 Mbps. The 3rd Generation Partnership Project (3GPP) does not support the name 'HSUPA', but instead uses the name Enhanced Uplink.
-
- refers to the share of customers that experience a fault, recorded on an annual basis. Fault rates are calculated as the number of faults in a given period, scaled to an annual basis, divided by the number of subscribers. When looking at periods in the range of a month to a year, the average subscriber base is used, when looking at a week, the end of period number of subscribers are used.
-
- (Fibre Optics Communication) 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 fibre has major advantages over existing copper wire in long-distance and highdemand applications.
-
- refers to a price-structure that charges a single fixed fee for a service, regardless of usage.
-
- 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.
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- refers to unencrypted TV, available without subscription (a licence fee is normally payable to the state).
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- (Full-Time Equivalents,FTEs) refers to full-time employee equivalents, including permanent employees, trainees and temporary employees and excluding temps.
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- (Fibre to the Home) refers to the fibre-optic technology linking residential customers directly to the fibre network.
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- refers to gigabits per second.
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- (Global System for Mobile Communications) refers to a comprehensive digital network for the operation of all aspects of a mobile telephone system.
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- (High-Definition Television) refers to a digital television broadcasting system with a higher resolution than traditional television systems.
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- (Hybrid Fibre Coax) refers to a type of broadband network that combines optical fibre with coaxial cable hallmarked by higher data carrying capacities than the traditional DSL technology.
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- refer to households where a particular technology (e.g. Fiber or Coax) has been rolled out enabling the reception of services associated with that technology. The number of homes passed constitutes the sum of actual and potential TDC customers for a given service.
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- (High Speed Downlink Packet Access,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.
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- (High Speed Packet Access) refers to a technology comprising both HSDPA and HSUPA.
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- (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.
-
- refers to a device that splits one network cable into a set of separate cables, each connected to a different computer; used in a LAN to create a small-scale network by connecting several computers together.
-
- (Intelligent Network) refers to a network architecture allowing switched landline and mobile networks to provide enhanced services using service logic executed in a service layer of the network distinct from the switching layer.
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- refers to a public telecommunications operator which - at the time when the provision of communications services was a government monopoly - was the only operator able and allowed to offer such services.
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- refers to provision of access to or availability of facilities or services for another provider for the purpose of providing electronic communications services, and exchange of traffic between communications networks used by the same or a different provider. This allows end-users of one provider to communicate with end-users of the same or another provider, or to access services provided by another provider.
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- is a means of accessing a foreign operator's mobile network that enables customers to automatically make and receive voice calls, send and receive data, or access other services, when travelling abroad. Operators in various countries enter into agreements to facilitate such roaming.
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- (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.
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- refers to a telephone switch based on the VoIP technologies used by enterprises at the premises of a company and offers advanced applications. With an IP-PBX, the LAN is the platform for connecting IP phones over a packet network. This unifies the data applications and the voice network, but places demands on the packet prioritisation aspects of the LAN infrastructure to ensure user satisfaction with audio quality
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- refers to a network used to route and transport IP traffic between a number of major network nodes in Denmark and the other Nordic countries.
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- (IP-based Virtual Private Network) refers to a VPN based on an IP protocol.
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- (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 at the same line.
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- (Internet Service Provider) refers to a company that provides access to the internet.
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- refers to kilobits per second.
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- (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.
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- refers to PSTN/ISDN telephony and VoIP, unless otherwise indicated.
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- (LRIC (Long Run Incremental Cost)) refer to the most applied pricing regulation methods used to set interconnection prices for operators with SMP status. With the LRAIC method, prices are set as the average of the costs of services provided within an increment of providing regulated services. The interconnection prices are set equal to the costs associated with producing the regulated services in a modern and fully effective telecommunications network of the same size as the SMP operator's network.
-
- (Long Run Incremental Cost) refers to a price regulation method where the interconnection prices are based on the costs of services provided with an increment of the regulated services.
-
- (Long Term Evolution) refers to a set of enhancements to UMTS designed to increase capacity and speed on mobile telephone networks.
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- refers to a specific licence to use the frequencies 2500-2520 MHz and 2620-2640 MHz issued 28 May 2010 pursuant to section 6 (3) in Act No 680 of 23 June 2004 (with later amendments) cf. section 59 (1) in the Danish Radio Frequencies Act (Act No. 475 of 12 June 2009).
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- refers to TDC's share of total subscribers for a given product; Landline telephony, landline broadband, mobile voice, mobile broadband and Pay-TV market shares are estimated by reference to connections/channels. For mobile broadband and mobile voice, one connection is equal to one SIM card. For Pay-TV, one connection is equal to one subscription. Market shares as reported by TDC are based mainly on internal TDC estimates. Among other sources, TDC uses NITA's biannual telecom statistics to estimate sizes and market shares of the total market. The numerator in the calculation of TDC market shares is not equal to the RGUs shown in the RGU base. The main differences are that market shares include internal TDC subscriptions (that are not RGUs) and landline telephony market shares are measured in proportion to the total number of channels, e.g. ISDN30 count as 30 channels but only 1 RGU. These principles are aligned with NITA's definition.
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- refers to megabits per second.
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- (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.
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- (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.
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- refers to broadband access over the mobile network obtained by use of dongles or equivalent equipment. It does not include access via mobile or smartphones.
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- 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 traffic to mobile handsets, including traffic from landline network, calls from other mobile networks or international traffic.
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- (Minutes of Usage) refers to minutes used per Subscriber per month.
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- (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.
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- (Mobile Termination Rate) refers to the price for mobile interconnection, i.e. the price paid by an operator for terminating traffic on a mobile operator's network. The Danish mobile termination rates are set by NITA.
-
- (Mobile Virtual Network Operators) refers to a mobile operator that does not have frequency allocation. MVNOs have business arrangements with MNOs to buy traffic and data for sale to their own customers.
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- refers to the market for access to the public telephone network at a fixed location for residential and business customers.
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- refers to the market for call origination on the public telephone network provided at a fixed location.
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- refers to the market for call termination on individual public telephone networks provided at a fixed location.
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- refers to the market for wholesale (physical) network infrastructure access (including shared or fully unbundled access) at a fixed location.
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- refers to the market for wholesale broadband access.
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- refers to the market for wholesale terminating segments of leased lines, irrespective of the technology used to provide leased or dedicated capacity.
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- refers to the market for voice call termination on individual mobile networks.
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- (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.
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- refers to the Danish National IT and Telecom Agency (in Danish, IT- og Telestyrelsen).
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- refers to a service or product where non-essential features, such as value-added services, have been removed to keep the price low.
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- refers to any type of electromagnetic radiation that does not carry enough energy to completely remove an electron from an atom or molecule.
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- refers to a national regulatory authority.
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- refers to EBITDA from continuing operations adjusted for items with no cash flow effect, pension contributions, payments related to provisions, changes in net working capital and cash flow related to capital expenditure.
-
- refers to the market for access to the public telephone network at a fixed location for residential customers.
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- refers to the market for transit services in the public landline telephone network.
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- refers to the market for wholesale unbundled access (including shared access) to metallic loops and sub-loops for the purpose of providing broadband and voice services.
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- refers to the market for wholesale broadband access.
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- refers to the market for wholesale terminating segments of leased lines.
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- refers to the market for wholesale trunk segments of leased lines.
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- refers to the market for access and call origination on public mobile telephone networks.
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- refers to the market for voice call termination on individual mobile networks.
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- refers to the market for the national wholesale market for international roaming on public mobile networks.
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- refers to the market for broadcasting transmission services, i.e. to deliver broadcasting content to end users.
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- refers to the market for access to the public telephone network at a fixed location for non-residential customers.
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- refers to the market for publicly available local and/or national telephone services provided for residential customers at a fixed location.
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- refers to the market for publicly available international telephone services provided at a fixed location for residential customers.
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- refers to the market for publicly available local and/or national telephone services provided at a fixed location for non-residential customers.
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- refers to the market for publicly available international telephone services provided at a fixed location for non-residential customers.
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- refers to the market for the minimum set of leased lines.
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- refers to the market for call origination on the public telephone network provided at a fixed location.
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- refers to the market for call termination on individual public telephone networks provided at a fixed location.
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- (Private Automatic Branch Exchange) 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. Since almost all private branch exchanges are automatic today, the abbreviation PBX has been extended to PABX.
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- 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.
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- (Point of Presence) refers to a local access point to a communications network, e.g. the internet.
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- 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.
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- refers to when the customer pays for a specified amount of credit for services upfront (i.e. via a scratch card). The credit diminishes as the customer uses the service. TDC considers online systems with prepayment characteristics to be mobile voice subscriptions, as users create accounts and generally remain subscribers longer. As a result, customers at Telmore and M1 are considered as mobile voice subscriptions.
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- (Public Switched Telephone Network) refers to the telecommunications network based on copper lines carrying analogue voice and data - traditional landline telephony.
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- (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 that enable video capture and playback to and from disk.
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- refers to the bundling of telephony, internet and TV services with mobile telephony.
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- refers to a collective measure of the level of service delivered to the customer, and reflects the network's transmission quality and service availability.
-
- (Revenue Generating Unit,RGUs) refers to the total number of customer relationships that generate revenue for TDC, including customers with subscriptions and customers without subscriptions calculated according to the following general principles: Landline customers who have generated revenue within the last 3 months; prepaid cards used at least once within the last 3 months; Dial-up internet customers who accessed the internet at least once within the last 3 months. TDC's RGU statement includes the number of main products sold by TDC's residential, business and wholesale segments. The number of customers is not equal to the number of subscribers. An enterprise with 100 mobile voice subscriptions from TDC will be included as 100 RGUs in the RGU statement. As regards wholesale customers, a broadband provider with 20,000 Bit Stream Access (BSA) connections from TDC will be included as 20,000 RGUs. For other networks and data connections, the RGU category that is part of TDC's RGU base includes ULL, leased lines, fibre and data connection. Mobile broadband RGUs include mobile data cards and mobile broadband subscriptions. Dual- and triple-play bundles are included as two and three RGUs, respectively, in the total RGU figures. A YouSee TV customer subscribing to the digital TV add-on product YouSee Plus will be included as two TV RGUs. The term 'RGU' does not reflect the number of actual end-users, e.g. an ISDN30 connection counts only as one RGU in TDC's customer base even though this product may involve 30 end-users.
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- (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.
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- (Symmetric High-speed Digital Subscriber Line) refers to DSL technology with symmetric data transmission.
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- refers to small and medium-sized businesses.
-
- (Significant Market Power) refers to a designation assigned to operators having a significant market position in a specific market as determined by NITA due to a market decision regarding the relevant market.
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- (Short Message Service) refers to short text messages that can be sent and received on mobile phones.
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- (Small Office/Home Office) refers to a category of businesses which is defined by, e.g. being fewer than two employees and with revenue for TDC of less than DKK 30,000 during the last year.
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- refers to significant amounts that cannot be attributed to normal operations such as provisions for restructuring costs and special write-downs for impairment of intangible assets and property, plant and equipment, as well as any reversals of such items. Special Items also includes large gains and losses related to divestments of enterprises and properties and adjustments to such gains and losses. A portion of Special Items has no cash flow impact.
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- 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.
-
- refers to Sunrise Communications AG, TDC's Swiss subsidiary disposed of in October 2010.
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- (Take Responsibility for the Customer) refers to a programme implemented in TDC in 2009, that aims at improving customer service.
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- refers to an internal TDC survey conducted annually, covering substantially all Group employees in 2008 and 2009 and a significant portion of Group employees with respect to the nine-month period ended 30 September 2010.
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- (M2M,machine-to-machine) refers mainly to mobile communication. M2M solutions are used for 'Dankort' terminals (debit cards), GPS monitoring, distant reading, alarms, etc.
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- refers to a ground-based telecommunications network.
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- refers to telephony over PSTN/ISDN lines, unless otherwise stated.
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- refers to the determination of prices concerning the transfer of goods and services between intra group entities.
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- 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.
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- see HSDPA.
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- (TV over Internet Protocol) refers to a system through which digital TV service is delivered using the internet and internet broadband access networks instead of being delivered through the traditional radio frequency broadcast, satellite signal or cable TV formats. TVoIP can be either IPTV or Web TV.
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- (Unbundled Local Loop) refers to 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 end users. (ULL is often referred to as raw copper.) Full ULL is used for customers without PSTN/ISDN subscriptions (wholesale or retail at TDC), shared ULL covers customers with PSTN/ISDN subscriptions.
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- (Universal Mobile Telecommunications Systems) refers to a 3G network designed to provide a wide range of voice, high-speed data and multimedia services.
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- (Universal Source Obligations) refers to obligations that can be imposed upon a dominant operator (usually the incumbent). This obligation includes a demand to meet any request for provisions of a number of basic telecommunications services to anybody within the country. The purpose of having an obligation is to ensure national coverage of certain basic telecommunications services also in remote rural areas, where provion of telecom service may be less profitable.
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- (VaR) is an estimate of the potential loss that could arise from changes in market conditions. The estimate is calculated using a probability-based approach for measuring the exposure to market risk. The calculation has a one year time horizon and a 95% confidence level.
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- (VHDSL,Very High Bitrate DSL) is a DSL technology that provides faster data transmission than other DSL technologies over copper wires.
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- refers to transmission delivery of video (movies or other video content) to a single user on request.
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- (Voice over Internet Protocol) refers to a telephone call over the internet. VoIP can offer quality of service, i.e. guarantee of call quality comparable to PSTN, achieved through prioritising the traffic. Alternatively, VoIP can offer computer to computer calls, with unprioritised traffic. This traffic is generally of a lower quality and is affected by general network usage and will be interrupted by network congestion. TDC VoIP offers quality of service.
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- (Virtual Private Network) refers to a network that enables organisations to use a private network with LAN functionallity for remote sites or users, without a dedicated connnection (such as a leased line).
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- (Wide Area Network) refers to a long-distance data communications network that 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 a WAN.
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- (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, but as modern handsets support full HTML, WAP is largely obsolete.
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- is a family of technologies that provides digital data transmission over copper wires. See also ADSL, VDSL and SHDSL.
