In the third quarter of 2007, electronic communications operators generated 10.7 billion euros in retail market revenue, while the intermediate market (interconnection services and intercarrier wholesale operations) generated an additional 2.2 billion euros.

Retail market revenue for electronic communications services only (i.e. excluding income from related services such as terminal sales and rental, directory services, advertising, call centre hosting and management…) totalled 9.9 billion euros in Q3 2007. This marks a 3.5% increase over the previous year.

The volume of traffic for (fixed and mobile) telephony services reached 48 billion minutes in the third quarter of 2007, up 2.4% over the year before. For the first time ever, the volume of calls originating on mobile phones exceeded the volume originating on fixed lines.

Fixed telephony and Internet

The French market was home to 39.2 million telephone subscriptions at the end of the third quarter of 2007. One out of every four subscriptions, or close to 10 million, is now to a broadband voice service – the majority being voice over DSL – whose numbers increased by 4.2 million in the span of a year. At the same time, 700,000 “classic” phone subscriptions over a narrowband connection were cancelled every quarter since the start of the year, marking an 8.3% decline in the base by Q3 2007.

A growing number of subscriptions to a phone service are on lines that no longer deliver a PSTN service. As a result, close to half of all Voice over IP subscriptions are based on full unbundling (3.3 million subscriptions at the end of September 2007) or on naked DSL offers (1.4 million). In all, at the end of the third quarter of 2007, 14% of fixed lines, or close to 5 million lines, were not delivering a PSTN service but only an IP service subscription. An equivalent number of lines (14%) support two phone subscriptions: a classic PSTN service and a Voice over IP subscription.

A fraction of “traditional” retail telephone subscriptions are now being billed by an operator other than the incumbent, France Telecom. Supplied through wholesale line rental (WLR) offers, they represented 600,000 subscriptions at the end of Q3 2007, or 2% of all phone subscriptions. Offers based on carrier selection (call-by-call and preselection) have declined sharply, and accounted for only 5.3 million customers at the end of the third quarter of 2007, compared to 7.2 million one year earlier, marking a decrease of 1.9 million customers.

Revenue that can be attributed directly to fixed telephony totalled 2.8 billion euros by the third quarter of 2007, down 2.7% on the previous year. Because of an increase in subscription prices in July 2007, revenue generated by subscriptions were up by 4% in Q3 2007, compared to the year before, and now account for 58% of fixed telephony revenue. On the flipside, calling revenue has dropped by 9.5% due to a sizeable decrease in the volume of calls originating on the PSTN (-16.9% for the year by the third quarter of 2007).

Traffic originating on fixed lines has been stable for the past three years due to the increasing contribution from IP-based calls which are helping to compensate for the decline in calls originating on the PSTN. By the third quarter of 2007, the number of IP minutes had increased by 79% for the year, and now represents a third of all calls originating on a fixed line, up from 20% one year earlier. Customers with a VoIP subscription spend more time on the phone than those subscribing to a “classic” phone service: 4 hours and 41 calling minutes a month, compared to 2 hours and 55 minutes for the latter, or close to two hours more.

The number of IP calling minutes consumed on national calls to fixed lines and on international calls, which benefit from the unmetered calling offers that are included in most flat rate service bundles, account for more than a quarter (34.9%) of national calls between fixed lines, and for close to half (49.2%) of all international calls. On the other hand, VoIP services account for only 12.9% of fixed-to-mobile calling minutes.

There were 16.5 million Internet subscriptions in France at the end of September 2007, 12.1% more than the previous year. Broadband subscriptions (14.8 million at the end of the third quarter of 2007) are increasing at a steady pace, in both number and value, and now account for 90% of Internet subscriptions and revenue. The number of broadband connections increased by 3 million (+25.6%) in the first nine months of the year, spurred chiefly by the rise in ADSL connections (14.1 million xDSL connections in Q3 2007). Revenue generated by broadband for the year totalled 1 billion euros by the third quarter of 2007 (+32.4% in a year).

Mobile telephony

There were 53.1 million mobile customers in France at the end of the third quarter of 2007, three million more (+6.6%) than the previous year. Two thirds of these customers (66.5%) have opted for a flat rate rather than a prepaid offer – a proportion which has been increasingly slowly but steadily for close to six years.

The number of mobile numbers ported from one operator to another rose sharply in Q3 2007 (+68% in a single quarter): 258,000 customers switched operators while keeping their phone number in Q3 2007, compared to 154,000 the previous quarter. The implementation of streamlined mobile number portability procedures on 21 May 2007, reducing turnaround time to 10 days, led to an increase to of around 100,000 ported numbers during the third quarter.

By the third quarter of 2007, mobile services revenue for the year (4.5 billion euros) had increased by 4.7%. Although similar to 2006, the average annual monthly growth of mobile services revenue, calculated for the first three quarters of 2007 (5.4%), is nevertheless below the roughly 9% growth reported for 2005. This is due to an annual increase of only 3.3% for mobile calling revenue, which accounts for 85% of all mobile services income. Growth for mobile data services revenue, in other words for all non-voice services (texting, mobile internet access and multimedia services) is still high (+13.9% for the year), generating 663 million euros in the third quarter of 2007.

For the first time ever, mobile traffic (24.1 billion minutes in Q3 2007) has exceeded traffic on the fixed network (23.9 billion minutes), although mobile traffic growth is tending to decline. After a sharp rise in 2006 (annual growth of 15%), the decrease since the start of 2007 is clear: down 8.6% in the first quarter of 2007, with the annual growth rate dropping to 6.6% in Q2 2007 and settling at 4.7% in the third quarter of 2007.

This decline is due chiefly to the meagre increase in operators’ on-net traffic, which has been dropping steadily for two years now, with growth for the year totalling only 3.4% by the third quarter of 2007.

Texting has not been affected by the drop in mobile traffic, and continues its steady rise – increasing by more than 20% over the course of the year. In the third quarter of 2007, 4.5 billion de SMS were sent (+22.9% for the year) with customers sending an average of close to 29 text messages a month.

Directory Services

The number of calls to directory assistance services has dropped once again, with 34 million calls logged in the third quarter of 2007, compared to 40 million in Q3 2006, marking a 15.6% decrease in a single year. At the same time, revenue generated by directory assistance services (41 million euros) increased by 8.6% compared to the previous year. Two thirds of the calls to directory services come from mobile phones.

Note : The figures relating to a particular quarter may be revised from one issue to the next as a result of corrections made by operators to their reports. Any discrepancies between annual growth figures expressed as a percentage and the corresponding values are due to rounding.

Revenue generated by electronic communication services sold by operators in the retail market totalled 9.9 billion euros by the third quarter of 2007, a 3.5% increase over the previous year.

Mobile service revenue, which is the prime contributor (46%) to the market’s total revenue, was up by 4.7% in Q3 2007, with a total annual increase of 5.4% for the first three quarters of the year.

Income for fixed network services (fixed telephony and Internet) totalled 3.9 billion euros by the third quarter of 2007, a 4% increase over the previous year. The steady growth of Internet services revenue (24.6% for the year as of Q3 2007 and over 20% for two years) is helping offset the decline in fixed telephony revenue, which dropped by a further 2.7% last year.

Revenue earned on value-added services has been holding relatively steady at 600 million euros for a year now (+0.3%), while directory services revenue was up by 8.6% compared to the third quarter of 2006.

Capacity services revenue is on the decline, particularly leased line revenue which dropped by 4.7% in the third quarter of 2007. Data transport revenue, on the other hand, reported a more moderate decrease than in previous quarters: -1.6% compared to -9.2% in Q2 and -7.3% in Q1 2007.

The volume of calls on fixed and mobile networks reached 48 billion minutes in the third quarter of 2007, a 2.4% increase over the previous year, marking a clear decline the rate of growth for voice services compared to the 6% to 8% increase reported in 2006.

After a strong increase in mobile traffic throughout 2006 (of around 15% per quarter), the annual growth rate for the number of calls originating on mobile phones has been dropping steadily since the start of 2007: going from 8.6% in the first quarter down to 6.6% in Q2 and to 4.6% in the third quarter of 2007. For the first time, however, the volume of mobile calls exceeded the volume of calls originating on fixed lines.

Texting has not been affected by the decline in mobile traffic: 4.5 billion SMS were sent in the third quarter of 2007 (up 22.9% over the previous year).

Aside from the seasonal fluctuations inherent in this type of traffic, the volume of calls originating on the fixed network has been relatively stable for the past three years, thanks to the growing use of IP telephony. In the third quarter of 2007, fixed line traffic was at the same level as one year earlier (-0.2% increase).

And, finally, the inexorable decline of narrowband traffic is speeding up (down 42.7% from the previous year).

Operators’ fixed network revenue in the intermediate market totalled 1.1 billion euros, a 7.8% increase over 2006 which was due chiefly to a rise in the revenue generated by wholesale broadband access (unbundling, bitstream and equivalent services). These services generated income of 385 million euros in the third quarter of 2007, 85 million euros more than the year before (+28.3% for the year).

In Q3 2007, revenue from telephony-related services were also reporting a slight increase (+0.4% for the year), thanks in large part increased revenue from wholesale line rental (WLR).

The revenue generated by mobile operators’ interconnection services (1.1 billion euros in Q3 2007) was down by 6.3% compared to the previous year, due notably to the decrease in voice call termination tariffs that came into effect on 1 January 2007 (a 21% decrease for Orange France and SFR and 18% for Bouygues). The number of calling minutes, on the other hand, rose by 21.9% over the first nine months of the year.

Notes :
- Interconnection revenues and traffic volumes are not calculated on the basis of the same criteria, which makes a comparison between the two indicators unsuitable for estimating average prices(interconnection revenues include fixed revenues such as charges for connection links and inter-carrier services).
- Interconnection covers all the services provided by one carrier to another under the terms of an interconnection agreement. In cases of mergers or takeovers, some of the revenue streams between the telcos disappear, which might account for decreases in revenues from one quarter to the next.
- Please note that the interconnection figures shown above might be accounted for twice, particularly in the case of fixed operators.
- Wholesale broadband services include revenues from both LLU and bitstream or equivalent services.

At the end of the third quarter of 2007, close to 5 million lines were unbundled.

The number of fully unbundled lines more than doubled during the year, accounting for two out of every three unbundled lines at the end of September, or 3.3 million lines in all. Meanwhile, the number of shared access lines (1.7 million at the end of the third quarter of 2007) decreased by 370,000 during the year.

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(1) This market segment is a subset of the overall market (cf. 1.2.1)

Note: Roaming-in is a service whereby a French mobile operator carries calls made and received in France by customers of foreign mobile operators. The revenue corresponds to the out-payments made between operators. The ratio of revenue to volume does not correspond to any specific tariff and particularly not to the price billed to the customer.

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(2) This market segment is a subset of the overall market (cf. 1.2.1)

The number of subscriptions to a telephone service totalled 39.2 million at the end of the third quarter of 2007. The growing use of broadband telephony offers, particularly Voice over DSL, has been driving this steady increase for just over two years now.

The number of telephone subscriptions over IP connections reached 9.7 million at the end Q3 2007 and is rising rapidly (+4.2 million since the previous year, of which 1 million in the second quarter alone).

A growing number of IP telephony subscriptions (close to 5 million at the end of Q3 2007) are coming to replace “classic” telephony subscriptions. The calling offers sold by operators in the retail market which correspond to these subscriptions have been enabled by full unbundling and naked DSL wholesale offerings.

Another portion of IP telephony subscriptions are being added to customers’ existing phone service. The calling offers sold by operators in the retail market which correspond to these subscriptions have been enabled by shared access and bitstream offers (not including naked DSL). At the end of the third quarter of 2007, 4.8 million lines or 14% of all lines in service, were supporting two subscriptions to a telephone service.

The drop in the number of narrowband subscriptions (29.5 million at the end of Q3 2007) has continued at a rate of 700,000 subscriptions per quarter since the start of 2007 – marking a total decrease of 2.7 million subscriptions for the year.

Subscriptions to a PSTN service may not be billed by the incumbent carrier but by one of its competitors. Such was the case for 600,000 subscriptions at the end of the third quarter of 2007, or 2% of all dial-up subscriptions.

Note:
- Subscription to a voice over IP service on xDSL lines without PSTN subscription: A subscription to a telephone service on lines where low frequencies are not used to support the voice service (by the incumbent or by an alternative operator). This is the case of offers to broadband voice services resulting from full unbundling and “naked ADSL” offers.
- Subscription to a voice over IP service on xDSL lines with PSTN subscription: A subscription to a telephone service on lines where low frequencies are also used to support the voice service, on the PSTN. This is the case of telephone offers resulting from partial unbundling and “bitstream” outside “naked

562,000 fixed numbers were ported from one operator to another in the third quarter of 2007.

Telephony offers based on carrier selection have been on the decline for the past two years, being replaced by telephony over IP, which is thriving. In all, carrier selection involved only 5.3 million customers in the third quarter of 2007, compared to 7.2 million one year earlier, in other words a base that has decreased by 1.9 million. Call-by-call selection offers have been losing customers since the start of 2006 (-28.7% for the year by Q3 2007), and the decrease in preselection subscriptions has been accelerating since the start of 2007: one million subscriptions were cancelled in six months.

Note: The number of call-by-call selection customers only takes into account active subscriptions, while the carrier pre-selection figures only take into account current subscriptions, net of cancellations.

Access revenue totalled 1.6 billion euros, rising by 4% during the first nine months of the year. The increase in France Telecom’s monthly phone subscription prices (a 6.7% adjustment on 1 July 2007) helped compensate for the drop in revenue triggered by the decrease in the number of “classic” subscriptions to analogue and digital lines (-8.3% for the year in the third quarter of 2007).

Note: In addition to the revenues relating to access to the telephone service, access revenues also include subscriptions to IP telephony and revenues generated by supplementary services (such as calling line identification presentation, etc.).

The 1.1 billion euros in revenue that can attributed directly to calls originating on fixed lines had decreased by 9.5% for the year by the third quarter of 2007. This decline is due to the growing replacement of PSTN calls (-16.9% for the year by Q3 2007) with calls made over an IP connection. Unmetered IP-based calls are generally included in customers’ flat rate Internet access package.

Note: Revenues from VoIP calls only include the charges billed by operators for such calls made on top of those included in a multiplay package. Therefore, this amount does not include the cost of the multiplay subscription, nor the charge for connection to a broadband telephone service.

The volume of calls originating on fixed lines (23.4 billion minutes in the third quarter of 2007) is stable (+1.1% for the year).

The volume of national and fixed-to-mobile calls is also relatively unchanged (a -0.7% and -1.4% decrease, respectively, for the year by Q3 2007). International calls, however, have increased substantially (+36% for the year by Q3 2007) thanks to a huge volume of international calls over VoIP services, which increased by 144% during the period, and to a lesser decline in international calls over the PSTN (-5% for the year compared to -10% during previous quarters).

Note :
- The Observatory distinguishes between calls originating on IP telephony services and other voice calls. Still, while the volume of VoIP calls covers all of this traffic observed on the end market, revenue covers only invoiced VoIP traffic (for example in addition to a multiplay package).
- Volumes and revenue from calls originating on VoIP services are counted in each of the market segments (long distance, international and to mobiles).

Calls originating on IP telephony services have been rising sharply, and account for an increasing share of the total volume of fixed line calls. By the third quarter of 2007, the volume of IP minutes had risen by 79.1% for the year and now account for a third (33.2%) of all fixed line calls, compared to 20% one year earlier.

The rate of use for IP telephony varies depending on the call destination: customers are taking great advantage of the unmetered national calls to fixed lines and international calls that are included in most providers’ service bundles. As a result, more than a quarter (34.9%) of national calls between fixed lines and close to half of all international calling minutes (49.2%) now originate on an IP telephony service. On the flipside, only 12.9% of fixed-to-mobile minutes originate on a telephony over IP service.

Notes:
- The volume of traffic originating from a fixed line includes calls from landline telephones, public payphones and prepaid phone cards.
- The seasonally adjusted values for this data can be found in the “Séries chronologiques” spreadsheets available on the ARCEP website

The number of minutes originating on fixed lines (calls, public payphones and prepaid cards) totalled 23.9 billion in the third quarter of 2007, a slight decrease compared to previous quarters – due to the seasonal drop in fixed traffic during the summer. Data adjusted to correct seasonal variations indicates that, on the whole, the total volume of traffic has remained stable for the past three years.

The use of public payphones has been declining swiftly for several years now. The number of public payphones that are in service has been shrinking for two years, at an annual rate of 10,000 units. The revenue and traffic that public payphones generate has naturally decreased as well (-7.2% and -22.9%, respectively, for the year by Q3 2007).

Broadband access now accounts for 90% of the Internet market, or 14.8 million of the 16.5 million subscriptions that make up the Internet access market.

The number of broadband subscriptions continues to grow at a considerable rate (+25.6% for the year): three million new subscriptions between September 2006 and September 2007. However, the annual volume of new subscribers has been tending to decrease since Q3 2006, at which point growth totalled +3.3 million. As a result, annual growth for the broadband base was down by 9% since the previous year.

Revenue generated by broadband is also continuing to rise quickly (30% to 34% since Q2 2006), reaching 1 billion euros in the third quarter of 2007 (+32.4% for the year).

The inexorable decline of narrowband has accelerated: a more than 40% decline for the year by the third quarter of 2007, in both the number of dial-up connections in service, the volume of connections and the revenue that narrowband generates.

Note: There may be a time lag between the delivery of a service on the wholesale market (LLU or bitstream) and its actual availability on the retail market. A comparison between the data relating to these different markets might reflect this.

Note: The item “Other Internet services” corresponds to related ISP revenues such as web hosting or revenues from online advertising. Income from the sale and rental of telephones and terminal equipment is included in the item “Sale and rental of telephones and terminal equipment by fixed operators and Internet service providers”.

There were two million new subscriptions to TV over DSL services during the year, bringing the total base to 4.1 million at the end of the third quarter of 2007.

Note: This indicator covers subscriptions, which are “eligible” for television services, i.e. those where subscribers are able to activate this type of service, regardless of the number of channels available or the pricing plan involved. It takes into account both standalone subscriptions and those, which are part of a “multiplay”, service package, which includes access to one or more other services besides television (Internet, telephone service).

Note: This item covers both mobile network operators (MNO) and mobile virtual network operators (MVNO).

The number of mobile customers totalled 53.1 million at the end of the third quarter of 2007, with more than two thirds of them subscribing to a flat rate formula (66.5% at the end of Q3), a proportion which is increasing steadily.

The mobile customer base continues to grow at a steady pace: +6.6% for the year by Q3 2007, albeit at a slightly lesser rate than in the two previous years (7.5% to 8% annual growth).

There were 15.2 million customers using mobile operators’ multimedia services (mobile internet, MMS, etc) in the third quarter of 2007, or close to 29% of the total mobile base. This percentage of mobile multimedia service users has changed very little over the past two years.

258,000 mobile numbers were ported in Q3 2007, compared to 154,000 the previous quarter. This sizeable increase is due to the implementation of streamlined MNP procedures on 21 May 2007, which cut the maximum allowable processing time for a portage request from two months to 10 days.

Notes :
- The number of active multimedia users is defined as the number of customers (contract or prepaid subscribers) who have used a multimedia service such as Wap, i-Mode, MMS or email (SMS messages are not covered by this definition) at least once in the past month, regardless of the type of bearer technology used (CSD, GPRS, UMTS, etc.). Scope: Mainland France and overseas dependencies.
- The number of ported numbers is defined as the number of telephone numbers effectively ported to another operator (numbers activated by the receiving operator) during the course of the quarter in question. Scope: Mainland France and overseas dependencies.

Mobile service revenue (calling and data transport) reached 4.5 billion euros and had risen by 4.7% for the year by the third quarter of 2007. Average annual growth for mobile services revenue (5.4% for the first three quarters of 2007) is similar to the rate in 2006 but is down compared to the between 8% and 10% quarterly growth reported in 2005.

Totalling 663 million euros in the third quarter of 2007, revenue generated by data transport services on mobile networks (SMS, MMS, mobile Internet access and multimedia services) accounts for just under 15% of total mobile services revenue – but it is rising at a much faster rate than mobile calling revenue (+13.9% and +3.3%, respectively, for the year).

The volume of calls originating on mobiles represented 24.1 billion minutes in the third quarter of 2007. The annual rate of growth for this type of traffic, which was around 15% throughout 2006, has decreased significantly since the start of 2007. The annual growth rate lost two points per quarter, going from 8.6% in the first quarter to 6.6% in Q2 and to 4.6% in the third quarter of 2007. This decline holds true even when adjusting data for seasonal variations.

The decrease in the volume of traffic is tied to the drop in the volume of on-net calls (calls to subscribers using the same operator’s network), which has been steady for more than a year. The annual rate of growth for on-net traffic has gone from 30.8% for the year at the start of 2006 to 8.2% at the start of 2007, and to only 3.4% by the third quarter of 2007.

This decline does not affect the volume of calling minutes for off-net or international calls, both of which continued to increase rather substantially over the year. In the third quarter of 2007, the respective growth rates were 10.8% and 16.5% for the year. The volume of calls to fixed lines has been dropping since the start of 2005, but was minimal in the third quarter of 2007 (-1% for the year).

(The seasonally adjusted values for this data can be found in the “Séries chronologiques” spreadsheets available on the ARCEP website)

The use of person-to-person messaging (SMS and MMS) continues to grow: 4.6 billion messages were sent in the third quarter of 2007 compared to 3.7 billion one year earlier, translating into a 22.5% increase for the year.

Sending an average 34 messages a month, customers who have a flat rate subscription send close to twice as many messages than customers using prepaid cards (18 messages a month). The average total is 29 text messages a month per customer, a 15% increase since the previous year (or 4 SMS a month more, per customer).

(The seasonally adjusted values for this data can be found in the “Séries chronologiques” spreadsheets available on the ARCEP website).

Totalling 600 million euros in the third quarter of 2007, revenue generated by value-added services remains relatively unchanged (+0.3%) since Q3 2006.

Over the course of Q3 2007, 1.2 billion calls were made to voice and telematic services, of which 1 billion from fixed lines.

* This corresponds to all sums billed to customers by operators, including outpayments from operators to service providers. “Data” value-added services include premium-rate services such as those on the Orange “Gallery” portal, push services, chat rooms, weather forecasts, TV game shows, horoscopes, ringtone downloads, etc.

Revenue generated by directory services rose by 8.6% for the year, reaching 41 million euros by the third quarter of 2007.

The number of calls to directory assistance numbers has dropped noticeably, however, with 34 million calls made, compared to 40 million in the third quarter of 2006, which translates into a 15.6% decrease for the year.

The volume of calls to directory services represented 69 million minutes in the third quarter of 2007. Two thirds of these minutes derive from calls originating on mobile phones.

Note: Directory information services include: the old fixed-line (12, 3200, 3211, 3212) and mobile (612, 712, 222) information numbers in use until 3 April 2006, the new 118xyz numbers in use since November 2005 and the short numbers used to access reverse lookup directory services (3288, 3217, 3200) or international directory services (3212).

Revenues from leased lines may be accounted for twice as the figures include operator-to-operator sales. These sales may represent up to 29% of total leased-line revenues.

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Revenue generated by terminal sales and rental represented 648 million euros in the third quarter of 2007, of which more than two thirds were earned by mobile operators.

Note: The revenues from mobile packs and telephones given here include the commission paid to distributors.

The average monthly bill per fixed line is calculated by dividing the income from calls originating from fixed lines (line rental, call charges and Internet service charges) for quarter N by the estimated average number of fixed lines in existence for quarter N, and then by the number of months. (See the box on page 28 for an explanation of the concept of a “line”)

The average monthly bill per mobile customer is calculated by dividing the income from mobile telephony (voice and data revenues, including roaming-out, excluding revenue from incoming calls) for quarter N by the estimated average number of mobile customers for quarter N, and then by the number of months. This indicator, which does not include interconnection revenues, or those from value-added services, does not equate to the traditional Average Revenue Per User (ARPU) indicator.

The average monthly volume of traffic per fixed line is calculated by dividing the volume of traffic (PSTN and IP) for quarter N by the estimated average number of fixed lines in existence for quarter N, and then by the number of months.

The average monthly volume of traffic per mobile operator customer is calculated by dividing the volume of mobile telephony traffic (including roaming-out) for quarter N by the estimated average number of mobile customers for quarter N, and then by the number of months.

The average number of SMS messages per customer is calculated by dividing the number of SMS messages for quarter N by the estimated average number of customers for quarter N, and then by the number of months.

The average monthly bill per PSTN subscription is calculated by dividing the income from line rental and calls made from PSTN fixed lines (i.e. excluding VoIP revenues) for quarter N by the estimated average number of subscriptions for quarter N, and then by the number of months.

The average monthly bill per subscription to an IP telephony service is calculated by dividing the income solely from IP calls billed (i.e. those made on top of those included in a multiplay package) for quarter N by the estimated average number of subscriptions for quarter N, and then by the number of months.

The average monthly bill per dial-up (or broadband) Internet subscription is calculated by dividing the income from the dial-up (or broadband) Internet connections for quarter N by the estimated average number of customers for quarter N, and then by the number of months.

The average monthly volume of PSTN (or IP) traffic is calculated by dividing the volume of PSTN (or IP) traffic for quarter N by the estimated average number of subscriptions to a PSTN (or IP) telephone service for quarter N, and then by the number of months.

The average monthly volume of dial-up Internet traffic is calculated by dividing the volume of dial-up Internet traffic for quarter N by the estimated average number of subscriptions to a dial-up Internet service for quarter N, and then by the number of months.

Average number of customers for quarter N: [(total number of customers at the end of quarter N + total number of customers at the end of quarter N-1) / 2]