CONFIDENTIALThisreportissolelyfortheuseofclientpersonnel.Nopartofitmaybecirculated,quoted,orreproducedfordistributionoutsidetheclientorganizationwithoutpriorwrittenapprovalfromMcKinsey&Company.ThismaterialwasusedbyMcKinsey&Companyduringanoralpresentation;itisnotacompleterecordofthediscussion.Montreal,CNFebruary25-27,2001Americas’TelecomPracticeOverviewTELECOMITPDCO-ZXD322/010225DmlmPP12PeoplePeople•Leadershipgroupconsistingof24Leadershipgroupconsistingof24MGMsand13APsfrom14officesMGMsand13APsfrom14offices•Ninepractice-dedicatedNinepractice-dedicatedconsultantsandspecialistsin5consultantsandspecialistsin5officesofficesKnowledgeKnowledge•FourmajorknowledgeinitiativesFourmajorknowledgeinitiativesin2001in2001•Libraryof“starterpacks”Libraryof“starterpacks”•TwointernalconferencesperyearTwointernalconferencesperyearInfrastructure/resourcesInfrastructure/resources•Tenpractice-dedicatedR&ITenpractice-dedicatedR&Iprofessionalsprofessionals•TelecomIntroductoryTrainingTelecomIntroductoryTrainingProgramoffered3timesperyearProgramoffered3timesperyear•IntranetsitecontainingpracticeIntranetsitecontainingpracticedocumentsandcontactsdocumentsandcontacts(http://practice.intranet.McKinsey.(http://practice.intranet.McKinsey.com/telecom)com/telecom)WHATISTHEAMERICAS’TELECOMPRACTICE?DCO-ZXD322/010225DmlmPP13PracticeLeaderPeterBisson–STPracticeManagerLaurenDrake–DCProfessionalDevelopmentManagerSusanJones–SVPractice-dedicatedCSSKevinNedd–NJStaggNewman–DCDoronFertig–DCDavidThomson–CHMukundVenkatesh–SVHanyGabriel–DCJeromeNoiret–ATDanielFryxell–DCChrisChu–SVSeniorPracticeAdministratorSheilaTucker–ATInformationCoordinatorLizaStrub–ATR&I6informationspecialistsinAT4informationspecialistsinDCRequestline:(404)335-3381AMERICAS’TELECOMPRACTICECONTACTSDCO-ZXD322/010225DmlmPP1463%37%2000geographicbreakdownNorthAmericaLatinAmerica199519961997199819992000ThousandsofCSSHoursAMERICAS’TELECOMCSSHOURS192631405865Total#clientsserved:CAGR=14%DCO-ZXD322/010225DmlmPP155518877221402820642Typesofclient100%=250,000CSShoursIncumbentsAttackersEquipmentInvestorsServices,e.g.,hostingTypesofengagement100%=257engagementsStrategyGrowthMarketing/SalesIT/SystemsOperationsAMERICAS’TELECOMCSSHOURS(CONTINUED)PercentOtherOrganizationPost-mergermanagementOtherDCO-ZXD322/010225DmlmPP16ClientHoursbilledin2000Telefónica55,554(22%oftotalhours)Corning15,474Motorola12,130AOL11,569Lucent10,515CANTV10,298PortugalTelecom9,618Verizon6,782TIW6,781Qwest6,385ClientHoursbilledin1999Telefónica57,004(26%oftotalhours)U.S.West17,692Telemar14,931Verizon14,537BellSouth12,005Motorola9,166Corning8,237Cable&Wireless7,951CANTV6,235Enron6,001Top10clientsin1999=69%oftotalhoursTop10clientsin2000=58%oftotalhoursCLIENTBASEEVOLUTIONDCO-ZXD322/010225DmlmPP17MAJORNEWINTRODUCTIONSIN2000NetServDCO-ZXD322/010225DmlmPP18MAJORKNOWLEDGEINITIATIVESTopicCommentsContacts•JointinitiativewithM-Commerce•Assesshowtechnologychoiceswillaffectvaluedistributioninwirelessdataindustry•CodificationofjointresearchprojectwithLehmanBrothers•AdilZainulbhai•WilliamPassmore•HimeshBhise•StaggNewman•DoronFertig•CarlosKirjner•Follow-uptolastyear’sBroadband!report•Assessnatureofdemandforresidentialbroadbandandtheprogressofplatformoperatorsatdeployingnewservices•JointinitiativewithJPMorgan•JonGarcia•JonWilkins•RockKhannaWirelessinfrastructureBroadbandaccessOptical•Assessimpactofrapidlyevolvingopticalnetworkingtechnologiesoncomponentvendors,systemsvendors,andserviceproviders•JointeffortwithLehmanBrothers•TomWoodard•BobbyRao•SafroaduYeboah-AmankwahDCO-ZXD322/010225DmlmPP19MAJORKNOWLEDGEINITIATIVES(CONTINUED)TopicCommentsContacts•In-depthexaminationandmarketoverviewofvariousInternet-centricvalue-addedservices•JointeffortwithHighTechPractice•PaulRoche•PatrickLoulou•GregMagedEdgenetworks