2008 Europe - Telecoms, Mobile and Broadband in Spain and Portugal

Publication Overview
Executive Summary
Table of Contents

Publication Overview

This report covers the key telecom markets of Spain and Portugal. It analyses trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP, VoD and IPTV developments. Subjects include:

· Market and industry analyses, trends and developments;

· Facts, figures and statistics;

· Industry and regulatory issues;

· Research, marketing, benchmarking;

· Major players, revenues, subscribers, prepaid;

· VoIP, IPTV, VoD, digital TV and DTTV;

· Converged media, mobile broadband.

Researcher:- Henry Lancaster

Current publication date: November 2008 (7^th Edition)

Next publication date: November 2009

Executive Summary

BuddeComm’s Spain and Portugal annual publication, 2008 Telecoms, Mobile and Broadband in Spain and Portugal, profiles two significant markets with incumbent operators having a presence across Latin America and much of Africa.

Mobile penetration in both countries is far above the EU average, while the delayed MVNO market in Spain now hosts a dozen operators. The launch of a 3G service by TeliaSonera’s Yoigo has added further competition to a sector which accounts for the bulk of subscriber growth.

Portugal’s smaller telecom market has proved to be a major growth area. The incumbent, Portugal Telecom, retains significant interests in Brazil and sub-Saharan Africa, and this diversity has helped it to weather the financial crisis which befell European telcos during 2008. Although Portugal Telecom remains the leading telco in all sectors, there is growing pressure from alternative operators such as Vodafone which has built on its key mobile interests to provide full quad-play services.

Key highlights

· Broadband access in Spain is slow by European standards, though a benchmark 30Mb/s service was launched by Telefónica in October 2008. Market consolidation has led four operators to control 90% of broadband accesses, but their greater scale of operations will enable them to invest in network upgrades and so hasten consumer take-up of triple play services. By 2010 up to half of all households should get a 50Mb/s service.

· Portugal’s broadband market showed continued strong growth in 2008, spurred by the government’s program to double the number of broadband households and users by 2010 and become one of the cheapest markets for broadband services in Europe. To this end, the government has committed €1 billion to the program, which may be matched by a further €1.5 billion in investment from the private sector. The rebranded ZON Multimédia offers 30Mb/s across much of its network and in late 2008 launched a 100Mb/s service in certain areas.

· The potential for triple play in Spain has improved following investments in network upgrades by the DSL operators and cablcos. Sogecable’s triple play offer Trio+, in conjunction with Telefónica, has been supplemented with its Yacom+ service launched with Orange in June 2008. These tie ups have produced a growing number of offers, extending to satellite pay TV services on mobile networks.

· Spanish mobile network operators have invested in HSPA infrastructure in recent years while developing business models to encourage consumer take-up of mobile data services. While the number of mobile broadband subscribers has increased, this has yet to translate into similar mobile data use but by 2010 common flat-rate plans will stimulate consumers to use high-end data services and encourage the further migration of GSM subscribers to the 3G platform. By 2013, about 90% of mobile subscribers will be on 3G networks.

Mobile penetration rates in Portugal and Spain – 2005 - 2009

Year	Portugal	Spain
2005	107%	97%
2006	110%	106%
2007	125%	122%
2008	136%	127%
2009 (e)	141%	131%

(Source: BuddeComm)

For those needing high level strategic information and objective analysis on this region, this report is essential reading and gives further information on:

· The increasingly competitive mobile sector as Spain’s nascent MVNO market matures;

· The emergence of operators such as Vodafone in the fixed-line and broadband landscape, creating compelling quad-play offers for consumers;

· The sophisticated triple play offers from Telefónica, ONO, Jazztel and Sogecable as cross-sector content deals are struck to take advantage of operator strengths;

· The changing face of converged media with widespread triple play services becoming a standard feature in homes.

Data in this report is the latest available at the time of preparation and may not be for the current year.

1. Spain
- 1.1 Key statistics
- 1.2 Telecommunications market
  - 1.2.1 Overview of Spain’s telecom market
- 1.3 Regulatory environment
  - 1.3.1 History
  - 1.3.2 Regulatory authority
  - 1.3.3 Telecom sector liberalisation in Spain
- 1.4 Fixed network operators in Spain
  - 1.4.1 Overview of operators
  - 1.4.2 Telefónica
  - 1.4.3 The Auna Group (historic)
  - 1.4.4 Orange
  - 1.4.5 Vodafone España
  - 1.4.6 Jazztel
  - 1.4.7 ONO
  - 1.4.8 Comunitel (historic)
  - 1.4.9 BT España
- 1.5 Telecommunications infrastructure
  - 1.5.1 National telecom network
  - 1.5.2 Next Generation Networks (NGNs)
  - 1.5.3 International infrastructure
- 1.6 Broadband market
  - 1.6.1 Overview
  - 1.6.2 Cable modems
  - 1.6.3 Asymmetrical Digital Subscriber Line (ADSL)
  - 1.6.4 Fibre-to-the-Home (FttH) networks
  - 1.6.5 Wireless broadband
  - 1.6.6 Broadband Powerline (BPL)
- 1.7 Convergence
  - 1.7.1 Overview of media convergence
  - 1.7.2 Key general trends
  - 1.7.3 Triple play models
  - 1.7.4 Regulatory issues
  - 1.7.5 Digital TV
- 1.8 Mobile communications
  - 1.8.1 Overview of Spain’s mobile market
  - 1.8.2 Regulatory issues
  - 1.8.3 Mobile technologies
  - 1.8.4 Major mobile operators
  - 1.8.5 Mobile voice services
  - 1.8.6 Mobile data services
  - 1.8.7 Mobile content and applications
- 1.9 Forecasts
  - 1.9.1 Forecasts – broadband subscribers to 2018
  - 1.9.2 Forecasts – mobile ARPU to 2013
  - 1.9.3 Forecasts – UMTS to 2013
2. Portugal
- 2.1 Key statistics
- 2.2 Telecommunications market
  - 2.2.1 Overview of Portugal’s telecom market
- 2.3 Regulatory environment
  - 2.3.1 History
  - 2.3.2 Regulatory authority
  - 2.3.3 Telecom sector liberalisation in Portugal
- 2.4 Fixed network operators in Portugal
  - 2.4.1 Overview of operators
  - 2.4.2 Portugal Telecom
  - 2.4.3 Oni
  - 2.4.4 Sonaecom
  - 2.4.5 AR Telecom
  - 2.4.6 ZON Multimédia
- 2.5 Telecommunications infrastructure
  - 2.5.1 National telecom network
  - 2.5.2 International infrastructure
- 2.6 Broadband market
  - 2.6.1 Overview
  - 2.6.2 Cable modems
  - 2.6.3 Asymmetrical Digital Subscriber Line (ADSL)
  - 2.6.4 Fibre-to-the-Home (FttH) networks
  - 2.6.5 Broadband over Powerline (BPL)
  - 2.6.6 Mobile broadband
  - 2.6.7 Wireless broadband
- 2.7 Convergence
  - 2.7.1 Overview of media convergence
  - 2.7.2 Key general trends
  - 2.7.3 Triple play models
  - 2.7.4 Digital TV (DTV)
- 2.8 Mobile communications
  - 2.8.1 Overview of Portugal’s mobile market
  - 2.8.2 Regulatory issues
  - 2.8.3 Mobile technologies
  - 2.8.4 Major mobile operators
  - 2.8.5 Mobile voice services
  - 2.8.6 Mobile data services
- 2.9 Forecasts
  - 2.9.1 Forecasts – broadband subscribers to 2018
  - 2.9.2 Forecasts – mobile ARPU to 2013
  - 2.9.3 Forecasts – UMTS to 2013
3. Glossary of Abbreviations

Table 1 – Country statistics Spain – 2008
Table 2 – Telecom revenue and investment statistics – 2007
Table 3 – Telephone network statistics – August 2008
Table 4 – Internet user statistics – June 2008
Table 5 – Broadband statistics – August 2008
Table 6 – Mobile statistics – August 2008
Table 7 – National telecommunications authority
Table 8 – Telecom revenue, retail and wholesale – 2005 - 2008
Table 9 – Telecom retail revenue by sector – 2005 - 2008
Table 10 – Telecom retail revenue annual change, by sector – 2002 - 2008
Table 11 – Telecom revenue by operator, wholesale plus retail – 2004 - 2007
Table 12 – Telecom investment by sector – 2003 - 2006
Table 13 – Telecom investment and annual change – 2000 - 2007
Table 14 – Proportion of fixed-line and mobile traffic (historic) – 2000 - 2005
Table 15 – Interconnection traffic share by operator – 2005 - 2007
Table 16 – Interconnection revenue – 2003 - 2008
Table 17 – Unbundled loops and access lines – 2004 - 2008
Table 18 – LLU, shared access price - connection and monthly rental – 2004 - 2007
Table 19 – Wholesale access lines by type – 2007 - 2008
Table 20 – Subscribers by type of access – 2006 - 2007
Table 21 – Fixed lines ported – 2002 - 2008
Table 22 – Carrier PreSelection lines – 2005 - 2008
Table 23 – Fixed-line market share of revenue by operators – 2005 - 2008
Table 24 – Fixed-line subscribers and market share by operators – August 2008
Table 25 – Fixed-line market revenue by traffic, line rental – 2002 - 2008
Table 26 – Fixed-line voice ARPU – 2005 - 2007
Table 27 – Fixed-line price index – 2004 - 2008
Table 28 – Telefónica Group financial data – 2006 - 2008
Table 29 – Telefónica de España financial data – 2006 - 2008
Table 30 – Telefónica de España financial revenue by sector – 2005 - 2008
Table 31 – Telefónica de España subscribers by service – 2005 - 2008
Table 32 – Orange broadband subscribers – 2005 - 2008
Table 33 – Vodafone financial data – 2007 - 2008
Table 34 – Jazztel financial data – 2006 - 2007
Table 35 – Jazztel revenue by sector and annual change – Q2 2008
Table 36 – Jazztel subscribers by sector and annual change – 2006 - 2008
Table 37 – ONO financial data – 2007 - 2008
Table 38 – ONO cable subscribers – 2005 - 2008
Table 39 – ONO subscribers by sector – 2005 - 2008
Table 40 – Telecom network length – 2007
Table 41 – Fixed lines in service and penetration – 1995; 1997; 1999 - 2008
Table 42 – Installed accesses by operator/technology – 2007
Table 43 – Broadband revenue by technology – 2003 - 2006
Table 44 – Broadband revenue by operator – 2005 - 2008
Table 45 – Internet market revenue – 2006 - 2008
Table 46 – Internet users and penetration rate – 1996 - 2009
Table 47 – Dial-up Internet subscribers – 2005 - 2008
Table 48 – Total broadband subscribers by access type and penetration rate – 2001 - 2009
Table 49 – Proportion of broadband subscribers by sector – 2004 - 2007
Table 50 – Annual growth of broadband by technology – 2004 - 2008
Table 51 – Proportion of broadband lines by data speed and operator – 2007
Table 52 – Lines by data speed – 2005 - 2008
Table 53 – Share of broadband lines, by operator/technology – 2003 - 2008
Table 54 – Share of broadband accesses by operator – 2003 - 2008
Table 55 – Broadband lines and market share by operator – 2006 - 2008
Table 56 – Broadband penetration by technology – 2004 - 2007
Table 57 – Broadband subscribers by type – incumbent or other provider – 2006 - 2008
Table 58 – Cable modem subscribers – 2000 - 2009
Table 59 – Share of cable accesses – 2005 - 2008
Table 60 – Cable subscribers by operator – 2007 - 2008
Table 61 – Share of cable broadband revenue – 2007
Table 62 – ONO financial data – 2006 - 2008
Table 63 – ONO cable subscribers – 2005 - 2008
Table 64 – ONO subscribers by sector – 2005 - 2008
Table 65 – ONO broadband monthly ARPU – 2006 - 2008
Table 66 – ADSL subscribers – 2000 - 2009
Table 67 – DSL subscribers by operator – 2007 - 2008
Table 68 – Telefónica Group Internet subscribers - 2006 - 2008
Table 69 – Telefónica de España Internet revenue by sector - 2006 - 2008
Table 70 – Telefónica de España wholesale broadband accesses by sector - 2006 - 2008
Table 71 – WiFi hotspots in operation – 2005 - 2007
Table 72 – Broadcasting revenue by platform - 2003 - 2008
Table 73 – Broadcasting subscribers by platform - 2003 - 2008
Table 74 – Proportion of Telefónica subscribers taking bundled services - 2005 - 2007
Table 75 – Proportion of cableco subscribers taking bundled services - 2005 - 2007
Table 76 – Bundled service subscribers, by sector - 2006
Table 77 – Residential bundled subscribers as proportion of total - 2006
Table 78 – Statistical overview of Spain’s broadcasting market - 2005; 2007 - 2008
Table 79 – TV revenue by technology - 2002 - 2008
Table 80 – Proportion of pay TV subscribers by technology - 2005 - 2007
Table 81 – TV market subscribers by technology – 2002 - 2008
Table 82 – Digital TV revenue and market share by operator - 2007 - 2008
Table 83 – Pay TV subscribers by operator, market share - 2006 - 2008
Table 84 – IPTV revenue – 2005 - 2008
Table 85 – IPTV subscribers – 2007 - 2008
Table 86 – Telefónica IPTV subscribers – 2005 - 2008
Table 87 – Cable TV subscribers – 1996 - 2008
Table 88 – ONO financial data by sector – 2006 - 2008
Table 89 – ONO cable subscribers – 2005 - 2008
Table 90 – ONO subscribers by sector – 2005 - 2008
Table 91 – Satellite TV subscribers – 1997 - 2008
Table 92 – Satellite broadcasting capacity and transponders by operator – 2008
Table 93 – Digital+ ARPU – 2006 - 2008
Table 94 – Digital+ subscribers – 2005 - 2008
Table 95 – Sogecable pay TV financial data and annual change – 2006 - 2007
Table 96 – Sogecable Cuatro financial data and annual change – 2006 - 2007
Table 97 – Sogecable financial data and annual change – 2007 - 2008
Table 98 – Sogecable digital and analogue subscribers – 2002 - 2006
Table 99 – Mobile market revenue – 2000 - 2008
Table 100 – Mobile traffic in minutes – 2000 - 2007
Table 101 – Mobile market revenue by sector – 2006 - 2007
Table 102 – Mobile market revenue by contract and prepaid sectors – 2000 - 2007
Table 103 – Mobile market revenue by operator – 2004 - 2008
Table 104 – Cost per invoiced minute of use: contract and prepaid; all operators – 2001 - 2008
Table 105 – Mobile operators, subscribers and annual change – March 2008
Table 106 – Mobile subscribers and market share by operator (regulator data) – 2006 - 2008
Table 107 – Mobile revenue by operator (regulator data) – 2006 - 2007
Table 108 – Mobile subscribers and penetration rate – 1997; 1999 - 2008
Table 109 – Mobile price index – 2005 - 2008
Table 110 – Mobile ARPU per sector – 2005 - 2007
Table 111 – Subscriber market share by operator – 2004 - 2008
Table 112 – Operator share of net adds – 2005 - 2008
Table 113 – Operator share of wholesale revenue – 2005 - 2007
Table 114 – Roaming revenue – 2006 - 2008
Table 115 – European roaming charges – 2007 - 2009
Table 116 – Average revenue for international roaming – 2005 - 2007
Table 117 – Cumulative mobile number portings – 2002 - 2008
Table 118 – Mobile termination rates by operator – 2007 - 2009
Table 119 – Mobile interconnection revenue – 2003 - 2008
Table 120 – GSM/GPRS and 3G base stations – 2002 - 2007
Table 121 – Telefónica mobile subscribers and ARPU statistics – 2005 - 2008
Table 122 – Telefónica Móviles financial data – 2006 - 2008
Table 123 – Vodafone financial data – 2007 - 2008
Table 124 – Vodafone mobile subscribers, and ARPU statistics – 2005 - 2008
Table 125 – Orange mobile subscribers – 2005 - 2008
Table 126 – Orange mobile revenue – 2006 - 2008
Table 127 – Orange annualised ARPU by sector – 2005 - 2008
Table 128 – Mobile subscribers: prepaid, contract – 2006 - 2008
Table 129 – Prepaid revenue – 2007 - 2008
Table 130 – Mobile data revenue – 2006 - 2008
Table 131 – Mobile datacards # per UMTS and HSDPA – 2006 - 2007
Table 132 – SMS revenue and messages sent – 2006 - 2008
Table 133 – SMS by operator – 2006 - 2007
Table 134 – Premium SMS revenue and messages sent – 2005 - 2008
Table 135 – MMS revenue and messages sent – 2004 - 2008
Table 136 – HSPA subscribers – 2006 - 2008
Table 137 – Mobile TV subscribers by operator – June 2008
Table 138 – Forecast broadband subscribers – higher market growth scenario – 2007 - 2012; 2018
Table 139 – Forecast broadband subscribers – lower market growth scenario – 2007 - 2012; 2018
Table 140 – Forecast mobile monthly ARPU - 2005 - 2010; 2013
Table 141 – Forecast UMTS subscriber growth – 2006 - 2010; 2013
Table 142 – Country statistics Portugal – 2008
Table 143 – Telephone network statistics – Jun 2008
Table 144 – Internet user statistics – June 2008
Table 145 – Broadband statistics – June 2008
Table 146 – Mobile statistics – June 2008
Table 147 – National telecommunications authority
Table 148 – Telecom market value – 2000 - 2006
Table 149 – Telecom market share by sector and annual change – 2006
Table 150 – Unbundled loops and access lines – 2004 - 2008
Table 151 – Number and type of access lines: analogue and digital – 2005 - 2007
Table 152 – LLU, shared access price - connection and monthly rental – 2004 - 2007
Table 153 – Fixed telephone customers, access type and shared access lines – 2004 - 2008
Table 154 – Portugal Telecom’s share of direct access customers – 2005 - 2008
Table 155 – Cumulative fixed-line numbers ported – 2003 - 2007
Table 156 – Share of fixed-line accesses by operator – 2006 - 2008
Table 157 – Fixed-line access by type and annual change – 2007 - 2008
Table 158 – Portugal Telecom accesses and subscribers by sector – 2006 - 2008
Table 159 – Portugal Telecom financial data – 2005 - 2008
Table 160 – Portugal Telecom ARPU data by service – 2006 - 2008
Table 161 – Sonaecom financial data and annual change – 2006 - 2008
Table 162 – Sonaecom subscribers by sector and annual change – 2007 - 2008
Table 163 – ZON Multimédia subscribers – 2007 - 2008
Table 164 – ZON Multimédia financial data – 2007 - 2008
Table 165 – Fixed lines in service and teledensity – 1995; 1997; 1999 - 2007
Table 166 – Internet users and penetration rate – 1997 - 2008
Table 167 – Internet subscribers by access type – 2005 - 2008
Table 168 – Broadband subscribers by access type and annual change – 2007 - 2008
Table 169 – Broadband subscribers by operator type – 2006 - 2008
Table 170 – Total broadband subscribers by type and penetration rate – 2000 - 2008
Table 171 – Broadband penetration by sector – 2007 - 2008
Table 172 – Broadband growth – 2002 - 2008
Table 173 – Broadband penetration growth by access type: xDSL, cable & mobile – 2004 - 2007
Table 174 – Share of broadband accesses by operator – 2006 - 2008
Table 175 – ZON Multimédia cable broadband subscribers – 2004 - 2008
Table 176 – Sonaecom Internet subscribers and annual change – 2007 - 2008
Table 177 – Portugal Telecom accesses – 2004 - 2008
Table 178 – Mobile broadband subscribers – 2007 - 2008
Table 179 – Broadcasting operational statistics – 2006 - 2008
Table 180 – Subscribers to bundled packages – July 2007
Table 181 – Share of pay TV subscribers by operator – June 2008
Table 182 – ZON Multimédia financial data and annual change – 2007 - 2008
Table 183 – ZON TV broadband and telephony subscribers – 2005 - 2008
Table 184 – ZON TV broadband and Pay TV ARPU – 2005 - 2008
Table 185 – Statistical overview of cable TV market – 1998 - 2008
Table 186 – Cabled households and subscribers by region – 2006 - 2008
Table 187 – Satellite TV subscriber households – 1998 - 2008
Table 188 – VoIP subscribers – 2006 - 2008
Table 189 – VoIP providers and market share – 2006
Table 190 – Mobile operators, subscribers and annual change – March 2008
Table 191 – Mobile subscribers and penetration rate (regulator data) – 1997; 1999 - 2008
Table 192 – Mobile operators’ market share – 2004 - 2008
Table 193 – Mobile operators’ share of net adds – 2005 - 2008
Table 194 – Roaming in call traffic volume and messages – 2007 - 2008
Table 195 – European roaming charges – 2007 - 2009
Table 196 – Cumulative ported mobile numbers – 2004 - 2007
Table 197 – 3G video calls and traffic – 2007 - 2008
Table 198 – 3G subscribers – 2007 - 2008
Table 199 – Mobile broadband subscribers – 2007 - 2008
Table 200 – TMN subscribers, ARPU and data percentage – 2006 - 2008
Table 201 – TMN financial data – 2006 - 2008
Table 202 – Vodafone Portugal subscribers – 2006 - 2008
Table 203 – Vodafone monthly ARPU: prepaid, contract and blended – 2005 - 2008
Table 204 – Vodafone financial data – 2007 - 2008
Table 205 – Optimus mobile subscribers – 2003 - 2008
Table 206 – Optimus operational statistics – 2006 - 2008
Table 207 – Optimus financial data and annual change – 2006 - 2008
Table 208 – Mobile subscribers, contract and prepaid (regulator data) – 2003 - 2008
Table 209 – SMSs sent annually and annual change – 2004 - 2008
Table 210 – MMS sessions and traffic – 2007 - 2008
Table 211 – Mobile Internet sessions and traffic – 2007 - 2008
Table 212 – Forecast broadband subscribers – higher market growth scenario – 2007 - 2012; 2018
Table 213 – Forecast broadband subscribers – lower market growth scenario – 2007 - 2012; 2018
Table 214 – Forecast mobile monthly ARPU - 2005 - 2010; 2013
Table 215 – Forecast UMTS subscriber growth – 2006 - 2013