2009 Portugal - Telecoms, IP Networks, Digital Media and Forecasts

Publication Overview

This annual report provides a comprehensive overview of trends and developments in Portugal’s telecommunications market. The report analyses trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP, VoD and IPTV developments.

Subjects include:

·         Key statistics;

·         Market and industry overviews;

·         Industry and regulatory issues;

·         Major players (fixed, mobile and broadband);

·         Mobile voice and data markets;

·         Internet and broadband development;

·         Convergence (voice/data, fixed/wireless/mobile);

·         Telecom market forecasts for selective years to 2015 or 2019.

Researcher: Henry Lancaster

Current publication date:- January 2010 (8^th Edition)

Next publication date:- January 2011

Executive Summary

BuddeComm’s annual publication, Portugal - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in Portugal.

Broadband penetration in Portugal remains below the EU average though mobile penetration is among the highest in Europe. Despite competition and an effective LLU regime, Portugal Telecom retains a two-thirds share of the voice market, dominates the DSL market and remains the leading operator in the mobile sector.

In the broadband sector, consumers can expect to benefit from a substantial increase in data speeds in 2010: ZON Multimédia will vastly expand its 100M/s offer while also deploying Europe’s first 1Gb/s FttH service, Fiber Zon. The government has also committed considerable infrastructure funds to develop the fibre sector, having already provided €800 million towards the estimated €2.5 billion national network cost. In common with many EU countries, the government has included broadband development in its economic recovery plans and has undertaken to pass legislation in 2010 aimed at reducing barriers to investment in new networks and ensuring equal access to the new infrastructure.

Portugal’s telecoms market was expected to grow by an average 3% annually for the next two to three years, largely bolstered by the broadband and 3G sectors. The equipment market was expected to have the highest average annual growth rate at about 4%.

Portugal – key telecom parameters – 2008, 2010

(Source: BuddeComm)

Key highlights:

·         Telecom market investment has shown renewed vigour since 2007. Although this was expected to be dampened by the global economic crisis, government stimulus funds earmarked for 2010 and 2011 with help develop the country’s fibre-based All-IP infrastructure.

·         The value of the fixed-line sector will continue to fall in 2010 under the impact of cheaper mobile call rates and the wider use of VoIP. The incumbent’s share of fixed-line traffic and revenue will for the first time fall below 50% in 2010 as operator’s such as Vodafone move into this sector, exploiting their own fixed-line networks as well as consumer adoption of fixed-mobile substitution.

·         In common with EC-wide measures, the 900MHz and 1800MHz bands are expected to be assigned for 3G services in 2010, following longstanding UMTS 900 trials by Vodafone and Optimus. The move will widen wireless broadband availability in remote regions and help fulfil national broadband targets for 2012.

·         Government broadband initiatives aimed at doubling the number of broadband households by the end of 2010 will be bolstered by €1 billion from state funds, which is expected to be matched by a further €1.5 billion from the private sector. These commitments have been complemented by a strong emphasis on fibre-based networks.

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

Table of Contents

• 1. Key statistics
• 2. Telecommunications market
  • 2.1 Overview of Portugal’s telecom market
• 3. Regulatory environment
  • 3.1 History
  • 3.2 Regulatory authority
    • 3.2.1 National Communications Authority
  • 3.3 Telecom sector liberalisation in Portugal
    • 3.3.1 Privatisation of Telecom Portugal
    • 3.3.2 Interconnect
    • 3.3.3 Access
    • 3.3.4 Carrier PreSelection (CPS)
    • 3.3.5 Number Portability (NP)
    • 3.3.6 Wholesale Line Rental (WLR)
• 4. Fixed network market
  • 4.1 Overview of operators
  • 4.2 Portugal Telecom
  • 4.3 Oni
  • 4.4 Sonaecom
    • 4.4.1 Going into 2009
    • 4.4.2 Novis
  • 4.5 AR Telecom
    • 4.5.1 Jazztel (historic)
  • 4.6 ZON Multimédia
• 5. Telecommunications infrastructure
  • 5.1 National telecom network
    • 5.1.1 Next Generation Networks (NGNs)
  • 5.2 International infrastructure
• 6. Broadband market
  • 6.1 Overview
    • 6.1.1 Broadband statistics
  • 6.2 Cable modems
    • 6.2.1 ZON Multimédia
    • 6.2.2 Cabovisão
  • 6.3 Asymmetrical Digital Subscriber Line (ADSL)
    • 6.3.1 Portugal Telecom
    • 6.3.2 Sonaecom
    • 6.3.3 ADSL2+
    • 6.3.4 Wholesale
    • 6.3.5 Wholesale prices and retail price difference
  • 6.4 Fibre-to-the-Home (FttH) networks
  • 6.5 Broadband over Powerline (BPL)
  • 6.6 Mobile broadband
  • 6.7 Wireless broadband
    • 6.7.1 Wireless Local Loop (WLL)
    • 6.7.2 WiFi
• 7. Digital media
  • 7.1 Convergence
  • 7.2 Key general trends
  • 7.3 Business models
    • 7.3.1 Bundled services
  • 7.4 Digital TV (DTV)
    • 7.4.1 Overview
    • 7.4.2 TV-over-DSL (IPTV)
    • 7.4.3 TV-over-FttH
    • 7.4.4 Cable TV (CATV)
    • 7.4.5 Satellite-based digital pay TV developments
    • 7.4.6 Digital Terrestrial TV
    • 7.4.7 Free-to-Air (FTA) TV
    • 7.4.8 VoIP services
    • 7.4.9 Video-on-Demand
• 8. Mobile communications
  • 8.1 Overview of Portugal’s mobile market
    • 8.1.1 Mobile statistics
  • 8.2 Regulatory issues
    • 8.2.1 Spectrum regulations and spectrum auctions
    • 8.2.2 Roaming
    • 8.2.3 Mobile number portability (MNP)
    • 8.2.4 Mobile termination rates (MTRs)
  • 8.3 Mobile technologies
    • 8.3.1 Digital
    • 8.3.2 Third Generation (3G) mobile
    • 8.3.3 Mobile broadband
  • 8.4 Major mobile operators
    • 8.4.1 TMN
    • 8.4.2 Vodafone
    • 8.4.3 Optimus
    • 8.4.4 OniWay exits the market
    • 8.4.5 Mobile Virtual Network Operators (MVNOs)
  • 8.5 Mobile voice services
    • 8.5.1 Prepaid
    • 8.5.2 Fixed-mobile convergence (FMC)
  • 8.6 Mobile data services
    • 8.6.1 Short Message Service (SMS)
    • 8.6.2 Multimedia Messaging Service (MMS)
    • 8.6.3 General Packet Radio Service (GPRS)
    • 8.6.4 Push-to-Talk (PTT)
    • 8.6.5 High-Speed Packet Access (HSPA)
    • 8.6.6 High-Speed Uplink Packet Access (HSUPA)
    • 8.6.7 BlackBerry
    • 8.6.8 Mobile TV
    • 8.6.9 TETRA (TErrestrial Trunked RAdio)
    • 8.6.10 Mobile content and applications
• 9. Forecasts
  • 9.1 Forecasts – broadband subscribers – 2009-2012; 2019
    • 9.1.1 Scenario 1 – higher broadband subscriber growth
    • 9.1.2 Scenario 2 – lower broadband subscriber growth
  • 9.2 Forecasts – UMTS subscribers – 2009 - 2012; 2015
  • 9.3 Forecasts – mobile ARPU – 2009 - 2010; 2015
• 10. Glossary of Abbreviations

• Table 1 – Country statistics Portugal – 2009
• Table 2 – Telecom revenue and investment statistics – 2008
• Table 3 – Telephone network statistics – September 2009
• Table 4 – Internet user statistics – September 2009
• Table 5 – Broadband statistics – September 2009
• Table 6 – Mobile statistics – June 2009
• Table 7 – National telecommunications authority
• Table 8 – Telecom market investment – 2004 - 2008
• Table 9 – Telecom market value – 2000 - 2008
• Table 10 – Portugal Telecom interconnection tariffs – 2007 - 2008
• Table 11 – Unbundled loops and access lines – 2004 - 2008
• Table 12 – Number and type of access lines: analogue and digital – 2005 - 2008
• Table 13 – LLU, shared access price - connection and monthly rental – 2005 - 2008
• Table 14 – Portugal Telecom wholesale lines – 2008 - 2009
• Table 15 – Fixed telephone customers, access type and shared access lines – 2004 - 2009
• Table 16 – Portugal Telecom’s share of direct access customers – 2005 - 2009
• Table 17 – Cumulative fixed-line numbers ported – 2003 - 2008
• Table 18 – Fixed-line revenue – 2007 - 2008
• Table 19 – Share of fixed-line accesses by operator – 2006 - 2009
• Table 20 – Portugal Telecom accesses and subscribers by sector – 2006 - 2009
• Table 21 – Portugal Telecom financial data – 2005 - 2009
• Table 22 – Sonaecom financial data and annual change – 2006 - 2009
• Table 23 – Sonaecom subscribers by sector – 2008 - 2009
• Table 24 – ZON Multimédia subscribers – 2007 - 2009
• Table 25 – ZON Multimédia financial data – 2007 - 2009
• Table 26 – Fixed lines in service and teledensity – 1995; 1997; 1999 - 2009
• Table 27 – Internet users and penetration rate – 1997 - 2010
• Table 28 – Broadband lines and data speeds – January 2009
• Table 29 – Internet subscribers by access type – 2005 - 2009
• Table 30 – Broadband subscribers by access type and annual change – 2007 - 2009
• Table 31 – Broadband subscribers by operator type – 2006 - 2009
• Table 32 – Total broadband subscribers by type and penetration rate – 2000 - 2009
• Table 33 – Broadband penetration by sector – 2007 - 2009
• Table 34 – Broadband subscriber annual change year on year – 2002 - 2009
• Table 35 – Broadband penetration change by access type: xDSL, cable and mobile – 2004 - 2009
• Table 36 – Share of broadband accesses by operator – 2006 - 2009
• Table 37 – Fixed-line and mobile broadband revenue – 2007 - 2009
• Table 38 – Average broadband file transfer speed by provider – 2009
• Table 39 – Fixed-line and mobile broadband traffic in Terabytes – 2008 - 2009
• Table 40 – Fixed-line and mobile broadband traffic per month – 2008 - 2009
• Table 41 – Share of cable broadband accesses by operator – 2003 - 2008
• Table 42 – ZON Multimédia cable broadband subscribers – 2004 - 2008
• Table 43 – Portugal Telecom broadband subscribers – 2006 - 2009
• Table 44 – Portugal Telecom broadband market share – 2004 - 2009
• Table 45 – Sonaecom broadband subscribers – 2008 - 2009
• Table 46 – Sonaecom equipped exchanges – 2008 - 2009
• Table 47 – Portugal Telecom wholesale accesses – 2004 - 2009
• Table 48 – Mobile broadband subscribers by type – January 2009
• Table 49 – Mobile broadband subscribers – 2007 - 2009
• Table 50 – Average mobile broadband file transfer speed by provider – 2009
• Table 51 – Broadcasting operational statistics – 2006 - 2009
• Table 52 – Proportion of TV subscribers by type – 2006 - 2009
• Table 53 – Subscribers to bundled services – 2007 - 2008
• Table 54 – Households take-up of bundled services by type – 2007 - 2008
• Table 55 – Share of pay TV subscribers by platform by operator – 2007 - 2009
• Table 56 – Portugal Telecom IPTV subscribers – 2008 - 2009
• Table 57 – TV subscriber share by operator – 2007 - 2009
• Table 58 – ZON Multimédia financial data – 2007 - 2009
• Table 59 – ZON TV, broadband and telephony subscribers – 2007 - 2009
• Table 60 – Satellite TV subscriber households – 1998 - 2009
• Table 61 – VoIP subscribers – 2006 - 2009
• Table 62 – Mobile operators, subscribers and annual change – September 2009
• Table 63 – Mobile subscribers and penetration rate (regulator data) – 1997; 1999 - 2010
• Table 64 – Mobile operators’ market share – 2004 - 2009
• Table 65 – Mobile operators’ share of net adds – 2005 - 2008
• Table 66 – Roaming in call traffic volume and messages – 2003 - 2009
• Table 67 – European roaming charges – 2007 - 2011
• Table 68 – Cumulative ported mobile numbers – 2004 - 2008
• Table 69 – 3G video calls and traffic data – 2007 - 2009
• Table 70 – 3G subscribers – 2007 - 2009
• Table 71 – Mobile broadband subscribers – 2007 - 2009
• Table 72 – TMN subscribers, ARPU and data percentage – 2006 - 2009
• Table 73 – TMN financial data – 2006 - 2009
• Table 74 – Vodafone Portugal subscribers – 2006 - 2009
• Table 75 – Vodafone monthly ARPU: prepaid, contract and blended – 2005 - 2009
• Table 76 – Vodafone financial data – 2007 - 2009
• Table 77 – Optimus mobile subscribers – 2003 - 2009
• Table 78 – Optimus operational statistics – 2006 - 2009
• Table 79 – Optimus financial data and annual change – 2006 - 2009
• Table 80 – Mobile subscribers, contract and prepaid (regulator data) – 2003 - 2009
• Table 81 – SMS sent annually and annual change – 2004 - 2009
• Table 82 – MMS sessions – 2007 - 2009
• Table 83 – Mobile Internet sessions and traffic – 2007 - 2009
• Table 84 – Forecast broadband subscribers – higher market growth scenario – 2009 - 2012; 2019
• Table 85 – Forecast broadband subscribers – lower market growth scenario – 2009 - 2012; 2019
• Table 86 – Forecast UMTS subscribers – 2009 - 2012; 2015
• Table 87 – Forecast mobile monthly ARPU - 2009 - 2010; 2015

• Exhibit 1 – EU – The New Regulatory Framework (NRF)
• Exhibit 2 – Access and the local loop
• Exhibit 3 – Overview of media convergence
• Exhibit 4 – BlackBerry services defined