Spain - Key Statistics, Telecom Market and Regulatory Overviews

Synopsis

The value of Spain’s telecom market has contracted since the high of 2007. Worth €40 billion in 2009, it may only reach €38 billion in 2011 and continue to fall for the next two years at least as consumers adjust to high unemployment, negligible GDP growth and a tightening of domestic budgets. Mobile penetration is high and growing steadily, particularly in the 3G sector, while broadband uptake is backed by continuing investment in infrastructure in a bid to address the relatively slow data speeds available. Cable operators have launched 100Mb/s services, matched by Telefónica in early 2011 on its limited FttH network. These upgrades are required to stimulate the market for bundled services and a range of IP-delivered offers. The regulator has fostered competition by providing access to the incumbent’s DSL networks through local loop unbundling, as well as to its fibre networks through regulating access to ducts and infrastructure. The newly elected conservative government will be pressed to implement policies which encourage the ICT sector, secure the development of NGNs and ensure that Spain has a vibrant telecoms infrastructure to enable it to compete effectively in a global economy.

This report introduces the key aspects of the Spanish telecom market, providing statistics on the fixed-network services sector, and profiling the main players and their strategies to meet an increasingly competitive environment. The report also assesses the main regulatory issues, noting the status of interconnection, local loop unbundling, number portability and carrier preselection.

Key developments:

New government pressed to revitalise telecoms sector; Telefónica considers asset sales; telecom revenue falls 4% in Q2 2011; regulator agrees to 6.8% increase in LLU charges; Telefónica eyes Middle East market through deal with Etisalat, develops new organisational structure; new indirect access model to be introduced for 2012; Telefónica planning to invest US$14.6 billion in Brazil to 2014; revised wholesale broadband access regulations for 2012; regulator’s market data for Q3 2011 and updates to November 2011; operator data to Q3 2011.

Companies covered in this report include:

Orange, Telefónica, Jazztel, ONO.

Table of Contents

• 1. Synopsis
• 2. Key statistics
• 3. Telecommunications market
  • 3.1 Overview of Spain’s telecom market
  • 3.2 E-commerce
  • 3.3 Avanza Plan
• 4. Regulatory environment
  • 4.1 History
    • 4.1.1 EU regulatory framework
  • 4.2 Regulatory authority
    • 4.2.1 Telecommunications Market Commission (CMT)
  • 4.3 Telecom sector liberalisation in Spain
    • 4.3.1 Privatisation of Telefónica
    • 4.3.2 Interconnect
    • 4.3.3 Access
    • 4.3.4 Number portability
    • 4.3.5 Carrier PreSelection (CPS)
    • 4.3.6 Wholesale Line Rental (WLR)
• 5. Fixed network operators
  • 5.1 Overview of operators
  • 5.2 Telefónica
    • 5.2.1 Performance in 2011
    • 5.2.2 Company restructure
  • 5.3 The Auna Group (historic)
  • 5.4 Orange
  • 5.5 Vodafone España
  • 5.6 Jazztel
  • 5.7 ONO
• 6. Telecommunications infrastructure
  • 6.1 National telecom network
  • 6.2 International infrastructure
    • 6.2.1 Satellite networks
    • 6.2.2 Submarine cable
  • 6.3 Next Generation Networks (NGN)
• 7. Related reports

• Table 1 – Country statistics – 2011
• Table 2 – Telecom revenue and investment statistics – 2011 (e)
• Table 3 – Telephone network statistics – November 2011
• Table 4 – Internet user statistics – September 2011
• Table 5 – Broadband statistics – September 2011
• Table 6 – Mobile statistics – November 2011
• Table 7 – National telecommunications authority
• Table 8 – Telecom revenue, retail and wholesale – 2000 - 2012
• Table 9 –Telecom revenue annual change – 2000 - 2010
• Table 10 – Telecom retail revenue by sector – 2005 - 2011
• Table 11 – Telecom retail revenue annual change, by sector – 2002 - 2011
• Table 12 – Telecom investment and annual change – 2000 - 2012
• Table 13 – Proportion of fixed-line and mobile traffic – 2000 - 2012
• Table 14 – E-commerce revenue – 2005 - 2012
• Table 15 – Wholesale interconnection revenue – 2007 - 2011
• Table 16 – Access lines by type (regulator data) – 2008 - 2011
• Table 17 – LLU, shared access price – connection and monthly rental – 2006 - 2009
• Table 18 – Subscribers by type of access – 2006 - 2011
• Table 19 – Cumulative fixed lines ported – 2002 - 2011
• Table 20 – Carrier PreSelection lines – 2005 - 2011
• Table 21 – Fixed-line market share of revenue by operators – 2007 - 2011
• Table 22 – Fixed-line subscribers, by operator – 2008 - 2011
• Table 23 – Fixed-line subscriber market share, by operator – 2008 - 2011
• Table 24 – Fixed-line price index – 2004 - 2011
• Table 25 – Household penetration of telephony services, by type – 2004 - 2011
• Table 26 – Telefónica Group financial data – 2006 - 2011
• Table 27 – Telefónica de España EBITDA – 2007 - 2011
• Table 28 – Telefónica de España revenue by type – 2007 - 2011
• Table 29 – Telefónica de España fixed-line revenue by sector – 2005 - 2011
• Table 30 – Telefónica de España access lines by service – 2005 - 2011
• Table 31 – Telefónica de España wholesale access by type – 2005 - 2011
• Table 32 – Orange subscribers by sector – 2005 - 2011
• Table 33 – Orange EBITDA, capex – 2007 - 2011
• Table 34 – Orange revenue – 2007 - 2011
• Table 35 – Vodafone financial data – 2008 - 2011
• Table 36 – Jazztel revenue by sector – 2008 - 2011
• Table 37 – Jazztel broadband subscribers by sector – 2006 - 2011
• Table 38 – ONO financial data by sector – 2006 - 2011
• Table 39 – ONO subscribers by sector– 2006 - 2011
• Table 40 – Fixed lines in service and penetration – 2003 - 2012

• Chart 1 – Telecom revenue, retail and wholesale – 2000 - 2012
• Chart 2 – Telecom retail revenue by sector – 2005 - 2011
• Chart 3 – Subscribers by type of access – 2006 - 2011
• Chart 4 – Telefónica Group financial data – 2006 - 2011
• Chart 5 – Telefónica de España revenue by type – 2007 - 2011
• Chart 6 – Telefónica de España fixed-line revenue by sector – 2005 - 2011
• Chart 7 – Telefónica de España access by service – 2005 - 2011
• Chart 8 – Telefónica de España wholesale access by type – 2005 - 2011
• Chart 9 – Orange subscribers by sector – 2005 - 2011
• Chart 10 – Vodafone financial data – 2009 - 2011
• Chart 11 – Jazztel revenue by sector – 2008 - 2011
• Chart 12 – Jazztel broadband subscribers by sector – 2006 - 2011
• Chart 13 – ONO financial data by sector – 2006 – 2011
• Chart 14 – ONO subscribers by sector– 2006 - 2011

• Exhibit 1 – EU – The New Regulatory Framework (NRF)
• Exhibit 2 – Access and the local loop