2007 Europe - Telecoms, Mobile and Broadband in Spain and Portugal

BuddeComm’s Spain and Portugal Annual Publication, ‘2007 Telecoms, Mobile and Broadband in Spain and Portugal’, profiles two significant markets which enjoy Internet and mobile penetration rates above the EU average.

Spain’s large mobile market was slow to develop an Mobile Virtual Network Operator sector, but by the end of 2006 the national regulator and the European Commission overcame operator resistance to allowing competitor access to their networks. By mid-2007 several MVNOs were preparing to launch services. The launch of a 3G service by Xfera has added further competition to a lively market, while providers have invested huge sums in building networks to support HSDPA. For the country overview, see chapter 1, page 1.

Portugal’s smaller telecom market has proved to be a major growth area. The incumbent, Portugal Telecom, has significant interests in Brazil and sub-Saharan Africa, and domestically is the leading telco in all sectors. The country’s broadband growth is supported by an excellent cable and DSL footprint, while alternative operators such as Vodafone have emerged as key providers of faster ADSL2+ services. For the country overview, see chapter 2, page 55.

Key Highlights

• Portugal’s broadband market showed continued strong growth in 2007. The incumbent dominates the DSL sector while its former subsidiary, PT Multimedia, sold in November 2007, bought up three regional cablecos in the year, further consolidating its market position. Cable data speeds at up to 100Mb/s were trialled in 2007, while ADSL2 at up to 24Mb/s is increasingly common. The government set a goal of 50% household broadband penetration by 2010, which should be easily achieved. For more information, see chapter 2.6.1, page 66.
• Broadband in Spain remains comparatively slow, with almost half of all subscribers only able to access about 1Mb/s. This has dampened consumer take up triple play services, though Telefónica and alternative providers have invested heavily in network upgrades, and during 2008 ADSL2+ will be extended beyond the major urban areas. By 2010 up to half of all households should get a 50Mb/s service. For more information, see chapter 1.6.1, page 15.
• IPTV take-up has grown rapidly in Spain, but its real potential will not be realised until 2008 when the country’s broadband infrastructure is further upgraded. Telefónica’s Imagenio service is very popular, while ONO, Jazztel and Orange also provide multiple-channel IPTV. For more information, see chapter 1.7.5.5, page 33.
• Regulator pressure opened up the Spanish market to MVNOs in late 2006, and by mid-2007 several operators were prepared to launch services on the three networks. This development will herald great changes to the country’s mobile market in coming years as competition further reduces consumer prices. For more information, see chapter 1.8.4.4, page 49.

Portugal and Spain mobile penetration – 2005 - 2008

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 gradually develops;
• The emergence of operators such as Vodafone in the fixed-line and broadband landscape, creating compelling quad-play offers for consumers;
• The increasingly broad triple play offers from Telefónica, ONO 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.