Last updated: 24 Apr 2013 Update History
Report Status: Archived
Report Pages: 77
Analyst: Henry Lancaster
Publication Overview
This report provides a comprehensive overview of trends and developments in Portugal’s telecommunications market. The report analyses the mobile, internet, broadband, digital TV and converging media sectors. Subjects include:
Key developments:
PT eliminates special rights granted to the government’s golden shares; AR Telecom exits residential market; Multi-band spectrum auction raises €372 million; ZON Multimedia and Optimus to merge; TMN reaches 90% population LTE coverage; mobile data reaches 40TB in 2012; Lycamobile launches mobile services; fibre sector showing strongest growth, accounts for 75% of all new subscribers; Cogeco sells Cabovisão for €45 million; regulator’s market data to Q4 2012; telcos’ operating and financial data to Q4 2012; market developments to April 2013.
Companies covered in this report include:
Portugal Telecom, Sonaecom, Cabovisão, Vodafone, ZON Multimedia; TMN, Optimus.
Researcher:- Henry Lancaster
Current publication date:- April 2013 (11th Edition)
Executive Summary
BuddeComm’s half-yearly 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 one of Europe’s smaller countries yet having a progressive telecoms market. The report includes the regulator’s market data to Q4 2012; telcos’ operating and financial data to Q4 2012; market developments to April 2013.
Economic background
Portugal’s telecom market provides one of the highest contributions to GDP in the EU. The government’s high proportion of debt to GDP has continued to jeopardise publicly funded telecom infrastructure investment and placed a greater burden on the private sector to deliver fibre-based infrastructure. The newly elected government has set budget deficit targets to 2015. Spending cuts required to achieve the fiscal overhaul are expected to cause Portugal’s GDP to contract by 3% in 2012, affecting growth, consumer spend and business investment.
Telecom market overview
Broadband penetration is below the EU average while mobile penetration is among the highest. The incumbent Portugal Telecom has seen its share of the total traffic market (voice and internet) gradually shrink, though it retains a dominant share in both the voice and DSL markets. Market revenue is expected to continue to fall slightly to 2013, in line with lower sector investment, as operators face regulatory burdens compounded by consumers spending less on services. Operators have reported declining revenue for several quarters, and little respite is anticipated in the near future. PT has weathered the times better than competitors on the strength of its subsidiaries in Brazil.
Broadband market
Portugal’s competitive broadband sector is served by a large number of DSL, cable and fibre operators though four of them alone together have a 94% share of subscribers. PT and Sonaecom dominate the fast-emerging FttH market, while the three MNOs also offer mobile broadband. Cable broadband is available to about 85% of the country on average, or 50% of rural areas. Overall subscriber growth remains strong, and though DSL is the principal access technology, in coming years its market share will shrink as customers are migrated to fibre networks: indeed fibre is now accounts for three of every four new customers.
Key telecom parameters – 2010; 2013
Sector |
2010 |
2013 (e) |
Subscribers to telecom services (million): |
||
Fixed broadband subscribers |
2.07 |
2.5 |
Mobile broadband |
16.47 |
17.12 |
Fixed-line telephony |
4.48 |
4.61 |
Mobile (SIM cards) |
16.47 |
16.15 |
Telecom penetration by service: |
||
Fixed broadband |
21% |
31% |
Mobile telephony |
155% |
164% |
Fixed-line telephony |
40% |
43% |
(Source: BuddeComm)
Market Highlights
This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Portugal. It provides further information on:
Data in this report is the latest available at the time of preparation and may not be for the current year.
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