Spain - Telecommunications: Plethora of opportunities despite challenges (Strategy, Performance and Risk Analysis)
This report provides an in depth analysis of the Spanish telecommunication market, exploring key areas including the market’s competitive landscape and key players, technological advancements and innovations, and the current challenges and opportunities set to influence the market. Though Spain has a volatile economy due to political instability and an unemployment crisis, there are growing investments in network upgrades, keeping in line with the Digital Agenda, adopted by the Spanish Government in 2013. Readers can find more detailed information on governmental initiatives to improve the quality of telecom services in the country within the report.
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Though Movistar enjoys top position, Orange grows faster
With 21.6 million subscription in 2016, Movistar is the market leader. However, the firm’s subscription base declined at a CAGR of -1.8% during 2012-2016 as the company failed to retain postpaid customers. Orange Spain registered the highest subscription growth at a CAGR of 6.0% during 2012-2016 and has the lowest ARPS of US$13.4. While the churn rate declined for all other operators, Yoigo’s churn rate increased from 32.3% in 2012 to 34.5% in 2016.
Regulations expected to erode roaming revenue
The CMT is the regulatory body governing the telecom industry, ensuring transparency and fair competition. However, regulations on roaming and MTRs are likely to have a negative impact on operating profits. The CMT announced its roaming policy in accordance with the EC’s decision to remove roaming charges with effect from June 15, 2017. However, it allowed operators to levy a small surcharge to national rates per European Union law during April 30, 2016 to June 14, 2017.
Vodafone launched the first NB-IoT network in Spain
In January 2017, Vodafone launched the first NB-IoT network after modernizing its existing 4G base stations in the 800MHz licensed spectrum frequency band. Huawei and Vodafone joint innovation initiative solutions help customers meet their business challenges and to lead the development of the technology and industry ecosystems.