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Luxembourg - Telecoms, IP Networks, Digital Media and Forecasts


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The Luxembourg - Telecoms, IP Networks, Digital Media and Forecasts report includes all BuddeComm research data and analysis on this country. Covering trends and developments in telecommunications, mobile, internet, broadband, infrastructure and regulation.


Executive summary

Luxembourg has one of Europe’s smallest telecom markets, and consequently there is little room for significant growth or competition. In common with most other markets, revenue from the fixed line sector has been falling steadily as consumers migrate to mobile-only and computer-to-computer VoIP solutions. Since 2005, income generated by mobile telecoms has far exceeded that from of fixed lines, while revenue from the broadband sector has propped up total revenue, compensating for declining fixed-line revenue.

The market has also been affected by the country’s poor economic performance since 2007: the economy showed stagnant growth in 2008, while it was expected to shrink by about 5% in 2009 and show only moderate improvement in 2010. This decline has translated into more cautious spending among both domestic consumers and the many foreign workers (largely from international companies based in Luxembourg as also from departments of the European Union and affiliated associations).

Consequently, overall telecom revenue grew by a modest 1.5% in 2008, while it may show zero growth for 2009. Nevertheless, total investment in fixed-line and mobile infrastructure increased by 27% in 2008, year-on-year, reaching €121 million. About 80% of investment was in the fixed-line sector as operators showed a greater commitment to future-proofing their networks through deploying FttH and FttC. Mobile operators have similarly concentrated on network upgrades to provide mobile broadband connectivity to subscribers, and so exploit the potential of higher ARPU mobile data services.

Luxembourg - key telecom parameters - 2004; 2008
Sector20042008
Fixed-line service:
Total subscribers (thousand)320260
Annual change-4.4%5.2%
Fixed-line penetration (population)60%51%
Broadband:
Subscribers (thousand)37143
Annual change131%11%
Broadband penetration (population)8%30%
Mobile services:
Total subscribers (thousand)583707
Annual change7%3%
Mobile penetration (population)130%147%
(Source: BuddeComm)
Key highlights:
0 Luxembourg’s telecom sector revenue was worth about €506 million in 2008, of which 63% was from the incumbent P&T Luxembourg and 37% from alternative operators. The country’s small size benefits from having a population concentrated in a few towns, resulting in a high population density enabling national coverage of telecom services with relatively limited resources.

Luxembourg’s central geographic position in Europe has helped the country’s operators tap into international telecom networks, principally through the backbone networks of Belgacom, Deutsche Telekom and France Telecom as well as those of alternative telcos. Both P&T Luxembourg and the few main altnets have invested in fibre networks to anticipate future consumer demand for high-bandwidth services.

Important regulatory measures adopted in 2008 will safeguard competition on the local loop unbundling and the wholesale broadband access markets, and so grant easier access to P&T’s infrastructure. Nevertheless, further work needs to be done in coming years to improve conditions of access to NGNs.

Luxembourg’s mobile penetration, at a theoretical 150% in mid-2009, is the highest in Europe, though many registered SIM card holders are not-resident trans-frontier workers. The penetration rate is expected to continue climbing steadily in 2010, due in part to the popularity of users multiple SIMs for professional and private use.

Broadband penetration took off from 2005 as a result of regulatory measures to improve competition. In mid-2009 about 45% of all homes accessed the Internet via ISDN, far higher than elsewhere in the EU. The broadband market will become increasingly important for operators in coming year, and may represent 23% of total revenue in 2010 compared to 12% in 2006. Broadband penetration is the fifth highest in the EU27 and far above the EU27 average. P&T’s share of the overall broadband market will continue to fall in coming years, but it will remain the highest in the EU in the medium term.This report covers trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP and IPTV developments. Subjects include:

Market and industry analyses, trends and developments;
Facts, figures and statistics;
Industry and regulatory issues;
Infrastructure;
Major Players, Revenues, Subscribers;
Internet, VoIP, IPTV;
Mobile Voice and Data Markets;
Broadband (FttH, DSL, cable TV, wireless); Convergence and Digital Media;
Broadband market forecasts for selective years to 2018.

  • Executive summary
    • Table Luxembourg - key telecom parameters - 2009; 2011
  • Key statistics
    • Table Country statistics Luxembourg - 2010
    • Table Telecom revenue and investment statistics - 2009
    • Table Telephone network statistics - 2009
    • Table Internet user statistics - June 2010
    • Table Broadband statistics - 2009
    • Table Mobile statistics - 2009
    • Table National telecommunications authorities
  • Telecommunications market
    • Overview of Luxembourg's telecom market
      • Table Telecom investment by sector - 2004 - 2009
      • Table Fixed-services revenue - 2003 - 2009
      • Table Telecom revenue by operator- 2003 - 2009
  • Regulatory environment
    • History
      • EU regulatory framework
    • Regulatory authorities
    • Telecom sector liberalisation in Luxembourg
      • Interconnect
        • Table Interconnection revenue - 2005 - 2009
      • Access
        • Table Unbundled loops and access lines - 2006 - 2010
        • Table LLU, shared access price − connection, monthly rental - 2006 - 2009
        • Table Unbundled lines - 2004 - 2009
      • Number portability (NP)
        • Table Accumulated fixed numbers ported - 2002 - 2009
      • Carrier PreSelection
        • Table Preselection lines - 2008 - 2009
  • Fixed network operators in Luxembourg
    • Table Fixed-line revenue by sector - 2003 - 2009
    • Table Fixed-line traffic by sector - 2004 - 2009
    • Table Altnet fixed-lines and market share - 2004 - 2008
    • P&T Luxembourg
      • Table P&T Luxembourg revenue - 2003 - 2008
    • Cegecom
    • Tango Services
      • Table Tango mobile subscribers - 2009 - 2010
      • Table Tango revenue - 2008 - 2010
    • Voice over Internet Protocol (VoIP)
  • Telecommunications infrastructure
    • National telecom network
      • Table Fixed lines in service and teledensity - 1995; 1997; 1999 - 2009
  • Broadband market
    • Overview
      • Table Broadband market revenue - 2003 - 2009
      • Table Broadband subscriber growth by year - 2004 - 2011
      • Broadband statistics
        • Table Internet users and penetration rate - 1995 - 2011
        • Table Total broadband subscribers and penetration rate - 2001 - 2009
        • Table Broadband subscribers by type - 2006; 2008 - 2010
        • Table Broadband subscribers by provider - 2003 - 2009
        • Table Mobile broadband subscribers by type - 2009
    • Cable modems
      • Table Cable broadband subscribers - 2003 - 2009
    • Asymmetrical Digital Subscriber Line (ADSL)
      • Table LuxDSL subscribers - 2004 - 2009
    • Fibre
    • Wireless broadband
      • Wireless Local Loop (WLL)
      • WLAN/WiFi/WiMAX
    • Internet via satellite
  • Convergence
    • Overview of media convergence
    • Digital TV (DTV)
      • TV-over-DSL (IPTV)
      • Cable TV (CATV)
      • Satellite TV
      • RTL Group
      • SES Astra
  • Mobile communications
    • Overview of Luxembourg's mobile market
      • Mobile statistics
        • Table Mobile (SIM) subscribers and penetration rate - 1997; 1999 - 2011
        • Table Proportion of contract subscribers - 2007 - 2009
        • Table Mobile services revenue - 2004 - 2009
    • Regulatory issues
      • Spectrum regulations and spectrum auctions
        • Table Fixed-to-mobile interconnection charges - 2006 - 2009
      • Fixed-to-mobile call charges
      • Mobile Number Portability
        • Table Cumulative mobile numbers ported - 2005 - 2009
      • Roaming
      • Bundling
    • Mobile technologies
      • Digital
      • Third Generation (3G) mobile
    • Major mobile operators
      • LuxGSM
      • Tango
      • Orange
        • Table Orange subscribers ARPU - 2007 - 2010
        • Table Orange revenue and ARPU - 2007 - 2009
    • Mobile data services
      • Short Message Service (SMS)
        • Table SMS messages - 2004 - 2011
      • Multimedia Messaging Service
      • BlackBerry
      • Mobile TV
  • Forecasts
    • Broadband forecasts - 2007 - 2012; 2020
      • Scenario 1 - higher broadband subscriber growth
        • Table Forecast broadband subscribers - higher market growth scenario - 2007 - 2012; 2020
      • Scenario 2 - lower broadband subscriber growth
        • Table Forecast broadband subscribers - lower market growth scenario - 2007 - 2012; 2020
    • Notes on scenario forecasts

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