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Luxembourg - Telecoms, IP Networks, Digital Media and Forecasts


Attention: There is an updated edition available for this report.

1. Executive summary
2. Key statistics
3. Telecommunications market
3.1 Overview of Luxembourg’s telecom market
4. Regulatory environment
4.1 History
4.1.1 2011 legislation
4.1.2 EU regulatory framework
4.2 Regulatory authorities
4.3 Telecom sector liberalisation in Luxembourg
4.3.1 Interconnect
4.3.2 Access
4.3.3 Number portability (NP)
4.3.4 Carrier PreSelection
5. Fixed network operators in Luxembourg
5.1 P&T Luxembourg
5.2 Cegecom
5.3 Tango
5.4 Voice over Internet Protocol (VoIP)
6. Telecommunications infrastructure
6.1 National telecom network
7. Broadband market
7.1 Overview
7.1.1 Government support
7.1.2 Broadband statistics
7.2 Cable modems
7.3 Asymmetrical Digital Subscriber Line (ADSL)
7.4 Fibre
7.5 Wireless broadband
7.5.1 Wireless Local Loop (WLL)
7.5.2 WLAN/WiFi/WiMAX
7.6 Internet via satellite
8. Digital media
8.1 Overview of digital media
8.2 Digital TV (DTV)
8.2.1 TV-over-DSL (IPTV)
8.2.2 Cable TV (CATV)
8.2.3 Satellite TV
8.2.4 RTL Group
8.2.5 SES Astra
9. Mobile communications
9.1 Overview of Luxembourg’s mobile market
9.1.1 Mobile statistics
9.2 Regulatory issues
9.2.1 Spectrum regulations and spectrum auctions
9.2.2 Fixed-to-mobile call charges
9.2.3 Mobile Number Portability
9.2.4 Roaming
9.2.5 Bundling
9.3 Mobile technologies
9.3.1 Digital
9.3.2 Third Generation (3G) mobile
9.4 Major mobile operators
9.4.1 LuxGSM
9.4.2 Tango
9.4.3 Orange
9.4.4 MVNOs
9.5 Mobile data services
9.5.1 Short Message Service (SMS)
9.5.2 Multimedia Messaging Service
9.5.3 Mobile TV
9.5.4 Long-term Evolution (LTE)
10. Forecasts
10.1 Broadband forecasts - 2007 - 2012; 2020
10.1.1 Scenario 1 - higher broadband subscriber growth
10.1.2 Scenario 2 - lower broadband subscriber growth
10.2 Notes on scenario forecasts
11. Related reports
List of Tables, Charts and Exhibits
Table 1 - Country statistics Luxembourg - 2011 (e)
Table 3 - Telephone network statistics - 2011 (e)
Table 4 - Internet user statistics - June 2011
Table 5 - Broadband statistics - 2011 (e)
Table 6 - Mobile statistics - 2011 (e)
Table 7 - National telecommunications authorities
Table 8 - Telecom revenue by sector - 2003 - 2012
Table 9 - Telecom investment by sector - 2004 - 2012
Table 10 - Fixed-services revenue - 2003 - 2010
Table 11 - Telecom revenue by operator- 2003 - 2010
Table 12 - Interconnection revenue - 2005 - 2010
Table 13 - Unbundled loops and access lines - 2006 - 2010
Table 14 - LLU, shared access price - connection, monthly rental - 2007 - 2010
Table 15 - Unbundled lines - 2004 - 2010
Table 16 - Accumulated fixed numbers ported - 2002 - 2010
Table 17 - Preselection lines - 2008 - 2009
Table 18 - Fixed-line revenue by sector - 2003 - 2010
Table 19 - Fixed-line traffic by sector - 2004 - 2010
Table 20 - Altnet fixed-lines and market share - 2004 - 2010
Table 21 - P&T Luxembourg revenue - 2003 - 2010
Table 22 - Tango mobile subscribers - 2009 - 2011
Table 23 - Tango revenue - 2008 - 2011
Table 24 - Fixed lines in service and teledensity - 1995; 1997; 1999 - 2012
Table 25 - Broadband market revenue - 2003 - 2012
Table 26 - Broadband subscriber growth by year - 2004 - 2012
Table 27 - Internet users and penetration rate - 1995 - 2012
Table 28 - Total broadband subscribers and penetration rate - 2001 - 2010
Table 29 - Broadband subscribers by type - 2006; 2008 - 2010
Table 30 - Cable broadband subscribers - 2005 - 2010
Table 31 - LuxDSL subscribers - 2004 - 2010
Table 32 - Mobile (SIM) subscribers and penetration rate - 1999 - 2013
Table 33 - Proportion of contract subscribers - 2007 - 2012
Table 34 - Mobile services revenue - 2004 - 2012
Table 35 - Mobile traffic by sector - 2005 - 2010
Table 36 - Fixed-to-mobile interconnection charges - 2006 - 2009
Table 37 - Cumulative mobile numbers ported - 2005 - 2010
Table 38 - Tango revenue - 2009 - 2011
Table 39 - Orange subscribers - 2007 - 2011
Table 40 - Orange revenue and ARPU (historic) - 2007 - 2009
Table 41 - SMS messages - 2004 - 2012
Table 42 - Mobile data traffic - 2009 - 2012
Table 43 - Forecast broadband subscribers - higher market growth scenario - 2007 - 2012; 2020
Table 44 - Forecast broadband subscribers - lower market growth scenario - 2007 - 2012; 2020
Chart 1 - Telecom revenue by sector - 2003 - 2012
Chart 2 - Telecom investment by sector - 2004 - 2012
Chart 3 - Fixed-services revenue - 2003 - 2010
Chart 4 - Telecom revenue by operator- 2003 - 2010
Chart 5 - Fixed-line revenue by sector - 2003 - 2010
Chart 6 - Fixed-line traffic by sector - 2004 - 2010
Chart 7 - P&T Luxembourg revenue - 2003 - 2010
Chart 8 - Mobile services revenue - 2004 - 2012
Chart 9 - Mobile traffic by sector - 2005 - 2010
Exhibit 1 - EU - The New Regulatory Framework (NRF)
Exhibit 2 - Access and the local loop
Exhibit 3 - Overview of digital media

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

National fibre strategy positions Luxembourg at the forefront of Europe’s 1Gb/s fibre future

Luxembourg has one of the smallest telecom markets in Europe, greatly supported by an influx of workers and migrants from larger neighbouring countries. Luxembourg City is also one of the political centres of the European Union, and so attracts affluent migrant employees.

Overall revenue from electronic communications services reached €494 million in 2010, about the same as in 2009. Revenue from mobile services increased 6.5% in the year while fixed-line service revenue fell 6.1%. Continued steady growth is expected during the next few years at least as the Duchy’s upgraded network infrastructure attracts international interest from companies seeking high-end connectivity.

Total investment in fixed-line and mobile infrastructure has also risen steadily, and do so for the next five year as operators migrate from copper to FttH and FttC. Equally, there is considerable investment in mobile networks to provide mobile broadband connectivity to subscribers based on HSPA and LTE technologies.

Investment has been maintained in spite of the impact of the financial crisis and by the effects of Luxembourg’s general economic slump, which saw GDP fall 3.7% in 2009 before showing strong recovery in 2010, with growth at 3.4%. Similar growth, at about 3%, is forecast for 2011, while GDP per capita, at about US$120,000, provides one of the highest disposable incomes in Europe to maintain consumer spend on telecom services.

The incumbent P&T retains the dominant player in all market sectors, despite the telecoms market having been liberalised in 1998. Regulatory measures during the last few years have encouraged broadband competition through local loop unbundling, yet the proportion of unbundled lines remains relatively low. As yet, there are few broadband subscribers on fibre networks but this is set to change as the country migrates to FttH architecture. P&T has set aside €500 million to build its NGN, an open access platform which should allow for effective competition though high wholesale access prices may need to be addressed by the regulator.

In common with most other markets, revenue from the fixed line sector has been falling steadily. Indeed 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.

High mobile penetration has slowed subscriber growth in the mobile market since 2005. Partly as a result of fixed-mobile substitution, Luxembourg has one of the lowest fixed-line densities in Europe, at about 50%. As a consequence, revenue from the fixed line sector has been falling steadily as consumers migrate to mobile-only solutions. In 2005 income generated by mobile telecommunications exceeded those of fixed lines for the first time.

Luxembourg - key telecom parameters - 2010; 2012

Sector20102012 (e)

Subscribers to telecoms services:

Fixed broadband165,000210,000

Fixed-line telephony272,000280,000

Mobile729,000730,000

Penetration rate by service

Fixed-line51%53%

Broadband33%37%

Mobile (SIM):151%153%

(Source: BuddeComm)

Market highlights:

In late 2011 P&T completed a 100Gb/s data connection between Luxembourg and Frankfurt, providing connectivity to other terrestrial cable systems. The development will help consolidate the Duchy as a base for business and for companies seeking high-end connectivity in the region

The government’s ‘National Strategy for very high-speed networks’ aims to encourage telcos to implement FttH nationally, providing at least 100Mb/s connectivity by 2015 and 1Gb/s by 2020. The progressive roll-out calls for some 80% of the population to have access to 100Mb/s by the end of 2013 and 50% to have access to 1Gb/s downlink by the end of 2015.

A number of geographic zones reserved for economic activity have been prioritized for the FttH service: since the beginning of 2011 buildings have been equipped with passive in-house ducts and equipment required for FttH. A national infrastructure inventory (similar to one developed in Germany) as well as more efficient use of civil engineering works have helped reduce roll out costs: a registry of civil engineering works is intended to identify work permits usable for fibre deployment. In addition, the regulator has worked on a framework to release appropriate spectrum bands for use in mobile broadband.

Luxembourg’s mobile SIM penetration continues to be the highest in Europe, largely due to the high number of transient workers and to the popularity of multiple SIM use.

Henry Lancaster

October 2011

Data in this report is the latest available at the time of preparation and may not be for the current year.

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 2020.

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