Market Research Logo

Luxembourg - Telecoms, IP Networks, Digital Media and Forecasts


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

Luxembourg - Telecoms, IP Networks, Digital Media and Forecasts

Migration to NGN raises overall telecom investment

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 bucked the downward trend seen in many other European markets, growing slightly in 2012 with similar growth anticipated into 2014. Much of this growth is due to the strong mobile services sector while revenue from fixed-line telephony continued to fall. 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 infrastructure has also risen steadily, and is expected to continue to 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, though the amount invested in 2012 fell year-on-year.

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 in 2009, largely due to the knock-on effects of the poor economic performances of the Duchy's neighbouring trading partners. Nevertheless, GDP per capita, at about US$105,000, provides one of the highest disposable incomes in Europe to maintain consumer spend on telecom services.

The incumbent POST Telecom (formerly P&T Luxembourg) remains 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. POST Telecom 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 penetration of telecom services 2010; 2013
Penetration rate by service: | 2013 (e)
Fixed-line | 53%
Broadband | 32%
Mobile (SIM): | 145%
(Source: BuddeComm)

Market highlights:

P&T Luxembourg in mid-2013 rebranded as POST Telecom to reflect the diversity of services it offers.

POST Telecom has launched two m-payment services via the operator's post offices. Customers can make purchases via smartphones and similar devices from selected bank accounts

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.

POST Telecom in early 2013 began trialling DSL vectoring to provide higher broadband data rates.

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 Luxembourg's telecommunications market. The report analyses the mobile, internet, broadband, digital TV and converging media sectors.

Subjects include:

Market and industry analyses, trends and developments;
Facts, figures and statistics;
Industry and regulatory issues;
Infrastructure;
Major Players, Revenues, Subscribers; ARPU;
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.

Key developments:

Includes telcos' financial and operating data to Q3 2013, regulator market data for 2012, market developments to November 2013.

Companies covered in this report include:

POST Luxembourg, Cegecom, Tango, Telecom Luxembourg


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 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 POST Telecom
5.1.1 Data centres
5.1.2 Cloud
5.2 Cegecom
5.3 Tango
5.4 Telecom Luxembourg
5.5 Voice over Internet Protocol (VoIP)
6. Telecommunications infrastructure
6.1 National telecom network
6.2 International 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)
7.3.1 DSL vectoring
7.4 Fibre
7.5 Wireless broadband
7.5.1 Wireless Local Loop (WLL)
7.5.2 WLAN/WiFi/WiMAX
7.5.3 Mobile broadband
7.6 Internet via satellite
8. Digital media
8.1 Overview of digital media
8.2 Bundling
8.3 Digital TV (DTV)
8.3.1 TV-over-DSL (IPTV)
8.3.2 Cable TV (CATV)
8.3.3 Satellite TV
8.3.4 RTL Group
8.3.5 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 POST Telecom
9.4.2 Tango
9.4.3 Orange
9.4.4 MVNOs
9.5 Prepaid
9.6 Mobile data services
9.6.1 Short Message Service (SMS)
9.6.2 Multimedia Messaging Service
9.6.3 Mobile TV
9.6.4 Long-term Evolution (LTE)
9.6.5 Mobile payments
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
Table 1 Country statistics Luxembourg 2013 (e)
Table 2 Telecom revenue and investment statistics 2012
Table 3 Telephone network statistics 2013 (e)
Table 4 Internet user statistics 2012
Table 5 Broadband statistics 2013 (e)
Table 6 Mobile statistics 2013 (e0
Table 7 National telecommunications authorities
Table 8 Telecom revenue (fixed, mobile) 2003 - 2012
Table 9 Telecom revenue by sector 2010 - 2012
Table 10 Telecom investment by sector 2004 - 2012
Table 11 Telecom revenue by operator 2003 - 2012
Table 12 Fixed-line, broadband and mobile ARPU 2010 - 2012
Table 13 Interconnection revenue 2010 - 2011
Table 14 LLU, shared access price - connection, monthly rental 2007 - 2010
Table 15 Unbundled lines 2004 - 2010
Table 16 Accumulated fixed numbers ported 2002 - 2012
Table 17 Preselection lines 2008 - 2009
Table 18 Fixed-services revenue by type 2003 - 2012
Table 19 Fixed-line traffic by sector 2004 - 2012
Table 20 Altnet fixed-lines 2004 - 2012
Table 21 Altnet fixed-line market share 2004 - 2012
Table 22 POST Luxembourg telecom revenue 2003 - 2011
Table 23 POST Group financial data 2008 - 2012
Table 24 Historic - Fixed lines in service and teledensity 1995; 1997; 1999 - 2004
Table 25 Fixed lines in service and teledensity 2005 - 2013
Table 26 Broadband market revenue 2003 - 2012
Table 27 Broadband subscriber growth by year 2004 - 2012
Table 28 Broadband coverage by technology 2012
Table 29 Proportion of broadband subscribers by data rate 2011
Table 30 Historic - Internet users and penetration rate 1995 - 2004
Table 31 Internet users and penetration rate 1995 - 2014
Table 32 Broadband subscribers and penetration rate 2001 - 2013
Table 33 Market share of broadband subscribers by operator 2006 - 2012
Table 34 POST Telecom DSL subscribers 2004 - 2012
Table 35 FttN and FttH broadband subscribers 2010 - 2012
Table 36 Mobile broadband subscribers 2010 - 2012
Table 37 TV subscribers 2011 - 2012
Table 38 Bundled services subscribers by type 2011 - 2012
Table 39 IPTV subscribers 2011 - 2012
Table 40 Historic - Mobile (SIM) subscribers and penetration rate 1999 - 2004
Table 41 Mobile (SIM) subscribers and penetration rate 2005 - 2013
Table 42 M2M subscriptions 2010- 2012
Table 43 Proportion of contract subscribers 2007 - 2012
Table 44 Mobile services revenue 2004 - 2012
Table 45 Mobile traffic by sector 2005 - 2012
Table 46 Mobile revenue by sector 2009 - 2012
Table 47 Mobile ARPU 2005 - 2012
Table 48 Mobile market share of subscribers by operator 2007 - 2012
Table 49 SMS traffic 2009 - 2012
Table 50 Mobile data traffic 2009 - 2012
Table 51 Fixed-to-mobile interconnection charges 2006 - 2009
Table 52 Cumulative mobile numbers ported 2005 - 2011
Table 53 Tango revenue 2009 - 2012
Table 54 Tango subscribers 2010 - 2013
Table 55 Orange subscribers 2007 - 2013
Table 56 Prepaid and contract subscribers 2007 - 2010
Table 57 SMS message traffic 2004 - 2013
Table 58 Mobile data traffic 2009 - 2013
Table 59 MMS traffic 2011 - 2013
Table 60 Forecast broadband subscribers higher market growth scenario 2007 - 2012; 2020
Table 61 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 Telecom revenue by operator 2003 2012
Chart 4 Fixed-services revenue 2003 2012
Chart 5 Fixed-line traffic by sector 2004 2012
Chart 6 POST Luxembourg financial data 2008 2012
Chart 7 Mobile services revenue 2004 2012
Chart 8 Mobile traffic by sector 2005 2012
Exhibit 1 EU The New Regulatory Framework (NRF)
Exhibit 2 Access and the local loop
Exhibit 3 Overview of digital media

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report