Luxembourg - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses
Luxembourg on track to becoming Europe's first fibred country
Despite the effects of the global financial crisis in 2008 overall revenue from electronic communications services in Luxembourg increased in subsequent years, bucking the downward trend seen in many other European markets. This growth came to an end of 2014, when revenue fell 5.4% year-on-year. Declining revenue was partly caused by the effects of regulatory measures on areas such as interconnection tariffs and roaming charges, as also by lower consumer use of fixed-line voice services and by the prevalence of VoIP/VoBB over traditional PSTN lines.
Nevertheless, the market is adjusting to these pressures. In recent years the incumbent telco POST Telecom (formerly P&T Luxembourg) has concentrated on cloud and managed services, as well as on offering bundled packages. The company by early 2016 offered a 100Mb/s service nationally, while the footprint of its 1Gb/s service is making gains. This work is in line with the government's program to provide a 1Gb/s service to all citizens by 2020, and to make Luxembourg the first fully fibred country in Europe.
Investment in infrastructure is being encouraged by these ambitions, and as a result investment in both fixed line and mobile networks has increased considerably since 2013. Apart from benefitting domestic customers, fibre-based broadband availability within the Duchy is also attracting international companies seeking high-end connectivity.
POST Telecom 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.
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 51%.
POST Telecom reported 2% revenue growth in 2014, reflecting the strength of its broadband and TV offerings; report updates includes the regulator's market data for 2014, telcos' financial and operating data to Q3 2015, recent market developments.