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Portugal - Telecoms, IP Networks, Digital Media and Forecasts


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

This annual report provides a comprehensive overview of trends and developments in Portugal’s telecommunications market. The report analyses trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP, VoD and IPTV developments.  

Subjects include:

  • Key statistics;
  • Market and industry overviews;
  • Industry and regulatory issues;
  • Major players (fixed, mobile and broadband);
  • Mobile voice and data markets;
  • Internet and broadband development;
  • Convergence (voice/data, fixed/wireless/mobile);
  • Telecom market forecasts for selective years to 2015 or 2019.


BuddeComm’s annual publication, Portugal - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in Portugal.  

Broadband penetration in Portugal remains below the EU average though mobile penetration is among the highest in Europe. Despite competition and an effective LLU regime, Portugal Telecom retains a two-thirds share of the voice market, dominates the DSL market and remains the leading operator in the mobile sector.  

In the broadband sector, consumers can expect to benefit from a substantial increase in data speeds in 2010: ZON Multimédia will vastly expand its 100M/s offer while also deploying Europe’s first 1Gb/s FttH service, Fiber Zon. The government has also committed considerable infrastructure funds to develop the fibre sector, having already provided €800 million towards the estimated €2.5 billion national network cost. In common with many EU countries, the government has included broadband development in its economic recovery plans and has undertaken to pass legislation in 2010 aimed at reducing barriers to investment in new networks and ensuring equal access to the new infrastructure.  

Portugal’s telecoms market was expected to grow by an average 3% annually for the next two to three years, largely bolstered by the broadband and 3G sectors. The equipment market was expected to have the highest average annual growth rate at about 4%.  

Portugal - key telecom parameters - 2008, 2010
Sector | 2008 | 2010 (e) |
Broadband: |   |   |
Fixed broadband subscribers (million) | 1.63 | 2.14 |
Fixed broadband penetration rate | 15% | 20% |
Mobile broadband subscribers (million) | 2.38 | 5.20 |
Subscribers to telecoms services: |   |   |
Fixed-line telephony (million) | 4.1 | 4.3 |
SIM cards in service (million) | 14.9 | 17.8 |
SIM penetration (population) | 140% | 153% |
(Source: BuddeComm)

  Key highlights:

  • Telecom market investment has shown renewed vigour since 2007. Although this was expected to be dampened by the global economic crisis, government stimulus funds earmarked for 2010 and 2011 with help develop the country’s fibre-based All-IP infrastructure.
  • The value of the fixed-line sector will continue to fall in 2010 under the impact of cheaper mobile call rates and the wider use of VoIP. The incumbent’s share of fixed-line traffic and revenue will for the first time fall below 50% in 2010 as operator’s such as Vodafone move into this sector, exploiting their own fixed-line networks as well as consumer adoption of fixed-mobile substitution.
  • In common with EC-wide measures, the 900MHz and 1800MHz bands are expected to be assigned for 3G services in 2010, following longstanding UMTS 900 trials by Vodafone and Optimus. The move will widen wireless broadband availability in remote regions and help fulfil national broadband targets for 2012.
  • Government broadband initiatives aimed at doubling the number of broadband households by the end of 2010 will be bolstered by €1 billion from state funds, which is expected to be matched by a further €1.5 billion from the private sector. These commitments have been complemented by a strong emphasis on fibre-based networks.
  •  
Data in this report is the latest available at the time of preparation and may not be for the current year.

1. Key statistics
2. Telecommunications market
2.1 Overview of Portugal’s telecom market
3. Regulatory environment
3.1 History
3.2 Regulatory authority
3.2.1 National Communications Authority
3.3 Telecom sector liberalisation in Portugal
3.3.1 Privatisation of Telecom Portugal
3.3.2 Interconnect
3.3.3 Access
3.3.4 Carrier PreSelection (CPS)
3.3.5 Number Portability (NP)
3.3.6 Wholesale Line Rental (WLR)
4. Fixed network market
4.1 Overview of operators
4.2 Portugal Telecom
4.3 Oni
4.4 Sonaecom
4.4.1 Going into 2009
4.4.2 Novis
4.5 AR Telecom
4.5.1 Jazztel (historic)
4.6 ZON Multimédia
5. Telecommunications infrastructure
5.1 National telecom network
5.1.1 Next Generation Networks (NGNs)
5.2 International infrastructure
6. Broadband market
6.1 Overview
6.1.1 Broadband statistics
6.2 Cable modems
6.2.1 ZON Multimédia
6.2.2 Cabovisão
6.3 Asymmetrical Digital Subscriber Line (ADSL)
6.3.1 Portugal Telecom
6.3.2 Sonaecom
6.3.3 ADSL2+
6.3.4 Wholesale
6.3.5 Wholesale prices and retail price difference
6.4 Fibre-to-the-Home (FttH) networks
6.5 Broadband over Powerline (BPL)
6.6 Mobile broadband
6.7 Wireless broadband
6.7.1 Wireless Local Loop (WLL)
6.7.2 WiFi
7. Digital media
7.1 Convergence
7.2 Key general trends
7.3 Business models
7.3.1 Bundled services
7.4 Digital TV (DTV)
7.4.1 Overview
7.4.2 TV-over-DSL (IPTV)
7.4.3 TV-over-FttH
7.4.4 Cable TV (CATV)
7.4.5 Satellite-based digital pay TV developments
7.4.6 Digital Terrestrial TV
7.4.7 Free-to-Air (FTA) TV
7.4.8 VoIP services
7.4.9 Video-on-Demand
8. Mobile communications
8.1 Overview of Portugal’s mobile market
8.1.1 Mobile statistics
8.2 Regulatory issues
8.2.1 Spectrum regulations and spectrum auctions
8.2.2 Roaming
8.2.3 Mobile number portability (MNP)
8.2.4 Mobile termination rates (MTRs)
8.3 Mobile technologies
8.3.1 Digital
8.3.2 Third Generation (3G) mobile
8.3.3 Mobile broadband
8.4 Major mobile operators
8.4.1 TMN
8.4.2 Vodafone
8.4.3 Optimus
8.4.4 OniWay exits the market
8.4.5 Mobile Virtual Network Operators (MVNOs)
8.5 Mobile voice services
8.5.1 Prepaid
8.5.2 Fixed-mobile convergence (FMC)
8.6 Mobile data services
8.6.1 Short Message Service (SMS)
8.6.2 Multimedia Messaging Service (MMS)
8.6.3 General Packet Radio Service (GPRS)
8.6.4 Push-to-Talk (PTT)
8.6.5 High-Speed Packet Access (HSPA)
8.6.6 High-Speed Uplink Packet Access (HSUPA)
8.6.7 BlackBerry
8.6.8 Mobile TV
8.6.9 TETRA (TErrestrial Trunked RAdio)
8.6.10 Mobile content and applications
9. Forecasts
9.1 Forecasts - broadband subscribers - 2009-2012; 2019
9.1.1 Scenario 1 - higher broadband subscriber growth
9.1.2 Scenario 2 - lower broadband subscriber growth
9.2 Forecasts - UMTS subscribers - 2009 - 2012; 2015
9.3 Forecasts - mobile ARPU - 2009 - 2010; 2015
10. Glossary of Abbreviations
Table 1 - Country statistics Portugal - 2009
Table 2 - Telecom revenue and investment statistics - 2008
Table 3 - Telephone network statistics - September 2009
Table 4 - Internet user statistics - September 2009
Table 5 - Broadband statistics - September 2009
Table 6 - Mobile statistics - June 2009
Table 7 - National telecommunications authority
Table 8 - Telecom market investment - 2004 - 2008
Table 9 - Telecom market value - 2000 - 2008
Table 10 - Portugal Telecom interconnection tariffs - 2007 - 2008
Table 11 - Unbundled loops and access lines - 2004 - 2008
Table 12 - Number and type of access lines: analogue and digital - 2005 - 2008
Table 13 - LLU, shared access price - connection and monthly rental - 2005 - 2008
Table 14 - Portugal Telecom wholesale lines - 2008 - 2009
Table 15 - Fixed telephone customers, access type and shared access lines - 2004 - 2009
Table 16 - Portugal Telecom’s share of direct access customers - 2005 - 2009
Table 17 - Cumulative fixed-line numbers ported - 2003 - 2008
Table 18 - Fixed-line revenue - 2007 - 2008
Table 19 - Share of fixed-line accesses by operator - 2006 - 2009
Table 20 - Portugal Telecom accesses and subscribers by sector - 2006 - 2009
Table 21 - Portugal Telecom financial data - 2005 - 2009
Table 22 - Sonaecom financial data and annual change - 2006 - 2009
Table 23 - Sonaecom subscribers by sector - 2008 - 2009
Table 24 - ZON Multimédia subscribers - 2007 - 2009
Table 25 - ZON Multimédia financial data - 2007 - 2009
Table 26 - Fixed lines in service and teledensity - 1995; 1997; 1999 - 2009
Table 27 - Internet users and penetration rate - 1997 - 2010
Table 28 - Broadband lines and data speeds - January 2009
Table 29 - Internet subscribers by access type - 2005 - 2009
Table 30 - Broadband subscribers by access type and annual change - 2007 - 2009
Table 31 - Broadband subscribers by operator type - 2006 - 2009
Table 32 - Total broadband subscribers by type and penetration rate - 2000 - 2009
Table 33 - Broadband penetration by sector - 2007 - 2009
Table 34 - Broadband subscriber annual change year on year - 2002 - 2009
Table 35 - Broadband penetration change by access type: xDSL, cable and mobile - 2004 - 2009
Table 36 - Share of broadband accesses by operator - 2006 - 2009
Table 37 - Fixed-line and mobile broadband revenue - 2007 - 2009
Table 38 - Average broadband file transfer speed by provider - 2009
Table 39 - Fixed-line and mobile broadband traffic in Terabytes - 2008 - 2009
Table 40 - Fixed-line and mobile broadband traffic per month - 2008 - 2009
Table 41 - Share of cable broadband accesses by operator - 2003 - 2008
Table 42 - ZON Multimédia cable broadband subscribers - 2004 - 2008
Table 43 - Portugal Telecom broadband subscribers - 2006 - 2009
Table 44 - Portugal Telecom broadband market share - 2004 - 2009
Table 45 - Sonaecom broadband subscribers - 2008 - 2009
Table 46 - Sonaecom equipped exchanges - 2008 - 2009
Table 47 - Portugal Telecom wholesale accesses - 2004 - 2009
Table 48 - Mobile broadband subscribers by type - January 2009
Table 49 - Mobile broadband subscribers - 2007 - 2009
Table 50 - Average mobile broadband file transfer speed by provider - 2009
Table 51 - Broadcasting operational statistics - 2006 - 2009
Table 52 - Proportion of TV subscribers by type - 2006 - 2009
Table 53 - Subscribers to bundled services - 2007 - 2008
Table 54 - Households take-up of bundled services by type - 2007 - 2008
Table 55 - Share of pay TV subscribers by platform by operator - 2007 - 2009
Table 56 - Portugal Telecom IPTV subscribers - 2008 - 2009
Table 57 - TV subscriber share by operator - 2007 - 2009
Table 58 - ZON Multimédia financial data - 2007 - 2009
Table 59 - ZON TV, broadband and telephony subscribers - 2007 - 2009
Table 60 - Satellite TV subscriber households - 1998 - 2009
Table 61 - VoIP subscribers - 2006 - 2009
Table 62 - Mobile operators, subscribers and annual change - September 2009
Table 63 - Mobile subscribers and penetration rate (regulator data) - 1997; 1999 - 2010
Table 64 - Mobile operators’ market share - 2004 - 2009
Table 65 - Mobile operators’ share of net adds - 2005 - 2008
Table 66 - Roaming in call traffic volume and messages - 2003 - 2009
Table 67 - European roaming charges - 2007 - 2011
Table 68 - Cumulative ported mobile numbers - 2004 - 2008
Table 69 - 3G video calls and traffic data - 2007 - 2009
Table 70 - 3G subscribers - 2007 - 2009
Table 71 - Mobile broadband subscribers - 2007 - 2009
Table 72 - TMN subscribers, ARPU and data percentage - 2006 - 2009
Table 73 - TMN financial data - 2006 - 2009
Table 74 - Vodafone Portugal subscribers - 2006 - 2009
Table 75 - Vodafone monthly ARPU: prepaid, contract and blended - 2005 - 2009
Table 76 - Vodafone financial data - 2007 - 2009
Table 77 - Optimus mobile subscribers - 2003 - 2009
Table 78 - Optimus operational statistics - 2006 - 2009
Table 79 - Optimus financial data and annual change - 2006 - 2009
Table 80 - Mobile subscribers, contract and prepaid (regulator data) - 2003 - 2009
Table 81 - SMS sent annually and annual change - 2004 - 2009
Table 82 - MMS sessions - 2007 - 2009
Table 83 - Mobile Internet sessions and traffic - 2007 - 2009
Table 84 - Forecast broadband subscribers - higher market growth scenario - 2009 - 2012; 2019
Table 85 - Forecast broadband subscribers - lower market growth scenario - 2009 - 2012; 2019
Table 86 - Forecast UMTS subscribers - 2009 - 2012; 2015
Table 87 - Forecast mobile monthly ARPU - 2009 - 2010; 2015
Exhibit 1 - EU - The New Regulatory Framework (NRF)
Exhibit 2 - Access and the local loop
Exhibit 3 - Overview of media convergence
Exhibit 4 - BlackBerry services defined

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