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Portugal - Telecoms, IP Networks, Digital Media and Forecasts


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

Multi-spectrum auction kick-starts LTE services expansion in Portugal

BuddeComm’s half-yearly 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 one of Europe’s smaller countries yet having a progressive telecoms market. The report includes the regulator’s market data to Q4 2012; telcos’ operating and financial data to Q4 2012; market developments to April 2013.

Economic background

Portugal’s telecom market provides one of the highest contributions to GDP in the EU. The government’s high proportion of debt to GDP has continued to jeopardise publicly funded telecom infrastructure investment and placed a greater burden on the private sector to deliver fibre-based infrastructure. The newly elected government has set budget deficit targets to 2015. Spending cuts required to achieve the fiscal overhaul are expected to cause Portugal’s GDP to contract by 3% in 2012, affecting growth, consumer spend and business investment.

Telecom market overview

Broadband penetration is below the EU average while mobile penetration is among the highest. The incumbent Portugal Telecom has seen its share of the total traffic market (voice and internet) gradually shrink, though it retains a dominant share in both the voice and DSL markets. Market revenue is expected to continue to fall slightly to 2013, in line with lower sector investment, as operators face regulatory burdens compounded by consumers spending less on services. Operators have reported declining revenue for several quarters, and little respite is anticipated in the near future. PT has weathered the times better than competitors on the strength of its subsidiaries in Brazil.

Broadband market

Portugal’s competitive broadband sector is served by a large number of DSL, cable and fibre operators though four of them alone together have a 94% share of subscribers. PT and Sonaecom dominate the fast-emerging FttH market, while the three MNOs also offer mobile broadband. Cable broadband is available to about 85% of the country on average, or 50% of rural areas. Overall subscriber growth remains strong, and though DSL is the principal access technology, in coming years its market share will shrink as customers are migrated to fibre networks: indeed fibre is now accounts for three of every four new customers.

Key telecom parameters – 2010; 2013
Sector | 2010 | 2013 (e)

Subscribers to telecom services (million):

Fixed broadband subscribers | 2.07 | 2.5
Mobile broadband | 16.47 | 17.12
Fixed-line telephony | 4.48 | 4.61
Mobile (SIM cards) | 16.47 | 16.15

Telecom penetration by service:

Fixed broadband | 21% | 31%
Mobile telephony | 155% | 164%
Fixed-line telephony | 40% | 43%
(Source: BuddeComm)

Market Highlights

Data revenue as a proportion of total mobile revenue continues to grow at 2-4% per year following a number of promotional efforts by operators to increase use of data services and promote wireless broadband solutions. The proportion of non-SMS related data services is also increasing.

Following LTE trials, MNOs now have extensive commercial services in place. High population coverage is having a considerable effect on the availability rural broadband.

Portugal’s market for bundled services and IP broadcasting has a strong base in the country’s broadband network: triple and quad play has become increasingly popular during the last two years as operators’ investment in infrastructure upgrades bear fruit and customers take advantage of faster bandwidth, single billing convenience and cheaper prices resulting from greater competition.

An effective nationwide strategy for deploying fibre involves the cooperation of multiple operators, the government, and public subsidies. As a result, FttX accounts for about 75% of all new broadband connections.

This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Portugal.

It provides further information on:

Market liberalisation and regulatory issues;
The impact of the global economic crisis;
Telecoms operators – privatisation, acquisitions, new licences;
Mobile data market developments in coming years in light of spectrum auctions and new license awards;
3G developments, regulatory issues and technologies including HSPA and LTE;
Broadband migration to an FttH architecture;
Historical and current subscriber statistics and forecasts;
ARPU statistics and forecasts.

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


  • EXECUTIVE SUMMARY
  • KEY STATISTICS
    • Table Country statistics - 2012 (e)
    • Table Telecom revenue and investment statistics - 2012 (e)
    • Table Telephone network statistics - 2012
    • Table Internet user statistics - 2012
    • Table Broadband statistics - 2012
    • Table Mobile statistics - 2012
    • Table National telecommunications authority
  • TELECOMMUNICATIONS MARKET
    • OVERVIEW OF PORTUGAL'S TELECOM MARKET
      • Table Telecom market as proportion of GDP - 2006 - 2012
      • Table Telecom market investment - 2004 - 2012
      • Table Telecom market value - 2000 - 2012
  • REGULATORY ENVIRONMENT
    • HISTORY
    • REVISED NFR
    • REGULATORY AUTHORITY
      • National Communications Authority
    • TELECOM SECTOR LIBERALISATION IN PORTUGAL
      • Privatisation of Telecom Portugal
      • Interconnect
      • Access
        • Table Unbundled loops - 2005 - 2012
        • Table Number and type of access lines: analogue and digital - 2005 - 2012
        • Table Portugal Telecom wholesale lines - 2008 - 2011
      • Fibre access
      • Carrier PreSelection (CPS)
        • Table Fixed telephone customers, access type and shared access lines - 2004 - 2012
        • Table Portugal Telecom's share of direct access customers - 2005 - 2012
      • Number Portability (NP)
        • Table Cumulative fixed-line numbers ported - 2003 - 2011
      • Wholesale Line Rental (WLR)
  • FIXED NETWORK OPERATORS
    • OVERVIEW OF OPERATORS
      • Table Fixed-line revenue, by type - 2007 - 2012
      • Table Share of fixed-line access installations by operator - 2009 - 2012
    • PORTUGAL TELECOM
      • Table Portugal Telecom consumer accesses and subscribers by sector - 2009 - 2012
      • Table Portugal Telecom domestic financial data (old style) - 2005 - 2011
      • Table Portugal Telecom domestic revenue by segment - 2010 - 2012
      • Table Portugal Telecom Group financial data - 2010 - 2012
    • ONI
    • SONAECOM
      • Table Sonaecom fixed-line financial data by sector - 2006 - 2012
      • Table Sonaecom financial data - 2006 - 2012
      • Table Sonaecom fixed-line subscribers by sector - 2008 - 2012
      • Novis
    • AR TELECOM
      • Jazztel (historic)
    • ZONMULTIMÉDIA
      • Table ZON Multimédia subscribers by type - 2007 - 2012
      • Table ZON Multimédia financial data - 2007 - 2012
  • TELECOMMUNICATIONS INFRASTRUCTURE
    • NATIONAL TELECOM NETWORK
      • Table Fixed lines in service and teledensity - 1999 - 2013
      • Table Fibre infrastructure - 2007 - 2011
      • Next Generation Networks (NGNs)
    • INTERNATIONAL INFRASTRUCTURE
  • BROADBAND MARKET
    • OVERVIEW
      • Table Internet subscribers by access type - 2005 - 2012
      • Table Internet revenue, fixed and mobile - 2008 - 2012
      • Broadband statistics
        • Table Proportion of broadband subscribers by access type - 2007 - 2012
        • Table Total broadband subscribers by type - 2000 - 2013
        • Table Broadband subscriber annual change year-on-year - 2002 - 2013
        • Table Broadband penetration by sector - 2007 - 2012
        • Table Share of broadband accesses by operator - 2009 - 2012
        • Table Fixed-line broadband traffic - 2008 - 2013
        • Table Fixed-line and mobile broadband traffic per month per customer - 2008 - 2012
        • Table Proportion of broadband subscribers by date rate - 2010 - 2012
    • CABLE MODEMS
      • Table Share of cable broadband accesses by operator - 2003 - 2011
      • ZON Multimédia
        • Table ZON Multimédia cable broadband subscribers - 2004 - 2012
      • Cabovisao
    • ASYMMETRICAL DIGITAL SUBSCRIBER LINE (ADSL)
      • Portugal Telecom
        • Table Portugal Telecom DSL broadband subscribers - 2006 - 2012
      • Sonaecom
        • Table Sonaecom broadband subscribers - 2008 - 2012
      • ADSL2+
        • Table Sonaecom equipped exchanges - 2008 - 2011
      • Wholesale
        • Table Portugal Telecom wholesale accesses - 2004 - 2011
      • Wholesale prices and retail price difference
    • FIBRE-TO-THE-HOME (FTTH) NETWORKS
      • Table FttX subscribers - 2008 - 2013
      • Sonaecom
      • ZON Multimédia
      • Portugal Telecom
      • Vodafone
    • BROADBAND OVER POWERLINE (BPL)
    • MOBILE BROADBAND
      • Table Mobile broadband subscribers - 2007 - 2012
      • Table Share of mobile broadband subscribers by operator - 2010 - 2012
      • Table Mobile broadband traffic - 2009 - 2013
      • Table Mobile broadband revenue - 2007 - 2013
    • WIRELESS BROADBAND
      • Wireless Local Loop (WLL)
      • WiFi
  • DIGITAL MEDIA
    • OVERVIEW
      • Table Penetration of TV subscribers by type - 2008 - 2012
      • Table Broadcasting subscribers by platform - 2008 - 2012
    • KEY GENERAL TRENDS
    • BUSINESS MODELS
      • Table Subscribers to bundled services - 2007 - 2012
      • Table Bundled services revenue by type - 2008 - 2011
      • Bundled services
        • Table ZON Multimédia triple play subscribers - 2007 - 2012
    • DIGITAL TV (DTV)
      • Overview
      • TV-over-DSL (IPTV)
        • Table IPTV subscribers - 2009 - 2012
        • Table Portugal Telecom pay-TV subscribers - 2008 - 2012
      • TV over FttH/B
        • Table FttH/B IPTV subscribers - 2007 - 2012
      • Cable TV (CATV)
        • Table TV subscriber share by operator - 2004 - 2012
        • Table CATV subscribers and households - 2008 - 2013
        • Table ZON Multimédia cable and TV subscribers - 2007 - 2012
      • Satellite-based digital pay-TV developments
        • Table Satellite TV subscriber households - 1998 - 2013
      • Digital Terrestrial TV
      • Free-to-Air (FTA) TV
      • VoIP services
        • Table VoIP subscribers - 2010 - 2013
        • Table Nomadic VoIP subscribers - 2006 - 2013
      • Video-on-Demand
  • MOBILE COMMUNICATIONS
    • OVERVIEW OF PORTUGAL'S MOBILE MARKET
      • Mobile statistics
        • Table Mobile subscribers and SIM penetration rate (regulator data) - 1999 - 2013
        • Table Mobile sector revenue - 2004 - 2013
        • Table Mobile operators' market share of subscribers - 2004 - 2012
    • REGULATORY ISSUES
      • Spectrum regulations and spectrum auctions
        • Table 3 G subscribers by type - 2009 - 2013
        • Table Multiband auction results - 2012
      • Roaming
        • Table Roaming in call traffic volume and messages - 2003 - 2012
        • Table European roaming charges - 2007 - 2011
      • Mobile Number Portability (MNP)
        • Table Cumulative ported mobile numbers - 2004 - 2013
      • Mobile termination rates (MTRs)
        • Table MTRs - 2009 - 2012
      • Network sharing
    • MOBILE TECHNOLOGIES
      • Digital
      • Third Generation (3G) mobile
        • Table 3G video calls and traffic data - 2007 - 2012
        • Table 3G subscribers - 2007 - 2012
    • MAJOR MOBILE OPERATORS
      • TMN
        • Table TMN ARPU and data percentage - 2006 - 2012
        • Table TMN subscribers - 2006 - 2012
        • Table TMN mobile revenue - 2010 - 2012
      • Vodafone
        • Table Vodafone Portugal subscribers - 2006 - 2012
        • Table Vodafone Portugal subscribers, proportion prepaid - 2006 - 2012
        • Table Vodafone monthly ARPU: prepaid, contract and blended - 2005 - 2012
        • Table Vodafone financial data - 2007 - 2012
      • Optimus
        • Table Optimus mobile subscribers - 2003 - 2012
        • Table Optimus operational statistics - 2006 - 2012
        • Table Optimus financial data - 2006 - 2012
        • Table Optimus revenue by type - 2006 - 2012
      • OniWay exits the market
      • Mobile Virtual Network Operators (MVNOs)
    • MOBILE VOICE SERVICES
      • Prepaid
        • Table Mobile prepaid subscribers, proportion prepaid - 2003 - 2012
      • Fixed-mobile convergence (FMC)
    • MOBILE MESSAGING
      • Short Message Service (SMS)
        • Table SMS messages sent annually and annual change - 2004 - 2012
        • Table SMS messages sent per user per month - 2010 - 2012
        • Table Premium SMS messages sent - 2010 - 2012
      • Multimedia Messaging Service (MMS)
        • Table MMS sessions - 2007 - 2013
        • Table MMS messages sent - 2010 - 2012
    • MOBILE DATA SERVICES
      • Table Mobile internet sessions and traffic - 2007 - 2012
      • Table Mobile video calls and traffic - 2010 - 2012
      • General Packet Radio Service (GPRS)
      • Push-to-Talk (PTT)
      • High-Speed Packet Access (HSPA)
      • Evolved HSPA (HSPA+)
      • High-Speed Uplink Packet Access (HSUPA)
      • Long-term Evolution (LTE)
      • Mobile TV
        • Table Mobile TV sessions and traffic - 2010 - 2012
        • Table Mobile TV subscribers - 2010 - 2012
        • Table Mobile TV revenue - 2007 - 2012
      • TETRA (TErrestrial Trunked RAdio)
      • Mobile content and applications
  • FORECASTS
    • FORECASTS - BROADBAND SUBSCRIBERS - 2009 - 2012; 2020
      • higher broadband subscriber growth
        • Table Forecast broadband subscribers - higher market growth scenario - 2010 - 2013; 2020
      • lower broadband subscriber growth
        • Table Forecast broadband subscribers - lower market growth scenario - 2010 - 2013; 2020
    • FORECASTS - MOBILE ARPU - 2005 - 2012; 2015
      • Table Forecast monthly mobile ARPU - 2005 - 2012; 2015

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