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Portugal - Telecoms, IP Networks and Digital Media

Portuguese market sees several changes following sale of Portugal Telecom to Altice Group

Portugal’s medium-sized telecom market has a strong mobile sector and a fast-developing broadband sector which has focussed on fibre networks. The development of digital-TV services has progressed under cautious regulatory guidance, with a licence for digital-service transmission awarded to Portugal Telecom in mid-2008. The difficult economic conditions have seen operators’ domestic revenue fall in recent quarters. The market has seen significant merger activity, with Sonaecom’s Optimus division being merged with Zon Multimédia in mid-2013, becoming Zon Optimus before being rebranded as NOS. Portugal telecom is in the process of being acquired by Altice in a €7.4 billion deal, approval for which has required Altice to dispose of its local units Onitelecom and Cabovisão.

Given the rapid development of capable fixed-line broadband infrastructure, there has been considerable take-up of bundled services. Almost three-quarters of households took multiple services by the beginning of 2015. The main players are NOS and Portugal Telecom, while Vodafone has invested heavily in its own national NGN, with a view to extending its 1Gb;/s offerings more widely across its network.

The mobile market is served by a triopoly of MNOs, the incumbent’s Meo, Vodafone and NOS. Mobile penetration is above the EU average, while growth has been supported through customer use of multiple SIM cards. HSPA and LTE upgrades have considerably boosted the geographical reach and take-up of high-end mobile data services. Meo was the first operator to launch commercial LTE services, while Vodafone has more recently developed LTE-A capable of data rates of up to 450b/s.

This report assesses the major elements of Portugal’s telecom market, presenting statistics on the fixed telephony sector as well as an analysis of the major market players. Additional information is provided on the key regulatory issues, noting the status of interconnection, local loop unbundling, number portability and carrier preselection. This report also considers the fast developing bundled services market, as also the cable, digital and satellite TV markets. It profiles Portugal’s fixed and wireless broadband markets, providing key statistics on the retail and wholesale sectors as well as subscriber forecasts to 2020. The report also analyses the mobile market, providing statistics on network operators, a review of the key regulatory issues, a snapshot of the consumer market, and an analysis of mobile data services.

Key developments:

Zon Optimus rebrands as NOS;
PT sold by Oi to the Altice Group for €7.4 billion;
Government secures MNO deal to extend mobile network coverage to 2017;
Portugal adopts Multi Frequency Network (MFN) to resolve DTT reception problems;
Three-quarters of households take bundled services;
Altice puts Cabovisão up for sale;
Vodafone signs fibre-network sharing agreement with Portugal Telecom;
Fibre sector accounting for 75% of all new broadband subscribers;
Vodafone achieves 450Mb/s downlink speeds in LTE-A trials, provides 90% LTE population coverage;
Decline in SMS traffic in wake of messaging alternatives;
Report update includes regulator’s market data to Q4 2014; telcos’ operating and financial data to Q1 2015; recent market developments

Companies mentioned in this report:

Meo (TMN), NOS (Optimus, Zon Multimédia), Vodafone, Portugal Telecom, Sonaecom, Onitelecom, Cabovisão


  • EXECUTIVE SUMMARY
  • KEY STATISTICS
    • Table Country statistics - 2014 (e)
    • Table Telecom revenue and investment statistics - 2014 (e)
    • Table Telephone network statistics - 2015 (e)
    • Table Internet user statistics - 2015 (e)
    • Table Broadband statistics - 2014
    • Table Mobile statistics - 2015 (e)
    • Table National telecommunications authority
  • TELECOMMUNICATIONS MARKET
    • OVERVIEW OF PORTUGAL'S TELECOM MARKET
      • Table Telecom market as proportion of GDP - 2006 - 2014
      • Table Telecom market investment - 2004 - 2014
      • Table Telecom retail revenue by service - 2013 - 2014
      • Table Average telecom revenue per user, by service - 2013 - 2014
  • 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 - 2004 - 2013
        • Table Portugal Telecom wholesale lines - 2008 - 2011
      • Fibre access
      • Carrier PreSelection (CPS)
        • Table Fixed telephone customers, access type and shared access lines - 2004 - 2014
        • Table Portugal Telecom's share of direct access customers - 2005 - 2014
      • Number Portability (NP)
        • Table Ported fixed-line numbers - 2001 - 2015
      • Wholesale Line Rental (WLR)
  • FIXED NETWORK OPERATORS
    • OVERVIEW OF OPERATORS
      • Table Fixed-line revenue: subscription, traffic - 2007 - 2010
      • Table Fixed-telephony service revenue and change, by sector - 2012 - 2014
      • Table Fixed-telephony service revenue change, by sector - 2013 - 2014
      • Table Share of fixed-line access installations by operator - 2010 - 2014
    • PORTUGAL TELECOM
      • Table Portugal Telecom consumer accesses and subscribers by sector - 2009 - 2014
      • Table Portugal Telecom domestic financial data (old style) - 2005 - 2011
      • Table Portugal Telecom domestic revenue by segment - 2010 - 2014
      • Table Portugal Telecom financial data - 2013 - 2014
      • Merger with Oi
    • ONI
    • SONAECOM
      • Table Sonaecom fixed-line financial data by sector - 2006 - 2013
      • Table Sonaecom financial data (old form) - 2006 - 2012
      • Table Sonaecom financial data (new structure) - 2012 - 2015
      • Table Sonaecom fixed-line subscribers by sector - 2008 - 2012
      • Novis
    • AR TELECOM
      • Jazztel (historic)
    • NOS (ZON OPTIMUS)
      • Table NOS financial data - 2012 - 2014
      • Table NOS subscribers - 2012 - 2015
      • Table Zon Multimédia subscribers by type (historic) - 2007 - 2012
      • Table Zon Multimédia financial data - 2007 - 2012
  • TELECOMMUNICATIONS INFRASTRUCTURE
    • NATIONAL TELECOM NETWORK
      • Table Historic - Fixed lines in service and teledensity - 1999 - 2004
      • Table Fixed lines in service and teledensity - 2005 - 2015
      • Table Fibre infrastructure - 2007 - 2011
      • Table VoIP and mobile voice accesses - 2013 - 2014
      • Next Generation Networks (NGNs)
    • INTERNATIONAL INFRASTRUCTURE
    • DATA CENTRES
  • BROADBAND MARKET
    • OVERVIEW
      • Table Fixed-line internet subscribers by access type - 2005 - 2014
      • Table Fixed-line internet revenue - 2008 - 2011
    • BROADBAND STATISTICS
      • Table Proportion of broadband subscribers by access type - 2007 - 2014
      • Table Total broadband subscribers by type - 2000 - 2014
      • Table Broadband subscriber annual change year-on-year - 2002 - 2014
      • Table Broadband penetration by sector - 2007 - 2014
      • Table Share of broadband accesses by operator - 2010 - 2014
      • Table Fixed-line broadband traffic - 2008 - 2015
      • Table Fixed-line and mobile broadband traffic per month per customer - 2008 - 2013
      • Table Proportion of broadband subscribers by data rate - 2010 - 2013
    • FORECASTS - BROADBAND SUBSCRIBERS - 2015; 2017; 2020
      • higher broadband subscriber growth
        • Table Forecast broadband subscribers - higher market growth scenario - 2015; 2017; 2020
      • lower broadband subscriber growth
        • Table Forecast broadband subscribers - lower market growth scenario - 2015; 2017; 2020
    • CABLE MODEMS
      • Zon Multimédia
        • Table ZON Multimédia cable broadband subscribers (historic) - 2004 - 2012
      • NOS (Zon Optimus)
        • Table NOS broadband subscribers - 2012 - 2015
      • Cabovisao
    • ASYMMETRICAL DIGITAL SUBSCRIBER LINE (ADSL)
      • Portugal Telecom
        • Table Portugal Telecom DSL broadband subscribers - 2006 - 2014
      • 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-PREMISES (FTTP) NETWORKS
      • Table FttX subscribers - 2008 - 2014
      • Sonaecom
      • NOS
      • Portugal Telecom
      • Vodafone
        • Table Vodafone fixed-line broadband subscribers - 2012 - 2015
    • BROADBAND OVER POWERLINE (BPL)
    • MOBILE BROADBAND
      • Table Active mobile broadband subscribers - 2010 - 2014
      • Table Mobile broadband devices - 2010 - 2014
      • Table Share of mobile broadband subscribers by operator (cards/modems) - 2010 - 2014
      • Table Mobile broadband traffic - 2007 - 2014
      • Table Mobile broadband revenue - 2007 - 2014
    • WIRELESS BROADBAND
      • Wireless Local Loop (WLL)
      • WiFi
  • DIGITAL MEDIA
    • OVERVIEW
      • Table Broadcasting subscribers by platform - 2008 - 2014
      • Table Penetration of TV subscribers by type - 2009 - 2014
    • KEY GENERAL TRENDS
    • BUSINESS MODELS
      • Table Subscribers to bundled services - 2007 - 2014
      • Table Bundled services revenue by type - 2012 - 2013
      • Bundled services
        • Table NOS (Zon Optimus) bundled services subscribers - 2007 - 2014
        • Table Bundled services market share by subscribers - 2011 - 2014
        • Table Penetration of bundled services by type - 2011 - 2014
    • DIGITAL TV (DTV)
      • Overview
      • TV-over-DSL (IPTV)
        • Table IPTV subscribers - 2009 - 2014
        • Table Portugal Telecom pay-TV subscribers - 2008 - 2014
      • TV over FttH/B
        • Table FttH/B IPTV subscribers - 2007 - 2014
      • Cable TV (CATV)
        • Table TV subscriber share by operator - 2004 - 2014
        • Table CATV subscribers - 2008 - 2014
        • Table Cabled households - 2000 - 2014
        • Table NOS (Zon Optimus) cable and TV subscribers - 2007 - 2015
      • Satellite-based digital pay-TV developments
        • Table Satellite TV subscriber households - 1998 - 2014
      • Digital Terrestrial TV
      • Free-to-Air (FTA) TV
      • VoIP services
        • Table VoIP subscribers - 2010 - 2014
        • Table Nomadic VoIP subscribers - 2006 - 2014
      • Video-on-Demand
  • MOBILE COMMUNICATIONS
    • OVERVIEW OF PORTUGAL'S MOBILE MARKET
    • MOBILE STATISTICS
      • General statistics
        • Table Historic - Mobile subscribers and SIM penetration rate (regulator data) - 1999 - 2004
        • Table Active mobile subscribers and SIM penetration rate (regulator data) - 2005 - 2015
        • Table Mobile sector revenue - 2004 - 2014
      • Operator market shares
        • Table Mobile operators' market share of subscribers (main players) - 2004 - 2014
        • Table Mobile operators' market share of subscribers (minor players) - 2010 - 2013
      • Mobile voice
        • Table Outgoing mobile calls and traffic volume - 2012 - 2014
        • Table Mobile prepaid subscribers, proportion prepaid - 2003 - 2014
      • Mobile broadband/data
        • Table Mobile internet sessions and traffic - 2007 - 2013
        • Table Mobile internet connections by type - 2014
        • Table SMS messages sent annually and annual change - 2004 - 2014
        • Table Proportion of mobile subscribers using instant messaging services - 2013 - 2014
        • Table SMS messages sent per user per month - 2010 - 2014
        • Table Premium SMS messages sent - 2010 - 2014
        • Table MMS messages sent - 2007 - 2014
    • FORECASTS
      • Forecasts - mobile ARPU - 2005 - 2012; 2015
        • Table Forecast monthly mobile ARPU - 2013 - 2017
    • REGULATORY ISSUES
      • Spectrum regulations and spectrum auctions
        • Table Multiband auction results - 2012
      • Roaming
        • Table Roaming in call traffic volume and messages - 2003 - 2014
        • Table European roaming charges - 2007 - 2014
      • Mobile Number Portability (MNP)
        • Table Annual mobile number portings - 2002 - 2015
      • Mobile Termination Rates (MTRs)
        • Table MTRs - 2009 - 2012
      • Network sharing
    • MOBILE INFRASTRUCTURE
      • Digital networks
      • Third Generation (3G) mobile
        • Table 3G video calls and traffic data - 2007 - 2013
      • Long-term Evolution (LTE)
      • Other infrastructure developments
      • Machine-to-Machine (M2M)
        • Table M2M subscriptions - 2012 - 2014
        • Table M2M sessions and traffic - 2013 - 2014
    • MAJOR MOBILE OPERATORS
      • Meo
        • Table Meo residential ARPU and data percentage - 2006 - 2014
        • Table Meo subscribers - 2006 - 2014
        • Table Meo mobile revenue - 2010 - 2014
      • Vodafone
        • Table Vodafone Portugal subscribers - 2006 - 2015
        • Table Vodafone Portugal subscribers, proportion prepaid - 2006 - 2015
        • Table Vodafone monthly ARPU: prepaid, contract and blended - 2005 - 2015
        • Table Vodafone financial data - 2007 - 2015
      • Optimus
        • Table Optimus OS mobile subscribers - 2003 - 2012
        • Table Optimus operational statistics - 2006 - 2012
        • Table Optimus financial data - 2006 - 2012
        • Table Optimus revenue by type - 2006 - 2012
      • NOS (Zon Optimus)
        • Table Zon Optimus mobile subscribers - 2012 - 2014
      • OniWay exits the market
      • Mobile Virtual Network Operators (MVNOs)
      • Mobile TV
        • Table Mobile TV sessions and traffic - 2010 - 2014
        • Table Mobile TV subscribers - 2010 - 2014
        • Table Mobile TV revenue - 2007 - 2013
      • TETRA (TErrestrial Trunked RAdio)
    • MOBILE CONTENT AND APPLICATIONS
      • Table Mobile services in use, as proportion of all subscribers - 2013 - 2014
    • MOBILE HANDSETS

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