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Spain - Telecoms, IP Networks, Digital Media and Forecasts


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

Economic woes take toll on telecom revenue

BuddeComm’s annual publication, Spain - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media sectors of one of Europe’s largest markets. The report includes the regulator’s 2012 market data and updates to May 2013, telcos’ operating and financial data to Q2 2013 and market developments to mid-2013.

Telecom market overview

Spain’s telecom market is one of the largest in Europe, accounting for around 4% of the country’s GDP and directly employing some 67,000 people. The continuing economic turmoil has resulted in considerable financial constraints on consumers, resulting in a steady fall in revenue since 2008. In the mobile sector the number of subscribers has also fallen as customers drop multiple SIM card use. Mobile traffic volumes are now lower than in 2008. Telefónica still controls the bulk of national and local infrastructure, and despite a decade of deregulation it dominates the fixed-line voice market and accounts for more than half of the broadband market. Fixed-line operators trying to break Telefónica’s hegemony include ONO, Jazztel, Vodafone, Euskaltel and Orange. Key regulator measures have facilitated growth in the broadband market, while the 2013 co-operative network share and build agreement between the main players Telefónica, Vodafone and Orange will do much to extend FttH infrastructure nationally, and so speed up customer take-up of fibre-based services.

Mobile market

By mid-2013 all MNOs had launched commercial LTE networks, which are expected to extend to most most of the country by the end of 2014. With this infrastructure in place, the operators will be better positioned to develop m-commerce and contactless payments. In mid-2013 Telefónica partnered with the Spanish banks La Caixa and Santander to deliver m-payment services and a digital wallet. Users can combine existing credit cards into the digital wallet and can send and receive funds via their mobile phone using the recipient’s phone number. Spain has been at the forefront of m-commerce in recent years, with Barcelona having become one of the country’s first contactless cities following a project between banks, the City Council and merchants.

Key telecom penetration parameters – 2010; 2013
Penetration by sector: | 2010 | 2013 (e)
Fixed broadband | 22% | 26%
Mobile | 112% | 108%
Fixed-line | 43% | 42%
(Source: BuddeComm)

Market Highlights

Telefónica’s two new quad-play packages include fixed-broadband at up to 100Mb/s, mobile voice and broadband, and a pay-TV package. The packages are intended to improve the operator’s share of the bundled services market, and to win back mobile subscribers lost following its abolishing subsidies in 2012.

The agreement between Telefónica, Vodafone and Orange to share vertical fibre-optic infrastructure allows each operator to pursue its own programme but is based on reciprocity so that all three can use rivals’ roll-outs where needed. The deal provides the right to use infrastructure for at least 20 years and will go far to expedite FttH builds in the country.

The EC suspended the regulator’s pricing proposal for wholesale broadband access in 2013, considering it incompatible with EU rules and detrimental to competition and investment.
In mid-2013 Telefónica partnered with the Spanish banks La Caixa and Santander to deliver m-payment services and a digital wallet. Users can combine existing credit cards into the digital wallet and can send and receive funds via their mobile phone using the recipient’s phone number.

Telefónica has trialled services enabling smartphone and tablet users to migrate between WiFi and LTE, and has also tested VoLTE voice calls.

Both Yoigo and Orange launched LTE in mid-2013, with Orange expecting to expand its LTE footprint into 2014 to all provincial capitals. Orange has invested some €1.1 billion in LTE, including work to upgrade its network and the purchase of spectrum.

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

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.


1. Key Statistics
2. Telecommunications Market
2.1 Economic background
2.2 Overview of Spain’s telecom market
2.3 E-commerce
2.4 Avanza Plan
3. Regulatory Environment
3.1 History
3.1.1 EU regulatory framework
3.2 Regulatory authority
3.2.1 Telecommunications Market Commission (CMT)
3.3 Telecom sector liberalisation in Spain
3.3.1 Privatisation of Telefónica
3.3.2 Interconnect
3.3.3 Access
3.3.4 Number portability
3.3.5 Carrier PreSelection (CPS)
3.3.6 Wholesale Line Rental (WLR)
4. Fixed Network Operators
4.1 Overview of operators
4.2 Telefónica
4.2.1 Company restructure
4.2.2 Telefónica Digital
4.3 Orange
4.4 Vodafone España
4.5 Jazztel
4.6 ONO
5. Telecommunications Infrastructure
5.1 National telecom network
5.2 International infrastructure
5.2.1 Satellite networks
5.2.2 Submarine cable
5.3 Next Generation Networks (NGN)
6. Broadband Market
6.1 Overview
6.1.1 Broadband statistics
6.1.2 Access pricing
6.2 Government initiatives
6.2.1 Universal Broadband
6.2.2 State government
6.2.3 Regional government initiatives
6.3 Cable modems
6.3.1 ONO
6.4 Asymmetrical Digital Subscriber Line (ADSL)
6.4.1 Movistar
6.4.2 Other DSL developments
6.4.3 ADSL2+
6.4.4 VDSL
6.5 Fibre-to-the-Home (FttH) networks
6.5.1 Regulatory issues
6.5.2 Fibre market – 2013
6.5.3 Movistar
6.5.4 Orange/Vodafone
6.5.5 Operator co-operation
6.5.6 Other developments
6.6 Wireless broadband
6.6.1 Wireless Local Loop (WLL)
6.6.2 WiFi
6.6.3 WiMAX
6.6.4 Internet via satellite
6.6.5 Mobile broadband
6.7 Broadband Powerline (BPL)
7. Digital Media
7.1 Overview
7.2 Key general trends
7.3 Business models
7.3.1 Bundled services
7.4 Regulatory issues
7.4.1 VoIP
7.5 Digital TV
7.5.1 Pay DTTV
7.5.2 Regulatory environment
7.5.3 TV-over-DSL (IPTV)
7.5.4 Video-on-Demand (VoD)
7.5.5 Personal Video Recorders (PVRs)
7.5.6 Cable TV (CATV)
7.5.7 Satellite TV
7.5.8 Digital Terrestrial TV (DTTV)
7.5.9 FTA TV
7.6 VoIP
8. Mobile Communications
8.1 Overview of Spain’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
8.2.4 Mobile Termination Rates (MTRs)
8.3 Mobile technologies
8.3.1 Digital
8.3.2 Third Generation (3G) mobile
8.4 Major mobile operators
8.4.1 Movistar
8.4.2 Vodafone
8.4.3 Orange
8.4.4 Yoigo (Xfera Moviles)
8.4.5 MVNOs
8.5 Mobile voice services
8.5.1 Prepaid
8.6 Mobile messaging
8.7 Mobile data services
8.7.1 General Packet Radio Service (GPRS)
8.7.2 Enhanced data for GSM Evolution (EDGE)
8.7.3 Push-to-Talk (PTT)
8.7.4 High-Speed Packet Access (HSPA)
8.7.5 Long-term Evolution (LTE)
8.7.6 Femtocells
8.7.7 Mobile TV
8.8 Mobile content and applications
8.8.1 Machine-to-Machine (M2M)
9. Forecasts
9.1 Forecasts – broadband subscribers 2008-2013; 2020
9.1.1 Scenario 1 – stronger broadband subscriber growth
9.1.2 Scenario 2 – lower broadband subscriber growth
9.2 Forecasts - Mobile
9.2.1 Forecasts – mobile ARPU 2005-2011; 2015
9.2.2 Notes on scenario forecasts
Table 1 – Country statistics – 2012
Table 2 – Telecom revenue and investment statistics – 2013 (e)
Table 3 – Telephone network statistics – May 2013
Table 4 – Internet user statistics – 2012
Table 5 – Broadband statistics – May 2013
Table 6 – Mobile statistics – May 2013
Table 7 – National telecommunications authority
Table 8 – Telecom revenue, retail and wholesale – 2000 - 2012
Table 9 –Telecom revenue annual change – 2000 - 2012
Table 10 – Telecom retail revenue by sector – 2005 - 2012
Table 11 – Telecom retail revenue annual change, by sector – 2002 - 2012
Table 12 – Telecom investment and annual change – 2000 - 2012
Table 13 – Proportion of fixed-line and mobile traffic – 2000 - 2012
Table 14 – E-commerce revenue – 2005 - 2013
Table 15 – Wholesale interconnection revenue – 2007 - 2012
Table 16 – Access lines by type (regulator data) – 2008 - 2011
Table 17 – Subscribers by type of access – 2006 - 2011
Table 18 – Carrier PreSelection lines – 2006 - 2013
Table 19 – Fixed-line market share of revenue by operators – 2007 - 2011
Table 20 – Fixed-line subscribers, by operator – 2008 - 2012
Table 21 – Fixed-line subscriber market share, by operator – 2009 - 2012
Table 22 – Fixed-line price index – 2004 - 2011
Table 23 – Household penetration of telephony services, by type – 2004 - 2011
Table 24 – Telefónica Group financial data – 2006 - 2013
Table 25 – Telefónica de España EBITDA – 2007 - 2013
Table 26 – Telefónica de España revenue by type – 2007 - 2013
Table 27 – Telefónica de España fixed-line revenue by sector (historic) – 2005 - 2011
Table 28 – Telefónica de España wireline line revenue by type – 2011 - 2013
Table 29 – Telefónica de España access lines by service – 2005 - 2013
Table 30 – Movistar wholesale broadband accesses by sector (Spain) – 2007 - 2013
Table 31 – Orange subscribers by sector – 2005 - 2013
Table 32 – Orange EBITDA, capex – 2007 - 2012
Table 33 – Orange revenue – 2007 - 2013
Table 34 – Vodafone financial data – 2008 - 2013
Table 35 – Jazztel financial data – 2008 - 2013
Table 36 – Jazztel revenue by sector – 2008 - 2013
Table 37 – JAZZTEL broadband and mobile subscribers – 2008 - 2013
Table 38 – ONO financial data by sector – 2006 - 2013
Table 39 – ONO residential RGUs by sector– 2006 - 2013
Table 40 – Fixed lines in service and penetration – 2003 - 2013
Table 41 – Broadband revenue, DSL and cable – 2003 - 2013
Table 42 – Total internet market revenue – 2006 - 2013
Table 43 – Historic - Internet users and penetration rate – 1996 - 2004
Table 44 – Internet users and penetration rate – 2005 - 2013
Table 45 – Dial-up internet subscribers – 2005 - 2013
Table 46 – Total broadband subscribers, DSL, cable, total – 2001 - 2013
Table 47 – Fixed-line broadband penetration – 2001 - 2014
Table 48 – Annual growth of broadband subscriptions by technology – 2004 - 2013
Table 49 – Number of broadband lines by data speed – 2005 – 2012
Table 50 – Proportion of broadband subscribers by sector – 2004 - 2012
Table 51 – Broadband lines by operator – 2009 - 2012
Table 52 – Broadband penetration by technology – 2004 - 2012
Table 53 – Cable subscribers by operator – 2007 - 2012
Table 54 – ONO financial data by sector – 2006 - 2013
Table 55 – ONO residential RGUs by sector– 2006 - 2013
Table 56 – DSL subscribers by operator – 2009 - 2012
Table 57 – Movistar naked DSL subscribers – 2009 - 2013
Table 58 – Movistar internet subscribers (Spain) – 2006 - 2013
Table 59 – Movistar internet revenue by sector (Spain, historic) – 2007 - 2011
Table 60 – Movistar wholesale broadband accesses by sector (Spain) – 2007 - 2013
Table 61 – JAZZTEL broadband and mobile subscribers – 2008 - 2013
Table 62 – FttH subscribers, consumers and business – 2009 - 2013
Table 63 – FttH subscribers by operator – 2009 - 2013
Table 64 – WiFi/WiMAX subscribers – 2005 - 2013
Table 65 – WiFi hotspots in service – 2003 - 2012
Table 66 – Mobile broadband subscribers by operator – 2010 - 2012
Table 67 – Mobile broadband revenue and annual change – 2003 - 2012
Table 68 – Cost of mobile broadband services – 2011 - 2012
Table 69 – Audiovisual revenue by service – 2007 - 2012
Table 70 – TV revenue by technology – 2002 - 2012
Table 71 – Proportion of households with DTTV – 2003 - 2013
Table 72 – Proportion of pay-TV subscribers by technology – 2005 - 2012
Table 73 – Pay TV market subscribers by technology – 2002 - 2012
Table 74 – Forecast TV market subscribers by technology – 2014; 2019; 2023
Table 75 – Digital TV revenue by operator – 2007 - 2011
Table 76 – Pay TV subscribers by operator – 2008 - 2012
Table 77 – Pay TV subscriber market share by operator– 2009 - 2011
Table 78 – IPTV revenue – 2005 - 2012
Table 79 –IPTV subscribers – 2005 - 2012
Table 80 – Telefónica pay-TV subscribers – 2008 - 2013
Table 81 – Orange IPTV subscribers – 2007 - 2013
Table 82 – Cable TV subscribers – 1999 - 2012
Table 83 – Cable TV revenue – 2004 - 2012
Table 84 – ONO financial data by sector – 2006 - 2013
Table 85 – ONO residential RGUs by sector– 2006 - 2013
Table 86 – Satellite TV subscribers – 1997 - 2012
Table 87 – Satellite broadcasting revenue – 2004 - 2012
Table 88 – Canal+ ARPU – 2006 - 2012
Table 89 – Prisa TV financial data – 2006 - 2013
Table 90 – Sogecable Cuatro financial data (historic) – 2006 - 2009
Table 91 – Prisa Group financial data – 2008 - 2013
Table 92 – Prisa DTH subscribers – 2002 - 2013
Table 93 – DTTV subscribers – 2009 - 2012
Table 94 – Mobile market revenue and annual change– 2000 - 2013
Table 95 – Mobile traffic prepaid and contract in minutes – 2000 - 2012
Table 96 – Mobile market revenue by sector – 2006 - 2012
Table 97 – Mobile market revenue by contract and prepaid sectors – 2000 - 2012
Table 98 – Historic - Mobile subscribers and penetration rate – 1997; 1999 - 2004
Table 99 – Mobile subscribers and penetration rate – 2005 - 2013
Table 100 – Mobile price index – 2009 - 2012
Table 101 – Cost per invoiced minute of use: contract, prepaid; all operators – 2001 - 2012
Table 102 – Mobile subscribers by technology platform – 2001 - 2011
Table 103 – Base stations in service, by technology – 2001 - 2012
Table 104 – Subscriber market share by operator – 2004 - 2013
Table 105 – European roaming charges – 2007 - 2012
Table 106 – European retail voice and data roaming charges – 2012 - 2014
Table 107 – European wholesale voice and data roaming charges – 2012 - 2014
Table 108 – Cumulative mobile number portings – 2002 - 2013
Table 109 – Mobile termination rates by operator – 2007 - 2013
Table 110 – Mobile interconnection revenue – 2003 - 2011
Table 111 – Orange UMTS subscribers – 2007 - 2012
Table 112 – Movistar mobile subscribers – 2005 - 2013
Table 113 – Movistar ARPU – 2005 - 2013
Table 114 – Movistar mobile financial data – 2006 - 2013
Table 115 – Vodafone revenue by type – 2007 - 2013
Table 116 – Vodafone prepaid and data revenue statistics – 2006 - 2013
Table 117 – Vodafone mobile subscribers and traffic statistics – 2006 - 2013
Table 118 – Vodafone ARPU – 2006 - 2013
Table 119 – Vodafone Spain customer churn – 2007 - 2013
Table 120 – Vodafone mobile customer retention cost – 2007 - 2013
Table 121 – Orange mobile subscribers prepaid and contract – 2005 - 2013
Table 122 – Orange mobile revenue – 2006 - 2013
Table 123 – Orange ARPU by sector – 2005 - 2013
Table 124 – Orange mobile customer acquisition costs – 2007 - 2013
Table 125 – Orange customer churn – 2007 - 2013
Table 126 – Yoigo subscribers – 2007 - 2013
Table 127 – Yoigo financial data – 2008 - 2013
Table 128 – MVNO subscriber market share – 2008 - 2013
Table 129 – Mobile subscribers: prepaid, contract – 2006 - 2013
Table 130 – SMS revenue and messages sent – 2006 - 2012
Table 131 – Premium SMS revenue and messages sent – 2005 - 2010
Table 132 – MMS revenue and messages sent – 2004 - 2012
Table 133 – Mobile broadband revenue – 2003 - 2012
Table 134 – Mobile datacards per UMTS and HSPA – 2006 - 2013
Table 135 – Mobile TV subscribers by operator – 2008 - 2012
Table 136 – Mobile TV revenue – 2006 - 2012
Table 137 – M2M lines – 2004 - 2012
Table 138 – Forecast broadband subscribers – higher market growth scenario – 2008 - 2013; 2020
Table 139 – Forecast broadband penetration – higher market growth scenario – 2008 - 2013; 2020
Table 140 – Forecast broadband subscribers – lower market growth scenario – 2008 - 2013; 2020
Table 141 – Forecast broadband penetration – lower market growth scenario – 2008 - 2013; 2020
Table 142 – Forecast mobile monthly ARPU – 2005 - 2011; 2015
Chart 1 – Telecom revenue, retail and wholesale – 2000 - 2012
Chart 2 – Telecom retail revenue by sector – 2005 - 2012
Chart 3 – Subscribers by type of access – 2006 - 2011
Chart 4 – Telefónica Group financial data – 2006 - 2013
Chart 5 – Telefónica de España revenue by type – 2007 - 2013
Chart 6 – Telefónica de España fixed-line revenue by sector (historic) – 2005 - 2011
Chart 7 – Telefónica de España access by service – 2005 – 2013
Chart 8 – Telefónica de España wholesale access by type – 2005 - 2013
Chart 9 – Orange subscribers by sector – 2005 - 2013
Chart 10 – Vodafone financial data – 2009 - 2013
Chart 11 – Jazztel revenue by sector – 2008 - 2013
Chart 12 – JAZZTEL broadband and mobile subscribers – 2008 - 2013
Chart 13 – ONO financial data by sector – 2006 – 2013
Chart 14 – ONO residential RGUs by sector– 2006 - 2013
Chart 15 – Broadband revenue, DSL and cable – 2003 - 2013
Chart 16 – Total broadband subscribers, DSL, cable, total – 2001 - 2013
Chart 17 – Proportion of broadband subscribers by sector – 2004 - 2012
Chart 18 – Cable subscribers by operator – 2007 - 2012
Chart 19 – ONO financial data by sector – 2006 – 2013
Chart 20 – ONO residential subscribers by sector– 2006 - 2013
Chart 21 – Movistar internet subscribers (Spain) – 2006 - 2013
Chart 22 – Movistar internet revenue by sector (Spain, historic) – 2007 - 2011
Chart 23 – Movistar wholesale broadband accesses by sector (Spain) – 2007 - 2013
Chart 24 – JAZZTEL broadband and mobile subscribers – 2008 - 2013
Chart 25 – Audiovisual revenue by service – 2007 - 2012
Chart 26 – TV revenue by technology – 2002 – 2012
Chart 27 – ONO financial data by sector – 2006 – 2013
Chart 28 – ONO residential RGUs by sector– 2006 - 2013
Chart 29 – Prisa group financial data – 2008 - 2013
Chart 30 – Mobile traffic prepaid and contract in minutes – 2000 - 2012
Chart 31 – Mobile market revenue by sector – 2006 - 2012
Chart 32 – Mobile market revenue by contract and prepaid sectors – 2000 - 2012
Chart 33 – Mobile subscribers and penetration rate – 2004 - 2013
Chart 34 – Cost per invoiced minute of use: contract, prepaid; all operators – 2001 - 2012
Chart 35 – Subscriber market share by operator – 2004 – 2013
Chart 36 – Movistar mobile subscribers – 2005 - 2013
Chart 37 – Movistar ARPU – 2005 - 2013
Chart 38 – Vodafone revenue by type – 2007 - 2013
Chart 39 – Vodafone mobile subscribers and traffic statistics – 2006 - 2013
Chart 40 – Orange mobile subscribers prepaid and contract – 2005 - 2013
Chart 41 – Orange ARPU by sector – 2005 - 2013
Chart 42 – Yoigo subscribers – 2007 - 2013
Chart 43 – Yoigo financial data – 2008 - 2013
Chart 44 – Mobile subscribers: prepaid, contract – 2006 - 2013
Chart 45 – Mobile datacards per UMTS and HSPA – 2006 - 2013
Chart 46 – Mobile TV subscribers by operator – 2008 - 2012
Exhibit 1 – EU – The New Regulatory Framework (NRF)
Exhibit 2 – Access and the local loop
Exhibit 3 – Narrowband and broadband wireless licensees – 2000
Exhibit 4 – Overview of digital media
Exhibit 5 – 3G licence results in Spain – March 2000
Exhibit 6 – Overview of spectrum allocations – 2011

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