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Telecoms, IP Networks, Digital Media and Forecasts - Portugal

Portugal - Telecoms, IP Networks, Digital Media and Forecasts

Telecom revenue continues to decline as Portugal Telecom looks to Brazil

Portugal has a medium-sized telecom market with a strong mobile sector and a growing broadband customer base well served by both the cable and DSL platforms. 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 in the country in recent years have been reflected tin operators’ declining revenue. This saw Cogeco selling the flagging Cabovisão in early 2012 for a considerable loss, while significant merger activity has arisen as operators see benefits in scale. Sonaecom’s Optimus division was merged with Zon Multimédia in mid-2013, becoming Zon Optimus, while Portugal Telecom is in the process of merging with Brazil’s telco Oi.

The mobile market is served by a triopoly of MNOs: the incumbent’s TMN, Vodafone and Optimus. Mobile penetration is above the EU average, while growth has been supported through the popularity for multiple SIMs. All operators have launched 3G services and have invested in HSPA and LTE upgrades. The MVNO market remains undeveloped, though network operators have their own low-cost brands and a range of offers tied to commercial enterprises, such as clubs, providing bespoke calling rates.

There has been considerable development in the converged services market. The digital TV platform was completed in April 2012 with all analogue broadcasting coming to an end. A licence for pay TV and free-to-air services was awarded to Portugal Telecom in 2008. The operator’s quad-play service, launched in 2013, has tapped into the popularity of bundled offerings.

Portugal’s broadband penetration is considerably lower than the European average, though the efforts of a capable and robust regulator coupled with infrastructure upgrades in both the cable and DSL sectors have narrowed the gap during the last two years. Cable has showed strong growth in recent years, partly through the efforts of the rebranded dominant operator Zon Optimus. Portugal Telecom and its subsidiaries control most of the DSL market, but new regulatory provisions have granted easier and cheaper access for alternative ISPs.

All operators have focussed on increasing broadband speed, while the regulator has encouraged and maintained the impetus for local loop unbundling. The fibre market remains underdeveloped, though regulatory measures coupled with substantial investments planned by the major operators should see significant growth in coming years.

Key developments:

Fibre sector showing strongest growth, accounting for 75% of all new subscribers; PT eliminates special rights granted to the government’s golden shares; AR Telecom exits residential market; Zon Multimédia and Optimus merge to form Zon Optimus; PT nears merger with the Brazilian telco Oi, opens Europe’s largest data centre; LTE commercial services expand across Portugal; m-payment solution developments; TMN rebranded as Meo; financial constraints putting pressure on consumer spend for high-end telecom services; Lycamobile launches mobile services; regulator extends subsidy programme for DTTV/DTH STBs; IPTV subscriber base approaches one million; quarter of households take bundled services; PT launches quad-play service; Zon Optimus launches satellite-based quad-play offer; regulator’s market data to Q4 2013; telcos’ operating and financial data to Q1 2014; market developments to May 2014.

Companies and subsidiaries covered include:

TMN, Optimus, Vodafone, Zon Multimédia, Vodafone, Portugal Telecom. 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 - 2013 (e)
    • Table Telecom revenue and investment statistics - 2013 (e)
    • Table Telephone network statistics - 2014 (e)
    • Table Internet user statistics - 2013 (e)
    • Table Broadband statistics - 2014 (e)
    • Table Mobile statistics - 2014 (4e)
    • 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 market revenue - 2000 - 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 - 2013
        • Table Portugal Telecom's share of direct access customers - 2005 - 2013
      • Number Portability (NP)
        • Table Cumulative fixed-line numbers ported - 2001 - 2014
      • Wholesale Line Rental (WLR)
  • FIXED NETWORK OPERATORS
    • OVERVIEW OF OPERATORS
      • Table Fixed-line revenue: subscription, traffic - 2007 - 20110
      • Table Fixed-telephony service revenue and change, by sector - 2012 - 2013
      • Table Share of fixed-line access installations by operator - 2010 - 2013
    • 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
      • 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 - 2013
      • Table Sonaecom fixed-line subscribers by sector - 2008 - 2012
      • Novis
    • AR TELECOM
      • Jazztel (historic)
    • ZON OPTIMUS
      • Table Zon Optimus financial data - 2012 - 2013
      • Table Zon Optimus subscribers - 2012 - 2014
      • Table Zon Multimédia subscribers by type - 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
      • Next Generation Networks (NGNs)
    • INTERNATIONAL INFRASTRUCTURE
    • DATA CENTRES
  • BROADBAND MARKET
    • OVERVIEW
      • Table Fixed-line internet subscribers by access type - 2005 - 2013
      • Table Fixed-line internet revenue - 2008 - 2011
      • Table Fixed-line internet revenue and change, by sector - 2012 - 2013
      • Broadband statistics
        • Table Proportion of broadband subscribers by access type - 2007 - 2013
        • Table Total broadband subscribers by type - 2000 - 2014
        • Table Broadband subscriber annual change year-on-year - 2002 - 2013
        • Table Broadband penetration by sector - 2007 - 2013
        • Table Share of broadband accesses by operator - 2010 - 2013
        • 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
    • CABLE MODEMS
      • Zon Multimédia
        • Table ZON Multimédia cable broadband subscribers - 2004 - 2012
      • Zon Optimus
        • Table Zon Optimus broadband subscribers - 2012 - 2014
      • 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-PREMISE (FTTP) NETWORKS
      • Table FttX subscribers - 2008 - 2013
      • Sonaecom
      • Zon Multimédia
      • Portugal Telecom
      • Vodafone
    • BROADBAND OVER POWERLINE (BPL)
    • MOBILE BROADBAND
      • Table Active mobile broadband subscribers - 2010 - 2013
      • Table Mobile broadband devices - 2010 - 2013
      • Table Share of mobile broadband subscribers by operator (cards/modems) - 2010 - 2013
      • 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 - 2013
      • Table Penetration of TV subscribers by type - 2009 - 2013
    • KEY GENERAL TRENDS
    • BUSINESS MODELS
      • Table Subscribers to bundled services - 2007 - 2013
      • Table Bundled services revenue by type - 2008 - 2011
      • Table TV services revenue by sector - 2012 - 2013
      • Bundled services
        • Table Zon Optimus bundled services subscribers - 2007 - 2014
    • DIGITAL TV (DTV)
      • Overview
      • TV-over-DSL (IPTV)
        • Table IPTV subscribers - 2009 - 2013
        • Table Portugal Telecom pay-TV subscribers - 2008 - 2014
      • TV over FttH/B
        • Table FttH/B IPTV subscribers - 2007 - 2013
      • Cable TV (CATV)
        • Table TV subscriber share by operator - 2004 - 2013
        • Table CATV subscribers - 2008 - 2013
        • Table Zon Optimus cable and TV subscribers - 2007 - 2013
      • 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 - 2014
        • Table Nomadic VoIP subscribers - 2006 - 2013
      • Video-on-Demand
  • MOBILE COMMUNICATIONS
    • OVERVIEW OF PORTUGAL'S MOBILE MARKET
      • Mobile statistics
        • Table Historic - Mobile subscribers and SIM penetration rate (regulator data) - 1999 - 2004
        • Table Active mobile subscribers and SIM penetration rate (regulator data) - 2005 - 2014
        • Table Mobile sector revenue - 2004 - 2013
        • Table Outgoing mobile calls and traffic volume - 2012 - 2013
        • Table Mobile operators' market share of subscribers (main players) - 2004 - 2013
        • Table Mobile operators' market share of subscribers (minor players) - 2010 - 2013
    • REGULATORY ISSUES
      • Spectrum regulations and spectrum auctions
        • Table 3G subscribers by type - 2009 - 2013
        • Table Multiband auction results - 2012
      • Roaming
        • Table Roaming in call traffic volume and messages - 2003 - 2013
        • Table European roaming charges - 2007 - 2014
      • Mobile Number Portability (MNP)
        • Table Annual mobile number portings - 2002 - 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 - 2013
        • Table 3G subscribers - 2007 - 2012
    • MAJOR MOBILE OPERATORS
      • Meo
        • Table TMN residential ARPU and data percentage - 2006 - 2014
        • Table TMN subscribers - 2006 - 2014
        • Table TMN mobile revenue - 2010 - 2014
      • Vodafone
        • Table Vodafone Portugal subscribers - 2006 - 2013
        • Table Vodafone Portugal subscribers, proportion prepaid - 2006 - 2013
        • Table Vodafone monthly ARPU: prepaid, contract and blended - 2005 - 2013
        • Table Vodafone financial data - 2007 - 2013
      • 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
      • Zon Optimus
        • Table Zon Optimus mobile subscribers - 2012 - 2014
      • OniWay exits the market
      • Mobile Virtual Network Operators (MVNOs)
    • MOBILE VOICE SERVICES
      • Prepaid
        • Table Mobile prepaid subscribers, proportion prepaid - 2003 - 2013
      • Fixed-mobile convergence (FMC)
    • MOBILE MESSAGING
      • Short Message Service (SMS)
        • Table SMS messages sent annually and annual change - 2004 - 2013
        • Table SMS messages sent per user per month - 2010 - 2012
        • Table Premium SMS messages sent - 2010 - 2012
      • Multimedia Messaging Service (MMS)
        • Table MMS messages sent - 2007 - 2014
    • MOBILE DATA SERVICES
      • Table Mobile internet sessions and traffic - 2007 - 2013
      • 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 - 2013
        • Table Mobile TV subscribers - 2010 - 2013
        • Table Mobile TV revenue - 2007 - 2013
      • TETRA (TErrestrial Trunked RAdio)
      • Machine-to-Machine (M2M)
        • Table M2M subscriptions - 2012 - 2013
      • Mobile content and applications
  • FORECASTS
    • FORECASTS - BROADBAND SUBSCRIBERS - 2009 - 2012; 2020
      • Scenario 1 - higher broadband subscriber growth
        • Table Forecast broadband subscribers - higher market growth scenario - 2010 - 2013; 2020
      • Scenario 2 - 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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