Portugal Telecom to replace copper network with FttP by 2020Portugal has a medium-sized telecom market with a strong mobile sector and a growing broadband customer base focussed on the delivery of fibre-based services. The country’s difficult economic circumstances have seen operators’ domestic revenue fall in recent quarters. This prompted considerable ownership changes among market operators. Cogeco sold the flagging Cabovisão in early 2012 for a considerable loss, while Sonaecom’s Optimus division was merged with Zon Multimédia in mid-2013, becoming Zon Optimus before being rebranded as NOS in 2014. The incumbent Portugal Telecom, following a poorly managed link up with the Brazilian telco Oi and a disastrous investment in a failed bank, was sold to Altice Group, a deal which also saw Altice obliged to sell the cableco Cabovisão as well as Oni Telecom.
Portugal’s broadband penetration was for some years considerably lower than the European average, though the joint efforts of the regulator and the key market operators have resulted in significant infrastructure upgrades and an emphasis on fibre-based services. Cable has showed strong growth in recent years, partly through the efforts of the rebranded dominant operator NOS (formerly Zon Optimus). DSL is no longer the dominant platform for broadband connections, as customers are migrated to fibre networks being built by Portugal Telecom and other major players.
Despite some consolidation among players in recent years, the Portuguese mobile market remains dominated by the incumbent, operating as Meo, and by Vodafone and NOS. With near universal 3G coverage, during the last two years most investment has been directed to LTE and to incremental upgrades to network infrastructure. Meo was the first operator to launch commercial LTE services, in early 2012. The MVNO market remains undeveloped, though network operators have their own low-cost brands.
Portugal has seen considerable development in the converged services market. The main cableco is NOS, which was formed from the merger of Zon Multimédia with Sonaecom’s subsidiary Optimus, becoming Zon Optimus before the rebranding to NOS in May 2014. The digital TV platform in Portugal was completed in April 2012. Although there are few DTTV channels available, since late 2015 the regulator has endeavoured to switch to a Multi Frequency Network which will enable at least six additional channels to be carried.
This report introduces the major elements of the Portuguese 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. The report also covers the mobile market, providing financial and operating statistics for network operators, as well as an assessment of mobile voice and data services. In addition the report covers the broadband and digital media sectors, including developments in fibre networks, videostreaming and bundled service offerings.
Key developments:
New cable to link Portugal with Brazil;
Portugal Telecom announces plan to replace copper network with FttP by 2020;
Zon Optimus rebrands as NOS;
AR Telecom exits residential market;
Altice sells Cabovisão and Oni Telecom;
PT ramps up fibre roll out, aiming for 5.3 million connected premises;
Vodafone’s fibre network to cover two-thirds of premises by end-2016;
Vodafone achieves 450Mb/s downlink speeds in LTE-A trials, provides 90% LTE population coverage;
Decline in SMS traffic in wake of messaging alternatives;
Regulator extends subsidy program for DTTV/DTH STBs;
Portugal adopts Multi Frequency Network (MFN) to resolve DTT reception problems;
Report update includes the regulator’s market data to Q4 2015, telcos’ operating and financial data to Q4 2015, recent market developments.Companies mentioned in this report:
Meo (TMN, Portugal Telecom), NOS (Zon Optimus, Zon Multimédia), Vodafone, Sonaecom, Cabovisão), CTT, Lycamobile.
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1. Key statistics
1.1 Country overview
2. Telecommunications market
3. Regulatory environment
3.1 Historic overview
3.2 Revised NFR
3.3 Regulatory authority
3.4 Government policies
3.4.1 Privatisation of Telecom Portugal
3.5 Interconnect
3.6 Access
3.7 Fibre access
3.8 Carrier PreSelection (CPS)
3.9 Number Portability (NP)
3.10 Wholesale Line Rental (WLR)
4. Fixed network operators
4.1 Introduction
4.2 Portugal Telecom
4.3 Oni Communications
4.4 Sonaecom
4.4.1 Novis
4.5 AR Telecom
4.5.1 Jazztel (historic)
4.6 NOS
5. Telecommunications infrastructure
5.1 National telecom network
5.1.1 Next Generation Networks (NGNs)
5.2 International infrastructure
5.3 Data centres
6. Broadband market
6.1 Introduction and statistical overview
6.1.1 Market analysis
6.1.2 Broadband statistics
6.1.3 Forecasts – broadband subscribers – 2016; 2018; 2021
6.2 Hybrid Fibre Coax (HFC) networks
6.2.1 NOS
6.2.2 Cabovisão
6.3 Digital Subscriber Line (DSL) networks
6.3.1 Portugal Telecom (Meo)
6.3.2 Sonaecom
6.4 Fibre-to-the-Premises (FttP)
6.4.1 Sonaecom
6.4.2 NOS
6.4.3 Portugal Telecom
6.4.4 Vodafone
6.5 Other fixed broadband services
6.5.1 Broadband over Powerline (BPL)
6.5.2 Wireless broadband
6.6 Competition issues
6.6.1 Wholesale
6.6.2 Naked DSL
7. Digital media
7.1 Digital media Overview
7.2 Key general trends
7.3 Business models
7.3.1 Bundled services
7.4 Digital TV (DTV)
7.4.1 Introduction
7.4.2 Videostreaming
7.4.3 communications: VoIP
7.4.4 Cable TV (CATV)
7.4.5 Satellite-based digital pay-TV developments
7.4.6 Digital Terrestrial TV
8. Mobile communications
8.1 Market analysis
8.2 Mobile statistics
8.2.1 General statistics
8.2.2 Mobile voice
8.2.3 Mobile data
8.2.4 Mobile broadband
8.2.5 Forecasts – mobile subscribers – 2016; 2018; 2021
8.3 Regulatory issues
8.3.1 Spectrum regulations and spectrum auctions
8.3.2 Roaming
8.3.3 Mobile Number Portability (MNP)
8.3.4 Mobile Termination Rates (MTRs)
8.3.5 Network sharing
8.4 Mobile infrastructure
8.4.1 Digital networks
8.4.2 Third Generation (3G) mobile
8.4.3 Long-term Evolution (LTE)
8.4.4 Other infrastructure developments
8.4.5 Machine-to-Machine (M2M)
8.5 Major mobile operators
8.5.1 Meo
8.5.2 Vodafone
8.5.3 Optimus
8.5.4 NOS (Zon Optimus)
8.5.5 OniWay exits the market
8.5.6 Mobile Virtual Network Operators (MVNOs)
8.6 Mobile content and applications
8.6.1 Location-based services
8.6.2 Other developments
8.6.3 M-payments
8.6.4 Mobile TV
8.7 Mobile handsets
Table 1 – Country statistics – 2015 (e)
Table 2 – Telecom revenue and investment statistics – 2015 (e)
Table 3 – Telephone network statistics – 2015 (e)
Table 4 – Internet user statistics – 2015 (e)
Table 5 – Broadband statistics – 2015
Table 6 – Mobile statistics – 2015 (e)
Table 7 – National telecommunications authority
Table 8 – Telecom market investment – 2004 - 2015
Table 9 – Telecom retail revenue by service – 2013 - 2015
Table 10 – Average telecom revenue per user, by service – 2013 - 2014
Table 11 – Number and type of access lines: analogue and digital – 2004 - 2015
Table 12 – Fixed telephone customers, access type and shared access lines – 2004 - 2015
Table 13 – Portugal Telecom’s share of direct access customers – 2005 - 2015
Table 14 – Ported fixed-line numbers – 2001 - 2015
Table 15 – Multiplay and telephony services revenue – 2012 - 2015
Table 16 – Fixed-line revenue: subscription, traffic (historic) – 2007 - 2010
Table 17 – Fixed-telephony service revenue, by sector – 2012 - 2015
Table 18 – Total fixed-telephony service revenue – 2012 - 2015
Table 19 – Fixed-telephony service revenue change, by sector – 2013 - 2015
Table 20 – Share of fixed-line access installations by operator (old format) – 2010 - 2014
Table 21 – Share of fixed-line access installations by operator – 2012 - 2015
Table 22 – Portugal Telecom consumer accesses and subscribers by sector – 2009 - 2015
Table 23 – Portugal Telecom domestic financial data (old style) – 2005 - 2011
Table 24 – Portugal Telecom domestic revenue by segment – 2010 - 2014
Table 25 – Portugal Telecom financial data – 2013 - 2014
Table 26 – Portugal Telecom (under Altice) revenue – 2014 - 2015
Table 27 – Sonaecom financial data – 2006 - 2015
Table 28 – Sonaecom financial data (old format) – 2006 - 2012
Table 29 – Sonaecom fixed-line subscribers by sector – 2008 - 2012
Table 30 – NOS financial data – 2012 - 2015
Table 31 – NOS revenue by segment – 2014 - 2015
Table 32 – NOS subscribers – 2012 - 2015
Table 33 – Zon Multimédia subscribers by type (historic) – 2007 - 2012
Table 34 – Zon Multimédia financial data (historic0 – 2007 - 2012
Table 35 – Historic - Fixed lines in service and teledensity – 1999 - 2009
Table 36 – Fixed lines in service and teledensity – 2010 - 2016
Table 37 – VoIP and mobile voice accesses – 2013 - 2015
Table 38 – Fixed-line internet subscribers by access type – 2005 - 2015
Table 39 – Fixed-line internet revenue – 2014 – 2015
Table 40 – Proportion of broadband subscribers by access type – 2007 - 2015
Table 41 – Fixed broadband subscribers by type – 2000 - 2015
Table 42 – Broadband subscriber annual change year-on-year – 2002 - 2015
Table 43 – Broadband penetration by sector – 2007 - 2015
Table 44 – Share of broadband accesses by operator (old format) – 2010 - 2014
Table 45 – Share of broadband accesses by operator (new format) – 2011 - 2015
Table 46 – Fixed-line broadband traffic – 2008 - 2015
Table 47 – Fixed-line and mobile broadband traffic per month per customer – 2008 - 2015
Table 48 – Proportion of broadband subscribers by data rate (Mb/s) – 2011 - 2015
Table 49 – Forecast broadband subscribers – higher market growth scenario – 2016; 2018; 2021
Table 50 – NOS cable broadband subscribers – 2004 - 2015
Table 51 – Portugal Telecom DSL broadband subscribers – 2006 - 2015
Table 52 – FttX subscribers – 2008 - 2015
Table 53 – Vodafone fixed-line broadband subscribers – 2012 - 2015
Table 54 – Portugal Telecom wholesale accesses – 2004 - 2011
Table 55 – Broadcasting subscribers by platform – 2008 - 2015
Table 56 – Penetration of TV subscribers by type – 2010 - 2015
Table 57 – Subscribers to bundled services – 2007 - 2015
Table 58 – Bundled services market revenue by type – 2014 - 2015
Table 59 – Bundled services market revenue by type – 2014 - 2015
Table 60 – Bundled services average revenue per subscriber – 2014 - 2015
Table 61 – NOS bundled services subscribers – 2007 - 2015
Table 62 – Bundled services market share by subscribers – 2011 - 2015
Table 63 – Penetration of bundled services by type – 2011 - 2015
Table 64 – Proportion of bundles by type – 2014 - 2015
Table 65 – Revenue from subscription TV services – 2014 - 2015
Table 66 – TV accesses by platform – 2014 - 2015
Table 67 – IPTV subscribers – 2009 - 2015
Table 68 – Portugal Telecom pay-TV subscribers – 2008 - 2015
Table 69 – Market share of DSL TV subscribers by operator – 2011 - 2015
Table 70 – FttH/B IPTV subscribers – 2007 - 2015
Table 71 – Market share of fibre TV subscribers by operator – 2011 - 2015
Table 72 – VoIP subscribers – 2010 - 2015
Table 73 – Nomadic VoIP subscribers – 2006 - 2015
Table 74 – Cable TV subscriber share by operator – 2004 - 2015
Table 75 – CATV subscribers – 2008 - 2015
Table 76 – Cabled households – 2000 - 2015
Table 77 – NOS (Zon Optimus) cable and TV subscribers – 2007 - 2015
Table 78 – Satellite TV subscriber households – 1998 - 2015
Table 79 – Market share of DTH subscriptions by operator – 2011 - 2015
Table 80 – Historic - Mobile subscribers and penetration (regulator data) – 1999 - 2009
Table 81 – Mobile subscribers and penetration (regulator data) – 2010 - 2016
Table 82 – Active mobile subscribers (regulator data) – 2014 - 2015
Table 83 – Mobile sector revenue – 2004 - 2015
Table 84 – Mobile operators’ market share of subscribers (main players) – 2004 - 2015
Table 85 – Outgoing mobile calls and traffic volume – 2002 - 2015
Table 86 – Mobile prepaid subscribers, proportion prepaid – 2003 - 2015
Table 87 – Average revenue per mobile subscriber – 2013 - 2015
Table 88 – Mobile internet sessions and traffic – 2007 - 2015
Table 89 – SMS messages sent annually – 2004 - 2015
Table 90 – SMS messages sent per user per month – 2010 - 2015
Table 91 – Premium SMS messages sent – 2010 - 2015
Table 92 – MMS messages sent – 2007 - 2015
Table 93 – Active mobile broadband subscribers – 2010 - 2015
Table 94 – Mobile broadband devices – 2010 - 2015
Table 95 – Share of mobile broadband subscribers by operator (cards/modems) – 2010 - 2015
Table 96 – Share of mobile broadband subscribers by operator – 2011 - 2015
Table 97 – Mobile broadband revenue – 2007 - 2015
Table 98 – NOS mobile data use per subscriber – 2012 - 2015
Table 99 – Forecast mobile subscribers – 2016; 2018; 2021
Table 100 – Multiband auction results – 2012
Table 101 – Roaming in call traffic volume and messages – 2003 - 2015
Table 102 – European roaming charges – 2007 - 2016
Table 103 – European data roaming charges – 2012 - 2016
Table 104 – Annual mobile number portings – 2002 - 2016
Table 105 – MTRs – 2009 - 2012
Table 106 – 3G video calls and traffic data – 2007 - 2015
Table 107 – M2M subscriptions – 2012 - 2015
Table 108 – M2M sessions and traffic – 2013 - 2015
Table 109 – Meo residential ARPU and data percentage – 2006 - 2015
Table 110 – Meo subscribers – 2006 - 2015
Table 111 – Meo mobile revenue – 2010 - 2015
Table 112 – Vodafone Portugal subscribers – 2006 - 2015
Table 113 – Vodafone Portugal subscribers, proportion prepaid – 2006 - 2015
Table 114 – Vodafone monthly ARPU: prepaid, contract and blended – 2005 - 2015
Table 115 – Vodafone financial data – 2007 - 2016
Table 116 – Optimus operational statistics – 2006 - 2012
