Spain - Telecoms, Mobile, Broadband and Forecasts

PUBLICATION OVERVIEW

This report (10th Edition) provides a comprehensive overview of trends and developments in Spain’s telecommunications market. The report analyses the mobile, internet, broadband, digital TV and converging media sectors.

Subjects include:

- Market and industry analyses, trends and developments;
- Facts, figures and statistics;
- Industry and regulatory issues;
- Infrastructure;
- Major Players, Revenues, Subscribers, ARPU, MoU;
- Internet, VoIP, IPTV;
- Mobile Voice and Data Markets;
- Broadband (FttH, DSL, cable TV, wireless);
- Convergence and Digital Media;
- 3G subscriber and mobile ARPU forecasts to 2015;
- Broadband market forecasts for selective years to 2020.

KEY DEVELOPMENTS

- Las Palmas completes initial stage of muni WiFi network;
- consortium develops FttH network in Extremadura;
- FttH lines breach 100,000;
- Carlyle Group buys Telecable Asturias;
- Digital+ rebrands as Canal+;
- Abertis Telecom sells half if its stake in Eutelsat;
- New government pressed to revitalise telecoms sector;
- Telefónica considers asset sales;
- telecom revenue falls 4,9% in Q3 2011;
- regulator agrees to 6.8% increase in LLU charges;
- Telefónica eyes Middle East market through deal with Etisalat, develops new organisational structure;
- new indirect access model to be introduced for 2012;
- Telefónica planning to invest US$14.6 billion in Brazil to 2014;
- revised wholesale broadband access regulations for 2012;
- mobile revenue falls 3.7% in Q3 2011;
- rise in number portability places pressure on operators;
- 4G licences in the 800MHz and 2.6GHz band raise €1.65 billion;
- regulator proposes 80% cuts in MTRs to 2014;
- regulator launches investigation into wholesale SMS and MMS charges;
- regulator’s market data for Q3 2011 and updates to November 2011;
- operator data to Q3 2011.

REASONS TO BUY

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. SHOW LESS READ MORE >

1. Key Statistics

2. Telecommunications Market
2.1 Overview of Spain’s telecom market
2.2 E-commerce
2.3 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 Performance in 2011
4.2.2 Company restructure
4.3 The Auna Group (historic)
4.4 Orange
4.5 Vodafone España
4.6 Jazztel
4.7 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 E-commerce
6.1.3 Government initiatives
6.2 Cable modems
6.2.1 ONO
6.3 Asymmetrical Digital Subscriber Line (ADSL)
6.3.1 Movistar
6.3.2 Other DSL developments
6.3.3 ADSL2+
6.3.4 VDSL
6.4 Fibre-to-the-Home (FttH) networks
6.4.1 Regulatory issues
6.4.2 Fibre market – 2011
6.4.3 Movistar
6.4.4 Orange
6.4.5 Other developments
6.5 Wireless broadband
6.5.1 Wireless Local Loop (WLL)
6.5.2 WiFi
6.5.3 WiMAX
6.5.4 Internet via satellite
6.5.5 Mobile broadband
6.6 Broadband Powerline (BPL)

7. Digital Media
7.1 Digital TV
7.1.1 Pay DTTV
7.1.2 Regulatory environment
7.1.3 TV-over-DSL (IPTV)
7.1.4 Video-on-Demand (VoD)
7.1.5 Personal Video Recorders (PVRs)
7.1.6 Cable TV (CATV)
7.1.7 Satellite TV
7.1.8 Digital Terrestrial TV (DTTV)
7.1.9 FTA TV
7.1.10 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 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

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 Forecasts – UMTS subscribers 2006-2011; 2015
9.3 Notes on scenario forecasts

10. Glossary of Abbreviations

Table 1 – Country statistics – 2011
Table 2 – Telecom revenue and investment statistics – 2011 (e)
Table 3 – Telephone network statistics – November 2011
Table 4 – Internet user statistics – September 2011
Table 5 – Broadband statistics – September 2011
Table 6 – Mobile statistics – November 2011
Table 7 – National telecommunications authority
Table 8 – Telecom revenue, retail and wholesale – 2000 - 2012
Table 9 –Telecom revenue annual change – 2000 - 2010
Table 10 – Telecom retail revenue by sector – 2005 - 2011
Table 11 – Telecom retail revenue annual change, by sector – 2002 - 2011
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 - 2012
Table 15 – Wholesale interconnection revenue – 2007 - 2011
Table 16 – Access lines by type (regulator data) – 2008 - 2011
Table 17 – LLU, shared access price – connection and monthly rental – 2006 - 2009
Table 18 – Subscribers by type of access – 2006 - 2011
Table 19 – Cumulative fixed lines ported – 2002 - 2011
Table 20 – Carrier PreSelection lines – 2005 - 2011
Table 21 – Fixed-line market share of revenue by operators – 2007 - 2011
Table 22 – Fixed-line subscribers, by operator – 2008 - 2011
Table 23 – Fixed-line subscriber market share, by operator – 2008 - 2011
Table 24 – Fixed-line price index – 2004 - 2011
Table 25 – Household penetration of telephony services, by type – 2004 - 2011
Table 26 – Telefónica Group financial data – 2006 - 2011
Table 27 – Telefónica de España EBITDA – 2007 - 2011
Table 28 – Telefónica de España revenue by type – 2007 - 2011
Table 29 – Telefónica de España fixed-line revenue by sector – 2005 - 2011
Table 30 – Telefónica de España access lines by service – 2005 - 2011
Table 31 – Telefónica de España wholesale access by type – 2005 - 2011
Table 32 – Orange subscribers by sector – 2005 - 2011
Table 33 – Orange EBITDA, capex – 2007 - 2011
Table 34 – Orange revenue – 2007 - 2011
Table 35 – Vodafone financial data – 2008 - 2011
Table 36 – Jazztel revenue by sector – 2008 - 2011
Table 37 – Jazztel broadband subscribers by sector – 2006 - 2011
Table 38 – ONO financial data by sector – 2006 - 2011
Table 39 – ONO subscribers by sector– 2006 - 2011
Table 40 – Fixed lines in service and penetration – 2003 - 2012
Table 41 – Broadband revenue, DSL and cable – 2003 - 2012
Table 42 – Internet market revenue – 2006 - 2012
Table 43 – Internet users and penetration rate – 1996 - 2012
Table 44 – Dial-up internet subscribers – 2005 - 2012
Table 45 – Total broadband subscribers, DSL, cable, total – 2001 - 2012
Table 46 – Fixed-line broadband penetration – 2001 - 2012
Table 47 – Annual growth of broadband by technology – 2004 - 2012
Table 48 – Proportion of broadband lines by data speed and operator – Sep 2011
Table 49 – Number of broadband lines by data speed – 2005 – 2011
Table 50 – Proportion of broadband subscribers by sector – 2004 - 2011
Table 51 – Broadband lines by operator – 2008 - 2011
Table 52 – Broadband penetration by technology – 2004 - 2011
Table 53 – Broadband subscribers by type – incumbent or other provider – 2007 - 2010
Table 54 – Cable modem subscribers – 2000 - 2012
Table 55 – Share of cable accesses – 2006 - 2011
Table 56 – Cable subscribers by operator – 2007 - 2011
Table 57 – ONO financial data by sector – 2006 - 2011
Table 58 – ONO subscribers by sector– 2006 - 2011
Table 59 – ADSL subscribers – 2000 - 2012
Table 60 – DSL subscribers by operator – 2008 - 2011
Table 61 – Movistar naked DSL subscribers – 2009 - 2011
Table 62 – Movistar internet subscribers (Spain) – 2006 - 2011
Table 63 – Movistar internet revenue by sector (Spain) – 2007 - 2011
Table 64 – Movistar wholesale broadband accesses by sector (Spain) – 2007 - 2011
Table 65 – JAZZTEL broadband subscribers by type – 2008 - 2011
Table 66 – FttH subscribers, consumers and business – 2009 - 2012
Table 67 – FttH subscribers by operator – 2009 - 2011
Table 68 – WiFi/WiMAX subscribers – 2009 - 2012
Table 69 – WiFi hotspots in operation – 2005 - 2011
Table 70 – Mobile broadband users by type – 2010
Table 71 – Mobile broadband subscribers by MNO; market share – 2011
Table 72 – TV revenue by technology – 2002 - 2011
Table 73 – Proportion of pay-TV subscribers by technology – 2005 - 2011
Table 74 – Proportion of households with DTTV – 2003 - 2012
Table 75 – Pay TV market subscribers by technology – 2002 - 2011
Table 76 – Forecast TV market subscribers by technology – 2014; 2019; 2023
Table 77 – Digital TV revenue by operator – 2007 - 2011
Table 78 – Pay TV subscribers by operator – 2007 - 2011
Table 79 – Pay TV subscribers by operator, market share – 2009 - 2011
Table 80 – IPTV revenue – 2005 - 2011
Table 81 –IPTV subscribers – 2005 - 2011
Table 82 – Telefónica pay-TV subscribers – 2008 - 2011
Table 83 – Orange IPTV subscribers – 2007 - 2011
Table 84 – Cable TV subscribers – 1996 - 2012
Table 85 – Cable TV revenue – 2004 - 2011
Table 86 – ONO financial data by sector – 2006 - 2011
Table 87 – ONO subscribers by sector– 2006 - 2011
Table 88 – Satellite TV subscribers – 1997 - 2010; 2015
Table 89 – Satellite broadcasting revenue – 2004 - 2011
Table 90 – Canal+ ARPU – 2006 - 2010
Table 91 – Prisa TV financial data – 2006 - 2011
Table 92 – Sogecable Cuatro financial data (historic) – 2006 - 2009
Table 93 – Prisa group financial data – 2008 - 2011
Table 94 – Prisa DTH subscribers – 2002 - 2011
Table 95 – DTTV subscribers – 2009 - 2011
Table 96 – Mobile market revenue – 2000 - 2012
Table 97 – Mobile traffic prepaid and contract in minutes – 2000 - 2012
Table 98 – Mobile market revenue by sector – 2006 - 2011
Table 99 – Mobile market revenue by contract and prepaid sectors – 2000 - 2011
Table 100 – Mobile market revenue by operator – 2006 - 2010
Table 101 – Mobile operators, subscribers and annual change – Sep 2011
Table 102 – Mobile subscribers by operator (regulator data) – 2006 - 2011
Table 103 – Mobile subscribers and penetration rate – 1997; 1999 - 2011
Table 104 – Mobile price index, prepaid, contract – 2005 - 2011
Table 105 – Cost per invoiced minute of use: contract, prepaid; all operators – 2001 - 2011
Table 106 – Subscriber market share by operator – 2004 - 2011
Table 107 – Roaming revenue – 2006 - 2010
Table 108 – European roaming charges – 2007 - 2012
Table 109 – Cumulative mobile number portings – 2002 - 2011
Table 110 – Mobile termination rates by operator – 2007 - 2012
Table 111 – Mobile termination rates by operator (proposed) – 2012 - 2014
Table 112 – Mobile interconnection revenue – 2003 - 2011
Table 113 – GSM/GPRS and 3G base stations – 2002 - 2011
Table 114 – Orange UMTS subscribers – 2007 - 2011
Table 115 – Yoigo subscribers – 2007 - 2011
Table 116 – Yoigo financial data – 2008 - 2011
Table 117 – Movistar mobile subscribers – 2005 - 2011
Table 118 – Movistar ARPU – 2005 - 2010
Table 119 – Movistar financial data – 2006 - 2011
Table 120 – Vodafone revenue by type – 2007 - 2011
Table 121 – Vodafone prepaid and data revenue statistics – 2006 - 2011
Table 122 – Vodafone mobile subscribers and traffic statistics – 2006 - 2011
Table 123 – Vodafone ARPU – 2006 - 2011
Table 124 – Vodafone Spain customer churn – 2007 - 2011
Table 125 – Vodafone mobile customer retention cost – 2007 - 2011
Table 126 – Orange mobile subscribers prepaid and contract – 2005 - 2011
Table 127 – Orange mobile revenue – 2006 - 2011
Table 128 – Orange annualised ARPU by sector – 2005 - 2011
Table 129 – Orange mobile customer acquisition costs – 2007 - 2011
Table 130 – Orange customer churn – 2007 - 2011
Table 131 – MVNO subscriber market share – 2008 - 2012
Table 132 – Mobile subscribers: prepaid, contract – 2006 - 2010
Table 133 – Proportion of subscribers by operator: prepaid, contract – 2010 - 2011
Table 134 – SMS revenue and messages sent – 2006 - 2011
Table 135 – Premium SMS revenue and messages sent – 2005 - 2010
Table 136 – MMS revenue and messages sent – 2004 - 2011
Table 137 – Mobile data revenue – 2007 - 2012
Table 138 – Mobile datacards per UMTS and HSPA – 2006 - 2011
Table 139 – HSPA subscribers – 2006 - 2011
Table 140 – Mobile TV subscribers by operator – 2008 - 2011
Table 141 – Mobile TV revenue – 2007 - 2011
Table 142 – Forecast broadband subscribers – higher market growth scenario – 2008 - 2013; 2020
Table 143 – Forecast broadband penetration – higher market growth scenario – 2008 - 2013; 2020
Table 144 – Forecast broadband subscribers – lower market growth scenario – 2008 - 2013; 2020
Table 145 – Forecast broadband penetration – lower market growth scenario – 2008 - 2013; 2020
Table 146 – Forecast mobile monthly ARPU – 2005 - 2011; 2015
Table 147 – Forecast UMTS subscribers – 2006 - 2011; 2015

Chart 1 – Telecom revenue, retail and wholesale – 2000 - 2012
Chart 2 – Telecom retail revenue by sector – 2005 - 2011
Chart 3 – Subscribers by type of access – 2006 - 2011
Chart 4 – Telefónica Group financial data – 2006 - 2011
Chart 5 – Telefónica de España revenue by type – 2007 - 2011
Chart 6 – Telefónica de España fixed-line revenue by sector – 2005 - 2011
Chart 7 – Telefónica de España access by service – 2005 - 2011
Chart 8 – Telefónica de España wholesale access by type – 2005 - 2011
Chart 9 – Orange subscribers by sector – 2005 - 2011
Chart 10 – Vodafone financial data – 2009 - 2011
Chart 11 – Jazztel revenue by sector – 2008 - 2011
Chart 12 – Jazztel broadband subscribers by sector – 2006 - 2011
Chart 13 – ONO financial data by sector – 2006 – 2011
Chart 14 – ONO subscribers by sector– 2006 - 2011
Chart 15 – Broadband revenue, DSL and cable – 2003 - 2012
Chart 16 – Total broadband subscribers, DSL, cable, total – 2001 - 2012
Chart 17 – Proportion of broadband subscribers by sector – 2004 - 2011
Chart 18 – Cable subscribers by operator – 2007 - 2011
Chart 19 – ONO financial data by sector – 2006 – 2011
Chart 20 – ONO subscribers by sector– 2006 - 2011
Chart 21 – Movistar internet subscribers (Spain) – 2006 - 2011
Chart 22 – Movistar internet revenue by sector (Spain) – 2007 - 2011
Chart 23 – Movistar wholesale broadband accesses by sector (Spain) – 2007 - 2011
Chart 24 – JAZZTEL broadband subscribers by type – 2008 - 2011
Chart 25 – FttH subscribers by operator – 2009 - 2011
Chart 26 – TV revenue by technology – 2002 – 2011
Chart 27 – ONO financial data by sector – 2006 – 2011
Chart 28 – ONO subscribers by sector– 2006 - 2011
Chart 29 – Prisa group financial data – 2008 - 2011
Chart 30 – Mobile traffic prepaid and contract in minutes – 2000 - 2012
Chart 31 – Mobile market revenue by sector – 2006 - 2011
Chart 32 – Mobile market revenue by contract and prepaid sectors – 2000 - 2011
Chart 33 – Mobile subscribers and penetration rate – 1997; 1999 - 2012
Chart 34 – Cost per invoiced minute of use: contract, prepaid; all operators – 2001 - 2011
Chart 35 – Yoigo subscribers – 2007 - 2011
Chart 36 – Yoigo financial data – 2008 - 2011
Chart 37 – Movistar mobile subscribers – 2005 - 2011
Chart 38 – Movistar ARPU – 2005 - 2011
Chart 39 – Vodafone revenue by type – 2007 - 2011
Chart 40 – Vodafone mobile subscribers and traffic statistics – 2006 - 2011
Chart 41 – Orange mobile subscribers prepaid and contract – 2005 - 2011
Chart 42 – Orange annualised ARPU by sector – 2005 - 2011
Chart 43 – Mobile subscribers: prepaid, contract – 2006 - 2010
Chart 44 – SMS revenue and messages sent – 2006 - 2011
Chart 45 – MMS revenue and messages sent – 2004 - 2011
Chart 46 – Mobile datacards per UMTS and HSPA – 2006 - 2011
Chart 47 – Mobile TV subscribers by operator – 2008 - 2011

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 – 3G licence results in Spain – March 2000
Exhibit 5 – Overview of spectrum allocations – 2011

Growing FttH Subscriber Base Leading to Churn From DSL

BuddeComm’s quarterly publication, Spain - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecoms and digital media sectors in one of Europe’s key markets struggling to overcome larger economic difficulties.

Spain’s telecom market is one of the largest in Europe, accounting for around 4% of GDP and directly employing some 71,000 people. In common with other European countries, the market has been affected by the general economic turmoil, which has hit Spain more harshly than most other regional economies. High During the next two to three years government debt is expected to be running far higher than the EU limits set under the now-defunct stability and growth pact which requires an annual budget deficit no higher than 3% of GDP and a national debt lower than 60% of GDP. Financial constraints have impacted the government’s ability to fund national telecom infrastructure projects, and have fast-tracked the sale of a range of mobile spectrum bands.

The new Spanish government, headed by Mariano Rajoy’s Center-right People’s Party (PP) – which replaced the seven-year old Socialist government – has not dampened investor concerns about Spain’s economic recovery despite announcing a new round of measures on bank policies, labour reforms and budget austerity. Yields on three-month bonds reached above 5.1% in late 2011, while the country may need €30 billion in new cuts to reach its deficit target for 2012.

The declining value of the telecom market, worth an estimated €38 billion in 2011 and an expected €37.6 billion in 2012, is mainly attributed to the economic crisis which has severely dampened consumer spend in all sectors. The broadband sector was the single area of positive growth until mid-2010, since when revenue from the sector has fallen by between 1.5% and 2.9% per quarter.

Telefónica controls the bulk of national and local infrastructure. Despite almost a decade since the Spanish telecoms sector was deregulated the incumbent serves 82% of direct accesses and thus dominates the fixed-line market. It also accounts for about 55% of the internet market. Fixed-line operators trying to break Telefónica’s hegemony include ONO, Jazztel, Euskaltel and Orange. Only in mobile telephony does Telefónica face significant competition.

The trend towards market consolidation and the entry of the first MVNOs have resulted in several integrated operators providing greater infrastructure competition: two MVNOs also operate in the fixed and broadband market while several cable operators have launched mobile services following the imposition of access obligations in 2006. Alternative operators have invested in cable and LLU while mobile operators are gradually upgrading networks to provide high-speed data services. Prices have fallen as a result of competition, particularly through bundled offers, and intensive number portability.

Market Highlights

Despite pay-DTTV services being a contentious issue in Spain, government approval for it in 2009 has helped broadcasters struggling to secure revenue in the face of competition from other platforms. Mediapro has successfully commercialise the first pay TV channel, Gol TV, since joined by AXN Spain as the country’s second pay-DTTV channel. Pay-HDTV over DTT has also been supported by the provision that new large TV sets must incorporate an HD tuner.

Additional frequencies freed up by the digital dividend in the 800MHz band will be auctioned in 2015, following auctions in late 2011. Spectrum in the 2.6GHz band has been offered in line with other European countries, while the refarming of the 900MHz band will enable MNOs to augment their 4G offerings, so alleviating poor broadband connectivity in rural areas.

Doubts over a viable mobile TV business model remain, leading to continuing caution among providers. The dramatic fall in the number of subscribers in 2011 coincided with the end of a Movistar promotion, suggesting that consumers remain unwilling to pay for the service.

Growth in the fixed-line broadband market continues steadily, at about 6% in 2011. Movistar’s share of the market has fallen in the wake of competition via LLU, though market share from cable services have been stagnant for several years despite higher capacity available based on the EuroDOCSIS 3.0 standard. The fibre market has shown considerable growth following regulatory measures on network access.

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.

- Canal+
- Jazztel
- Lebara
- Lycamobile
- Movistar
- ONO
- Orange
- Prisa TV
- TelefónicA
- Vodafone