Portugal - Telecoms, Mobile and Broadband

Portugal has a medium-sized telecom market with a strong mobile sector and a growing broadband customer base. Before the pandemic, the country had seen improving economic growth, following several years of austerity measures. Revenue among some operators remains under pressure, though investments in network upgrades are continuing in an effort to attract customers to high-end services.

Portugal's broadband penetration has grown steadily in recent years, largely the result of joint efforts between the regulator and the key market operators which have invested in significant infrastructure upgrades. These operators are focussed on fibre-based services, resulting in a migration of subscribers from DSL infrastructure. Under the ownership of the Altice Group, Altice Portugal is focussed on FttP, aiming to have covered 5.3 million premises by the end of 2020, and providing national coverage.

The cable sector has also shifted towards fibre, with the principal cableco NOS investing in fibre rather than DOCSIS upgrades. In addition, Vodafone Portugal provides fibre to about two-thirds of premises. Much of the growth in the fibre segment has resulted from shared infrastructure deals, including that between Vodafone and NOS. The government has also supported two open-access wholesale networks being built by dstelecom and Fibroglobal.

The mobile market is dominated by the incumbent Altice Portugal, though it is seeing increasing competition from the other network operators, Vodafone Portugal, and NOS. The MVNO market remains largely undeveloped, partly because network operators have their own low-cost brands. In July 2020, for example, NOS launched its sub-brand WOO. Collectively, MVNOs have about 2.9% share of the market. In October 2021 Dixarobil and Nowo secured spectrum in the final stage of a protracted 5G auction.

Population coverage by 3G infrastructure is universal, and most investment in the sector is being directed to LTE and 5G technologies. The MNOs have trialled 5G and are looking to launch commercial services.

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 fixed and fixed-wireless broadband markets, providing subscriber forecasts to 2026. In addition, the report profiles the mobile market, including statistics on network operators, a review of the key regulatory issues, a snapshot of the consumer market, and an analysis of mobile data services and technologies.

BuddeComm notes that the outbreak of the Coronavirus continues to have a significant impact on production and supply chains globally. During the coming year, the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure.

Overall progress towards 5G have been postponed or slowed down in some countries.

Lockdown measures have caused a surge in people working and learning from home and making use of online platforms for entertainment. Fixed networks have gained importance and data usage has soared. This situation is likely to continue into the future as companies allow more employees to work from home after the pandemic has passed. Although Portugal has one of the highest FttP coverage rates in Europe, investment in fibre infrastructure is continuing.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.

Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.

The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.

Key developments:

5G auction is completed, with three new entrants;

Eutelsat and Hispasat sign deal to provide wholesale satellite capacity on the EUTELSAT KONNECT satellite;

Social broadband tariff for low-income households to come into effect in early 2022;

EC opens infringement procedures against 24 EU member states for failing to enact the European Electronic Communications Code into national legislation;

Competition Authority fines MEO €84 million for anti-competitive behaviour;

Másmóvil becomes sole shareholder of Nowo;

Fixed broadband internet traffic up 53% in the third quarter of 2020, FttP accounting for 53.8% of fixed broadband accesses;

Vodafone and NOS sign a network-sharing agreement, NOS sells towers to Cellnex;

EU to investigate whether the regulator's draft 5G auction terms contain state aid;

Altice Portugal assesses feasibility of tender for the installation of the undersea cables between the mainland, the Azores and Madeira;

Equiano (Google) submarine cable due for completion later in 2021;

Portugal aims for 90% LTE coverage in rural areas by 2025;

Report update includes the regulator's market data to Q3 2020, telcos' operating and financial data to December 2020, assessment of the global impact of Covid-19 on the telecoms sector, recent market developments.

Companies mentioned in this report:

Altice Portugal (MEO), NOS (Optimus, Zon Multimédia), Vodafone Portugal, CTT, Lycamobile, Sonaecom, Cabovisão. Google, Másmóvil, Oni Communications, Nowo, RedCLARA.

Key statistics

Regional Europe Market Comparison

Market characteristics
Market Leaders
Market Challengers
Market Emergents
TMI versus GDP
Mobile and mobile broadband penetration
Fixed versus mobile broadband penetration

Country overview

Covid-19 and its impact on the telecom sector

Economic considerations and responses
Subscribers
Infrastructure

Telecommunications market

Market analysis

Regulatory environment

Historic overview
Regulatory authority
Fixed-line developments
- Privatisation
- Interconnect
- Access
- Fibre access
- Carrier PreSelection (CPS)
- European Electronic Communications Code
- Number Portability (NP)
- Wholesale Line Rental (WLR)
Mobile network developments
- Spectrum regulations and spectrum auctions
- Roaming
- Mobile Number Portability (MNP)
- Mobile Termination Rates (MTRs)
- Network sharing

Mobile market

Market analysis
Mobile statistics
Mobile voice
Mobile data
- Short Message Service (SMS)
Mobile broadband
Machine-to-Machine (M2M)
Internet-of-Things (IoT)
Mobile infrastructure
- 5G
- 4G (LTE)
- 3G
Major mobile operators
- MEO
- Vodafone Portugal
- NOS (Zon Optimus)
- Mobile Virtual Network Operators (MVNOs)
Mobile content and applications
- M-payments

Fixed-line broadband market

Market analysis
Broadband statistics
Hybrid Fibre Coax (HFC) networks
- NOS
- Nowo (Cabovisão)
Digital Subscriber Line (DSL) networks
- Altice Portugal (MEO)
- Sonaecom
Fibre-to-the-Premises (FttP)
Other fixed broadband services
- Broadband over Powerline (BPL)
- Wireless broadband

Fixed network operators

Introduction
Altice Portugal
Oni Communications
Sonaecom
- Novis
AR Telecom
- Jazztel (historic)
NOS
Vodafone

Telecommunications infrastructure

National telecom network
- Next Generation Networks (NGNs)
International infrastructure
- Submarine cable networks
- West Africa Cable System (WACS)
- Flores-Corvo
- EllaLink
- BELLA
- Equiano
- 2Africa submarine cable
Data centres

Appendix - Historic data

Glossary of abbreviations

Related reports

List of Tables

Table 1 - Top Level Country Statistics and Telco Authorities - Portugal - 2021 (e)
Table 2 - Change in the number of pre-selection, call-by-call, and VoIP connections - 2009 - 2020
Table 3 - Increase in fixed direct telephone customers and penetration - 2011 - 2020
Table 4 - Change in Altice Portugal's share of direct access customers - 2011 - 2020
Table 5 - Cumulative ported fixed-line and mobile numbers - 2009 - 2020
Table 6 - Multiband auction results - 2012
Table 7 - Roaming in call traffic volume and messages - 2009 - 2020
Table 8 - Change in the number of annual mobile number portings - 2010 - 2018
Table 9 - MTRs - 2009 - 2012; 2016, 2018 - 2020
Table 10 - Change in the number of mobile subscribers and penetration - 2011 - 2026
Table 11 - Development of mobile sector revenue - 2009 - 2019
Table 12 - Market share of mobile subscribers by operator - 2010 - 2020
Table 13 - Change in mobile prepaid subscribers, proportion prepaid - 2010 - 2020
Table 14 - Decline in mobile ARPU - 2010 - 2020
Table 15 - Change in outgoing mobile calls and traffic volume - 2010 - 2020
Table 16 - Decline in SMS messages sent annually - 2009 - 2020
Table 17 - Decline in SMS messages per subscriber sent quarterly (Q4) - 2010 - 2020
Table 18 - Decline in the number of MMS messages per subscriber - 2010 - 2019
Table 19 - Growth in the number of active mobile broadband subscribers and penetration - 2011 - 2026
Table 20 - Development of mobile broadband revenue - 2010 - 2019
Table 21 - Fixed-line and mobile broadband traffic per month per customer - 2010 - 2020
Table 22 - Continuing strong growth in mobile internet traffic - 2010- 2020
Table 23 - Strong growth in the number of M2M connections - 2012 - 2020
Table 24 - Evolution of MEO's mobile subscriber base - 2010 - 2020
Table 25 - Development of MEO's mobile revenue - 2010 - 2020
Table 26 - Change in MEO's revenue by quarter - 2016 - 2020
Table 27 - Change in the number of Vodafone Portugal's mobile subscribers, proportion prepaid - 2010 - 2020
Table 28 - Development of Vodafone Portugal's ARPU: prepaid, contract, blended - 2010 - 2020
Table 29 - Change in Vodafone Portugal's financial data (year to Mar) - 2010 - 2021
Table 30 - Evolution in NOS's mobile subscriber base - 2009 - 2020
Table 31 - Development of multi-play services revenue (€ million) - 2015 - 2020
Table 32 - Growth in the number of fixed broadband subscribers and penetration - 2011 - 2026
Table 33 - Evolution in broadband subscribers by access type - 2008 - 2020
Table 34 - Proportion of broadband subscribers by access type - 2008 - 2020
Table 35 - Evolution of fixed broadband penetration by platform - 2010 - 2019
Table 36 - Share of fixed broadband accesses by operator - 2010 - 2020
Table 37 - Evolution of fixed-line and mobile broadband traffic - 2008 - 2020
Table 38 - Growth in the number of NOS's cable broadband subscribers - 2009 - 2020
Table 39 - Change in the number of MEO's broadband subscribers by platform - 2012 - 2020
Table 40 - Growth in the number of FttP/B connected premises - 2010 - 2017
Table 41 - Growth in the number of fibre broadband subscribers - 2008 - 2020
Table 42 - Change in the number of Vodafone Portugal's fixed-line broadband subscribers - 2011- 2020
Table 43 - Total fixed-telephony service revenue - 2012 - 2020
Table 44 - Decline in fixed-telephony traffic - 2010- 2020
Table 45 - Change in the share of fixed-line accesses by operator - 2010 - 2020
Table 46 - Change in the number of Altice Portugal's fixed accesses by sector - 2012 - 2020
Table 47 - Development of Altice Portugal's financial data - 2014 - 2020
Table 48 - Development of Altice Portugal's revenue by service - 2010 - 2020
Table 49 - Development of Sonaecom's financial data - 2010 - 2020
Table 50 - Development of NOS's financial data € (million) - 2012 - 2020
Table 51 - Change in the number of NOS's subscribers by platform - 2009 - 2020
Table 52 - Fixed lines in service and teledensity - 2011 - 2026
Table 53 - Change in the number and type of analogue and digital access lines - 2010 - 2020
Table 54 - Change in the number of VoIP and mobile voice accesses - 2009 - 2020
Table 55 - International internet bandwidth - 2006 - 2019
Table 56 - Historic - Fixed lines in service and teledensity - 1999 - 2009
Table 57 - Historic - Internet users and penetration - 2000 - 2016
Table 58 - Historic - Fixed broadband subscribers by type - 2000 - 2009
Table 59 - Historic - Fixed broadband subscribers and penetration - 2000 - 2008
Table 60 - Historic - Share of broadband accesses by operator (old format) - 2010 - 2014
Table 61 - Historic - Broadband subscriber annual change year-on-year - 2002 - 2009
Table 62 - Historic - Proportion of broadband subscribers by data rate (Mb/s) - 2010 - 2016
Table 63 - Historic - Mobile subscribers and penetration - 2000 - 2009
Table 64 - Historic - Accumulated mobile number portings - 2002 - 2008
Table 65 - Historic - Outgoing mobile calls and traffic volume - 2002 - 2009
Table 66 - Historic - Mobile broadband revenue - 2007 - 2015
Table 67 - Historic - Decline in Altice Portugal's share of direct access customers - 2005 - 2009
Table 68 - Historic - Sonaecom financial data - 2006 - 2009
Table 69 - Historic - Sonaecom financial data (old format) - 2006 - 2012
Table 70 - Historic - Sonaecom fixed-line subscribers by sector (historic) - 2008 - 2012
Table 71 - Historic - Change in the number and type of analogue and digital access lines - 2005 - 2009
Table 72 - Historic - International internet bandwidth - 2006 - 2009
Table 73 - Historic - Evolution in broadband subscribers by access type - 2000 - 2007
Table 74 - Historic - Proportion of broadband subscribers by access type - 2000 - 2007
Table 75 - Historic - Broadband subscriber annual change year-on-year - 2002 - 2009
Table 76 - Historic - Evolution of fixed broadband penetration by platform - 2002 - 2009
Table 77 - Historic - Steady market share among mobile operators - 2004 - 2009
Table 78 - Historic - Steady market share among mobile operators - 2006 - 2009
Table 79 - Historic - Long-term drop in 3G video calls and traffic - 2007 - 2009
Table 80 - Historic - Continuing strong growth in mobile internet traffic - 2007 - 2009
Table 81 - Historic - Decline in SMS messages per subscriber sent quarterly (Q4) - 2007 - 2009
Table 82 - Historic - Decline in MMS messages per subscriber - 2007 - 2009
Table 83 - Historic - Change in Vodafone Portugal subscribers, proportion prepaid - 2006 - 2009
Table 84 - Historic - Change in Vodafone financial data in GBP (year to Mar) - 2007 - 2016
Table 85 - Historic - Mobile broadband revenue - 2007 - 2009
Table 86 - Historic - Total fixed-telephony service revenue - 2003 - 2009

List of Charts

Chart 1 - Europe Telecoms Maturity Index - Market Leaders
Chart 2 - Europe Telecoms Maturity Index - Market Challengers
Chart 3 - Europe Telecoms Maturity Index - Market Emergents
Chart 4 - Europe - Telecoms Maturity Index vs GDP per capita
Chart 5 - Europe - Mobile subscriber penetration vs mobile broadband penetration
Chart 6 - Scandinavia/Baltics fixed and mobile broadband penetration
Chart 7 - Northern Europe fixed and mobile broadband penetration
Chart 8 - Eastern Europe fixed and mobile broadband penetration
Chart 9 - Southern Europe fixed and mobile broadband penetration
Chart 10 - Change in the number of pre-selection, call-by-call, and VoIP connections - 2009 - 2020
Chart 11 - Increase in fixed direct telephone customers and penetration - 2011 - 2020
Chart 12 - Change in Altice Portugal's share of direct access customers - 2010 - 2020
Chart 13 - Roaming in call traffic volume and messages - 2009 - 2020
Chart 14 - Change in the number of mobile subscribers and penetration - 2011 - 2026
Chart 15 - Development of mobile sector revenue - 2010 - 2019
Chart 16 - Market share of mobile subscribers by operator - 2010 - 2020
Chart 17 - Change in mobile prepaid subscribers, proportion prepaid - 2010 - 2020
Chart 18 - Decline in mobile ARPU - 2010 - 2020
Chart 19 - Change in outgoing mobile calls and traffic volume - 2010 - 2020
Chart 20 - Decline in SMS messages sent annually - 2010 - 2020
Chart 21 - Decline in SMS messages per subscriber sent quarterly (Q4) - 2010 - 2020
Chart 22 - Decline in the number of MMS messages per subscriber - 2010 - 2019
Chart 23 - Growth in the number of active mobile broadband subscribers and penetration - 2011 - 2026
Chart 24 - Development of mobile broadband revenue - 2010 - 2019
Chart 25 - Fixed-line and mobile broadband traffic per month per customer - 2010 - 2020
Chart 26 - Continuing strong growth in mobile internet traffic - 2010- 2020
Chart 27 - Strong growth in the number of M2M connections - 2012 - 2020
Chart 28 - Evolution of MEO's mobile subscriber base - 2010 - 2020
Chart 29 - Development of MEO's mobile revenue - 2010 - 2020
Chart 30 - Change in MEO's revenue by quarter - 2016 - 2020
Chart 31 - Change in the number of Vodafone Portugal's mobile subscribers, proportion prepaid - 2010 - 2020
Chart 32 - Development of Vodafone Portugal's ARPU: prepaid, contract, blended - 2010 - 2020
Chart 33 - Change in Vodafone Portugal's financial data (year to Mar) - 2010 - 2021
Chart 34 - Evolution in NOS's mobile subscriber base - 2009 - 2020
Chart 35 - Development of multi-play services revenue - 2015 - 2020
Chart 36 - Growth in the number of fixed broadband subscribers and penetration - 2011 - 2026
Chart 37 - Evolution in broadband subscribers by access type - 2010 - 2020
Chart 38 - Proportion of broadband subscribers by access type - 2010 - 2020
Chart 39 - Evolution of fixed broadband penetration by platform - 2010 - 2019
Chart 40 - Share of fixed broadband accesses by operator - 2013 - 2020
Chart 41 - Evolution of fixed-line and mobile broadband traffic - 2011 - 2020
Chart 42 - Growth in the number of NOS's cable broadband subscribers - 2010 - 2020
Chart 43 - Change in the number of MEO's broadband subscribers by platform - 2012 - 2020
Chart 44 - Growth in the number of FttP/B connected premises - 2010 - 2017
Chart 45 - Growth in the number of fibre broadband subscribers - 2010 - 2020
Chart 46 - Change in the number of Vodafone Portugal's fixed-line broadband subscribers - 2011- 2020
Chart 47 - Decline in fixed-telephony traffic - 2010- 2020
Chart 48 - Change in the share of fixed-line accesses by operator - 2010 - 2020
Chart 49 - Change in the number of Altice Portugal's fixed accesses by sector - 2012 - 2020
Chart 50 - Development of Altice Portugal's financial data - 2014 - 2020
Chart 51 - Development of Altice Portugal's revenue by service - 2010 - 2020
Chart 52 - Development of Sonaecom's financial data - 2010 - 2020
Chart 53 - Development of NOS's financial data - 2012 - 2020
Chart 54 - Change in the number of NOS's subscribers by platform - 2010 - 2020
Chart 55 - Fixed lines in service and teledensity - 2011 - 2026
Chart 56 - Change in the number and type of analogue and digital access lines - 2010 - 2020
Chart 57 - Change in the number of VoIP and mobile voice accesses - 2010 - 2020

List of Exhibits

Exhibit 1 - Map of Telecom Maturity Index global ranking among countries in Europe
Exhibit 2 - Generalised Market Characteristics by Market Segment
Exhibit 3 - Europe - Market Leaders and market developments
Exhibit 4 - Europe - Market Challengers and market developments
Exhibit 5 - Europe - Market Emergents and market developments
Exhibit 6 - Submarine cable network links to Portugal in 2021
Exhibit 7 - 2Africa landing stations

Portugal - Telecoms, Mobile and Broadband - Statistics and Analyses

Description

Table of Contents

List of Tables

EC opens infringement procedures against Portugal and other member states

Key developments:

Companies mentioned in this report:

Table of Contents

Key statistics

Regional Europe Market Comparison

Country overview

Covid-19 and its impact on the telecom sector

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Fixed network operators

Telecommunications infrastructure

Appendix - Historic data

Glossary of abbreviations

Related reports

List of Tables

List of Charts

List of Exhibits