2012-11-03 16:51:13 - Recently published research from Business Monitor International, "Spain Telecommunications Report Q4 2012", is now available at Fast Market Research
BMI View: The Spanish market is highly developed with high levels of penetration in mobile, fixed-line and broadband services. However, the telecoms market has been hit hard by economic conditions, resulting in subscription losses and downward pressure on prices. The outlook for the sector is mixed, with growth potential remaining in the wireless data market and in high-speed broadband, particularly when bundled with pay-TV services. However, the market will continue to be impacted by economic conditions with rising consumer price sensitivity set to limit financial performance in the sector in the short- to medium term.
Full Report Details at
- www.fastmr.com/prod/479435_spain_telecommunications_report_q4_20 ..
* The mobile market contracted by 4.3% y-o-y to the end of June 2012, reaching 53.394mn subscriptions as
a result of inactive subscription discounting by market leader Movistar.
* Mobile ARPU continued to decline as a result of the heightened price sensitivity of consumers and the implementation of mobile termination rate cuts. Market share weighted monthly blended ARPU declined 8.2% y-o-y to Q212.
* Dedicated mobile broadband subscriptions declined 4.3% y-o-y to the end of March 2012, according to CMT data.
Key Trends And Developments
A consequence of the macroeconomic crisis impacting the sector has been the speculation about changing ownership in the sector. In July 2012 it was reported that TeliaSonera was ready to sell its Yoigo mobile operations in Spain. The rumoured price tag for Yoigo is EUR1bn (US$1.2bn). There was also speculation in the wireline sector. In July 2012 it was reported that a trio of high-profile private equity companies is said to be preparing to invest up to EUR800mn for a 49% stake in Spanish regional converged services provider, Euskaltel. CVC Capital Partners, Apax Partners and Trilantic Capital Partners are claimed to be the investors targeting Euskaltel.
Mobile operators have faced an increasingly hostile operating environment as macroeconomic conditions have raised consumer price sensitivity - leading to subscription losses and declining ARPU. However, regulatory measures have also played a key part, with cuts to mobile termination rates (MTR) enacted in Q212 contributing to declining ARPUs for operators. (However, it should be remembered that there will be a benefit in terms of reduced operating costs). Looking ahead, further MTR cuts in 2012, 2013 and 2014 will add to the pressure from macroeconomic crisis, which is set to continue at least in the short- to medium term.
In Q212 the two largest mobile operators, Telefonica (Movistar) and Vodafone announced they would follow Yoigo in moving away from handset subsidies in Spain. Meanwhile, Orange maintained handset subsidies, helping to boost subscription figures. Telefonica maintained its strategy, while Vodafone reinstated handset subsidies in August 2012, although the operator claims this is only temporarily until September 15 2012. Operator strategy over the issue is expected to be a key short- to medium-term competitive dynamic
Partial Table of Contents:
- Mobile SWOT
- Wireline SWOT
- Business Environment
Industry Business Environment Overview
- Western Europe Risk/Reward Ratings - Q4 2012
- Change At Both Ends Of The Ratings
- Table: Western Europe Risk/Reward Ratings, Q412
- Table: Telecoms Sector - Mobile - Historical Data And Forecasts
- Table: Telecoms Sector - Mobile ARPU (EUR) - Historical Data And Forecasts
- Table: Telecoms Sector - Fixed Line - Historical Data And Forecasts
- Table: Telecoms Sector - Internet - Historical Data And Forecasts
- Regional Perspective
- Table: Spain Mobile Market Regional Comparisons, 2011
- Mobile Growth
- Market Share And Net Additions
- Table: Spain Mobile Market, Q212
- Subscription Mix
- Table: Net Additions By Subscription Type ('000), Y-o-Y To Q212
- Usage (ARPU/MOU)
- Mobile Content/Value Added Services
- Table: VAS Timeline
- Table: Mobile Contract Wins
- Mobile Operator Tables
- Table: Market Overview
- Table: Movistar
- Table: Vodafone
- Table: Orange
- Table: Yoigo
- Europe - Western Europe Mobile Content
- Succeeding In A Sea Of Content
- All Eyes On Data
- Making Machines Pay
- Table: Broadband Subscriptions By Technology ('000)
- Table: Wireline Developments
- Converged Service Operator Tables
- Table: Telefonica
- Table: Ono
- Table: Orange
- Table: Jazztel
Industry Trends And Developments
- Table: Regulatory Framework
- Market Structure
- Table: Key Players -- Spain Telecoms Sector
- Table: Selected Operators - Financial Indicators
- Under Pressure
- Table: Spain's Population By Age Group, 1990-2020 ('000)
- Table: Spain's Population By Age Group, 1990-2020 (% of total)
- Table: Spain's Key Population Ratios, 1990-2020
- Table: Spain's Rural And Urban Population, 1990-2020
- Table: Glossary Of Terms
Full Table of Contents is available at:
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