More Products:
Portugal - Market Intelligence Report
|
Market Intelligence Reports provide an invaluable mix of vital market data and background information, including telecoms regulation. According to industry regulator ANACOM, Portugal's electronic communications services market generated revenues of €7,316.1 million in 2005 (latest data), up from €7,314.5 million in 2004, €6,980.5 million in 2003, and €6,838.9 million in 2002. The fixed-line and mobile telephony services sectors accounted for the majority of this revenue, with mobile telephony leading the field with revenues of €2,728.5 million in 2005 (up from €2,611.8 million in 2004, €2,329.8 million in 2003, and €2,135.5 million in 2002) and fixed-line services bringing in €1,403.1 million in 2005, compared with €1,488.3 million in 2004, €1,532.2 million in 2003, and €1,613.8 million in 2002). By September 2007, there were 13 active fixed telecommunications service providers, 33 active Internet service providers, 12 active Internet service providers offering ADSL service, eight (individually-authorised) active Internet service providers offering cable modem access, and 15 active Internet service providers offering broadband service via other means (fixed wireless access and dedicated line). By the end of June 2007, the Portugal Telecom companies held a 70.6% share of the total traffic market (voice plus Internet), distributed between 69.3% of the voice traffic market and 91.3% of the Internet traffic market. In the market for direct access lines, the new competitors are beginning to take a large share of the PT companies' traditional stronghold. By the end of March 2005, the competitors had a share of 6.9%. By the end of 2005, this figure had increased to 11.1%, and this continued to increase in the first quarter of 2006 to 13.1%. At the end of June 2006, competitors had 15.8% of the direct access market and this figure increased to 29.1% by the end of June 2007. There are - presently - just three cellular operators active in Portugal. TMN is a subsidiary of Portugal Telecom and accounted for 48.55% of all subscribers as of June 2007. Vodafone-controlled Telecel took second place with 35.09% of the market at that time, while third-placed Optimus accounted for just 16.37% of the market. There were almost 12 million cellular subscribers as of June 2007. For a while, during 2006 and into early-2007, it looked as if the Portuguese market would undergo a significant change in structure, as the Sonae group attempted to acquire a controlling stake in Portugal Telecom. Sonae launched an unsolicited offer for control of the incumbent in February 2006; this offer was valued at €10,700 million, but it was rejected by Portugal Telecom. Despite receiving approval, with conditions, from the competition authority that the acquisition could go ahead, and a recommendation from the Institutional Shareholder Services Inc (ISS), the independent proxy voting advisory and corporate governance service, that shareholders of Portugal Telecom vote to approve the removal of voting limits and authorise the purchase of PT shares by SonaeCom at the extraordinary general meeting (EGM) on March 2, 2007, Sonae's bid collapsed in March 2007. PT shareholders rejected a proposal to abolish the group’s voting restrictions, making it impossible for SonaeCom to gain control. Over 46% of PT shareholders at the EGM voted against SonaeCom's proposal to abolish a company statute limiting the voting rights of any single shareholder to 10%. Removing the voting limit, for which it needed the support of two-thirds of the shareholders present, was an essential condition for SonaeCom’s bid to proceed. Shareholders accounting for 67% of PT’s capital were represented at the meeting. Just over 43% voted in favour of abolishing the voting limits and 10% abstained. SonaeCom subsequently purchased the fixed line assets of ONI Telecom, and the Portuguese operations of Tele2, and is still likely to emerge as a major force in the Portuguese market. In August 2007, ANACOM announced plans to auction a fourth mobile operator licence in December 2007. ANACOM said the new GSM licence aims to "promote more competition in the supply of telecommunications services, by stimulating the access of new operators". According to reports, ANACOM is also planning to look into awarding other GSM licences in the first quarter of 2008.
This Market Intelligence Report was produced as part of
|
Order the 
Download the