Portugal Telecom - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Key Highlights

• Portugal is witnessing a rapid expansion in data traffic, propelled by the escalating pace of technological advancements. A key driver behind this surge is the growing interconnectivity among devices, machinery, and individuals via the Internet. Consequently, Portugal has introduced a spectrum of policies and initiatives to address this shift.
• The Agenda Portugal Digital, alongside the National Strategy for Connectivity in Very High Capacity Electronic Communication Networks (2023-2030), is pivotal in shaping Portugal's digital infrastructure. The Agenda focuses on empowering citizens to harness the potential of emerging technologies, while the National Strategy sets a clear goal: ensuring universal gigabit access by 2030.
• Players in the market are focusing on providing advanced network capacity in the country. In February 2024, Vodafone, in collaboration with Ericsson, introduced Ericsson's energy-efficient Radio 4485 in Portugal. This innovative triple-band radio slashes energy usage by over 20% compared to standard deployments across Vodafone's networks, spanning the 1800 MHz, 2100 MHz, and 2600 MHz bands. It bolsters Vodafone Portugal's energy efficiency and also enhances its network capacity.
• Key telecom giants, including Nokia and Vodafone, have established a strong foothold in Portugal. These companies are actively fueling the market’s growth through consistent and substantial investments in research and development, underlining their commitment to fostering innovation.
• The rising demand for high-speed connectivity services and increased spending on 5G infrastructure deployment are expected to positively influence the growth of the Portuguese telecom market.

Portugal Telecom Market Trends

Rising Demand for Fixed Broadband Services

• Major market players in Portugal are rolling out high-speed broadband services, aligning with the government's ambitious goal to extend broadband coverage, bolstering 3G, 4G, and 5G networks.
• The reliability of internet speeds significantly drives broadband adoption among businesses in Portugal. Unforeseen Internet outages can disrupt corporate communications and productivity, given that enterprises heavily rely on the Internet for tasks like making phone calls and accessing applications. Moreover, the transition from cable to fiber-optic Internet has notably reduced latency issues, particularly evident in activities like downloading or uploading high-definition content, further propelling Portugal's broadband adoption rate.
• According to Ookla Speedtest Global Index, Portugal ranked 29th with a median fixed broadband download speed of 181.20 Mbps in May 2024. The demand for fixed broadband services is growing significantly, creating new growth opportunities for the telecom market in the country.
• In September 2023, MEO, a telecommunications service provider in Portugal, rolled out a 10 Gbps internet package. The company asserts that this new fiber optic service is up to 10 times speedier, boasting hyper downloads and symmetrical uploads. MEO claims that this 10/10 Gbps internet plan caters to both residential customers and businesses. Moreover, this 10 Gbps fiber service is tenfold faster than existing connections and prioritizes the stability crucial for businesses.
• According to Statistics Portugal, in Portugal, as of 2023, 89% of households were connected to the Internet. Of these, 84% had fixed connections, while mobile connections lagged at 50%. Broadband, specifically, was accessible to 86% of households.

Rising Demand for OTT and PayTV Services

• The trend of home entertainment received a significant boost during the COVID-19 pandemic, leading to a surge in the adoption of OTT streaming services and PayTV in the country.
• Increased internet penetration, government-led digitalization initiatives, and a shifting cable market are the primary drivers of the country's OTT and PayTV landscape. The government actively promotes digital technologies to boost economic development and enhance competitiveness. Additionally, the surge in smartphone and TV ownership per household underscores varied content preferences across different age and gender demographics.
• According to Autoridade Nacional de Comunicações (ANACOM), in Portugal, the pay television subscriber base grew by over 3% from 2021 to 2022, totaling 4.5 million. Among the various access types, fiber to the home (FTTH) boasted the largest share, with 2.7 million subscribers. By 2023, this number had climbed to over 2.9 million.
• In recent years, the country has witnessed a significant surge in the demand for personalized and localized content. In response, OTT service providers are broadening their service portfolios, often in collaboration with industry peers, to tap into this burgeoning market.

Portugal Telecom Industry Overview

• January 2024: Nokia partnered with NOS, a Portuguese operator, chosen for its 5G standalone core. This selection aims to equip NOS with an advanced, fully automated software model. The model boasts near-zero touch automation and ultra-low latency, and it is designed to enable the delivery of secure, innovative 5G customer offerings at scale. It also promises advanced operational efficiencies.
• December 2023: Digi Communications NV's Portuguese arm, Digi Portugal, inked a framework deal with Vodafone Portugal. Under this agreement, Digi Portugal secures spectrum usage rights in the 1,800 Mhz and 3,400-3,800 Mhz bands. Moreover, as a part of the remedy package tied to Vodafone's acquisition of Cabonitel/NOWO Communications SA, Digi Portugal is set to gain wholesale bitstream access to Vodafone's optical fiber network. The primary objective of this agreement is to meet regulatory mandates in Portugal.

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