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Spain’s fibre network sharing helps boost growth in FttP connections
In recent years the value of Spain’s telecom market has fallen, with the sector affected by the poor economic climate resulting in high unemployment and reduced disposable income among consumers. However, a five-year recession, with tumbling GDP, effectively ended in 2014 when the economy showed a steady return to growth for four quarters in succession. Growing confidence among investors was palpable during 2015, and the improved business climate augurs well for the sector into 2016.
Mobile penetration is high and growing steadily, while broadband uptake is backed by continuing investment in infrastructure among operators in a bid to provide improved bundled services and so compete more effectively against other players. The regulator has fostered competition by providing access to the incumbent’s DSL and FttP networks, which has stimulated fibre roll-outs. The newly elected conservative government will be pressed to implement policies which encourage the ICT sector, secure the development of NGNs, and ensure that Spain has a vibrant telecoms infrastructure to enable it to compete in a global economy.
The strong growth in the number of fibre broadband connections is beginning to tell on the broadband sector’s dynamics, with fibre becoming one of the strongest areas.
Operators are continuing to invest in their own networks, as well as networks being built through sharing arrangements.
Spain has one of the largest mobile markets in Europe, with effective competition from four MNOs and a growing number of resellers and MVNOs. This competition, together with regulated roaming and termination rates, has driven down the cost of mobile calls in recent years. The auction of additional spectrum early in 2016 will help operators keep pace with the growth in demand for mobile data. In late 2015 Telefónica set up a test bed in Madrid to develop 5G technologies. Both Orange Spain and Vodafone Spain have acquired fixed-line operators in a bid to compete more effectively with Movistar in their bundled service offerings.
The digital media market has also developed strongly in line with investments in fixed-line infrastructure. This has resulted in rapid increases in the number of in next generation network access lines. The focus on faster networks, encouraged by the government and facilitated by regulatory measures promoting access to networks, is increasingly dependent on fibre. The videostreaming market is increasingly competitive, with Netflix having entered the market in mid-2015, competing with Telefónica’s popular Yomvi service and Vodafone’s new Vodafone One service. Source