Market Trends of Portugal Telecom Industry
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.
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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.
