According to industry regulator ANACOM, Portugal’s electronic communications services market generated income of EUR 7,494.3 million in 2004 (latest data), up from EUR 7,160.5 million in 2003 and EUR 7,039.8 million in 2002. The fixed-line and mobile telephony services sectors accounted for the majority of this income, with mobile telephony leading the field with income of EUR 3,059.5 million in 2004 (up from EUR 2,796.8 million in 2003 and EUR 2,530.3 million in 2002) and fixed-line services bringing in EUR 1,703.7 million in 2004 (down from EUR 1,856.2 million in 2003 and EUR 1,939.9 million in 2002).
By the end of March 2006, ANACOM reported that 25 public telecommunications network operators were authorised to offer services in Portugal; of that number, 22 were registered as being fixed telecommunications service providers. Of those 22, however, only 12 were operational, including incumbent fixed-line operator Portugal Telecom. At that time, Portugal Telecom companies held a 75.2% share of the total traffic market (voice plus Internet), distributed between 72.2% of the voice traffic market and 93.8% of the Internet traffic market. Competitors accounted for just 13.1% of all fixed lines in service as of March 2006. Major alternative fixed-line operators in Portugal are Tele2, Novis, Oni Telecom, and cable TV operator Cabovisao.
There are just three cellular operators active in Portugal. TMN is a subsidiary of Portugal Telecom and accounted for 48.2% of all subscribers as of June 2006. Vodafone-controlled Telecel took second place with 34.5% of the market at that time, while third-placed Optimus accounted for just 17.3% of the market. There were 11.13 million cellular subscribers as of June 2006.
The market could conceivably undergo a significant change in structure if the Sonae group succeeds in acquiring a controlling stake in Portugal Telecom. Sonae launched an unsolicited offer for control of the incumbent in February 2006; this offer was valued at EUR 10,700 million, but it was rejected by Portugal Telecom. With Sonae owning Optimus, success in acquiring a majority stake in Portugal Telecom would mean that two out of the countries three cellular operators would come under the control of a single investor. It seems clear that Optimus would have to be divested if Sonae is to prove successful. The competition authority is likely to make this a condition of allowing the transaction to proceed. In the meantime, rival bids appear to be in the offing from several groups, including a party of private equity companies led by Blackstone, Cinven, Kohlberg Kravis Roberts, Permira, Providence Equity, and Texas Pacific.
In August 2006, it was reported that SonaeCom may have to sell off Portugal Telecom’s wireline infrastructure if it is to receive approval for the takeover bid. It was reported that the competition authority would demand the sale if it is to give approval to SonaeCom’s proposals.
Ahead of the sale, several minority shareholders in Portugal Telecom have increased their stakes in the company in an attempt to benefit financially should they be approached by Sonae or the private equity bidders for their shares. Such minority shareholders include ABN Amro, JP Morgan, and Telefonos de Mexico (Telmex).
Each extensive Market Intelligence Report includes the following sections: Economic, Social, Political, and Telecoms Indicators; key data presented in tabular form. Regulation; a summary/overview of the market and regulatory climate, followed by synopses of the regulators powers and other competition or ministerial bodies to which it reports or with which it co-operates. A summary of the regulations in force, a list of differences in the types of available licences and a list of the licences issued. Market Indicators; the available data is presented in tabular form with commentary and graphics. Major Operators; contact data and company information, including ownership, background where relevant for pan-European carriers, licensed activities, scope of activities/services, recent major equipment contracts, summary of network status, references to major subsidiaries, joint ventures, and alliances. Major Manufacturers; contact data and company information including ownership, background where relevant, manufacturing & distribution activities, recent major equipment contracts, references to major subsidiaries, joint ventures, and alliances. Industry Associations; contact data and organisation information covering background where relevant, activities/objectives and references to members.
Source- broadcastnewsroom Wireless Mobile Telecom
