Bundled services for electronic communications - 1st quarter 2020



This information is copyrighted to ANACOM

This information is copyrighted to ANACOM

Executive summary

Bundled services subscribers reached 4.1 million

In 1Q2020, the number of subscribers to these deals reached 4.1 million (+171 thousand or +4.4% year-on-year). The growth observed is associated with 4/5P offers (+126 thousand) and, to a lesser extent, with 3P offers (+64 thousand).

Since 2015, growth in the number of bundle offer subscribers has been slowing. However, since 2019, we have witnessed accelerated growth.

The State of Emergency associated with COVID-19 came into force on 18 March 2020 and was extended beyond the time frame of this report. No significant impact from this situation was detected on the total number of bundle subscribers.

49.9% of subscribers acquired a 4/5P bundle

The 4/5P offers were the most used, reaching 2.05 million subscribers (49.9%), followed by 3P offers, with 1.64 million subscribers (39.8%). The penetration of 4/5P offers was 49.5 per 100 private households (+3.0 p.p. year-on-year).

The percentage growth in 4/5P offers (+6.5%) was lower than that recorded in 2019 (12.5% at the end of the year), when bundles with fewer services (2P and 3P) were migrated to offers with more services (4/5P).

Bundle revenues increased by 5.3%

Between January and March 2020, revenue from bundled services was around EUR 429.6 million, 5.3% more than in the same period last year. This is the largest increase recorded since the change in accounting for these revenues (in 2018). This increase in revenue took place simultaneously with the increase in the number of subscribers and with the "price adjustment" announcement made by some providers.

Monthly revenue per bundled service subscriber was EUR 35.02, +0.7% than in the same period last year.

Shares per provider

At the end of 1Q2020, MEO was the provider with the largest share of bundled services subscribers (40.4%), followed by the NOS Group (37.0%), Vodafone (18.8%) and the NOWO/Onitelecom Group (3.7%). Compared to the previous year, Vodafone increased its share of subscribers by 0.7 p.p., while MEO's share of subscribers remained static and the shares of the NOS Group (-0.4 p.p.) and the NOWO/Onitelecom Group (-0.3 p.p.) fell.

In 1Q2020, MEO was the provider with the largest share of bundled services subscribers (41.8%), followed by the NOS Group (40.5%), Vodafone (15.0%) and the NOWO/Onitelecom Group (2.6%). Compared to the previous year, Vodafone increased its share of revenues by 1.3 p.p.; in contrast, the NOS Group, MEO and NOWO/Onitelecom Group all recorded a reduction (0.4 p.p. in all cases).

The concentration level, as measured by the Herfindahl-Hirschman index, although high, decreased slightly compared to the same quarter last year. The current decreasing concentration trend began in 2013 with the launch of Vodafone's triple play deal supported on FTTH. Overall, the concentration level has not changed significantly since the beginning of 2018.