Bundles of electronic communications services - 1st half of 2021



Executive summary

4.3 million subscribers to bundles of services

In the first half of 2021 (1H2021), there were 4.3 million subscribers to these offers (an increase of 161 thousand subscribers (+3.9%) versus the same period of 2020). The growth seen is associated with quadruple/quintuple-play offers (+114 thousand subscribers) and, to a lesser extent, triple-play offers (+55 thousand subscribers).

Quadruple/quintuple-play the most popular offers

Quadruple/quintuple-play offers were the most used, by 2.2 million subscribers (50.8% of total bundled offer subscribers), followed by triple-play offers, with 1.7 million subscribers (39.5%).

Revenues from bundles increased by 3.5%, while unit revenue decreased 0.7%

Between January and June 2021, revenues from bundled services were reported at around 888 million euros, increasing by 3.5% compared to the same period of 2020. Revenues from quadruple/quintuple-play offers represented 63.1% of the total.

Average monthly revenue per subscriber to bundled offers was reported at 34.58 euros (excluding VAT). There was a decrease of 0.7% compared to the same period of 2020. Average monthly revenue for quadruple/quintuple-play offers was 43.20 euros (-1.9%) and 27.65 euros for triple-play offers (+1.0%).

Provider shares

At the end of first half 2021, MEO was the provider with the highest share of bundled service subscribers (40.8%), followed by Grupo NOS (36.2%), Vodafone (19.6%) and NOWO (3.4%). Compared to the same period of 2020, Vodafone and MEO increased their share of subscribers (+0.8 percentage points and +0.3 percentage points, respectively), while declines were seen in the subscriber shares reported by Grupo NOS (-0.8 percentage points) and NOWO (-0.3 percentage points).

MEO reported the highest share of revenues from bundled services (41.1%), followed by Grupo NOS (40.0%), Vodafone (16.8%) and NOWO (2.1%). Compared to the same period of 2020, Vodafone and MEO increased their share of revenues by 1.3 percentage points and 0.5 percentage points, respectively, versus a reduction reported by Group NOS (-1.3 percentage points) and NOWO (-0.5 percentage points).

The level of concentration, as measured by the Herfindahl-Hirschman index, although high, decreased slightly compared to the same period of 2020. The highest concentration level was reported in relation to quadruple/quintuple-play offers. The current trend of decreasing concentration began in 2013, with the launch of the triple-play offer from Vodafone supported over FTTH. Overall, the level of concentration has not changed significantly since the beginning of 2018, with the exception of quadruple/quintuple-play offers, where there has been a declining trend.