Executive summary
4.4 million bundled service subscribers
By the end of 2021, the number of subscribers of bundled offers was 4.4 million, up 146 thousand or 3.4% on the previous year.
The growth observed remains associated with 4/5P offers (+128 thousand) and, to a lesser extent, with 3P offers (+20 thousand), and was the lowest since the collection of this information began in 2011.
4/5P offers were the most used
4/5P offers were the most used, with 2.3 million subscribers (51.5% of total bundled offers), followed by 3P offers, with 1.7 million subscribers (38.9%). The percentage growth of 4/5P offers (6.0%) was above that registered in the previous year (5.5%), and below the average registered in the last four years (7.8%).
Stand-alone offers represented 72.1% of mobile accesses and 15.4% of fixed accesses
Stand-alone or single play offers, which are characterised by not being provided as part of a bundle, represented 72.1% of mobile accesses and 15.4% of fixed accesses.
Stand-alone offers represented 59.6% of the total amount of mobile and fixed accesses.
12.5% of bundle subscribers belonged to the non-residential segment
According to information reported by the four main electronic communications providers, by the end of 2Q2021, approximately 12.5% of total bundle subscribers belonged to the non-residential segment. 2P offers had a higher weight among non-residential subscribers (25.7%) compared to residential subscribers (7.3%).
Bundled revenues increased by 3.4% and unit revenue decreased by 0.5%
In 2021, revenues from bundled services reached around EUR 1791 million, increasing by 3.4% year-on-year (the lowest annual growth since 2018). Revenue from 4/5P offers represented 63.4% of the total.
The average monthly revenue per bundle subscriber was EUR 34.54 (excluding VAT). There was a decrease by 0.5% compared to 2020. The average monthly revenue was EUR 43.02 for 4/5P offers (-1.8%) and EUR 27.69 for 3P offers (+1.0%).
Provider shares
By the end of 2021, MEO was the provider with the largest share of bundled services subscribers (40.8%), followed by the NOS Group (35.9%), Vodafone (20.0%) and NOWO (3.2%). Compared to the previous year, Vodafone and MEO increased their share of subscribers (+0.7 p.p. and +0.3 p.p., respectively), while the shares of the NOS Group (-0.6 p.p.) and NOWO (-0.3 p.p.) decreased.
MEO had the highest revenue share of bundled services (41.1%), followed by the NOS Group (40.0%), Vodafone (16.8%) and NOWO (2.0%). Compared to 2020, Vodafone and MEO increased their revenue share by 1.0 p.p. and 0.4 p.p., respectively, as opposed to the reduction registered by the NOS Group (-1.0 p.p.) and NOWO (-0.4 p.p.).
The level of concentration, measured by the Herfindahl-Hirschman Index, remains high, with 4/5P offers recording the highest level of concentration. The current trend towards lower concentration began in 2013, with the launch of Vodafone’s triple play offer supported on FTTH. Overall, the level of concentration has not changed significantly since the beginning of 2018, with the exception of 4/5P offers where there has been a downward trend.
15% of households with bundled services changed provider in 2020 and half of them had problems when switching
According to the European Commission (EC), around 15% of Portuguese households with bundled services changed provider during 2020 (+5 p.p. than the EU27 average).
Half of the households that changed provider of bundled services reported having had some problem in the process of switching provider (+7 p.p. than the EU27 average), highlighting as main problems the temporary loss of service and the delay in getting all services up and running.
