Telecommunication sector in Spain

Internet
There were 30,654,678 Internet users in Spain (representing 65.6% of the population) in December 2011, according to Internet World Stats. (Internet World Stats, April 2012)

There were over 22.7 million (22,726,000) Internet users in Spain in October/November 2011, representing 57.6% of the population, according to the 'Asociacion para la Investigacion de Medios de Comunicacion' - (AIMC).
In October/November 2011, the majority of Internet users in the country were aged between 25 and 34. Most Internet users were from the middle class (46.2%), followed by middle/high class (20.2%).
Complete details on statistics on age distribution of Internet users in Spain in October/November 2011 are available below:
- Aged 14-19: 10.7% of users
- Aged 20-24: 10.2% users
- Aged 25-34: 25.6% of users
- Aged 35-44: 24.0% of users
- Aged 45-54: 15.1% of users
- Aged over 55-64: 8.2% of users
- Aged over 65: 6.3% of users
(AIMC, December 2011)
Almost 23.2 million persons (67.1% of the population) aged 16 to 74 years old, used the Internet in the last three months, according to the Instituto Nacional de Estadistica's Survey on Information and Communication Technologies Equipment and Use in Households Year 2011.
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Internet Usage and Population Statistics (Comparison)

Spain

Year	Users	Population	% Pop	Usage Source
2000	5.387.800	40.827.300	13.20%	ITU
2004	14.095.451	43.435.136	32.50%	Nielsen
2006	19.765.032	45.003.663	43.90%	Nielsen
2008	27.028.934	40.491.051	66.80%	Nielsen
2010	29.093.984	46.505.963	62.60%	Nielsen

Kyrgyzstan

Year	Users	Population	% Penetration	GDP p.c.*	Usage Source
2000	51,600	5.377.484	0.10%	US$ 410	ITU
2005	280,000	5.377.484	5.10%	US$ 450	ITU
2007	298,100	5.436.608	5.50%	US$ 725	ITU
2009	850,000	5.431.747	15.60%	US$ 851	ITU
2010	2.194.400	5.508.626	39.80%	US$ 941	ITU

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The number of Internet users has increased 4.5% as compared with 2010. Frequent users (those who accessed the Internet on a daily basis or at least once a week) represented 92.1% of the total for Internet users. These frequent users represented approximately 21.4 million persons and 61.8% of the population. This indicated an annual increase of 5.8%. The segment of intensive users (daily use) accounted for most of this increase, growing by 7.8% to 16.6 million persons (71.4% of Internet users). (Instituto Nacional de Estadistica, October 2011)

Internet users and penetration in Spain in 2008-2013:
- 2008: 21.0 million (51.9% of the population)
- 2009: 22.4 million (55.3%)
- 2010: 23.4 million (57.8%)
- 2011: 24.1 million (59.4%)
- 2012: 24.6 million (60.6%)
- 2013: 25.1 million (62.0%)
(eMarketer, June 2009)

Telecoms

Spain’s telecoms market is one of the largest in Europe, accounting for around 4% of GDP and directly employing some 71,000 people. In common with other European countries, the market has been affected by the general economic turmoil, which has hit Spain more harshly than most other regional economies. High During the next two to three years government debt is expected to be running far higher than the EU limits set under the now-defunct stability and growth pact which requires an annual budget deficit no higher than 3% of GDP and a national debt lower than 60% of GDP. Financial constraints have impacted the government’s ability to fund national telecoms infrastructure projects, and have fast-tracked the sale of a range of mobile spectrum bands.

The new Spanish government, headed by Mariano Rajoy’s Center-right People’s Party (PP) – which replaced the seven-year old Socialist government – has not dampened investor concerns about Spain’s economic recovery despite announcing a new round of measures on bank policies, labour reforms and budget austerity. Yields on three-month bonds reached above 5.1% in late 2011, while the country may need €30 billion in new cuts to reach its deficit target for 2012.

The declining value of the telecoms market, worth an estimated €38 billion in 2011 and an expected €37.6 billion in 2012, is mainly attributed to the economic crisis which has severely dampened consumer spend in all sectors. The broadband sector was the single area of positive growth until mid-2010, since when revenue from the sector has fallen by between 1.5% and 2.9% per quarter.

Telefónica controls the bulk of national and local infrastructure. Despite almost a decade since the Spanish telecoms sector was deregulated the incumbent serves 82% of direct accesses and thus dominates the fixed-line market. It also accounts for about 55% of the Internet market. Fixed-line operators trying to break Telefónica’s hegemony include ONO, Jazztel, Euskaltel and Orange. Only in mobile telephony does Telefónica face significant competition.

The trend towards market consolidation and the entry of the first MVNOs have resulted in several integrated operators providing greater infrastructure competition: two MVNOs also operate in the fixed and broadband market while several cable operators have launched mobile services following the imposition of access obligations in 2006. Alternative operators have invested in cable and LLU while mobile operators are gradually upgrading networks to provide high-speed data services. Prices have fallen as a result of competition, particularly through bundled offers, and intensive number portability.
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Key telecoms parameters – 2009; 2012 (Comparison)

Spain

Sector	2009	2012 (e)
Broadband:
Fixed broadband subscribers (million)	10.56	15.14
Fixed broadband penetration rate	22%	30%
Mobile broadband subscribers (million)	2.8	4.9
Subscribers to telecoms services:
Fixed-line telephony (million)	19.9	20.1
Mobile phone (million)	56.5	60.3
Mobile SIM penetration (population)	116%	124%

Kyrgyzstan

Category	2010	2011
Fixed-line services:
Total number of Subscribers	502,200	505,000
Annual growth	1%	1%
Fixed-line penetration (population)	9.40%	9.50%
Internet:
Total number of subscribers	68,900	87,000
Annual growth	46%	26%
Internet subscriber penetration (population)	1.30%	1.60%
Mobile services:
Total number of subscribers (million)	4.9	5.4
Annual growth	9%	10%
Mobile penetration (population)	89%	102%

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 Telephones - main lines in use
19.904 million (2010)
Telephones - mobile cellular
51.493 million (2010)