How do we see the spanish market – high level insights

Reading the CMT’s October’s report, I realized that we never position ourselves in the blog on how we see the spanish telecom market. With that objective, I would like to share some insights related to spanish telecom KPIs and competitive environment, how do we think the crisis will impact this market and what to do (in the operator’s perspective).

The Spanish telecom market has changed considerably since the liberalization of its mobile market in 1995 and of its fixed line market in 1998. Telecom service revenues have grown steadily since the 1990s until 2008, first year to see a slight decrease in revenues.

As posted in our previous post “Replacement cycles are stretching and now, price matters“, the telecommunication providers reached 4.7% less revenues in the second quarter of 2008, Vodafone and Telefónica reported a relevant deceleration in their client’s average revenues per minute as a result of the significant decrease of the minutes of use of consumption.

The following slides are just a set of common-sense thinking ideas that we believe might mitigate the impact of the situation we are currently suffering. Feel free to challenge.

Best. CVA