Luxembourg - Telecoms, IP Networks, Digital Media and Forecasts

The Luxembourg - Telecoms, IP Networks, Digital Media and Forecasts report includes all BuddeComm research data and analysis on this country. Covering trends and developments in telecommunications, mobile, internet, broadband, infrastructure and regulation.

Please review the Executive Summary and Table of Contents for more details.

Executive summary

Luxembourg has one of Europe's smallest telecom markets, and consequently there is little room for significant growth or competition. In common with most other markets, revenue from the fixed line sector has been falling steadily as consumers migrate to mobile-only and computer-to-computer VoIP solutions. Since 2005, income generated by mobile telecoms has far exceeded that from of fixed lines, while revenue from the broadband sector has propped up total revenue, compensating for declining fixed-line revenue.

The market has also been affected by the country's poor economic performance since 2007: the economy showed stagnant growth in 2008, while it was expected to shrink by about 5% in 2009 and show only moderate improvement in 2010. This decline has translated into more cautious spending among both domestic consumers and the many foreign workers (largely from international companies based in Luxembourg as also from departments of the European Union and affiliated associations).

Consequently, overall telecom revenue grew by a modest 1.5% in 2008, while it may show zero growth for 2009. Nevertheless, total investment in fixed-line and mobile infrastructure increased by 27% in 2008, year-on-year, reaching €121 million. About 80% of investment was in the fixed-line sector as operators showed a greater commitment to future-proofing their networks through deploying FttH and FttC. Mobile operators have similarly concentrated on network upgrades to provide mobile broadband connectivity to subscribers, and so exploit the potential of higher ARPU mobile data services.

Key highlights:

• Luxembourg's telecom sector revenue was worth about €506 million in 2008, of which 63% was from the incumbent P&T Luxembourg and 37% from alternative operators. The country's small size benefits from having a population concentrated in a few towns, resulting in a high population density enabling national coverage of telecom services with relatively limited resources.
• Luxembourg's central geographic position in Europe has helped the country's operators tap into international telecom networks, principally through the backbone networks of Belgacom, Deutsche Telekom and France Telecom as well as those of alternative telcos. Both P&T Luxembourg and the few main altnets have invested in fibre networks to anticipate future consumer demand for high-bandwidth services.
• Important regulatory measures adopted in 2008 will safeguard competition on the local loop unbundling and the wholesale broadband access markets, and so grant easier access to P&T's infrastructure. Nevertheless, further work needs to be done in coming years to improve conditions of access to NGNs.
• Luxembourg's mobile penetration, at a theoretical 150% in mid-2009, is the highest in Europe, though many registered SIM card holders are not-resident trans-frontier workers. The penetration rate is expected to continue climbing steadily in 2010, due in part to the popularity of users multiple SIMs for professional and private use.
• Broadband penetration took off from 2005 as a result of regulatory measures to improve competition. In mid-2009 about 45% of all homes accessed the Internet via ISDN, far higher than elsewhere in the EU. The broadband market will become increasingly important for operators in coming year, and may represent 23% of total revenue in 2010 compared to 12% in 2006. Broadband penetration is the fifth highest in the EU27 and far above the EU27 average. P&T's share of the overall broadband market will continue to fall in coming years, but it will remain the highest in the EU in the medium term.This report covers trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP and IPTV developments.

Subjects include:

• Market and industry analyses, trends and developments;
• Facts, figures and statistics;
• Industry and regulatory issues;
• Infrastructure;
• Major Players, Revenues, Subscribers;
• Internet, VoIP, IPTV;
• Mobile Voice and Data Markets;
• Broadband (FttH, DSL, cable TV, wireless);
• Convergence and Digital Media;
• Broadband market forecasts for selective years to 2018.