Fiber dominates fixed broadband connections in Spain.

In an era marked by digital transformation and the growing demand for high-speed connectivity, Spain stands out for its rapid adoption of fiber to the home (FTTH). By the end of September 2023, the country reached a significant milestone: 85% of fixed broadband lines were fiber, reflecting not only a technological preference but also a profound change in the Spanish telecommunications infrastructure.

Sustained Progress towards Fiber

Data from the National Commission on Markets and Competition (CNMC) reveal that active fiber to the home connections surpassed 15.4 million by the end of the third quarter of 2023. This figure represents a substantial increase in fiber penetration, driven by continuous investment in the expansion of Next Generation Access (NGA) networks, totaling 87.5 million installed connections, a 10.5% increase from the previous year.

An Evolving Market

The growth of fiber is accompanied by notable dynamism in the telecommunications sector. Retail sector revenues experienced a 2.2% increase in the third quarter of 2023, reaching 5.668 million euros. However, this growth was not evenly distributed among operators. While Movistar recorded a reduction in its revenues compared to the previous year, competitors such as Vodafone, Orange, and the MASMOVIL Group showed increases.

This change in fortunes reflects an evolution in market shares for retail revenues, where Movistar, Orange, and Vodafone collectively lost 2.3 percentage points compared to the same period the previous year, standing at 71%. In fact, over the past two years, these three operators have seen their combined share reduced by 5 percentage points.

The Rise of High-Speed Connectivity

The adoption of fiber not only means more connections but also higher speed. By the end of September 2023, 17 million fixed broadband lines in Spain had a contracted speed of 100 Mbps or higher.

In addition, mobile broadband traffic did not lag behind, registering a significant 26.3% increase from the previous year, reaching 2.1 million Terabytes. This increase highlights the growing demand for data services by Spanish consumers.

Mobile Telephony and the Future of Connectivity

Mobile telephony also showed a trend towards increased competitiveness. The market share of Movistar, Vodafone, and Orange in this segment decreased by 1.5 percentage points compared to the previous year, standing at 69.4%.

CNMC data paints a picture of an increasingly connected Spain, with fiber optics solidifying as the backbone of the fixed broadband infrastructure. This advancement not only improves the quality of life for users, enabling them to access faster and more reliable digital services, but also establishes a solid foundation for the country’s digital future. The market evolution shows a dynamic competition among operators, promising to continue driving improvements and accessibility for consumers throughout Spain.

Source: CNMC

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