Bundled electronic communications services - 2022

Executive summary

4.6 million subscribers to bundled services

At the end of 2022, there were 4.6 million subscribers to bundled services (+158 thousand or +3.6% than in the previous year). The growth observed was higher than that recorded in 2021 (+3.4%) and is exclusively associated with 4/5P offers (+178 thousand or +7.9%).

4/5P offers were the most used

4/5P offers were the most used, with 2.4 million subscribers (53.6% of all subscribers to bundled offers), followed by 3P offers, with 1.7 million subscribers (37.7%). The percentage growth of 4/5P offers (+7.9%) was the highest since the end of 2019, while 3P offers registered a decrease (-0.8%), in contrast with the growth recorded in 2020 and 2021.

Stand-alone offers reached 70.6% of mobile accesses and 15.4% of fixed accesses

Stand-alone, single play or 1P offers, which are not available in a bundle, represented 70.5% of mobile accesses and 15.4% of fixed accesses. It is estimated that, in July 2022, residential stand-alone offers amounted to 1% of total residential fixed broadband subscribers, 3% of total residential pay-TV subscribers and 5% of total residential fixed local telephone service subscribers.

In terms of total fixed and mobile accesses, the majority (55.1%) consisted of single play mobile accesses, followed by bundled mobile accesses (23.0%), bundled fixed accesses (18.6%) and, finally, single play fixed accesses (3.4%).

Revenues from bundled services up by 4.3% and unit revenue up by 0.7%

In 2022, revenues from bundled services were around EUR 1867 million (50.4% of total retail revenues), having increased by 4.3% compared to the previous year. Revenues from 4/5P offers represented 65.3% of total bundled revenues or 33.0% of total retail revenues. The average monthly revenue per package subscriber was EUR 34.80 (excluding VAT), up 0.7% on the previous year. The average monthly revenue was EUR 43.19 euros for 4/5P offers (+0.4%) and EUR 27.43 for 3P offers (-0.9%).

Provider shares

At the end of 2022, MEO was the provider with the largest share of bundled services subscribers (41.1%), followed by the NOS Group (35.5%), Vodafone (20.3%) and NOWO (2.9%). In comparison with the previous year, Vodafone and MEO increased their share of subscribers (+0.4 p.p. and +0.3 p.p., respectively), while the shares of the NOS Group (-0.4 p.p.) and NOWO (-0.3 p.p.) decreased. In net terms, NOWO was the only of the referred providers to decrease the number of bundle services subscribers.

In terms of type of offer, MEO registered the highest share of subscribers across all types of offers: 2P (45.2%), 3P (39.2%) and 4/5P (41.8%).

On the other hand, MEO also presented the highest share of bundled services revenues (41.2%), followed by the NOS Group (40.2%), Vodafone (16.7%) and NOWO (1.8%). Compared to the previous year, the NOS Group and MEO increased their revenue shares (+0.2 p.p. and +0.1 p.p., respectively), while NOWO and Vodafone decreased their shares (-0.2 p.p. and -0.1 p.p., respectively).

The level of concentration, measured by the Herfindahl-Hirschman Index, remains high, having increased slightly compared to last year. 4/5P offers recorded the highest level of concentration, albeit with a decreasing trend. Overall, the level of concentration has not changed significantly since the beginning of 2018.