Bundled electronic communications services - 1st quarter 2023



Executive summary

4.6 million service bundle subscribers and 4/5P offers were the most used

At the end of Q1 2023, there were 4.6 million service bundle subscribers (+151 thousand or +3.4% compared to the same quarter last year). The growth is exclusively related to 4/5P offers (+177 thousand or +7.7%).

With 2.5 million subscribers (54.2% of total bundle subscribers), 4/5P offers were the most used, followed by 3P offers, with 1.7 million subscribers (36.8%). 3P offers recorded the largest decrease since the start of their downward trend in 2022 (-1.2%).

Stand-alone offers accounted for 69.7% of mobile accesses and 15.2% of fixed accesses

Stand-alone offers, single play or 1P, which are characterised by not being sold in a bundle, represented 69.7% of mobile accesses and 15.2% of fixed accesses. It is estimated that, in July 2022, residential stand-alone offers accounted for only 1% of total residential fixed broadband subscribers, 3% of total residential pay-TV subscribers and 5% of total residential fixed local telephone subscribers.

Bundled revenues up by 7.9% and unit revenues up by 4.3%, the highest figures since 2016

Between January and March 2023, bundled services revenues amounted to around EUR 494 million (51.9% of total retail revenues), increasing by 7.9% year-on-year (the highest annual growth recorded since 2016). Revenues from 4/5P offers accounted for 66.7% of total bundled revenues or 34.6% of total retail revenues.

The average monthly revenue per bundle subscriber (EUR 36.13 excluding VAT) also recorded the highest annual growth since 2016 (+4.3%). The average monthly revenue amounted to EUR 44.69 for 4/5P offers (+3.7%) and to EUR 28.19 for 3P offers (+2.4%).

Provider shares

At the end of Q1 2023, MEO was the provider with the largest share of bundled services subscribers (41.3%), followed by NOS Group (35.4%), Vodafone (20.4%) and NOWO (2.8%). Compared to the same quarter last year, MEO and Vodafone increased their share of subscribers (+0.4 p.p. and +0.2 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 one of the mentioned providers to decrease the number of bundle subscribers.

In terms of type of offer, MEO had the highest proportion of subscribers in all types of offer: 2P (45.4%), 3P (39.3%) and 4/5P (41.9%).

On the other hand, MEO also presented the highest share of revenues from bundled services (41.4%), followed by the NOS Group (40.4%), Vodafone (16.6%) and NOWO (1.7%). Compared to the same quarter last year, the NOS Group and MEO increased their share of revenues (+0.3 p.p. and +0.1 p.p., respectively), while NOWO and Vodafone decreased their shares (both -0.2 p.p.).

Concentration, as measured by the Herfindahl-Hirschman index, remains high and has 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.