Archive:Telecommunication statistics

Data from September 2009, most recent data: Further Eurostat information, Main tables and Database.

Graph 1: Telecommunication expenditure, 2006 (1) (% of GDP)

Telecommunication networks and services are the backbone of Europe’s developing information society. Individuals, enterprises and public organizations alike rely increasingly on convenient, reliable telecommunication networks and services. This article presents data on markets and prices for telecommunication services in the EU and the Member States.

The European telecommunication sector was historically characterized by public service monopoly providers, often run in conjunction with postal services. Liberalisation of the market began in the first half of the 1980s and, at first, concerned only value added services or business users, while basic services were left in the hands of monopoly providers. By 1998, telecommunications were, in principle, fully liberalised across all European Union (EU) Member States. Liberalisation of telecommunication markets has led to considerable reductions in prices.

Main statistical findings

Table 1: Market share of incumbents and leading operators in telecommunication markets (% of total market)

Graph 2: Mobile phone subscriptions, 2006 (average number of subscriptions per 100 inhabitants)

Table 2: Price of fixed telecommunications (euro per 10-minute call)

Expenditure

Telecommunications expenditure accounted for 3.0 % of GDP in the EU in 2006, compared with 2.1 % in the United States and 4.2 % in Japan (see Graph 1). The highest relative levels of expenditure were generally recorded in those Member States that have joined the EU since 2004 (data for Cyprus and Malta is not available), in particular in the Baltic Member States, Bulgaria and Romania.

Although overall expenditure on telephone services has increased, the proportion accounted for by ex-monopoly service providers has generally reduced as the share of the total telecommunication market accounted for by fixed-line voice operations has shrunk. Growth in this sector has been concentrated in mobile telephony markets and other data services. In 2005, the incumbent ex-monopoly service providers in fixed telecommunications markets across the EU-25 accounted for 72 % of local calls, 66 % of national calls and 56 % of international calls. In contrast, the share of incumbents in the mobile market was relatively low at 39 % in 2006 (see Table 1).

Mobile phone subscriptions

The average number of mobile phone subscriptions per 100 inhabitants stood at 106 in the EU in 2006 (see Graph 2). It surpassed parity in 17 Member States where there were more subscriptions than inhabitants.

Total turnover in value terms is based on sales from all telecommunication services, including leased lines, fixed network services, cellular mobile telecommunication services, interconnection services, and Internet service provisions. In the majority of Member States (with data available) turnover from mobile services exceeded that from fixed network services in 2006.

Call costs

The price of telecommunications fell between 2004 and 2006 in many Member States (see Table 2). Price reductions were most apparent for national long-distance calls and international calls (defined here as calls to the United States). On average in the EU-25 the price of a national long distance call was reduced by almost 20 % overall between 2004 and 2006, while the price of an international call was reduced by almost 16 %. In comparison, there was only a modest reduction in the price of a local call, which fell by less than 3 %.

The prices of local, national long distance or international calls varied greatly across the Member States in 2006. Local and national long distance calls were most expensive in Slovakia, while the price of international calls was highest in Latvia. The cheapest tariff for local calls was found in Spain, for national long distance calls in Cyprus, and for calls to the United States in Germany.

Data sources and availability

Eurostat’s data collection in relation to telecommunications statistics is conducted through the use of a predefined questionnaire (TELECOM), which is sent on an annual basis to the national statistical institutes. They collect information from their relevant regulatory authorities and send the completed questionnaires back to Eurostat.

Fixed telephone lines are the traditional way of connecting to communication networks. They are usually used for voice telephony, but may also be used for accessing the Internet via a modem or dial-up connection. The rapid growth of more powerful technologies to access the Internet (e.g. broadband) and mobile communications has reduced the market for traditional fixed telecommunication networks.

Indicators presented in relation to market share refer to fixed-line telecommunications and mobile telephony. The market share of the incumbent service provider for fixed-line telephony is defined for the enterprise active in the market just before liberalisation and is calculated on the basis of retail revenues. Indicators relating to the mobile market refer to the number of subscriptions to public cellular mobile telecommunication systems and also include active pre-paid cards. Note that an increasing number of people have multiple mobile subscriptions (for example, for private and work use, or for use in different countries). SMS messages are short-message services, traditionally sent between mobile phones, but also between a range of other SMS-enabled devices and on-line web services. Data on expenditure for telecommunications covers hardware, equipment, software and other services. The data are not collected by Eurostat; further methodological information is available at the website of the European Information Technology Observatory (EITO).

Telecommunications prices are based on the price (including VAT) in euro of a 10-minute call at 11 am on a weekday in August, based on normal rates. Three markets are presented, namely a local call (3 km), a national long distance call (200 km) and an international call (to the United States). The data are not collected by Eurostat; further methodological information is available at the Teligen website.

Context

Telecommunication networks and services are the backbone of Europe’s developing information society. Individuals, enterprises and public organizations alike have come to rely increasingly on convenient, reliable networks and service provision for the delivery of a variety of information and communication technology services.

Historically, the European telecommunication sector has been characterised by public service monopoly providers, often run in conjunction with postal services. Liberalisation of this market began in the first half of the 1980s and, at first, concerned only value added services or business users. Basic services were left in the hands of the monopoly providers. By 1998, telecommunications were, in principle, fully liberalised across all EU Member States. The liberalisation of telecommunication markets led to considerable reductions in prices. This may, in part, reflect the introduction of competition into a number of markets that were previously the domain of incumbent monopoly suppliers. In addition, technological change has increased capacity and made it possible to communicate not only by voice, but also over the Internet. Market regulation has nonetheless continued, and the European Commission oversees this sector to ensure that consumers benefit. Regulators continue to monitor the significant market power of former monopoly providers, ensure universal service provision and protect consumers. In particular, the Commission works to ensure inclusive access to telecommunication services for all social groups through overseeing the correct implementation and enforcement of Directives.

On June 30 2007, a new set of rules on mobile phone roaming charges entered into force. These foresee that people travelling within the EU are able to make phone calls across borders at more affordable and transparent prices than before. The Roaming Regulation 717/2007 of 27 June 2007 put in place a set of maximum prices for phone calls made and received while abroad (Eurotariff). These maximum prices apply to all consumers unless they opt for special packages offered by their operator. The European Commission and national regulators have closely monitored price developments for text messages and data services. On the basis of this monitoring, a review was conducted which came to the conclusion that competition has not encouraged mobile operators to voluntarily reduce high roaming charges for text messages. The European Commission therefore proposed on 23 September 2008:

to bring down prices for text messages sent while travelling in another EU country;
to ensure that consumers are kept informed of the charges that apply for data roaming services;
to introduce a Euro-SMS Tariff from 1 July 2009 so that sending an SMS from abroad would cost no more than 11 cents (excluding VAT), while receiving an SMS in another EU country would remain free of charge;
to improve transparency so that customers travelling to another Member State should receive an automated message of the charges that apply for data roaming services upon arrival; while from 1 July 2010, operators should provide customers with the opportunity to determine in advance how much they want to spend before a data roaming service is ’cut-off’;
to restrict wholesale data roaming fees to 1 euro per megabyte, so these are more predictable for operators;
to reduce further the cost of Eurotariff voice calls, with the price for making calls decreasing from 43 cents on 1 July 2009, to 40 cents, 37 cents and 34 cents in each of the subsequent years, while the price of receiving a call would decrease from 19 cents on 1 July 2009 to 16 cents, 13 cents and 10 cents.

Further Eurostat information

Publications

Main tables

Information society statistics (t_isoc) see:

Telecommunication services (t_isoc_tc)

Database

Information society statistics (isoc), see:

Telecommunication services (isoc_tc)

Dedicated section

Information society statistics

Other information

Roaming Regulation (EC) 717/2007 of 27 June 2007