Archive:Telecommunication statistics

Data from September 2010, most recent data: Further Eurostat information, Main tables and Database.

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

Historically, European telecommunications have 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 the then EU Member States leading to considerable reductions in prices. For Member States joining the EU in 2004 and 2007, the liberalisation process was completed later.

Main statistical findings

Figure 1: Communications expenditure, 2008 (1)
(% of GDP)

Table 1: Market share of incumbents in fixed telecommunications and leading operators in mobile telecommunications
(% of total market)

Figure 2: Mobile phone subscriptions and the use of SMS, 2008

Table 2: Turnover from telecommunications, 2008 (1)
(EUR million)

Table 3: Price of fixed telecommunications (1)
(EUR per 10-minute call)

Telecommunications expenditure accounted for 2.9 % of GDP in the EU-27 in 2008, compared with 3.3 % in the United States and 3.5 % in Japan (see Figure 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 are not available), in particular in Bulgaria and Estonia.

Although overall expenditure on telephony has increased, the proportion accounted for by ex-monopoly service providers has generally fallen, as the share of the total telecommunication market accounted for by fixed-line voice operations has shrunk. Growth has been concentrated in mobile telephony markets and other data services. In 2008, the incumbent ex-monopoly service providers in fixed telecommunications markets accounted for more than two fifths of international calls across all Member States (see Table 1 for availability), a share that reached 85 % in Malta. The share of the leading operator in the mobile market was relatively low at 38 % in the EU-27 in 2009, varying between 21 % in the United Kingdom and 82 % in Cyprus.

The average number of mobile phone subscriptions per 100 inhabitants stood at 122 in the EU-27 in 2008 (see Figure 2). It surpassed parity (100) in 23 of the 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 provision. In nearly all Member States (with data available) turnover from mobile services exceeded that from fixed network services in 2008 (see Table 2).

The price of telecommunications fell between 2000 and 2008 in many Member States (see Table 3). Price reductions were most apparent for national long-distance calls and international calls (the prices considered here are for calls to the United States). On average in the EU-27 the price of a national long-distance call almost halved between 2000 and 2008, with most of this reduction occurring by 2005, as the average price fell 13.0 % between 2005 and 2008. The price fall between 2005 and 2008 for an international call was similar, down 12.1 %, whereas the price of local calls increased by 8.6 %. Convergence of prices among local, national long-distance and international calls is notable, as well as convergence of prices among Member States for respective types of calls. The largest increase (in percentage terms) in the price of local calls between 2005 and 2008 was recorded in Finland where the price increased 63 %, while double-digit percentage increases were also recorded in four other Member States. In contrast, Romania recorded the highest decrease in the price of local calls, down 37 %.

The prices of local, national long-distance or international calls varied greatly across the Member States in 2008. Local and national long-distance calls were most expensive in Slovakia, while the price of international calls was highest in Latvia. The cheapest tariffs for local calls were in Bulgaria and Cyprus, while for national long-distance calls the cheapest were in Cyprus. For international calls, represented by calls to the United States, the cheapest call by far was from Germany, where the cost was significantly lower than for local or long-distance national calls.

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 of the EU Member States. They collect information from their relevant regulatory authorities and send the completed questionnaires back to Eurostat.

Indicators presented in relation to market share refer to fixed-line telecommunications and mobile telephony. The incumbent service provider for fixed-line telephony is defined as the enterprise active in the market just before liberalisation. The incumbent’s market share 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 many 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 cover hardware, equipment, software and other services. The data are not collected by Eurostat; further methodological information is available from 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 a.m. on a weekday in September, 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 from the Teligen website.

Context

Telecommunication networks and services are the backbone of Europe’s information society. Individuals, enterprises and public organisations alike have come to rely increasingly on convenient, reliable networks and services.

In recent years, the liberalisation of telecommunication markets has led to considerable reductions in prices and a wider range of services provided. 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 market 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 European Commission works to ensure inclusive access to telecommunication services for all social groups.

On 30 June 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 so-called 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, in July 2009 revised rules were adopted in the Roaming Regulation 544/2009 that cut roaming prices for (voice) phone calls further and introduced new caps on the tariffs for SMS (Euro SMS tariff). In addition, as of 1 July 2010, consumers are protected by an automatic safeguard against data roaming bill shocks – for example, by providing warnings to consumers when they reach 80 % of a pre-defined limit for monthly roaming charges and automatic cut-off once the limit has been reached. The amended roaming regulation will apply until the end of June 2012 and will be a subject of a review by the end of June 2011.

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

Methodology / Metadata

Telecommunication services (ESMS metadata file - isoc_tc_esms)

Other information

Roaming Regulation 717/2007 of 27 June 2007

Source data for tables and figures (MS Excel)

Telecommunication statistics: tables and figures