Archive:Telecommunication statistics

Data from September 2011, most recent data: Further Eurostat information, Main tables and Database.

This article presents data on markets and prices for telecommunication services in the European Union (EU). Telecommunication networks and services are the backbone of Europe’s developing information society. Individuals, enterprises and public organisations alike depend increasingly on convenient, reliable telecommunication networks and services. During recent years we recognise a change of importance from wired networks to mobile networks and from voice services to data services.

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, as basic services were left in the hands of monopoly providers. By 1998, telecommunications were, in principle, fully liberalised across the EU leading to considerable reductions in prices. For Member States joining the EU in 2004 and 2007, the liberalisation process was completed at a later date.

Main statistical findings

Figure 1: Communications expenditure, 2010 (1) (% of GDP) - Source: Eurostat (tsiir090), European Information Technology Observatory (EITO)

Table 1: Market share of incumbents in fixed telecommunications and leading operators in mobile telecommunications, 2007-2010
(% of total market) - Source: Eurostat (tsier070) and (tsier080), National Regulatory Authorities

Figure 2: Mobile phone subscriptions and the use of SMS, 2009 - Source: Eurostat (tin00060), (isoc_tc_sms) and (tps00001)

Table 2: Turnover from telecommunications, 2009 (1)
(EUR million) - Source: Eurostat (isoc_tc_tur)

Table 3: Price of fixed telecommunications, 2000-2010 (1)
(EUR per 10-minute call) - Source: Eurostat (tsier030), Teligen

Telecommunications expenditure accounted for 2.8 % of gross domestic product (GDP) in the EU-27 in 2010, compared with 3.3 % in the United States and 3.5 % in Japan (both 2008) – see Figure 1. The highest relative levels of expenditure were generally recorded in those Member States that joined the EU in 2004 or 2007 (data for Cyprus and Malta are not available), in particular in Estonia and Bulgaria.

The share of the total telecommunications 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 those Member States for which data are available (see Table 1), 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 2010, varying between 31 % in Poland and 76 % in Cyprus.

The average number of mobile phone subscriptions per 100 inhabitants stood at 125 in the EU-27 in 2009 (see Figure 2). It surpassed parity (100) in 24 of the Member States, where there were more subscriptions than inhabitants; the Member States where rates were below 100 subscriptions per 100 inhabitants were Austria, France and Latvia.

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 (for which data are available) turnover from mobile services exceeded that from fixed network services in 2009, the main exception being Belgium (see Table 2).

The price of telecommunications fell between 2000 and 2010 in many Member States (see Table 3). Price reductions were most apparent for national long-distance calls and international calls (represented here by calls to the United States). Across the EU, the average price of a national long-distance call almost halved between 2000 and 2010, with most of this reduction occurring by 2005, as the average price fell 5 % between 2005 and 2010. The price fall between 2005 and 2010 for an international call was larger, down 19 %, whereas the price of local calls increased by 17 %. During the last decade convergence of prices among local and national long-distance calls is notable, as well as convergence of prices among Member States for national long-distance calls. There is a remarkable decrease of prices among Member States for international calls. However, the decrease of prices was less dynamic during the second half of the decade. Prices for international calls converged among Member States between 2000 and 2005 and stagnated during the last 5 years. The largest increase (in percentage terms) in the price of local calls between 2005 and 2010 was recorded in the United Kingdom, where the price more than doubled, while double-digit percentage increases were also recorded in eight other Member States. In contrast, Denmark recorded the biggest decrease in the price of local calls, down 65 %.

Prices of local, national long-distance or international calls varied greatly across the EU Member States in 2010. Local calls were most expensive in the United Kingdom, national long-distance calls in Slovakia and Italy, while the price of international calls was highest in Latvia. The cheapest tariffs for local calls were in Denmark, Bulgaria and Cyprus, while the cheapest national long-distance calls were in Denmark and Cyprus. For international calls (to the United States), the cheapest calls, by far, were from Germany.

Data sources and availability

Data on turnover, mobile phone subscriptions and the average number of SMS come from Eurostat’s collection of telecommunications statistics. The data were provided by the national statistical institutes of the EU Member States collecting information from the relevant regulatory authorities.

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.

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 online 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 August up to 2005 and September from 2006 onwards, 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 depend 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 being 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, it may also reflect technological change and increased capacity, which have made it possible to communicate not only by voice, but also over the internet or via messaging services. 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.

The regulatory framework for electronic communications in the EU was updated in 2009 to take account of developments in this fast-moving field: major developments since the 2002 framework was agreed include the growth in voice-over-internet (VOIP) telephony and the uptake of television services through broadband lines. The framework covers all forms of fixed and wireless telecoms, data transmission and broadcasting. The revised legislation aims to enable people to benefit from better and cheaper communication services throughout the EU, whether they use mobile phones, fast broadband internet connections or cable-based (television) services. To achieve this, the revised legislation aims to:

strengthen consumer rights;
give consumers more choice by reinforcing competition between telecoms operators;
promote investment in new infrastructure in particular by freeing radio spectrum for wireless broadband services;
make communication networks more reliable and more secure.

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). The European Commission and national regulators have closely monitored price developments for text messages and data services. 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) that will apply until the end of June 2012. In July 2011 the European Commission proposed a further revision of this legislation which aims to give customers more choice, give alternative operators easier access to the roaming market and generally bring down prices for data roaming.