According to data just published by the CNMC, in the first quarter of 2021 Operators’ revenues from retail services were 5,668 million euros, falling 3.6% with respect to the same period of 2020. In fixed broadband, the interannual rate grew by 4.2%, while the income from the rest of services decreased. Those of telephone information were the most affected, with a fall of 41.4%, while those of fixed telephony fell by 14.3%. In mobile telephony, the fall was 8.4%.
Despite the decline, the three major operators continue to dominate the most revenue from the sector with 75.8%. MásMóvil and Euskaltel increased their revenues and increased their revenues to represent 8.8 and 2.8% of the market, adding an 11.6% share of market revenues between the two groups.
This figure contrasts with the market share, where the three major operators reach the 80.9% on fixed broadband lines, which is 3.2% less than the same period of the previous year. The main beneficiary of this drop is MásMóvil, which has grown by 2% in the same period. Mobile lines also fell, with 74.1% in the hands of the big three compared to 76.4% in the same period of the previous year.
In total, new generation network accesses reached 68.7 million, a growth of 7.6% compared to the previous year. Of these, 58.1 million correspond to FTTH, growing by 5 million with respect to the previous year.
Be careful with the low cost trend
As we can see, the three major operators maintain some relatively stable income, but that are affected to the downside by the generalized trend to the low cost. In fact, in the last 3 weeks we have seen very aggressive offers by the big operators. Movistar put its fiber of 300 Mbps at € 14.95 per month for 9 months, and later he has put that of 600 Mbps for 19.95 euros per month for 9 months.
Vodafone has continued putting 300 Mbps at 15.49 euros for 9 months, but only where they have direct fiber coverage, since indirect fiber access to the Movistar network costs them more than that. This drop in prices significantly reduces the margins of the operators in exchange for increasing the high ones, which seem to be many. And it is not surprising with these prices, since they are the cheapest in the history of Spain not only for an Internet connection, but also for a fiber optic connection.