Spain Market Update Q2 07 - Telefonica Continues its Resurgence
In the Spanish market, Telefonica Moviles continues its resurgence, adding a further 0.5pp market share in the quarter, its third successive increase, and boosting subscriber numbers to a market-leading 22m. Vodafone is also growing steadily, but at 286k, its quarterly net additions were 3k short of Telefonica's, and a glance at the figures for the past 18 months shows that it is not making any inroads into Telefonica's dominance.
While Vodafone's market share has hovered around 30% for the past year and a half, France Telecom's figure has fallen to 22.7%, its lowest percentage since Q1 2004. Even taking into account the disconnection of around 0.5m inactive subscribers this quarter, its growth has been disappointing in comparison with Telefonica and Vodafone. However, the quality of its customer base has improved markedly in the last quarter - presumably because of this 'clean-up' - and for the first time in its history, it now has more contract than prepay customers.
Xfera, the most recent addition to the market, increased its subscriber figures by over 50%, but it remains a minnow. 161k subscribers after seven months of operation is a respectable but not extraordinary achievement, and with penetration at 116.5% in Spain, Xfera will have to work hard at grabbing market share from its competitors in order to expand.
Posted to the site on 15th August 2007

This article was extracted from The Mobile World Briefing, the weekly newsletter from The Mobile World.
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