Competition in the telecoms sector plummets telephone tariff prices
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The Spanish telecommunications sector is experiencing a time of strong competition and this is reflected in prices. Operators’ tariffs plummeted in 2020.
The mobile telephony price index prepared by the National Markets and Competition Commission (CNMC) fell from 20.2 points to 16 points, according to Cinco Días.
This was the lowest level in the entire historical series at the close of a year. During 2020 it fell even more because in the second quarter the commercial reactivation after the great confinement caused it to fall to 15.3 points.
This fall was also noted in revenues, with mobile telephony traffic revenues per line per quarter falling by 6.5%, according to Competition data cited by the business daily. This brought the indicator to 14.25 euros, a new all-time low.
Selling insurance or opening bank accounts: operators’ new businesses will be the key to increasing revenues in a hypercompetitive market where mergers are expected, according to Moody’s.
Another figure that shows this high level of competition is the average mobile telephony revenue per minute of airtime, which fell by more than 25% to 2.59 cents.
Broadband also saw prices fall, although less steeply. The average mobile broadband revenue per line per quarter fell by 3.6% to 27.75 euros. This figure also represents an all-time low, according to Cinco Días.
While the fixed telephony price index fell to 84 points at the end of 2020 when in 2019 it was at 107.4. In this segment, quarterly fixed telephony revenues per customer fell to 26.62 euros which was a 12% drop in 2020, according to data collected by Cinco Días.
These data show how the sector is experiencing strong price competition with the entry of new players, such as virtual mobile operators or the creation of new brands within traditional operators to compete with them.
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