Monday, October 3, 2016

Spanish Mobile Spending Up for First Time Since 2011

According to data released by Spain’s telecom regulator CNMC, the average amount spent by Spanish users on mobile services increased for the first time in five years in the first half of 2015, The average spend in the first half of the year was €16.50 (US $17.92) a month, up slightly compared to the €16.20 (US $17.59) spent in the second half of 2014, albeit still some €6.50 (US $7.05) less than the average monthly spend of €23.00 (US $24.98) corresponding to the first half of 2011.

Spain was hit particularly hard by the pan-European economic crisis that began in 2007–2008, and its mobile market reflected the situation in the country as a whole. Massive unemployment led to a serious reduction in consumer spending on mobile services. Amid this decline, cutthroat competition among operators for what was left of the consumer base led to record churn and price wars. With spending, prices and revenue so far down, by last year it appeared as if the Spanish mobile market had nowhere to go but up, and now it appears that that has in fact been the case. Spanish consumers are spending more on data than in the past—in line with the global movement toward greater data consumption—and operators Telefónica, Vodafone and Orange have recently raised prices, and these two factors are largely responsible for the increase in spending in the first half of 2015. Although the amount of the increase is certainly not large, the fact that it occurred at all is an important indicator, and we believe it is very likely that the trend will continue.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. 

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