Portugal Market Overview
A struggling mobile market which needs to shed non-core assets
BMI View: The Portuguese telecoms market is mature and exhibits volatile growth. Market saturation, low discretionary spending and over-dependence on pre-paid subscriptions all contribute to an industry outlook that is far from optimistic. However, changed ownership for all key players bar Vodafone suggests that more rational investment strategies will be employed in pursuit of more advanced, monetisable, services. This will be a boon to the weak consumer market, but the surviving operators will need to be leaner and fitter to weather the changing competitive conditions. Tower sales or spin-offs should therefore be considered, but the low-cost nature of the market will challenge even the most experienced players.