The fiber optics market - Spain (2024)

1.2 The global market

The global fiber optics market is expected to grow significantly between **** and ****. In ****, the market was valued at $*.** billion, and is expected to reach $*.** billion in ****, an increase of *.**%. This upward trend will continue, with forecasts of $*.** billion in **** and $*.** billion in ****. The market will continue to grow steadily, reaching *.** billion in **** and **.** billion in ****. Between **** and ****, the market will pass the $** billion mark, reaching $**.** billion in ****, then $**.** billion in ****. In ****, the market will reach $**.** billion, before climbing to $**.** billion in **** and finally $**.** billion in ****. This reflects an average annual growth rate (***) of *.**% over the period **** to ****, underlining the continuing expansion of the fiber optics market in the years to come.

Global fiber optics market trends Spain, ****-****, $ billion Source: ****

In ****, the global fiber optics market was dominated by the Asia-Pacific region, which accounted for **.**% of the total market. North America came second with **.**%, while Europe held **.**% of the market share. Latin America contributed **.**%, and the Middle East and Africa region accounted for the smallest share at *.**%.

Global fiber optics market breakdown World, ****, % (***) Source: ****

1.3 The domestic market

Between **** and ****, sales in Spain's telecommunications sector varied for both producers and distributors. In ****, producer sales were *.** billion euros, rising slightly by *.**% in **** to *.** billion. In ****, it continued to grow by *.**%, reaching *.** billion euros, then rose significantly in **** by *.**%, peaking at **.** billion euros. In ****, growth slowed with a *.**% increase to **.** billion, but fell slightly by *.**% in ****, to **.** billion euros.

On the distributor side, sales stood at **.** billion euros in ****, but fell by *.**% in **** to **.** billion. In ****, a more marked decrease of *.**% was observed, taking the figure to **.** billion euros, before picking up again in **** with growth of *.**%, reaching **.** billion euros. This trend continued in ****, with a slight increase of *.**% to **.** billion euros, and a small rise of *.**% in **** to **.** billion euros.

Taking these two segments together, the sector's overall sales fell from **.** billion euros in **** to **.** billion in ****, recording a slight decline of *.**%. In ****, it continued to decline by *.**%, reaching **.** billion euros, before picking up again in **** with an increase of *.**%, reaching **.** billion euros. Growth continued in ****, with a slight increase of *.**%, taking sales to **.** billion, beforeexperiencing a small decline of *.**% in ****, for a total of **.** billion euros.

Sales trend in the Telecom sector Spain, ****-****, billions of euros Source: ****

Between ...

1.4 Imports and exports

In order to study Spain's foreign trade in fiber optics, we will use HS code ****** : "Optical fiber cables made up of individually sheathed fibers whether or not assembled with electric conductors or fitted with connectors" as defined by the United Nations, which corresponds to foreign trade in fiber optic cables.

Between **** and ****, Spain's foreign trade in fiber optic cables saw significant changes in both exports and imports. Exports rose from **.** million euros in **** to a peak of ***.** million in ****, before falling back slightly to ***.** million in ****. Imports, on the other hand, fluctuated, reaching a low of -***.** million euros in ****, then gradually declining to -***.** million in ****.

The trade balance followed a particularly remarkable trend. In ****, the balance was largely negative, at -**.** million euros, but has improved considerably over the years. In ****, the deficit narrowed to -*.** million, and in ****, Spain recorded a trade surplus of **.** million euros. In ****, this surplus fell slightly, stabilizing at **.* million. This represents a ***.**% improvement in the trade balance between **** and ****, marking a clear advance in Spain's foreign trade in fiber optic cables.

Evolution of Spanish foreign trade in fiber optic cables Spain, ****-**** Source: ****

Imports:

In ****, Spanish imports of fiber optic cables came mainly ...

1.5 The ÚNICO-Banda Ancha program

The ÚNICO-Banda Ancha program is a Spanish government initiative aimed at guaranteeing access to high-speed Internet connections, particularly in rural and underserved areas. Part-funded by the European Union as part of the NextGenerationEU stimulus plan, the program aims to reduce the digital divide by deploying fiber optic infrastructures throughout the country. It offers subsidies to operators to extend Internet coverage in so-called "white" areas (***). In ****, several operators such as Avatel Telecom, Adamo and MasMovil benefited from these grants to develop their networks. The program contributes to improving connectivity in Spain, enabling the population to access essential digital services, while strengthening economic competitiveness and digital inclusion.

The ÚNICO-Banda Ancha program was launched in **** as part of Spain's digital recovery and transformation plan, funded by the European Union through the NextGenerationEU mechanism. This is a multi-year program, with calls for applications and annual funding for telecoms operators. The program runs until at least ****, with the aim of further developing access to fiber optics in rural and underserved areas. In addition, as the program draws to a close, it is normal to see a reduction in the subsidies granted.Between **** and ****, the values of the ÚNICO-Banda Ancha program subsidies in Spain have thus seen ...

2.1 Fibre status report

By ****, Spain's fiber optic coverage rate shows significant regional disparities. The three autonomous communities with the best coverage, excluding Ceuta and Melilla, are the Community of Madrid with **.**%, Catalonia with **.*%, and País Vasco with **.**%. conversely, the three regions withthe lowest coverage are Principado de Asturias at **.*%, Galicia at **.*%, and Castilla y León at **.**%.

The national average for fiber optic coverage in Spain in **** is around **.**%, reflecting a good spread of fiber optic infrastructure throughout the country, despite notable differences between certain regions.

The Spanish market currently offers various types of technology for Internet access, the main ones being :

FTTH (***): This is the most modern and fastest technology currently available. Since it uses fiber optics right up to the user's home, it enables extremely high speeds, often reaching several gigabits per second, without loss of quality or distance-related limitations. In terms of performance and efficiency, FTTH is considered the best technology for providing very high-speed Internet connections. HFC (***): Although less modern than FTTH, HFC combines optical fiber for long-distance transmissions and coaxial cable for final distribution. This enables relatively high speeds to be achieved, but coaxial cable can become a limiting factor compared with an all-fiber infrastructure. HFC is therefore ...

2.2 Operators and Fiber

In ****, the breakdown of NGA (***) and fiber optic lines in Spain showed a clear dominance by Movistar, which held **.**% of lines. Orange followed with a **.**% share, while Grupo MásMovíl accounted for **.**% of the total. Vodafone came fourth with **.**%. The other operators combined accounted for a more modest **.**%. This breakdown reflected the concentration of the market around a few major players, led by Movistar, which owned almost a third of NGA and fiber optic lines in Spain.

Breakdown of NGA and fiber optic lines in Spain by operator Spain, ****, % of total Source: ****

In ****, the breakdown of broadband lines in Spain, by segment and operator, showed that Movistar dominated both the residential and business segments, with *.*** million lines for residences and *.*** million for businesses. Orange was in second place for homes, with *.*** million lines, and for businesses, with *.*** million. Masmovil had *.*** million residential lines and a much smaller share of the business market, with just *.*** million. Vodafone had a notable presence, accounting for *.*** million residential lines and *.*** million business lines. Digi was mainly active in the residential segment, with *.*** million lines, with no data available for businesses. Finally, other operators totaled *.*** million residential lines and *.*** million business lines, representing a smaller ...

2.3 New high-speed lines in Spain

Between **** and ****, both the number of broadband lines in Spain and the penetration rate rose steadily. In ****, Spain had **.** million broadband lines, a figure that reached **.** million in ****, representing an increase of **.**% over this period. At the same time, the penetration rate has also risen, from **.*% in **** to **.*% in ****. This development reflects the growing adoption of broadband internet in the country, supported by the expansion of infrastructure and the increased accessibility of fiber optic and broadband technologies.

Number of broadband lines in Spain and penetration rate Spain, ****-****, millions of lines, % (***) Source: ****

Between **** and ****, the evolution of the number of broadband lines in Spain by technology shows a marked transition towards fiber optics (***) at the expense of older technologiessuch as xDSL and HFC. In ****, xDSL still counted *.** million lines, but this figure has fallen rapidly to just *.** million by ****, a drop of almost **%. Similarly, lines using HFC technology fell from *.** million in **** to *.** million in ****, recording a **% decline. By contrast, FTTH (***) has seen spectacular growth, from *.** million lines in **** to **.** million in ****, an increase of ***% over this period. Other technologies, although in the minority, grew slightly, with *.** million lines in **** reaching *.** million in ****. This development illustrates the accelerated shift to fiber ...

2.4 Consumer packs

Between **** and ****, the evolution of packages contracted by operators in Spain shows varied trends depending on the type of offer. Packages combining fixed telephony and fixed internet remained relatively stable, rising from *.* million offers in **** to *.* million in ****, with a slight increase of *.**% from ****. Packages including fixed telephony, fixed internet and pay TV saw an initial decline, from *.* million in **** to *.* million in **** (***).

Packages combining fixed internet, mobile telephony and mobile internet saw significant growth, rising from *.* million in **** to *.* million in ****, marking an increase of ***.**% over the period. Quadruple-play packages, after increasing from *.* million in **** to *.* million in **** (***).

These trends show a shift in preferences towards mobile offers, while traditional packages with TV have lost popularity.

Evolution of packages contracted by operators Spain, ****-****, millions of contracted offers Source: ****

By ****, the ratio of bundled offers to total lines in Spain shows a marked trend towards service integration. Among fixed lines, **.*% were bundled with other services, representing a steady increase from **.*% in ****. For fixed internet lines, **.*% were offered in bundles, down slightly from **.*% in ****, but still very high. For postpaid mobile lines, **.*% were included in bundled offers, a stable figure compared with **.*% in ****. This data illustrates the strong adoption of bundled ...

2.5 Spaniards and digital

by ****, time spent on mobile as a percentage of daily screen time will vary considerably around the world. South Africa stands out with a high rate of **.**%, followed by the Philippines at **.*% and Thailand at **.**%. Countries such as Indonesia (***) are in a lower range. Spain, with **.**%, ranks among the countries with the lowest levels of screen time spent on mobiles, underlining a more moderate use of mobiles compared to the other countries analyzed. However, this percentage already corresponds to *h**mn spent on the phone per day in Spain.

Global comparison of screen time spent on mobiles World, ****, % (***) Source: ****

In ****, time spent on computers and tablets, as a percentage of daily screen time, shows significant differences between countries. South Africa stands out with **.**% of screen time devoted to these devices, closely followed by Russia at **.**% and Colombia at **.**%. In comparison, Spain has a much lower percentage, with only **.**% of screen time spent on computers and tablets. These data show a greater preference for computer and tablet use in South Africa, Russia and Colombia than in Spain. This corresponds to an average of * hours ** minutes spent on the computer in Spain.

Comparison of screen time spent on computers and tablets World, ****, % (***) Source: ...

3.1 Value chain

The diagram below shows the fiber market in Spain:

Material suppliers and manufacturers: They produce fiber optic cables and infrastructure equipment such as routers and modems. Network operators: Telefonica (***), Orange, Vodafone, MasMovil and others install fiber networks across the country, using their own infrastructures or leasing those of other operators in non-competitive areas. Regulation: CNMC plays a crucial role in regulating the market, imposing conditions for access to infrastructure. Service providers: Operators provide services to end consumers, combining optical fiber with other services such as television or mobile telecommunications. Distribution and marketing: This involves setting up commercial fiber optic offers, advertising and promotions aimed at consumers. Technical support and maintenance: This stage involves maintaining infrastructures and providing technical assistance to end-users to ensure service quality.

3.2 Market structure for optical fiber production

In order to study the fiber optic cable manufacturing market, we will base our analysis on the statistical code"CNAE: ****" defined by the Spanish INE, corresponding to "fiber optic cable manufacturing".

Between **** and ****, sales in the sector corresponding to CNAE code **** in Spain experienced notable fluctuations. In ****, sales reached **.*** million euros, but then fell in **** to **.*** million (***), almost back to the levels seen in ****. This trend reflects a slowdown cycle followed by a slight recovery over the period.

Sales trends for CNAE code **** Spain, ****-****, millions of euros Source: ****

Between **** and ****, the number of companies producing fiber optic cables in Spain fluctuated. In ****, there were ** companies in this sector, but this number fell in **** to * companies, then to * companies in ****, and again to * companies in ****, marking a downward trend over this period. However, by ****, the sector had recovered to ** companies, returning to the same level as in ****. This development reflects an initial decline in the number of companies before a full recovery of the sector in ****.

Trend in the number of companies producing fiber optic cables Spain, ****-****, number Source: ****

Between **** and ****, the number of employees in the fiber optic cable manufacturing sector in Spain has fluctuated. In ****, there were *** employees, ...

3.3 Telecom market structure

Spain 's telecommunications market was liberalized in ****, ending the monopoly of Telefónica, which had previously owned the country's entire telecom infrastructure. This liberalization paved the way for competition and the development of new operators in the market. Telefónica, now known under its Movistar and O* brand names, has retained a significant share of the market, particularly in the fiber-optic sector, while being joined by operators such as Vodafone, Orange and MasMovil.

The table below shows the main operators offering fiber in Spain:

Source: ****

In Spain, only five operators have their own fiber optic networks: Vodafone, Orange, MasMovil, Euskaltel and Movistar (***). These operators have invested heavily in their infrastructures, covering both urban and rural areas. In ****, a merger took place between Euskaltel and MasMovil, enabling the latter to strengthen its position in the Spanish telecoms market, increasing its coverage and consolidating its fiber optic network.

Market magnitude trends:

Between **** and ****, the number of employees in Spain's telecoms sector has seen several variations. In ****, the sector had **,*** employees, but this figure fell by *.**% in **** to **,***. In ****, there were **,*** employees, down **.**% on ****. However, from **** onwards, the sector began to recover, reaching **,*** employees in ****, representing a *.*% increase on **** and a return to **** ...

3.4 Competition and non-competition zones

In Spain, the distinction between competitive and non-competitive areas for optical fiber is defined by the ability of alternative operators to roll out their own networks.

Competitive areas: These areas cover around **% of the population, mainly in major cities, where alternative operators such as Orange or Vodafone can use Telefónica 's infrastructure to install their own fiber networks. This encourages direct competition, as operators have access to civil infrastructures such as Telefónica's ducts and poles, enabling them to offer independent services to their customers. Thanks to this shared infrastructure, competition in these areas is more intense, resulting in more competitive prices for consumers. Non-competitive areas: In these areas, which cover around **% of the population, especially in rural or less densely populated areas, alternative operators do not have the capacity to roll out their own fiber optic networks using only civil infrastructure. This forces them to "rent" Telefónica's existing fiber optic networks via services such as NEBA. Prices for these services are regulated to ensure that operators can offer competitive services without incurring losses. However, in these areas, Telefónica holds a more dominant position, and fiber options may be limited for consumers.

This regulatory framework aims to ensure ...

4.1 Offer typology

The various types of optical fiber differ in their technical characteristics and specific applications, offering a wide range of solutions to meet high-speed connectivity needs:

Single-mode fiber (***). Single-mode fiber is designed to transmit data over long distances with very high efficiency. With a narrow fiber diameter, typically between *.* and ** microns, it allows a single transmission mode to pass through, reducing dispersion and enabling data to be transported over tens or even hundreds of kilometers without distortion. This type of fiber is particularly well suited to long-distance telecoms infrastructures, high-speed data networks, and connections requiring high bandwidth capacity. However, it is more expensive than other types of fiber, due to its complexity and higher performance.

Multimode fiber (***) or data centers. It is more economical than single-mode fiber, but has certain limitations for long distances due to distortion and signal attenuation. Multimode fiber is divided into several performance categories, from OM* to OM*, with each generation offering improvements in transmission capacity and distance.

Plastic optical fiber (***). Plastic optical fiber is an alternative to glass fibers, used in environments where flexibility and ease of installation are paramount. Unlike traditional glass fibers, plastic fiber is made from polymers, making it more flexible and easier to ...

4.2 Prix et offres disponibles sur le marché

Les tableaux ci-dessous présentent quelque unes des différentes offres de fibre présentent sur le marché espagnol en **** :

Les offres uniquement de fibre : 

Internet et mobile :

Internet et Télévision :

Internet, TV et mobile :

Source: ****

4.3 Price trends

Between **** and ****, the evolution of average pack prices offered by operators in Spain shows a downward trend for the paquete cuádruple, while prices for the paquete quíntuple have fluctuated. In I-****, the average price of the paquete cuádruple was €**.*, and gradually fell to €**.* in IV-****, a drop of *.**% over this period. conversely, the average price of a paquete quíntuple rose from €**.* in I-**** to a peak of €**.* in I-****, before falling back to €**.* in IV-****. In ****, prices rose slightly, reaching €**.* in IV-****, representing an increase of *.**% on the first value in I-****. These variations reflect differentiated pricing strategies between package types, with a downward trend for quadruple-play offers and more fluctuation for quintuple-play offers.

Evolution of operators' average package prices Spain, ****-****, € Source: ****

4.4 Supply trends

Current trends in the fiber optics sector show a rapid evolution towards faster, more reliable and secure networks, with increasing adoption of cutting-edge technologies such as *G and the Internet of Things (***). Here are the key trends shaping the future of connectivity through fiber optic networks:

technological evolution of fiber optics:

Fiber optics has revolutionized global communications systems. By transmitting data via pulses of light through thin glass or plastic wires, optical fiber offers far greater speed and bandwidth capacity than traditional copper cables. This progress has enabled the development of network infrastructures capable of meeting the growing demands of high-speed Internet connections.

Improved speed and bandwidth:

Constant advances in fiber optic technology enable higher speeds and increased bandwidth. This translates into faster Internet connections, better latency and more reliable performance, essential for applications such as online gaming, video conferencing and real-time data transfer. The increased reliability of fiber-optic networks ensures a stable online experience, with fewer interruptions.

Integration with *G technology:

One of the major trends is the integration of *G with fiber-optic networks. This convergence promises ultra-fast speeds and very low latency, optimizing the performance of connected devices. The combination of *G and fiber enables advanced applications such as ...

5.1 Regulations

Law **/****, of June **, on Telecommunications, establishes important measures for the regulation of telecommunications in Spain, including fiber optics. Here are the main points concerning fiber:

Fiber deployment: The law encourages the extension of very high-capacity networks, including fiber, to achieve extensive coverage. Universal access: The aim is to ensure access to fiber in rural and urban areas. Investment: The law encourages private investment in fiber infrastructure and guarantees a stable regulatory framework.

Finally, to install fiber optics in a community of owners, the agreement of the majority of co-owners is required for common areas. Operators can also install fiber on facades, provided they meet safety and aesthetic criteria. Fines are provided for any infringement.

6.1 Segmentation

• Orange Groupe
• Telefónica
• Vodafone
• Másmóvil
• Optral Sa
• Fyla Laser Sl