The Information Technology Landscape in Luxembourg

Privatization and Deregulation


3.0    Overview

The telecommunications infrastructure in Luxembourg is comprised of state-licensed, privatized, and deregulated services.  Television services have been private for over ten years while fixed-line and cellular telephone services are more recent entrants into the privatized landscape.

3.1    Voice

The Administration des Postes et Telecommunications is the arm of the government which controls the telecommunications network in Luxembourg; however, its sphere of control only extends to the system itself.  Equipment and services are provided to consumers by private sector companies in order to achieve competition.  (Source:  Walden Publishing Ltd., Country Report)  In January of 1999, Luxembourg issued licenses to 10 companies to compete with the Entreprise des Postes et Telecommunications (EPI) for fixed-line services.

3.2    Television and Satellite

The government does not operate television networks but is responsible for issuing licenses to private sector companies.  Radio-TeleLuxembourg (RTL) is a privately-owned company which operates under a state charter and provides both radio and television services.  RTL operates three television channels which broadcast in French, German, and Italian domestically.  The company also provides programming for cable broadcasts in Germany, Belgium and France.

Similar to the broadcast model above, the government does not operate the satellite services, but issues  licenses to private sector companies.  The satellite broadcasting system, Astra, is operated by the Societe Europeenne des Satellites (SES) which is a privately-owned consortium based in Luxembourg and licensed by the government. In 1985, the government decided to grant a franchise to private investors and allow them to exploit the satellite positions that the country had been allocated.  (Source:  Walden Publishing Ltd., Country Report).  By the end of 1996 , Astra satellites were broadcasting to 67 million households in Europe.  They carried more than 400 TV and radio channels for broadcasters, including BskyB and Turner Broadcasting.  New digital technologies helped SES increase revenues 37 percent to $400 million in 1997.  SES has created a joint venture with Intel, to operate a service called Astra-Net, linking satellite broadcasting with personal computers.  Businesses will be able to rent communications time on the satellite, allowing them to transmit large amounts of data at high speed and simultaneously to all their satellite dish-equipped locations across Europe.  With the recent merger of Luxembourg's television and radio production company CLT (Companie de Teledistribution Luxembourgeoise) and the German media group Bertelsman into CLT/UFA, Luxembourg has become the home of the largest media companies in Europe.

Source:  Country Commercial Guide (FY1999) U.S. Embassy in Luxembourg
www..state.gov/www/about_state/business/com_guides/1999/europe/luxem99

Television boradcast stations:  5 (1997)

Televisions 100,500 (1993 est.)

CIA -- The World Factbook 1999 -- Luxembourg
www.odci.gov/cia/publications/factbook/lu.html

3.3    Radio

Radio broadcast stations:  AM 0, FM 6, shortwave 0

Radios:  230,000 (1993)

CIA -- The World Factbook 1999 -- Luxembourg
www.odci.gov/cia/publications/factbook/lu.html

3.4    Cell Phones

Competition was introduced into the cellular phone market in May of 1998 and a continued expansion of the total market as well as a reshuffling of customers followed.  The market doubled during the period December 1997 to  December 1998 to reach a 30% penetration rate for cellular services.  Millicom's Tango brand was introduced and captured 28% of the market within its first eight months of operations.  (Source:  Communications International, London, June 1999).  Updated data indicate that through the period ended September 30, 1999, Tango had amassed a total of 63,344 subscribers for its cellular services.  (Source:  SEC Press Release dated 10/12/99).
 

 


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