Luxembourg is located in the center of the SAAR-LORRAINE-LUX region, an industrial center which serves as a crossroads for European trade and a link between Northern Europe, the Mediterranean and between the Atlantic and Central European countries.  This region has the most sophisticated computer and telecommunications equipment in the world.  "An international teleport permits the ultra-rapid transmission of voice, images, and digitzed data across the world from the advanced area technology of Metz 2000 Technopol."  (Sources:  State Department Country Commercial Guide and www.technopole2000.georgiatech-metz.fr).  The information below provides a more detailed description of the country's advanced  telecommunications infrastructure.

1.1    Telephones

Luxembourg has a state-of-the-art, highly developed, and completely automated phone system which is indicative of the important roles which telecommunications and international commerce play in the small country's economy.   Not surprising given the country's per capita wealth and advanced development, it has the highest teledensity of all of Europe, reported in June 1999 at 72%.  (Source:  Communications International, London, June 1999).  A comparative look at Luxembourg's teledensity rate is provided in the chart below; updated data indicates that the number of phone lines in Luxembourg has increased to over 300,000 thus explaining the increase in rate from 69.17% to 72%.
 

Country	Number of Main Telephone Lines	Phone Lines per 100 Inhabitants
Luxembourg	293,100	69.17
Switzerland	4,803,000	67.54
Sweden	5,965,000	67.37
United States	178,800,000	66.13
France	34,000,000	56.97
Germany	46,500,000	56.68
Europe (Aggregated)	297,256,400	37.22

 Source:  International Telecommunications Union (ITU) Website, 1999

Domestic telephone services are provided by the nationwide cellular telephone system and buried cable.   (Source:  CIA -- The World Factbook 1999 -- Luxembourg, www.odci.gov/cia/publications/factbook/lu.html)

1.2    Fiber Trunks and Submarine Cables

International telephone services are provided  through three channels leased on TAT-6 coaxial submarine cable (Europe to North America). CIA -- The World Factbook 1999 -- Luxembourg (www.odci.gov/cia/publications/factbook/lu.html)

1.3     T1, ISDN, and Other High Speed Services

The use of ISDN lines is becoming much more widespread largely due to a 1997 change in the Luxembourg PTT's pricing structure and these are becoming more of a standard that normal phone lines.  Many suppliers are now offering ISDN single and dual channel connections.  (Source:  www.theblade.org/iap/europe/Luxembourg/index.html)

1.4    Mobile, PCS, and Cellular systems

Luxembourg has a nationwide cellular telephone system.   Cellular services are provided by LUXGSM, the cellular arm of the Entreprise des Postes et Telecommunications (EPT) and by new competition in the form of Millicom's Tango brand.  The cellular subscriber phone market in Luxembourg doubled between  December 1997 and December 1998 to include 30% of the country's population (126,000 subscribers).  Competition was introduced into this market in May of 1998.  Please see the Privatization and Deregulation Page for a summary of the impact of this change.

 1.5    Satellites, Earth Stations, Teleports, and Microwaves

In 1985, the Luxembourg government created the SES (Societe Europeenne des Satellites or European Society of Satellites), a private satellite company by granting franchises to private investors to exploit the satellite positions it had been allocated.  The franchise owners operate the Astra satellite system which provides telecommunication services  throughout Europe via seven geostationary satellites.  Using 138 transponders and reaching 43 percent of all European TV households, the Astra satellites transmit 99 analog and 219 digital television channels, and over 190 analog and digital radio channels.  It is estimated that 93% of European TV households (70 million) receving television by satellite or cable, receive at least one or more channels via the Astra system.  The company has commissioned an additional four satellites to be deployed through the year 2000.  In July 1998, SES introduced its initial IPO.  the company's existing major stockholders are Deutsche Telekom and Luxembourg public institutions.  (Source:  New Media Markets, June 25, 1998 and July 9, 1998).

SES also established the European Satellite Multimedia (ESMS) company to provide multimedia services by satelliteand in December of 1998 announced plans to launch Europe's first satellite system using the Ka-band to provide a satellite return path.  The launch is planned for early 2000.  Using new technology via the Ka-band (as opposed to Ku-band) the company will provide provide interactive broadband and "band-width on demand" multi-media services to enable the distribution of multimedia applications to multiple parties ("multicasting").  The initial market for these services will be business customers in Western Europe with future plans to extend to Eastern Europe, Russia, and the states of the former Soviet Union.  (Source:  New Media Markets, London, December 1998). In order to obtain full control of its multimedia services,  SES bought out the minority interest of its partners (Intel, Hughes Network Systems, Deutsche Telecom and the Luxembourg PTT). In an article for New Media Markets, Director general of SES, Romain Bausch, outlined the following five strategic priorities for the company's satellite services:

• Complete the transition to digital;
• The introduction of multimedia services;
• The use of the Ka-band for the return path via satellite;
• The deployment of next-generation satellites;
• The creation of a global communications network.

1.6    Primary Domestic Telecommunications Providers

The major domestic telecommunications providers are as follows:

The government run, Entreprise des Postes et Telecommunications (EPT) which provides fixed telephone, internet, and cellular telephone services through its cellular branch, LUXGSM.

In May of 1998, the government licensed 10 fixed-line operators and as of this writing it was yet unclear what their impact on the market would be, although some expect that the PPT will lose market share for its fixed line services as it did in the case of cellular services.

Societe Europeenne de Communication ("SEC"), an alternative European telecommunications company which operates:  Tele2 Luxembourg S.A. for international telephony services; Tango for mobile telecommunication services; 3C Communications for public pay telephones and public Internet services; and Transac for billing and transaction processing services.  (Source:  Societe Europeenne de Communication S. A. Press Release dated 10/29/99).
 

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