Information Technology landscape in PORTUGAL

    As of 1995, Portugal's telecommunications network consisted of 4,123,000 local network lines, and 3,643,000 main lines, equating to an overall telephone penetration of approximately 37 per 100 inhabitants. Although Portugal has been regarded as having one of the least-developed telecommunications infrastructures within the European Union, the country has undergone significant development. Over 70% of its main telephone lines are already digital, which is comparable to a 73% digitization in the United States. Network growth in Portugal has been outpacing both average World network growth and High-Income country average network growth. However, main line fault rates remain higher than that of its peers, and overall quality of service is also generally considered lower. Through 2000, the International Telecommunications Union estimates that over $2.7 billion will be required to improve telephone penetration, especially in rural areas, up to a targeted 54%. The tables and lists below provide statistics and descriptions of the composition of Portugal's current telecommuncations infrastructure:

• Fibre Trunks: Portugal has numerous digital, microwave and fibre terrestrial systems linked to Spain. These trunks include a digital microwave trunk route between Caceras and Mamede and a fibre-optic landline between Badajoz in Spain and Elvas in Portugal.
• Submarine Cables (see table below)

• High-Speed Services: T1, commercial ISDN, leased lines available through Portugal Telecom. A piloted Integrated Services Digital Network (ISDN) was consolidated in 1994, with a total of 1,556 basic accesses and 281 primary accesses. International Euro-ISDN connections have been established with most other European countries. Speeds range from 64kbit to 120mbit/s.

 

Satellite Communications

• Satellite systems:  CPRM Marconi provides satellite communications via INTELSAT, INMARSAT and EUTELSAT

• Portugal Telecom, SA: is the Portugese PTO created in 1994 from the merging of three existing operators (see "Deregulation and Privatization" on next page). It operates under a concession which grants it the right for a period of 30 years commencing March 20, 1995 (renewable for periods of 15 years) to provide domestic and international public voice telephony and to install and operate the public telecommunications network infrastructure in Portugal.
• Companhia Portuguesa Radio Marconi (CPRM): is the intercontinental operator franchised in 1922 to provide radio links between continental Portugal, the Azores and Madeira Islands, and Portugal's colonies in Africa (Mozambique and Angola).
• Mobile: Nine operators have been licensed for paging services, cellular telephony, trunking, aeronautical, and airmobile telecommunications services. Portugal Telecom has significant interests in several of the providers:
• Portugal Telecom, SA
• Telecel-Comunicacoes Pessoais, SA
• TLM-Telemensagem-Chamada de Pessoas, Lda.*
• Financom-Servicos de Mensagens, SA
• Contactel-Chamada de Pessoas, SA
• Telechamada-Chamada de Pessoas, SA
• TMN-Telecomunicacoes Moveis Nacionais, SA*
• Radiomovel-Telcomunicacoes, SA*
• Repart-Sistemas de Comunicacoes de Recursos Partilhados
*partially owned by Portugal Telecom
• PCS: Services were tendered in 1997, but due to high start-up costs, PCS will likely remain less dominant than GSM services in the near future. Specific data on providers is unavailable.
• Cellular systems: Represents one of the fastest growing sectors since its introduction in 1989. Although cellular penetration is still relatively weak relative to Western Europe, its rate of expansion is promising. As of 1996, the  mobile celluar market in Portugal was estimated at $500 million. The current penetration rate is 2% and is expected to grow to 8% by 2000.   Licensed providers are listed below:
• TMN - controls 2 licenses -- analog 450 MHZ frequency and digital 900 MHZ -- and is partially owned by Portugal Telecom.
• Telecel - is a joint venture between a Portugeuse firm and Air-Touch Communications (formerly Pac-Telesis of the US). It controls one 900 MHZ frequency digital license.
• Competition between the two providers is intense and has resulted in price reductions. Licenses were awarded for similar territories and each provider has an approximately equal subscriber base, which combined totals approximately 350,000 subscribers. TMN has a distinct advantage due to its relationship with Portugal Telecom. Telecel annually relinquishes 25% of its receipts to Portugal Telecom, who provides circuits and access to the basic network. In the future, competition will increasingly be based upon comparative advanced services, as well as quality of communications. New services include: caller ID, intelligent messaging, electronic directories, and mobile fax.