This paper aims to provide an overview of the Portuguese Telecoms Market and its regulatory framework.

The sector’s revenues experienced a slight (-0,3%) decrease in 2016, as a result of an eight year recession period. Nevertheless, in 1Q2017, major operators reported a YoY revenue growth rates between 1,2% to 3,5%.

These figures show a trend for future stabilization in the market, in spite of the ongoing restructuring of the former incumbent and the uncertainty surrounding the appointment of the telecoms regulator’s new board.

Undeterred by the loss of almost one quarter of its revenues due to the financial crisis, the Portuguese communication’s market remains one of Europe’s most interesting in terms of new services and solutions.

As available data shows, liberalisation of the telecoms market had a vastly positive impact both in the sector, and in the economy, as Portugal is fairing particularly well  in comparison with its European Union counterparts in almost all of the market segments.

A more detailed analysis shows that the Portuguese market for traditional services – i.e. fixed and mobile voice and data – is highly concentrated, as Portugal’s three major operators, Altice, NOS and Vodafone, hold nearly 95% of the market shares.

As result of such an extremely high concentration rate, new competitors  are not expected to appear in the traditional sectors.

On the other hand, OTT providers are becoming an increasing threat to traditional operators, due to their very popular services which include instant messaging, live video, audio calls and video on demand.

Notwithstanding the telecoms market apparent hostility towards new entrants and its premature signs of recovery, new players, such as Altice, have still managed to successfully establish themselves as prominent players.

Moreover, Portugal has a widespread infrastructure and a large customer base, open to advanced and complex communication products and services, thus, creating interesting opportunities in this field.