The telecommunications sector takes chest (and with reason)

That telecommunications services are an essential part of the daily life of Spaniards, it is obvious that a new report by Arthur D Little on «The telecommunications sector in the Spanish economy» puts white on black with data confirming, once again, that the digitalization of Spain is already a path of no return. Not in vain, we spend five hours a day connected to the internet and we use the mobile 3.4 hours a day , for uses such as making our purchases on the internet (44% of the Spanish have already bought this way) or Participate in social networks (more than 64% do it regularly).In the case of companies, digitalization has boosted sales and internationalization, improving productivity and efficiency ; while with regard to public administrations, it is estimated that connectivity has allowed generating savings of 52,000 million euros in three years .Data thus allow the telecommunications sector to be breast-fed in a report which also points the way so that it can continue to add value to the economy.

telecommunications, a deflationary sector

Despite its impact on the daily life of Spaniards, communications account for less than 3% of household spending , below concepts such as housing, water, electricity and gas (36 %); food and beverages (17%), hospitality and leisure (15.1%), or transport (11.5%).As if that were not enough, the IPC of communications is the only one that has dropped since 2010 in Spain , standing at 85 points with a base of 100, compared to 2010.At the opposite end would be teaching with 118 points.

The offer of operators, in addition, includes more and more benefits (fixed internet speed has been multiplied by 300, mobile internet speed by 5, more data, etc...).

more fiber in Spain than in France, the United Kingdom and Germany

This evolution in services would not have been possible without the decided investment in networks by telecommunications operators. Today, Spain is a leader among the major European economies in coverage of fixed and mobile networks of new generation, with 63% of past homes with fiber optic and 4G coverage of more than 94%, in line with the great European economies. To realize the scope of these network deployments, in the last year more fiber accesses were built in Spain than there were in France, the United Kingdom and Germany.

So that we can enjoy internet services, operators have deployed 46,000 telephone towers and 124,000 base stations 2/3/4G, on a mobile network, and 33 million new generation accesses (FTTH, FTTN and HFC Docsis 3.0) and 3 million km of optical cable, in the fixed network.

Today Spain has 51 million mobile lines and 13 million fixed broadband lines that allow you to enjoy all the services offered by the internet that, without these networks, would not exist.that we can access Google, Facebook, WhatsApp or Twitter, 46,000 mobile phone towers and 124,000 2/3/4G base stations have been installed by the Spanish geography .On the fixed network, our country has more than 33 million new generation accesses (FTTH, FTTN and HFC Docsis 3.0) and 3 million kilometers of cable optician have been laid.

3% of employment in Spain

Investment in telecommunications infrastructure and services translates into employment for our country.Arthur D Little's report calculates that 546,000 jobs are generated, representing 3% of employment in Spain .In addition, this sector is a fundamental piece for the productivity of other sectors of the economy, such as Tourism, Banking, Logistics, etc.For all this, it is estimated that the investment in telecommunications will contribute to increase the Spanish GDP at least 1.02%. For the next five years, it is estimated that the development of the digital economy will generate half of GDP growth and Spain has the necessary infrastructure to capture the opportunities derived from this development.

Here it is worth noting a curious fact: the speed of internet connection is related to the growth of GDP, so it is estimated that multiplying by 2 the speed means an increase of GDP of 0.3%.

25,000 million investment in six years

Within the subsectors of the digital ecosystem in Spain, the telecommunications and infrastructure sector contribute 88% of the investment and corporate tax and generate 73% of employment, with a investment of 25,000 million in The last six years and with a growing trend, despite the economic crisis. To get an idea of ​​what this investment means, just remember that the sum of the investments to build the AVE from Madrid to Barcelona and the T4 of Barajas was 10,000 million euros , far from half of what has been invested in telecommunications.

The telecommunications sector has invested 25,000 million in the last six years and with a growing trend, despite the economic crisis.As a comparison, the sum of the investments to build the AVE from Madrid to Barcelona and the T4 Barajas was 10,000 million euros.

All this, despite the fact that these companies face multiple rates (more than 20 and on the increase) apart from corporate tax.It is estimated that they pay 850 million euros per year in specific national and local rates , more than 2,100 million euros in spectrum auctions in the last six years and some 30 million euros for universal service. Figures to be added those derived from financing of RTVE, CNMC, local taxes, etc.

With taxes being important, the administrative constraints faced by telecom operators, which delay and make network infrastructure deployments more expensive, as well as the regulatory asymmetry between them and other companies that provide services on the internet ( OTTs ).

three key elements for the telecommunications sector

The telecommunications sector points out, in Arthur D Little's report, three key elements to continue providing value in Spain.First, the elaboration of a Plan for digitalization in Spain that promotes the transformation of society and the economy.To do this, the binomial Education + Training must be promoted, the investment in R + D + i must be increased, the development of an ecosystem of national digital companies , boost the demand for the digitalization of the economy and communicate and disseminate the plan with a awareness campaign by part of the administration.

In the second term, the telecommunications sector demands the revision of the regulatory framework, adapting it to the new European environment, betting on to reduce the current obligations and regulatory burdens , establishing a more more arc balanced that guarantees the same rights and obligations to all agents of the digital ecosystem and developing a plan on predictable spectrum management policy , among other measures.

Finally, in the report by Arthur D Little, the need to fiscally encourage network deployments , to ensure market unity by eliminating administrative obstacles , of review the taxation of the sector , reducing rates and specific over-levies in local, autonomous and national environments and giving visibility to a new model of independent management of mobile infrastructure, DTT, Internet of Things, of small cells, etc.