Spain’s communications regulator, the National Markets and Competition Commission, says consumer spending on bundled connectivity dipped slightly in the first two quarters of 2021. The report notes annualized 2.5 euro declines in quadruple-play and 2.8 euro declines in spending on quintuple-play packages.
As always, any number of reasons could explain such trends. Economic weakness exacerbated by the Covid endemic could cause consumer spending to drop, though not directly explaining price declines for these packages.
Competition might have led to price declines for existing products. Though three top firms have about 75 percent market share, the market structure does not seem to have the stable “rule of four” structure that inhibits price wars.
In fact, neither Spain’s fixed network broadband nor mobile markets have yet to reach the “rule of four” structure. That suggests the markets still remain unstable in terms of market share. Competitive share gains and losses remain possible.
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