The largest telecommunication operators in Spain are looking back to the summer of 2004, more than seven years ago, to recall a time when earnings were as bad as they were in Q3 2011. At that time profits were 9.06 billion euros, and this year they were 9.20 billion euros. The latter figure, recently unveiled by the Telecommunications Market Commission (CMT following the Spanish abbreviation), comes at a particularly inopportune time, because the entire sector is about to launch the most important investment of the decade.
Among other projects, the Spanish phone and internet industry is close to deploying new broadband landlines (fiber optic) and mobile networks (4G). With regard to landlines, operators are already several years behind other European countries in the variety of access options and speed of data transmission.
Once the new mobile network is established among providers, the biggest mobile companies will initiate the launch of a super broadband capability via LTE Broadband technology. This technology is capable of offering connection speeds of up to 100 MBS. Official sources indicated last summer that between 2011 and 2013, the mobile industry will generate investments close to 1.2 billion euros in Spain. This investment should create around 40,000 new jobs.
A strategic sector for Spain
According to analysts consulted by elEconomista, the launch should go forward with strength and speed, considering that its success will dictate future development of Spanish telecom companies.
