Bloomberg News

Portugal Telecom Increases Quarterly Lead in Fixed Broadband

July 13, 2011

July 13 (Bloomberg) -- Portugal Telecom SGPS SA widened its lead over Zon Multimedia SGPS SA in the country’s fixed-line broadband market in the first quarter after gaining clients with bundled offers of television, Internet and phone services.

Portugal Telecom increased its share of the country’s fixed-line broadband clients to 47.2 percent from 46.8 percent in the fourth quarter, the National Communications Authority said today in a statement. Zon’s share was little changed at 33.1 percent versus 33 percent.

Zon, the country’s biggest cable-TV provider, was spun off from Lisbon-based Portugal Telecom in November 2007 to fulfill a pledge made to investors who helped fend off a hostile bid from Sonaecom SGPS SA. Portugal Telecom started a TV service in 2008 to add to its broadband Internet and phone operations as Zon began competing in those areas.

The number of fixed-line broadband users in Portugal climbed 1.5 percent from the fourth quarter to 2.1 million. Sonaecom’s share of the market, where it owns the Optimus brand, slipped to 6 percent in the first quarter from 6.4 percent in the fourth. Cabovisao SA, owned by Montreal-based Cogeco Cable Inc., declined to 7.9 percent from 8 percent. Vodafone Group Plc’s Portuguese subsidiary was unchanged at 4 percent.

In wireless broadband, Portugal Telecom’s TMN division declined to a 45 percent share of the market from 46.3 percent, while Zon almost doubled to 6.6 percent from 3.5 percent.

--Editors: Tom Lavell, Thomas Mulier.

To contact the reporter on this story: Anabela Reis in Lisbon at

To contact the editor responsible for this story: Angela Cullen at

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