The Spanish telecommunications industry grew by 10% in 1991, well up on 1990’s figure of $8,181m. According to a Price Waterhouse survey, the results of which were published in Tribuna Informatica, public telecommunications account for $2,400m, although Telefonica de Espana SA is responsible for $1,909m of this. Growth in the public market is dictated by government investment, but the private market is showing annual growth at around 30%, and the report forecasts turnover of $1,000m by 1993. The three suppliers to the public market are Alcatel Standard Electrica SA, L M Ericsson Telefon AB and AT&T Co with 43%, 40% and 17% respectively, but the private sector is a free-for-all with systems becoming progressively cheaper. As regards local environments – integral cabling systems, multi-line systems, automatic exchanges and automatic call distributors – sales exceeded $455m in 1990. Of that, 38% came from the revamping or upgrade of installed systems, but the report forecasts annual growth of 17% during the next three years. The demand for this type of system comes mainly from manufacturing companies, over 50%, but distribution and the financial sectors claim 15% and 14% respectively. The most significant growth in cable systems is in unshielded twisted pair which should hold around 60% of the market by 1993. Corporate networks – modems, data communications and network management – amounted to $154m, half of which came from modems. Annual growth over the next three years is forecast at 27%, and demand comes primarily from manufacturers and the financial sector with 42% and 25% respectively. The main supplier is Telefonica with a 27% market share. The report concludes that the telecommunications sector is Spain’s only information technology activity with a structure capable of meeting a major part of national demand. With annual growth of 40% over the past five years, it is strategic to the Spanish economy. If that continues it may close the gap between Spain and other the European Community countries, but that will depend on increased government investment in the infrastructure and services.
