The Spanish telecommunications market declined by 16.5% in 1991 due to Telefonica de Espana SA’s investment policy, which meant that customers ordered fewer lines, as well as international uncertainty caused by the Gulf War, and reduced US investment. Price Waterhouse & Co’s Multitelecom 92 study values Spanish telecommunications services at more than $10,600m, equipment and systems at $3,290m. The overall outlook for 1992 is gloomy, but growth is forecast in integral cabling systems, local networks, interconnection equipment, cellular phones and transmission equipment. The report divides the market into four sections. The first, public telephones and radio communications, which covers switching and transmission systems, cable, cellular phones, radio-paging and radio-phones, represented $2,225m in 1991, and Telefonica had 96% of the business. The market for circuit switching fell compared with 1990, and is expected to drop a further 40% in 1992. The cellular market doubled, and is forecast to grow 18% in 1992. Transmission is seen increasing by 10% to 15%, and radio-paging by 25%. The second section, local environments, which includes integral cabling systems, voice equipment, automatic call distributors and local network hardware and software, is valued at $390.7m. Local network hardware and software makes up 37% of this; market leaders are Novell Inc for personal computers, Digital Equipment Corp for other network software. This market grew 15% and is seen continuing to grow over the next couple of years. Hub-based local networks are seen increasing 50% in 1992. The exchange market fell 20% in 1991. Alcatel NV is the market leader, while AT&T Co is the main supplier of integral cabling. The third section is corporate networks, voice network equipment, private network transmission and communication cabling, and network management systems. This represents $473m, 29% of which is Telefonica-related. The growing importance of routers for interconnecting local networks was highlighted in the study. This market grew 24% in 1991, and is expected to grow another 25% in 1992. The final section, broadcast, – video and audio equipment, is valued at $296.9m.
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