Record Number of Mobile Lines Disconnected in Spain

Spaniards affected by the recession disconnected a record number of mobile phone lines in October, while smaller operators simultaneously capture market share from the major players with ‘special offers’ on smartphones.

In Spain, the number of mobile phones exceeds the number of citizens, but the recession has sharply increased the number of unemployed. One in four Spaniards is now unemployed, leading to a rapid decrease in the number of active mobile phones. In October, as many as 486,000 mobile lines were disconnected, announced the telecommunications regulator CMT on Monday.

Movistar, the mobile operator of Telefonica, lost 284,000 mobile lines in October, while Vodafone, the second-largest Spanish mobile operator, lost 278,000, according to CMT. The figures show a 3.8% decline in mobile lines compared to last year, in the context of high unemployment and a second recession in three years.

– The mobile sector in Spain is not recovering at all. The number of lines has been decreasing for the ninth consecutive month… Yoigo and virtual mobile operators are simultaneously increasing their customer base, but they cannot compensate for the losses in Movistar, Vodafone, and Orange – CMT warns.

The price war in the mobile phone sector has intensified in recent months after Telefonica and Vodafone decided in the spring to end the practice of so-called ‘special offers’ on smartphones, which led to a reduction in their market shares. Nearly two million Movistar lines have been disconnected since March when the company ceased this practice, according to monthly data from CMT. Therefore, Vodafone decided in November to reintroduce special offers for smartphones.

CMT reports that in October, as many as 475,000 citizens switched to another operator. Telefonica’s market share was 37% in October, compared to 40% in the same month last year. Vodafone’s share decreased from 28% to 27%. Orange, the third-largest player in the Spanish market, did not eliminate special offers, and its market share increased from 20% to 21%. It lost 14,870 customers.