SUBSCRIPTION TELEVISION SERVICE STATISTICAL INFORMATION 1ST QUARTER 2015

Transcription

1 SUBSCRIPTION TELEVISION SERVICE STATISTICAL INFORMATION 1ST QUARTER 2015 Subscription television service 1st quarter 2015 Version 2 /

2 Index HIGHLIGHTS Subscription television service subscribers Bundled offers Service penetration Provider shares Revenues from the service Number of channels, access to premium channels, and services used Trend in number of subscribers per technology Subscribers to cable television service Subscribers to subscription television service other technologies Subscribers to television service via optical fibre (FTTH/B) Subscribers to satellite television service (DTH) Subscription television service 1st quarter /20

3 Index of Graphs Graph 1 - Trend in the total number of subscription television service subscribers... 6 Graph 2 - Trend in subscription TV subscribers by technology... 8 Graph 3 - Trend in total number of subscribers to subscription TV services in terms of total dwellings...10 Graph 4 - Number of channels available at home...14 Graph 5 Subscription TV services used...15 Graph 6 - Trend in number of cable TV subscribers and forecast analysis...17 Graph 7 - Trend in number of subscription TV subscribers using other technologies and forecast analysis...18 Graph 8 - Trend in optical fibre (FTTH/B) subscription TV subscribers and forecast analysis...19 Graph 9 - Trend in Direct To Home (DTH) subscription TV subscribers and forecast analysis...20 Index of Tables Table 1 - Subscribers to subscription television service by technology... 7 Table 2 - Subscribers to subscription TV service by type of offer contracted... 9 Table 3 - Provider shares of subscription TV subscribers,...11 Table 4 Revenues from subscription TV service...12 Table 5 Average monthly revenues from subscription TV service...13 Table 6 - Access to premium channels...14 Subscription television service 1st quarter /20

4 HIGHLIGHTS At the end of first quarter 2015 (1Q15) there were about 3.39 million 1 subscription TV service (TVS) subscribers in Portugal, an additional 44 thousand subscribers (+1.3 percent) versus the previous quarter and an additional 185 thousand subscribers (+5.8 percent) versus the same quarter of The growth of the service was due mainly to offers based on optical fibre (FTTH/B), where the number of subscribers increased by 7 percent over the previous quarter. At the end of 1Q15, the cable TV distribution service represented 40.1 percent of all subscribers while xdsl represented 22.4 percent. Optical fibre (FTTH/B) represented 19.8 percent of total subscribers and is the technology that has seen the most growth. DTH was used by 17.8 percent of all subscribers. It is estimated that about 84.8 percent of subscription TV subscribers received their service as part of a bundle. The number of subscribers receiving the subscription TV service as part of a bundle of services increased by 2.8 percent in 1Q15. Grupo NOS 2 has the highest share of pay-tv subscribers (43.8 percent) 1. Grupo NOS is followed by MEO 3, Vodafone and Cabovisão with market shares of 41.9 percent, 8.3 percent and 6.0 percent, respectively. Vodafone was the provider that added the largest number of subscribers in net terms during 1Q15. Total revenues from the subscription TV service (stand-alone offers and bundles that include the subscription TV service) totalled 406 million euros in 1st quarter 1 The services provided under the protocols signed between the government of the Republic, the regional governments, ANACOM, NOS Açores and NOS Madeira are not considered for purposes of reporting subscriber numbers and shares; these protocols sought to provide the citizens of the archipelagos with free access to the national mainstream channels as well as enabling gradual migration from analogue to digital technology. The services provided under these protocols covered around 37.4 thousand dwellings in 1Q15 (21.7 thousand in the Azores and 15.7 thousand in Madeira). For this reason, there may be small differences in relation to the number of subscribers and provider shares reported in previous publications which included subscribers covered by this protocol. 2 On 16 May 2014, Zon TV Cabo Portugal, S.A. was acquired by Optimus - Comunicações, S.A., and on the same date, Optimus - Comunicações, S.A changed its name to NOS Comunicações, S.A.. On 24 June 2014, ZON TV Cabo Madeirense changed its name to NOS Madeira - Comunicações, S.A and ZON TV Cabo Açoreana changed its name to NOS Açores - Comunicações, S.A., making up Grupo NOS. 3 On 29 December 2014, MEO - Serviços de Comunicações e Multimédia, S.A was acquired by PT Comunicações, S.A. - PT Comunicações, S.A. then changed its name to MEO - Serviços de Comunicações e Multimédia, S.A.. Subscription television service 1st quarter /20

5 2015, while triple/quadruple/quintuple-play bundles were the main drivers of revenue growth. 4 At the end of 1Q15, approximately 17.9 percent of households with subscription TV had access to premium channels (a decrease of 0.7 percentage points from the previous quarter), while 68 percent had more than 80 channels (an increase of 6.8 percentage points versus the same period of 2014). 4 Up until 4Q14, revenues derived from the mobile component of bundles sold by MEO were reported as revenues from Mobile Services. Subscription television service 1st quarter /20

6 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 1. Subscription television service subscribers At the end of 1st quarter 2015 (1Q15), there were 3.39 million subscribers to the subscription television service in Portugal, 5,6 44 thousand subscribers more than in the previous quarter (+1.3 percent), and an additional 185 thousand subscribers compared to the same period of 2014 (+5.8 percent). The number of subscribers as at the end of 1Q15 is above the forecast range resulting from this indicator s recent historical trend. This above-trend growth is due, above all, to the substantial increase (+41.9 percent) in the number of optical fibre subscribers (FTTH/B) since the beginning of Graph 1 - Trend in the total number of subscription television service subscribers Forecast Subscribers Forecast range (lower limit) Forecast range (upper limit) Unit: 1 subscriber Note 1: Use was made of a linear regression model with logistic trend Yt = / (1 + exp (-0,161227* (t-21,42582))). Modelling was performed from the 4th quarter of 2004, since a change in the series was reported on this date by one of the operators. Forecast range with a significance level of 95 percent and adjusted R^2 of Note 2: The number of subscribers reported for 1Q15 has been altered following updates made by one provider. 5 The information was collected from the providers of this service and may be subject to change if there are any revisions or updates. The reference date for receipt of information is 30 April The services provided under the protocols signed between the government of the Republic, the regional governments, ANACOM, NOS Açores and NOS Madeira are not considered for purposes of reporting subscriber numbers and shares; these protocols sought to provide the citizens of the archipelagos with free access to the national mainstream channels as well as enabling gradual migration from analogue to digital technology. The services provided under these protocols covered around 37.4 thousand dwellings in 1Q15 (21.7 thousand in the Azores and 15.7 thousand in Madeira). For this reason, there may be small differences in relation to the number of subscribers and provider shares reported in previous publications which included subscribers covered by this protocol. Subscription television service 1st quarter /20

7 In addition to growth in offers supported over optical fibre (FTTH/B), with the addition of 43.9 thousand subscribers, growth was also seen in offers supported over xdsl (+3.4 thousand subscribers) and DTH (+3 thousand subscribers). Meanwhile the number of subscribers to the cable TV service fell by 6.4 thousand. Table 1 - Subscribers to subscription television service by technology 7 1Q14 4Q14 1Q15 Quarterly variation Annual variation Cabo % -2.5% xdsl % 7.8% FTTH/B % 31.2% DTH % 0.9% Total % 5.8% Unit: 1000 subscribers; % Note: The number of subscribers reported for 1Q15 has been altered following updates made by one provider. At the end of 1Q15, the cable TV distribution service accounted for 40.1 percent of total subscribers, while xdsl/isp accounted for 22.4 percent. The weight of optical fibre (FTTH/B) continues to increase, with this type of access now representing 19.8 percent of total subscribers, making optical fibre the fastest growing technology this quarter. Meanwhile, DTH was used by 17.8 percent of total subscribers. 7 The services provided under the protocols signed between the government of the Republic, the regional governments, ANACOM, NOS Açores and NOS Madeira are not considered for purposes of reporting subscriber numbers and shares; these protocols sought to provide the citizens of the archipelagos with free access to the national mainstream channels as well as enabling gradual migration from analogue to digital technology. The services provided under these protocols covered around 37.4 thousand dwellings in 1Q15 (21.7 thousand in the Azores and 15.7 thousand in Madeira). For this reason, there may be small differences in relation to the number of subscribers and provider shares reported in previous publications which included subscribers covered by this protocol. Subscription television service 1st quarter /20

8 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Graph 2 - Trend in subscription TV subscribers by technology Cable DTH xdsl/ip + FWA FTTH/B Unit: 1 subscriber Note: The number of subscribers reported for 1Q15 has been altered following updates made by one provider. 2. Bundled offers Subscription TV services are mostly sold as part of an offer of a bundle of services. As at the end of 1Q15, an estimated 84.8 percent of subscribers to the subscription TV service received this service as part of a bundle of services. The number of subscribers to the subscription TV service as part of a bundle of services increased by 13.3 percent compared to 1Q14 and by 2.8 percent over the last quarter. Subscription television service 1st quarter /20

9 Table 2 - Subscribers to subscription TV service by type of offer contracted 1Q14 4Q14 1Q15 Quarterly variation Annual variation TV only (estimated) % -22.9% Total subscribers to TV service as part of a bundle of services 8, of which::. Double-play. Triple/Quadruple/Quintuple-play % 13.3% % -13.9% % 19.3% TOTAL % 5.8% Units: 1000 subscribers; % Note: The number of subscribers reported for 1Q15 has been altered following updates made by one provider. 3. Service penetration The service penetration rate depends on the reference base (denominator) used 9. Where the subscription TV penetration rate is calculated based on conventional dwellings 10, a rate of 57.3 subscribers is reported per 100 dwellings As from 2Q14, the providers of this service began reporting the traffic plafond "Internet on mobile phone separately. 9 In the present report, and for the purpose of calculating the penetration rate, population, conventional dwellings and private households are calculated as according to the most recent data published by INE (Statistics Portugal) following the 2011 Census. As such, data is not directly comparable with data published in previous reports. 10 Number of conventional dwellings may include dwellings which are not permanently occupied, including second homes. The impact of this effect may vary in different parts of the Portuguese territory. 11 The services provided under the protocols signed between the government of the Republic, the regional governments, ANACOM, NOS Açores and NOS Madeira are not considered for purposes of reporting subscriber numbers and shares; these protocols sought to provide the citizens of the archipelagos with free access to the national mainstream channels as well as enabling gradual migration from analogue to digital technology. The services provided under these protocols covered around 37.4 thousand dwellings in 1Q15 (21.7 thousand in the Azores and 15.7 thousand in Madeira). For this reason, there may be small differences in relation to the number of subscribers and provider shares reported in previous publications which included subscribers covered by this protocol. Subscription television service 1st quarter /20

10 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Graph 3 - Trend in total number of subscribers to subscription TV services in terms of total dwellings Subscribers per 100 dwellings Unit: subscribers per 100 dwellings Source: ICP- ANACOM, INE (Statistics Portugal) Note 1: In the present report, and for the purpose of calculating the penetration rate, population, conventional dwellings and private households are calculated as according to the most recent data published by INE (Statistics Portugal) following the 2011 Census. As such, data is not directly comparable with data published in previous reports. Note 2: The number of subscribers reported for 1Q15 has been altered following updates made by one provider. However, given that conventional dwellings include dwellings used as main residences, as well as others that are occupied on a seasonal basis and second homes, it is also important to report the service penetration based on the number of private households. On this basis, the penetration rate is 83.5 subscribers per 100 private households The number of STV subscribers also includes non-residential subscribers who, according to available data, account for around 8.9 percent of total subscribers as at the end of Subscription television service 1st quarter /20

11 4. Provider shares Grupo NOS reported the largest share of subscription TV subscribers (43.8 percent), followed by MEO (41.9 percent), Vodafone (8.3 percent) and Cabovisão (6.0 percent). In this quarter, and in every quarter since 4Q13, Vodafone was the provider which gained the largest number of subscribers in net terms. Table 3 - Provider shares of subscription TV subscribers 13,14 3Q14 4Q14 1Q15 Grupo NOS % 44.0% 43.8% NOS 41.5% 41.0% 40.9% NOS Madeira 2.0% 1.9% 1.9% NOS Açores 1.1% 1.0% 1.0% PT Comunicações / MEO % 42.2% 41.9% Vodafone 6.7% 7.5% 8.3% Cabovisão 6.5% 6.2% 6.0% Other providers 0.2% 0.2% 0.2% Unit: % Note: The number of subscribers reported for 1Q15 has been altered following updates made by one provider. 13 The services provided under the protocols signed between the government of the Republic, the regional governments, ANACOM, NOS Açores and NOS Madeira are not considered for purposes of reporting subscriber numbers and shares; these protocols sought to provide the citizens of the archipelagos with free access to the national mainstream channels as well as enabling gradual migration from analogue to digital technology. The services provided under these protocols covered around 37.4 thousand dwellings in 1Q15 (21.7 thousand in the Azores and 15.7 thousand in Madeira). For this reason, there may be small differences in relation to the number of subscribers and provider shares reported in previous publications which included subscribers covered by this protocol. 14 Certain operators are active in specific market segments. The relative position of the operators in this table should in not be taken as an indicator of the quality of the services provided or of the performance of these operators in the segments which they operate. 15 On 16 May 2014, Zon TV Cabo Portugal, S.A. was acquired by Optimus - Comunicações, S.A., and on the same date, Optimus - Comunicações, S.A changed its name to NOS Comunicações, S.A.. On 24 June 2014, ZON TV Cabo Madeirense changed its name to NOS Madeira Comunicações, S.A and ZON TV Cabo Açoreana changed its name to NOS Açores Comunicações, S.A., making up Grupo NOS. 16 On 29 December 2014, MEO Serviços de Comunicações e Multimédia, S.A was acquired by PT Comunicações, S.A. - PT Comunicações, S.A. then changed its name to MEO Serviços de Comunicações e Multimédia, S.A. Subscription television service 1st quarter /20

12 5. Revenues from the service In 1st quarter 2015, revenues derived from the subscription TV service (stand-alone offers and bundles which include the service) totalled 406 million euros, with revenue growth driven principally by triple-play bundles. Table 4 Revenues from subscription TV service January - March 2014 January - March 2015 Annual variation TV only (estimated) Total revenues derived from bundles of services which include TV subscription service, including: % % -9.6% % % 35.3%.Double play % % -12.1%.Triple/Quadruple/Quintuple play % % 42.3% TOTAL % Units: millions of euros, % Note 1: revenues accumulated since beginning of the year Note 2: Up until 4Q14, revenues derived from the mobile component of bundles sold by MEO were reported as revenues from Mobile Services. Average monthly revenues derived from bundles which include the subscription TV service were 40.9 euros in 1Q15 Subscription television service 1st quarter /20

13 Table 5 Average monthly revenues from subscription TV service January - March 2014 January - March 2015 Annual variation TV only (estimated) Total revenues derived from bundles of services which include TV subscription service, including: % %.Double-play.Triple/Quadruple/Quintuple-play % % TOTAL % Units: euros, % Note 1: Up until 4Q14, revenues derived from the mobile component of bundles sold by MEO were reported as revenues from Mobile Services. Note 2: The number of subscribers reported for 1Q15 has been altered following updates made by one provider. The variations reported in total and unit revenues, in particular as regards triple/quadruple/quintuple-play bundles, partly reflect the inclusion, as of the present quarter, of the mobile component of bundles sold by MEO, following the merger that took place at the end of Number of channels, access to premium channels, and services used According to Marktest s Barómetro de Telecomunicações - Rede Fixa (Telecommunications Barometer - Fixed Network) 18, about 68 percent of homes with the subscription TV service had effective access to over 80 channels at the end of 1Q15, representing an increase of 6.8 percentage point versus 1Q Up until 4Q14, revenues derived from the mobile component of bundles sold by MEO were reported as revenues from Mobile Services. As from 1Q15, revenues derived from the mobile component of the monthly charges for "bundles of services" reported by MEO are reflected in the revenues indicator for bundles. As such the values reported for revenues from bundles are not comparable with previously reported values. 18 The Barómetro Telecomunicações (Telecommunications Barometer) is a regular study conducted by Marktest on the Telecommunications sector. The Telecommunications Barometer - Fixed Network surveys residences in mainland Portugal and the Autonomous Regions of Madeira and the Azores. A monthly sample is collected that is in proportion to and representative of the customer base. Subscription television service 1st quarter /20

14 Graph 4 - Number of channels available at home 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Sep.09 Dec.09 Mar.10 Jun.10 Sep.10 Dec.10 Mar.11 Jun.11 Less than 30 channels Sep.11 Dec.11 Mar.12 Jun.12 Sep.12 Dec.12 Mar.13 Jun.13 Sep.13 Dec.13 Mar.14 Jun.14 Sep.14 Between 30 and 60 channels Dec.14 Mar.15 Between 61 and 80 channels More than 80 channels Unit: % Source: Marktest-Barómetro de Telecomunicações (Telecommunications Barometer) Base: Homes with pay-tv (Total) Meanwhile, the number of homes with subscription TV reporting access to premium channels fell versus 1Q14. About 17.9 percent of homes with subscription TV had access to premium channels in 1Q15 (a drop of 1.6 percentage points over 1Q14 and a drop of 0.7 percentage points over 4Q14). Table 6 - Access to premium channels 1Q14 4Q14 1Q15 Quarterly variation (p.p.) Annual variation (p.p.) Access to premium channels Source: Marktest-Barómetro de Telecomunicações (Telecommunications Barometer) Unit: %, p.p. Base: Homes with pay-tv (Total) Subscription television service 1st quarter /20

15 Also according to the Telecommunications Barometer, use of the subscription TV service's different features continues to increase, with 67 percent of subscribers reported as having used at least one of the available features in the first quarter. About 53 percent of subscribers used the automatic recording feature - the service whose use has increased most versus 1Q14 (+14.4 percentage points). The manual recording feature was used by 45 percent of subscribers, while the programming guide and the "pausa tv" service (to pause and re-start broadcasts) were used respectively by 48 percent and 40 percent of subscribers. The videoclube/video-on-demand service was used by around 15 percent of subscribers. Graph 5 Subscription TV services used 60% 50% 40% 30% 20% 10% 0% -10% Sep.09 Dec.09 Mar.10 Jun.10 Sep.10 Dec.10 Mar.11 Jun.11 Sep.11 Dec.11 Mar.12 Jun.12 Sep.12 Dec.12 Mar.13 Jun.13 Sep.13 Dec.13 Mar.14 Jun.14 Sep.14 Dec.14 Mar.15 Manual recording Pausa TV Automatic Recording TV guide Videoclube / Video on demand Source: Marktest-Barómetro de Telecomunicações (Telecommunications Barometer) Unit: % Base: Homes with pay-tv (Total) Subscription television service 1st quarter /20

16 7. Trend in number of subscribers per technology The evolution reported in the number of subscribers to cable television, satellite (DTH), optical fibre (FTTH/B) and xdsl is detailed below. In 1Q15, the number of subscribers increased for all technologies, with notable expansion seen in optical fibre Subscribers to cable television service As of 1Q15, there are 6 companies providing the service through cable TV networks: Grupo NOS, Cabovisão, Uniteldata, STV, Associação de Moradores de Almancil and Transview. In 1Q15, the total number of subscribers to the cable television service (around million 19 ) fell by around 6.4 thousand from the previous quarter (-0.5 percent). This value is within the forecast range resulting from the historical trend. 19 The services provided under the protocols signed between the government of the Republic, the regional governments, ANACOM, NOS Açores and NOS Madeira are not considered for purposes of reporting subscriber numbers and shares; these protocols sought to provide the citizens of the archipelagos with free access to the national mainstream channels as well as enabling gradual migration from analogue to digital technology. The services provided under these protocols covered around 37.4 thousand dwellings in 1Q15 (21.7 thousand in the Azores and 15.7 thousand in Madeira). For this reason, there may be small differences in relation to the number of subscribers and provider shares reported in previous publications which included subscribers covered by this protocol. Subscription television service 1st quarter /20

17 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Graph 6 - Trend in number of cable TV subscribers and forecast analysis Forecast Subscribers Forecast range (lower limit) Forecast range (upper limit) Unit: 1 subscriber Note 1: Use was made of a linear regression model with negative linear trend and with structure change between the 3rd quarter of 2011 and the 2nd quarter of 2012 with positive linear trend thereafter due to switch-off of the analogue signal: Y = Q Q d_tdt tdt_t Modelling from 2nd quarter Forecast range with a significance level of 95 percent and adjusted R^2 of Note 2: The number of subscribers reported for 1Q15 has been altered following updates made by one provider. Compared to 1Q14, the number of subscribers using this technology declined by 2.5 percent Subscribers to subscription television service other technologies There are currently 3 operators in the market with subscription television offers supported over the public telephone network (xdsl/ip): MEO, Vodafone and Grupo NOS There were around 759 thousands subscribers to the subscription TV service on these platforms at the end of 1Q15, increasing by 3 thousand versus 4Q14 - the smallest increase since these indicators were first compiled. The reported variation (+0.5 percent) is within the forecast range resulting from the historical trend. Subscription television service 1st quarter /20

18 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Graph 7 - Trend in number of subscription TV subscribers using other technologies and forecast analysis Subscribers Forecast Forecast range Unit: 1 subscriber Note 1: A third-order autoregressive model was used subsequent to the first differences of the logarithmic series: DlnYt = 0, ,45 DlnYt-3. Forecast range with a significance level of 95 percent and adjusted R^2 of Note 2: This series includes subscribers to the STV service through the offers of AR Telecom over fixed wireless access - FWA using a proprietary standard. This provider discontinued its offer of this type of service as of 30 November Subscribers to television service via optical fibre (FTTH/B) There are currently 3 companies providing the subscription TV service over optical fibre (FTTH/B): MEO, Vodafone and Grupo NOS. During 1Q15, the number of subscribers to subscription TV via optical fibre (FTTH/B) increased by 7 percent to a total of 671 thousand subscribers - in absolute terms (+43.9 thousand), the largest increase on record. The reported evolution is above the upper limit of the forecast range resulting from this variable's recent historical trend. The increase reported this quarter stems, above all, from the activity of Vodafone in the residential and non-residential segments. Subscription television service 1st quarter /20

19 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Graph 8 - Trend in optical fibre (FTTH/B) subscription TV subscribers and forecast analysis Subscribers Forecast Forecast range Unit: 1 subscriber Note: A linear regression model was used with a linear trend: Y= t. Modelling performed from 3rd quarter Forecast range with a significance level of 95 percent and adjusted R^2 of Subscribers to satellite television service (DTH) At the end of 1Q15, there were 604 thousand subscribers 20 to the television service using Direct To Home (DTH) technology - a service provided by Grupo NOS and by MEO. This represents an addition of 3 thousand subscribers (+0.5 percent) versus the previous quarter and an increase of 6 thousand subscribers (+0.9 percent) versus 1Q14. Since 3rd quarter 2012, the number of subscribers supported over satellite has been in decline. However, there was a reversal in this decline in 3Q14, perhaps as a result of the launch of convergent offers with Internet and voice services using 4G technology in 2nd quarter The variation reported in DTH subscriber numbers is above the upper limit of the forecast range resulting from the historical trend. 20 The services provided under the protocols signed between the government of the Republic, the regional governments, ANACOM, NOS Açores and NOS Madeira are not considered for purposes of reporting subscriber numbers and shares; these protocols sought to provide the citizens of the archipelagos with free access to the national mainstream channels as well as enabling gradual migration from analogue to digital technology. The services provided under these protocols covered around 37.4 thousand dwellings in 1Q15 (21.7 thousand in the Azores and 15.7 thousand in Madeira). For this reason, there may be small differences in relation to the number of subscribers and provider shares reported in previous publications which included subscribers covered by this protocol. Subscription television service 1st quarter /20

20 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Graph 9 - Trend in Direct To Home (DTH) subscription TV subscribers and forecast analysis Subscribers Forecast Forecast range Unit: 1 subscriber Note: A multiple linear regression model was used with a quadratic trend in different time periods (1st structure until 2nd quarter 2007 and 2nd structure from 3rd quarter 2007)prompted by the entry of other operators into the market (TVTEL in 3rd quarter 2007 and PTC in 2nd quarter 2008: Y = t 434 t^ esq esq1*t 278 esq1*t^ ouq1q out2t out3q06. The model also considered structure variables in quarters 1, 2 and 3 of 2006 due to the series changes made by one operator. Forecast range with a significance level of 95 percent and adjusted R^2 of Subscription television service 1st quarter /20