The average price of mobile telephony in Spain dropped by 22 percent in 2013, to €0.096 (US $0.13) per minute. The decrease was greater for postpaid users (23.1 percent) than for prepaid users (15 percent). Fixed-to-mobile call prices dropped 17.4 percent, to €0.011 (US $0.015) per minute. These reductions represent the continuation of a trend that has been ongoing since 2005, when calling prices were, on average, twice as high as they are today.

Tarifica’s Take

It appears that the downward trajectory of mobile calling prices in Spain can be attributed in large part to the swelling of the MVNO sector. Virtual providers such as Yoigo and Jazztel, with their smaller overheads, have been able to offer calling services at lower prices than the MNOs, with the result that 10 percent of mobile subscriptions in Spain are now with MVNOs. In addition, churn continues to be a major factor in the Spanish mobile market—in the first three months of 2013, 1.8 million subscribers changed their providers, with the biggest operators taking the biggest hits: Movistar lost 87,000 customers and Vodafone lost 81,000. The resulting competition has also contributed to lower prices across the board.