spain invest opportunities

SPAIN

Investment opportunities

ICT Sector

I. ICT Sector in Spain

II. The information Society in Spain

AGENDA

2

World Market

Europe € 874 Billion

North America € 1,075 Billion

Rest of World (Africa & LATAM)

€ 490 Billion

Asia Pacific €1,040 Billion

The World ICT market by region, 2013

€ 3,479 Billion

The World ICT market by segment, 2013

Telecom services 34.1%

Telecom Equipment

10% Software & IT

Services 25.2%

IT Hardware 11.5%

TV Services 12%

Consumer Electronics

7.1%


4 Source: IDATE DigiWorld, 2014. Data 2013 (Last data available)

Spain is one of the most important ICT market by volume in Europe: €88,164 Million.

There are near 30,000 ICT companies, including digital content, operating in Spain. The sector is currently 1 employing almost 400,000 workers.

The gross added value at market prices represents the 4.7% of GDP in 2013.

Source [1] : ONTSI (Spanish Observatory for the Telecommunications and Information Society), 2014. Data 2013 (Last data available)

Spain ICT Sector Turnover 2013

35.5%

30.6%

15.1%

16.1%

2.7%

Telecommunications

Information Technologies

Production

Digital Content

€88.16 Billion

Commerce

5


Source: CNMC (Spanish Commission for Market and Competence), 2015. Data 3rd quarter 2014 (Last data available)

Direct Employment (Telecom Operators)

Company Direct Employment

Telefónica de España 21,757

RTVE 6,306

Movistar 4,347

Orange 4,051

Vodafone 3,614

Ono 2,458

Televisió de Catalunya 2,325

Rest 15,434

Total 60,292

36%

14%

4%

20%

26%

Audiovisual Operators

Telefónica

Rest

Mobile Operators

Cable Operators

ICT Industry: Telecom Operators

6


Main mobile operators

Movistar www.movistar.es

Vodafone www.vodafone.es

Orange www.orange.es

Yoigo www.yoigo.com

Mobile Virtual Network Enablers (Complete)

DIGI.Movil Movistar

FonYou Movistar

Ono Movistar

Euskaltel Vodafone

Lycamobile Vodafone

R Vodafone

TeleCable Vodafone

Jazztel Orange

Simyo Orange

Mobile Virtual Network Enablers (Redistributors)

Tuenti Movistar

Lebara, PepePhone, Hits Mobile, BT, Eroski Móvil

Vodafone

Aire Networks, Carrefouronline, Día Móvil, Happy Móvil, LCR Telecom, MÁSmovil, Moreminutes, Procono, You Mobile

Orange

Source: CMT (Spanish Telecommunication Market Commission), 2014. Data 2013 (Last data available)

Spanish software for landing is worldwide renowned and used

Major events/Complex, distributed international delivery

High-Tech and Defense Industry

Telecommunications, Utilities, Energy, Banking…

Spanish companies are present and recognized in major international markets…

Spain is a leader in advanced technologies:

7


Leading ICT multinationals are already successfully located in Spain, taking advantage of Spain’s benefits:

Software Vendors Hardware Vendors

Telecom equipment vendors

ICT Services and Consulting Companies

8


Service Providers

81 Science and Technology Parks throughout Spain

9


Source: Spanish Foundation for Science and Technology, 2015.

Source: RedIris (http://www.rediris.es/rediris/), 2015

Network Infrastructure Plan – RedIRIS Network (Network for the Scientific Community)

Infrastructures

10


http://www.rediris.es/rediris/

Encourage the deployment of ultra-fast networks

30 Mbps for 100% citizens in 2015

At least 50% households 100 Mbps in 2020

Promote an improved user experience and promote appropriate service conditions

Encourage the deployment of ultra-fast broadband networks, optimizing the use of radio spectrum and improve the experience for broadband users

More than 2.4 Billion Euros allocated by the government to fulfil the Digital Agenda, assuming the Digital Agenda for Europe in 2020.

It contains 106 lines of action structured around 6 main objectives:

11

Government Suptpor: Digital Agenda for Spain (2015 -2020)


Develop the digital economy

At least 50% citizens buy on-line in 2015

33% of SMEs make online purchases or sales

Promoting the developmet of e-commerce Promoting an innovative industry of

digital content Increasing public-private partnerships

and identify and maximize the opportunities that are presented in this new scenario

Improve e-government and digital public services

Increasing effectiveness and efficiency in public Administrations

More than 50% citizen use e-government and more than 25% complete forms online in 2015

Bringing the Administration to citizens

and businesses Increasing the levels of use of

eGovernment Rationalize and optimize the use of ICT in

public administration

Building confidence in the digital

Establishment of capabilities for monitoring and diagnosis of digital trust permanent

Boost market confidence services Strengthen existing capacities to

promote digital trust Promote excellence in the organizations

on digital trust

Encourage R & D + i in the industries of the future

Double the total annual public spending on research and ICT development, in 2020

Leverage an equivalent increase in private spending

Increase the efficiency of public investment in R & D in ICT

Encouraging private investment in R & D in ICT

Promote R & D in ICT in SMEs Expand the Spanish participation in R &

D in ICT in the international arena

Supporting digital inclusion and ICT training new professionals

At least 75% citizens (60% for disadvantaged people) access internet regularly in 2015

Reduce to below 15% the percentage of population that has never used internet

Promote inclusion and digital literacy Adapt training systems for digital training

and ICT training new professionals

Job Category Experience

(0-2 years)

Experience

(2-5 years)

Experience

(5-10 years)

Experience

(>10 years)

Country Manager 77 - 110 100 - 140 125 - 180 140 - 200

Chief Information Officer 80 - 100 90 - 110 120 - 150 135 - 170

Chief Technology Officer 39 - 48 52 - 60 70 - 82 87 - 110

IT Service Delivery Manager 46 - 58 52 - 65 61 - 72 64 - 80

Development Manager 38 - 50 45 - 60 55 - 65 63 - 75

BD Manager 36 - 47 42 - 52 48 - 60

Team Lead (SW Development) 31 - 38 38 - 42 43 - 45 46 - 50

IT Business Analyst 26 - 32 29 - 38 34 - 44 40 - 50

Business Intelligence Consultant 25 - 29 29 - 35 35 - 43 40 - 50

IT Security Consultant 24 - 30 28 - 35 33 - 42 40 - 50

ERP Consultant 24 - 30 32 - 40 36 - 45 40 - 50

CRM Consultant 24 - 30 28 - 35 32 - 40 36 - 45

Network Engineer 23 - 30 25 - 34 27 - 40 30 - 43

System Administrator 18 - 30 21 - 32 28 - 40 31 - 44

IT Labor costs in Spain

Data: Thousand €

12


Source: Guide the labor market in Spain. Hays, 2015.

Spain offers interesting opportunities in

Nearshore Platforms

Smart Grids

Internet of Things

FinTech

E-Justice

3D Printing

Smart City

Ciber Security

Big Data

Open Source Activities

E-Health

Digital Entertainment – Video Games

E-Government

Social Media – Social Business

13


aDigital

The Spanish Association of Digital Economy, Adigital, integrates businesses and organizations interested in the development of the digital economy for promoting and defending their interests.

C/ Balmes, 173, 4º 1º - 08006 BARCELONA Tel: +34 93 240 40 70 http://www.adigital.org

AMETIC

AMETIC, the Spanish association of electronics, information technology and telecommunications companies, is the main point of reference in a sector which is one of the most dynamic in the Spanish economy and of unique importance for the development of the country. AMETIC is one of the largest and most representative business organizations in Spain, with over 5,000 members, comprising individual members and business groups, whose activities are related to the electronics, information technologies and telecommunications sector.

C/ Príncipe de Vergara 74, 4ª planta , 28006 MADRID Tel: +34 91 590 23 00 http://www.ametic.es

AENTEC

The Spanish Association of New Technologies (AENTEC) constitutes a group of very important companies in the Spanish technological landscape which focuses around a main objective: to create competitive, independent Spanish technology.

Paseo de la Castellana, 141 - Piso 20, 28046 MADRID Tel: +34 91 913 53 90 http://www.aentec.es


14

Red.es

Red.es is the public business entity attached to the Ministry of Industry, Energy and Tourism (MINETUR) that is in charge of driving the development of the Information Society in Spain. It is also in charge of implementing projects that fall under the strategic priorities of the Office of the Secretary of State for Telecommunications and the Information Society (SETSI) and works closely with Regional Communities, Regional Councils, Local Entities and the private sector in the area of information and communication technologies (ICT).

Plaza Manuel Gómez Moreno s/n 28020 Madrid Tel: +34 91 212 76 20 e-mail: [email protected] http://www.red.es

Reports

ONTSI: Annual Report (2014)

Orange: eEspaña (2014) Telefónica: The Information Society in Spain (2014) CNMC: Annual Report (2014)

ONTSI

The National Observatory for Telecommunications and the Information Society is a body attached to the public corporate entity Red.es, the main objective of which is the monitoring and analysis of the Telecommunications and Information Society sector.

ONTSI prepares, gathers, synthesizes and systematizes indicators, prepares studies and offers informative and updated services relating to the Information Society and is currently the leading public Observatory of the Information Society in Spain. ONTSI is also a meeting and dialogue point between the Information and Communications Technology sector and the different public administration bodies, for the definition of policies and the subsequent evaluation thereof.

Plaza Manuel Gómez Moreno s/n 28020 Madrid Tel: +34 91 212 76 25 e-mail: [email protected] http://www.ontsi.red.es

15


http://www.ontsi.red.es/ontsi/en/node/5792






http://fundacionorange.es/fundacionorange/analisis/eespana/e_espana14.html



http://www.fundaciontelefonica.com/arte_cultura/publicaciones-listado/pagina-item-publicaciones/?itempubli=323







http://data.cnmc.es/datagraph/jsp/inf_anual.jsp





II. The Information Society in Spain

17

In 4th quarter 2014, mobile lines reached the 50.7 million mark (109.1% penetration

rate)

There are over 130,000 stations all over the country for mobile telecommunications

The penetration rate in fixed lines in 4th quarter 2014 is 82.7% in Spanish households

There are over 28 million internet users in Spain

74.8% of households are equipped with computers (desktop, laptop, netbook or tablet)

and 74.4% of households are connected to Internet

Virtually all the enterprises in Spain (98%) are connected to internet

70.5% of companies use some Open Source Software

The Spanish Video game development industry had a turnover of 412.4 million euros

in 2014

Spanish is the second most natively spoken language in the world with 400 million

native speakers, after Chinese Mandarin

In July 2015 the registered .es domains reached 1,781,083

Spain in numbers


18

3G/UMTS & 4G/LTE: Population covered in Spain

Population with access to 4G/LTE networks by Province (%), 2014

Population with access to 3G/UMTS networks by Province (%), 2014

Source: CNMC (Spanish Commission for Markets and Competition). Telecommunications and Audiovisual Sector Economic Report, 2014


19

Broadband & Pay TV: Penetration Levels in Spain

Pay TV Penetration by Province Suscribers/100 inhabitants (2014)

Broadband Penetration by Province Lines/100 inhabitants (2014)

Source: CNMC (Spanish Commission for Markets and Competition). Telecommunications and Audiovisual Sector Economic Report, 2014


74.8% of households are equipped with computers (desktops, laptops or both):

Source: INE, 2015. Data 2014

0%

20%

40%

60%

80%

100%

Mobile Phone

Computer

TelephoneFixed Line

InternetConnection

ICT Household equipment in Spain

2013 2014

20

Technology: Household & Business Penetration


ICT Infrastructures in Spanish Businesses

0

20

40

60

80

100Computer

Local Area Network

Wireless LAN

Broadband

Mobile Phones

Other Technologies

E-Mail

Website

Total 10 to 49 50 to 249 250 or more

94,0%

92,2%

80,6%

78,9%

77,7%

76,3%

63,5%

62,2%

59,5%

50,1%

0% 20% 40% 60% 80% 100%

ICT

Hotels & Travel agencies

Sale & Repair of vehicles

Science & Technology

Wholesale Business

Industry

Logistics

Real estate

Construction

Retail

Enterprises with websites, by Sector Computer Penetration in Businesses, by Sector

100,00%

100,00%

99,70%

99,60%

99,50%

98,30%

98,00%

97,50%

96,00%

94,20%

90% 95% 100%

ICT

Hotels & Travel agencies

Sale & Repair of vehicles

Wholesale Business

Science & Technology

Logistics

Construction

Industry

Retail

Real estate

21

Technology Adoption by Companies


Source: ONTSI based on INE, 2014. Data 2013

22

Broadband: Use of internet

Internet use in Spain by age range Percentage of Internet users

Internet use in Spain by level of education Percentage of Internet users

98,5 96

88,2

76

51,2

25,2

75,6

0

20

40

60

80

100

120

16 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 to 74 Totalpopulation

Source: ONTSI based on INE, 2015. Data 2014

30,2

73,1

90,7 95,6 97,3

75,6

0

20

40

60

80

100

120

PrimaryEducation

SecondaryEducation,First Level

SecondaryEducation

Second Level

VocationalTraining,

Higher Level

TertiaryStudies

Total


7219 12887 18859 29590 35570 43476 71158 85309

298600

507874

805327

1082757

1207832 1247978

1458371

1614149

1696538

1755224

1,781,083

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

1.800.000

2.000.000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

Source: Red.es, 2014

In July 2015 the registered .es domains reached 1,781,083

23

Broadband: .es Domains


36,1%

49,1%

53,0%

67,1%

77,6%

84,0%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Health services

Banking

Travel planning

Social Networks

Information and news search

Access to e-mail

% of people

Use of the Internet for several activities, Spain

24

Internet: Usage


Source: INE, 2015. Data 2014

Spanish is the second most natively spoken language in the world with over 400

million native speakers, after Chinese Mandarin

Internet Users by language

Percentage of Users Number or Users (millions)

440,1

75,5

78,9

81,1

87,5

109,6

121,8

135,6

222,4

649,4

800,6

0 100 200 300 400 500 600 700 800 900

Other

Malaysian

French

German

Russian

Japanese

Portuguese

Arabic

Spanish

Chinese

English

15,70%

2,70%

2,80%

2,90%

3,10%

3,90%

4%

4,80%

7,90%

23,20%

28,60%

0,00%5,00%10,00%15,00%20,00%25,00%30,00%35,00%

25 Source: Internet World Stats, 2015. Data 2013


[email protected]

www.investinspain.org

Paseo de la Castellana, 278

28046. Madrid

: +34 900 349 000

spain invest opportunities

Data & Analytics