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FreeMove looks ahead to convergence and international expansion in Portugal

FreeMove Alliance has welcomed the news that Portuguese telecommunications company Zon Optimus has officially become known as Nos following a merger with the internet and cable television provider in August last year.

The single new brand heralds a new era of convergence: specifically the ability to protect its pay TV position by up-selling customers to mobile services, and thereby simultaneously boosting its mobile presence. As a converged new operator, the future could see Nos expanding outside of its home market in a drive for international expansion.

The news was made official by company CEO Miguel Almeida at WeDo’s Worldwide User Group meeting in Porto among an assembly of key operator customers from 44 markets. Before the merger, Zon’s 50% pay TV market share was under continual threat, in particular from Portugal Telecom while Optimus’ mobile market share was not improving beyond 15%. 

Almeida outlined the company’s strategy, “Convergence will be the key driver for this market in the coming years,” predicting the growing trend that by 2018, 33% of the Portuguese market will have converged services, up from 15% in 2014 and 5% in 2013.

The CEO stated that home services are the foundation behind quad-play: people tend to start with their home telecoms and TV services and then add mobile services on top, rather than taking pay TV services from their mobile operator. Nos has a strong presence and brand in the home market, a great asset for the company,

“Our market share in mobile will grow very significantly,” Almeida predicted, adding that Nos aims to increase its overall consumer market share by up to 5% from its current 33% standing today.