Portugal’s telecom industry is set for a major technological boost, with operators planning to invest 4.2 billion euros ($4.9 billion) over the next five years in high-speed 5G networks, satellite systems, and fiber optic expansion, the country’s Infrastructure Ministry announced on Wednesday.
Investment to drive digital transformation
The investment will strengthen Portugal’s digital infrastructure, enabling the development of key national projects such as data centers, artificial intelligence (AI) platforms, and high-speed connectivity for businesses and consumers.
Expanding 5G and fiber coverage
Telecom operators will focus on extending 5G network coverage nationwide while expanding the fiber optic network to rural and underserved regions. This expansion will also enhance connectivity across critical transport infrastructure including roads, railways, ports, and airports.
Leading telecom companies driving growth
The country’s top three telecom providers — Altice, NOS, and Vodafone — dominate over 90 percent of the Portuguese market and will lead most of the planned investment, reinforcing their role in Portugal’s digital economy.
Altice Portugal, operating under the MEO brand, reported around 14 million total revenue-generating units (RGUs) by the end of 2024, including approximately 6 million fixed services and 5.3 million post-paid mobile customers. Altice’s capital expenditure for 2024 was about 422 million euros, down 13.5 percent from 488 million euros in 2023, indicating a slowdown following major phases of fiber and 5G deployment.
NOS SGPS had around 11.4 million total RGUs as of 2024, with about 6.2 million mobile voice customers, 1.6 million broadband users, and 1.7 million pay-TV customers. The operator’s RGU base continued to grow, with mobile subscriptions rising by over three percent year-on-year in 2025. NOS invested approximately 372.7 million euros in 2024, slightly down from earlier years as large-scale network expansion neared completion. The company’s ongoing investment remains focused on fiber expansion and strengthening 5G coverage, with nearly six million homes passed by fiber.
Vodafone Portugal added 167,000 mobile contract customers and 58,000 fixed broadband customers in fiscal 2024. The company serves over 5.4 million mobile users and about 240,000 fixed broadband customers, including roughly 190,000 TV subscribers. While Vodafone’s fixed-line base remains smaller than Altice and NOS, it is gaining traction through new broadband and fiber-sharing agreements aimed at expanding coverage.
Integration with major tech investments
The telecom push aligns with global tech companies’ growing interest in Portugal. Microsoft recently announced a $10 billion investment in AI infrastructure at the Start Campus data center in Sines, further boosting Portugal’s position as a European technology hub.
Strategic location for global connectivity
Portugal’s Atlantic coastline offers a strategic advantage, serving as a key gateway for subsea cables linking Europe, Africa, and the Americas. These undersea networks are critical for international data transmission and internet connectivity.
Government vision for a connected future
Infrastructure Minister Miguel Pinto Luz emphasized that Portugal’s unique geostrategic position is central to intercontinental connectivity. He said the nation is determined to seize this opportunity as part of its largest-ever technological investment, Reuters news report said.
Supporting the AI and data economy
With growing investments in 5G and data infrastructure, Portugal aims to support AI-driven innovation, digital services, and next-generation cloud solutions. The country is positioning itself as a regional leader in sustainable and connected technology ecosystems.
Boost to economic growth and jobs
The telecom and technology investments are expected to create thousands of skilled jobs and stimulate economic growth, particularly in high-tech sectors such as data management, energy efficiency, and digital communications.
Sustainability and green energy focus
Portugal plans to integrate renewable energy sources into data center operations and network expansions, ensuring that the country’s digital transformation aligns with its sustainability goals.
A major step toward digital leadership
With 4.2 billion euros in planned telecom investment and growing international partnerships, Portugal is moving closer to becoming a digital gateway between continents and a leading destination for innovation in 5G, AI, and connectivity technologies.
Baburajan Kizhakedath