Luxembourg Telecom Market Growth Slows, Fibre Use Reaches 72.8%

On Monday 15 June 2026, the Luxembourg Institute of Regulation (ILR) held a press conference to present its statistical report on Luxembourg’s telecommunications sector for 2025. 

The institution reported that after several years of sustained growth, the electronic communications market is experiencing more moderate growth, with a slowdown in revenues. In this context, operators continue to invest in mobile and fixed infrastructure to meet the growing demand from consumers and businesses for very high-speed connectivity. The increasing adoption of fibre-optic technology and the deployment of 5G mobile networks illustrate this development.

The ILR also presented a brief review of SmartCompare.lu, one and a half years after its launch. In its report, the ILR observes that the telecommunications sector recorded moderate growth of 1.0% in 2025, marking a slowdown compared with previous years, when growth rates stood at 4.9% in 2024 and 2.3% in 2023 respectively. This development is mainly explained by slower growth in revenues from fixed internet services. Although these revenues increased by 5.3% year on year, the pace of growth is significantly lower than that observed in recent years, when double-digit growth rates were often recorded. The Institute also notes a decline in revenues from fixed telephony services, television services and capacity services.

The ILR noted that this trend is also reflected in the evolution reported by operators in the average monthly revenue per user (ARPU) across the various services. While the average revenue from fixed internet services continues to increase by €1.20 to reach €55.80, this increase no longer offsets the decline observed in other services. As a result, the combined average revenue from the four services has fallen, illustrating the major changes in sector revenues in recent years.

The institution said the data for 2025 confirmed the structural transformation of the market, with the replacement of the copper network by fibre-optic infrastructure now almost complete, a process known in English as “copper phase-out”. The number of fibre-optic fixed internet connections increased by 11.4% to reach 72.8% of all fixed internet connections by the end of 2025. This represents an increase of 17.9 percentage points compared with 2021. User demand for very high-speed connections continues to grow significantly. In 2025, subscriptions to fixed internet services offering speeds of 1 Gbps or higher increased by 66.9%. This segment grew by 31,600 connections to reach a new record of 78,900 connections by the end of 2025 and recorded a compound annual growth rate of 52.7% over the past five years.

In the regulated wholesale fixed internet access market, the ILR reported that Post Luxembourg continued to increase its revenues from broadband access services provided to alternative operators, reaching €27.4 million in 2025, an increase of 3.6% year on year. This growth occurred in a context of increasing fibre-optic unbundling by POST and despite a growing preference among alternative operators for Virtual Unbundled Local Access (VULA) solutions.

The volume of traditional telephony communications on fixed and mobile networks continues to decline, reflecting a shift in usage towards internet-based communication services, which are not documented in this report. The fixed telephony segment also reflects the phase-out of copper infrastructure, with 15,500 analogue connections still in service, while almost all lines now rely on Voice over Broadband (VoBB) technology.

In this context, ILR stated that mobile internet remains the principal growth driver, recording growth of 11.4% in 2025. Although this rate remains high, it nevertheless marks a slowdown compared with previous years, when growth ranged between 18% and 30%. On average, a user in Luxembourg now consumes 13.1 GB (gigabytes) per month.

Despite a decline of 10.6%, investment remains at a high level and reached €125.3 million in 2025. Operators continue to develop their technical infrastructure, ensuring that fixed and mobile networks provide a high quality of service for consumers and businesses. These efforts are reflected in very high levels of population coverage, enabling speeds of 1 Gbps or more, particularly through the deployment of fibre-optic infrastructure and 5G networks, which now cover 78.7% of the population.

Moreover, the ILR highlighted improvements made to SmartCompare.lu and presented a statistical analysis of services, including a comparison of basic and average prices. As demonstrated by the 294 offers published in May 2026, the Luxembourg market continues to evolve, with more than 50% of fixed internet offers providing speeds of at least 1 Gbps, while 65.2% of monthly mobile plans include at least 15 GB of data.