Luxembourg’s residential and business broadband segment continues to be dominated by the incumbent POST Luxembourg despite market liberalisation in 1998. In recent years the incumbent telco POST Telecom (formerly P&T Luxembourg) has focused investments on cloud and managed services, as well as on bundled packages. The company offers a 100Mb/s service nationally, while its 1Gb/s service has been progressing following the government’s directive to provide a 1Gb/s service to all citizens by the end of 2020.
Luxembourg has a small, stable, high-income economy has historically featured solid growth, low inflation, and low unemployment. Despite its small landmass and small population, Luxembourg is the fifth-wealthiest country in the world when measured on a gross domestic product (PPP) per capita basis. Luxembourg has one of the highest current account surpluses as a share of GDP in the euro zone, and it maintains a healthy budgetary position, with a 2017 surplus of 0.5% of GDP, and the lowest public debt level in the region. The economy has evolved and flourished, posting strong GDP growth of 3.4% in 2017, far outpacing the European average of 1.8%.
Luxembourg remains a financial powerhouse – the financial sector accounts for more than 35% of GDP – because of the exponential growth of the investment fund sector in the 1990s. Nevertheless, Luxembourg has lost some of its advantage as a favorable tax location because of OECD and EU pressure, as well as the “LuxLeaks” scandal, which revealed advantageous tax treatments offered to foreign corporations.