Venezuela - Telecoms Infrastructure, Operators, Regulations - Statistics and Analyses

Venezuela's fixed-line teledensity was relatively high for the region before the steady growth in the number of lines came to an end in 2015. Since then the number of lines has plummeted, and by late 2018 teledensity had fallen to about 17%. The cause is largely linked to the country's ongoing economic troubles, which have compelled many people to terminate fixed-line telecom services. While some of these lost customers are relying on mobile networks for voice and data services, this sector has also seen a decline in the number of subscribers. The financial concerns of customers have been exacerbated by the decrepit state of much of the fixed network, hampered by the difficulty to pay for equipment from foreign vendors. This has resulted in a poor quality of service in many areas of the country.

In the local telephony market five companies compete with the state-owned incumbent CANTV: Convergia Venezuela, Telemic (Intercable), Movistar, Digitel and Veninfotel Communications. Convergia and Inter are primarily cable TV companies which provide fixed-line services over their cable TV network as part of bundled packages (including pay TV and broadband), while Movistar and Digitel are primarily mobile operators. In early 2017 CANTV's sister company Movilnet also began offering long-distance telephony services.

The economic troubles are causing considerable distortions in the market. There has been pressure on operator revenue, with inflation having prompted operators to increase prices significantly (by up to 900% in 2016 alone, a measure which a subsequent presidential decree aimed to reverse). CANTV and its main competitors Movistar and Digitel have ambitious investment plans aimed at improving their networks and expanding the reach and capabilities of new technologies and services, though these plans have been put into disarray as a result of currency controls. Telecom sector revenue in 2018 was out of proportion to that in previous years, given the hyperinflation prevalent.

This report provides an overview of Venezuela's telecom infrastructure, market and regulatory environment, together with profiles of the major fixed-line operators. It also provides a range of statistics and market analyses.

Key Developments:

CANTVs fibre network extended to 30,000kms;
Falling GDP and lower revenue from oil exports continue to place a strain on consumer spend for telecom services;
Report update includes the regulators market data to June 2018, operator data updates to Q4 2018, Telecom Maturity Index charts and analyses, recent market developments.

Companies mentioned in this report include:

CANTV, Movistar, Digitel, Inter, NetUno, Alodiga, Multiphone, Totalcom, Convergía.