Russia Telecom Intelligence Report: Fiber Ambitions to Boost Telecom Market; LTE Rollouts Await Operator Consensus
- Language: English
- Published: June 2013
- Region: Russia
This report is essential reading for those needing high-level strategic information and objective analysis on the telecom sector in the Latin American and Caribbean region. It provides further information on:
- Market and industry analyses, trends and developments;
- Facts, figures, and statistics;
- Government policies and regulatory issues;
- Major players (fixed, mobile and broadband);
- Fixed-line market and infrastructure;
- Broadband market (including ADSL, cable modem, FttH, and WiMAX);
- Internet and VoIP;
- Convergence and triple play solutions;
- Broadcasting (including cable TV, satellite-based TV services, and digital terrestrial TV);
- Mobile market (including 3G, LTE/4G, and mobile broadband);
- Scenario forecasts for the fixed-line, mobile, and broadband markets for the years 2015 and 2020.
1. Key Statistics
2. Telecommunications Market
2.1 Regional overview
3. Regulatory Environment
3.4 Number portability
4. Fixed Network Market
4.1 Regional overview
4.2 Selected countries
4.3 Major Fixed-Line Operators
4.4 Oi (Telemar)
4.4.1 Telmex/América Móvil
4.5 Vivo (Telefônica Brasil)
4.8 Telefónica de Argentina (TA)
5. Telecommunications Infrastructure
5.1 Regional overview
5.1.1 Fixed line statistics
5.2 Submarine cable systems
5.3 International satellite systems
5.3.1 Star One
5.3.2 Other Latin American satellites
5.4 Infrastructure developments
5.4.1 Wireless Local Loop (WLL)
5.5.5 Costa Rica
6. Fixed Broadband Market
6.1 Regional overview
6.1.1 Fixed broadband statistics
6.1.2 ADSL versus cable modem
6.1.4 Fibre-to-the-Premise (FttP) networks
6.2 Overview major countries
7. Digital Economy
8.1 Regional overview
8.1.1 Pay TV market statistics
8.1.2 Regulatory issues
8.1.3 Pay TV operators
8.1.4 Digital Terrestrial TV (DTTV)
9. Mobile Communications
9.1 Regional overview
9.1.1 Mobile market statistics
9.1.2 Average revenue per user (ARPU)
9.1.3 Infrastructure sharing
9.1.4 Second Generation (2G) mobile networks (GSM, CDMA, iDEN)
9.1.5 Third Generation (3G) mobile networks (UMTS)
9.1.6 Fourth Generation (4G) mobile networks (LTE)
9.1.7 Major mobile operators in LAC
9.1.8 Mobile Virtual Network Operators (MVNO)
9.1.9 Mobile services
9.1.10 Mobile broadband
9.1.11 Mobile handsets/smartphones
9.2.1 Mobile market overview and statistics
9.2.2 Regulatory issues
9.3.1 Mobile market overview and statistics
9.3.2 Regulatory issues
9.4.1 Mobile market overview and statistics
9.4.2 Regulatory issues
9.5.1 Mobile market overview and statistics
9.5.2 Regulatory issues
9.6.1 Mobile market overview and statistics
9.6.2 Regulatory issues
9.7.1 Mobile market overview and statistics
9.7.2 Regulatory issues
9.8.1 Mobile market overview and statistics
9.8.2 Regulatory issues
Table 1 Regional statistics 2012
Table 2 Telephone network statistics Latin America 2012
Table 3 Internet user statistics Latin America 2012
Table 4 Broadband statistics Latin America 2012
Table 5 Mobile statistics Latin America 2012
Table 6 LAC national GDP and population data (estimates) 2014
Table 7 LAC countries fixed lines, broadband, internet subscribers & penetration 2013 (e)
Table 8 Oi fixed lines in service 1999 - 2013
Table 9 Telmex revenue, EBITDA 2011 - 2013
Table 10 Vivo fixed lines in service 1999 - 2013
Table 11 Embratel fixed lines in service 2006 - 2013
Table 12 CANTV group revenue 2012 - 2013
Table 13 CANTV fixed lines in service and market share 1999 - 2013
Table 14 Telecom Argentina fixed lines in service 2000 - 2013
Table 15 LAC fixed lines in service and teledensity - 1996 - 2014
Table 16 Top 15 LAC countries for fixed lines in service 2012 - 2014
Table 17 LAC fixed broadband subscribers and penetration 2000 - 2014
Table 18 Top 15 LAC countries for broadband subscribers 2012 - 2014
Table 19 Telefónica/Vivo FttP homes passed and connected 2008 - 2013
Table 20 Argentina fixed broadband subscribers and penetration rates 2005 - 2014
Table 21 Argentina fixed broadband operators’ market share 2003 - 2013
Table 22 Brazil fixed broadband subscribers and penetration rates 2005 - 2014
Table 23 Brazil fixed broadband operators’ market share 2005 - 2013
Table 24 Chile Fixed broadband subscribers and penetration rates 2005 - 2014
Table 25 Chile Fixed broadband operators’ market share 2007 - 2013
Table 26 Chile Broadband subscribers and penetration rates 2005 - 2013
Table 27 Chile Major broadband operators market share 2011-2012
Table 28 Mexico Internet users and annual change - 2000 2014
Table 29 Mexico Internet and broadband penetration - 2000 2014
Table 30 Mexico Broadband subscribers by access technology 2000 - 2014
Table 31 Peru fixed broadband subscribers and penetration rates 2005 - 2014
Table 32 Peru fixed broadband operators’ market share 2007 - 2013
Table 33 Venezuela Fixed broadband subscribers and penetration rates 2005 - 2014
Table 34 Latin America and the Caribbean B2C e-commerce spending 2003 - 2013
Table 35 Facebook users major countries penetration, change, gender ratio April 2014
Table 36 Latin America, selected countries pay TV subscribers and penetration 2012 - 2013
Table 37 Argentina pay TV operators’ market share 2010 - 2012
Table 38 Brazil pay TV operators market share 2005 - 2013
Table 39 Chile pay TV operators market share 2006 - 2013
Table 40 Colombia major cable-TV providers market share 2004-2013
Table 41 Net Serviços cable TV subscribers 2005 - 2014
Table 42 LAC region mobile subscribers and penetration - 1998 - 2014
Table 43 LAC Mobile subscribers and penetration by country - 2012 - 2014
Table 44 Global mobile ARPU by region 2008 - 2012
Table 45 Brazil Mobile ARPU major operators 2008 - 2013
Table 46 Brazil Mobile ARPU country average 2008 - 2013
Table 47 Chile Mobile ARPU major operators and country average 2008 - 2013
Table 48 Mobile ARPU major countries 2010 - 2012
Table 49 LAC region HSPA/HSPA+ subscribers and penetration - 1998 - 2014
Table 50 Brazil 3G subscribers and penetration 2008 - 2014
Table 51 Brazil 3G municipal coverage 2008 - 2013
Table 52 Brazil LTE subscribers by operator 2012 - 2014
Table 53 LAC’s major mobile operators subscribers and regional market share 2011 - 2013
Table 54 América Móvil subscribers in the LAC region 2011 - 2013
Table 55 Telefónica subscribers in the LAC region 2011 - 2013
Table 56 Millicom International Cellular subscribers in the LAC region 2011 - 2013
Table 57 Mobile prepaid ratio in the major LAC markets 2005 - 2013
Table 58 Venezuela SMS messages sent 2002 - 2013
Table 59 Brazil handset and smartphones sales 2011 - 2013
Table 60 Argentina mobile subscribers and penetration 2005 - 2014
Table 61 Argentina Mobile operators’ market share 2005 - 2013
Table 62 Brazil mobile subscribers and penetration rate 2005 - 2014
Table 63 Brazil Mobile operators’ market share 2005 - 2013
Table 64 Chile mobile subscribers and penetration rate 2005 - 2014
Table 65 Chile Mobile operators’ market share 2005 - 2013
Table 66 Spectrum auction 700MHz band February 2014
Table 67 Colombia mobile subscribers and penetration rate 2005 - 2014
Table 68 Colombia Market share of mobile operators 2005-2013
Table 69 Mexico mobile subscribers and penetration rate 2005 - 2014
Table 70 Mexico Mobile market share by major operators 2005 - 2013
Table 71 Peru mobile subscribers and penetration rate 2005 - 2014
Table 72 Peru Mobile market share by operator 2005 - 2013
Table 73 Venezuela mobile subscribers and penetration rate 2005 - 2014
Table 74 Venezuela Market share of mobile operators 2005 - 2013
Chart 1 Top 15 LAC countries for fixed lines in service 2013 (e)
Chart 2 Top 15 LAC countries for fixed broadband subscribers 2013 (e)
Chart 3 Mexico Internet users and penetration rate 2000 2014
Chart 4 Mexico Broadband subscribers by access technology 2000 2014
Chart 5 Evolution of e-commerce in Latin America and the Caribbean 2003 - 2013
Chart 6 Facebook users major countries world rankings April 2014
Chart 7 Brazil pay TV operators market share at a glance 2000 2013
This annual publication, Latin America – Telecoms, Mobile and Broadband Overview, provides a comprehensive overview of telecommunications in Latin America and the Caribbean (LAC), a region that includes some of the world’s most important emerging markets.
The 2014 economic outlook for LAC is uninspiring, with GDP forecast to grow by only 2.5%, well behind the projected world average of 3.6%. Although 2015 is expected to be a more favourable year for the region, GDP growth will still be almost one percentage point behind the global average: 3.0% as opposed to the world’s 3.9%. The region’s best performers in 2014/2015 will be Panama, Peru, Bolivia, Paraguay, and Colombia, where GDP growth is expected to top 4.5%. Panama outshines every other country in the region, with 7.2% growth forecast for 2014 and 6.9% for 2015.
The LAC region includes a number of emerging markets that offer attractive investment opportunities. Conditions vary substantially from country to country. Most governments follow pro-business, pro-growth policies, but a few are less supportive of private enterprise. The most promising telecom markets for prospective investors are mobile telephony, fixed and mobile broadband, and pay TV. Also, several countries are developing ambitious national broadband projects, which require substantial investment.
Brazil, LAC’s largest market, is the region’s most popular investment destination. Its telecom regulatory environment is one of the most favourable in Latin America for investors. The provision of telecom services is simply linked to acquiring an authorisation from the regulator.
Privatisation and competition
All governments in the LAC region have introduced some form of liberalisation, especially in the value-added and mobile markets. A few countries still have a monopoly in the local fixed-line telephony sector, notably Guyana, Paraguay, and Uruguay.
In the broadband sector, most incumbents have secured a virtual monopoly in the delivery of ADSL access. The only competition is across technologies, from cable modem and mobile broadband. Local Loop Unbundling is rare in this region, and wholesale activity not very well developed. The concern governments face is the shortage of fixed line infrastructure, tied to the fear that operators will cease to invest in their network if they are forced to unbundle their local loop or lower wholesale prices.
The most competitive telecom sector is the mobile one, with most countries having at least two or three providers contending for market share.
Despite a low 18% teledensity (in most Western European countries teledensity ranges between 40% and 60%), fixed-lines in service have grown little since 2001, with consumers favouring mobile devices over traditional phones. New entrants using VoIP, wireless technologies, or triple play solutions are attracting a growing number of subscribers, but their market share remains comparatively small. Almost invariably, the incumbents continue to dominate the fixed line industry.
Fixed broadband market
Estimated fixed broadband penetration in LAC was 9.2% per capita at end-2013, slightly below the world average of 9.8% but ahead of other developing regions.
Hurdles in the Latin American broadband market include:
- weak competition and insufficient bandwidth (hence, expensive and/or slow services);
- inadequate fixed-line infrastructure (hence, service unavailability in many areas);
- low PC penetration, poverty, and unequal income distribution (hence, limited demand).ADSL is the favoured technology in most countries, but low teledensity limits its availability. Cable modem access has been gaining popularity thanks to triple play solutions comprising voice, internet, and video over HFC cables. The largest proportion of cable modem subscribers can be found in Chile, where this technology accounts for about half of the broadband market.
Fibre-to-the-Premise (FttP) is becoming more widely available throughout the region, but subscription fees are extremely high; therefore, the service still only attracts high-income residential customers and small businesses that require fast connections. The future of FttP is particularly promising in Brazil and Uruguay, the first because of preparations for the 2016 Olympics, the second because the government has started to deploy a nationwide FttP network through state-owned Antel.
Mobile marketLike the rest of the world, LAC is turning increasingly towards mobile solutions and away from the traditional telephone. In fact, the region is well ahead of the world average, having reached an estimated 115% mobile penetration at end-2013 against a global rate of around 96%. However, about 80% of LAC’s mobile subscribers are on prepaid plans.
3G/3.5G UMTS mobile networks (HSPA/HSPA+)
UMTS technologies in Latin America include High-Speed Packet Access (HSPA) and Evolved High-Speed Packet Access (HSPA+), respectively dubbed 3G and 3.5G.
Practically all LAC markets have operating HSPA networks with the exception of Cuba and a few Caribbean island nations. The region has 103 HSPA networks operating in 42 countries, plus there are another 9 networks planned.
LAC’s first HSPA+ networks were launched in 2010 by Movistar in Chile (at 42Mb/s) and by Digicel in Bermuda (at 21Mb/s). Since then, 76 HSPA+ networks have been deployed in 37 countries.
4G mobile networks (LTE)
LTE networks, dubbed 4G, have been spreading across LAC at an impressive rate. The first LAC country to see LTE was Puerto Rico, where three companies launched services in November 2011. Since then, more and more operators have entered the LTE market. Altogether, 38 networks have been deployed in 18 countries, and another 42 operators are planning LTE launches. The region has passed the two-million-subscriber milestone. About three quarters of LAC’s LTE subscribers are in Brazil, where concerted endeavours are being made to prepare the country technologically before it hosts the 2014 FIFA cup and the 2016 Olympic Games.
Digital mediaSeven Latin American countries are among the world’s top thirty for Facebook users. Brazil has the highest number of active users in the region, while Chile has the highest ratio of users per capita. With penetration reaching 60%, more than one out of every two Chileans is, in fact, an active Facebook user.
The popularity of social networks is driving sales in a booming smartphone market. Social phones, which bridge the gap between traditional phones and smartphones, are extremely popular in LAC, as they allow access to mail, Twitter, and Facebook.
Smartphone penetration across the region is escalating; it was an estimated 20% at end-2013, and it is forecast to reach 44% by 2017. Thanks to the increasing availability of lower cost models, smartphones are becoming more accessible to middle and lower income groups.
Besides being able to reach more people in a region with poor fixed line coverage, smartphones have another significant advantage when trying to reduce a country’s digital gap: they use a simpler technology compared to the standard computer interface. Many people can handle a mobile phone but cannot operate a computer. Therefore, the growing penetration of smartphones could be a way of including digitally illiterate individuals into the Information Society. This would in turn drive growth in the mobile broadband market and help shore up the revenues of telecom operators.
Guyana hopes to pass a bill by mid-2014 opening its telecom market to competition.
Virgin Mobile has signed an MVNO agreement with Telefónica to use the Vivo network in Brazil and the Movistar network in Mexico, and is preparing to launch MVNO services in both countries; it already operates in Chile and Colombia.
Costa Rica and Trinidad & Tobago launched Mobile Number Portability (MNP) in 2013, later than most of the other major LAC countries. Honduras and Jamaica are hoping to launch MNP in 2014. Following the successful implementation of MNP, Peru intends to also launch fixed-line number portability in 2014.
Argentina has become an important manufacturer of cell phones and provides about 80% of all devices sold in the country. Driven by Twitter and Facebook, the combined penetration of smart phones and social phones has overtaken traditional devices in Argentina.
With an investment of US$600 million, Colombia’s National Fibre Optic Project aims to deploy over 15,000km of fibre cable.
Perus national broadband plan aims to provide internet connectivity via a fibre-optic backbone to the more remote regions; it could boost broadband penetration from 4% in 2011 to 9% in 2016.
Several submarine fibre optic networks are expected to become ready for service later in 2014, including ACSea, the Pacific Caribbean Cable System (PCCS), and Seabras-1.
Five satellites are scheduled for launch in the second half of 2014: Brazil’s Star One C4 and Star One C5, and Mexico’s SatMex 7, MexSat 1 (MexSat Centenario), and MexSat 2.
Uruguay’s Antel’s has rolled out an FttP network covering more than 720,000 households, of which around 275,000 were connected in March 2014. The operator expects to cover all towns with over 3,500 inhabitants by 2015.
In Argentina, Grupo Clarin’s asset divestment plan has been approved by AFSCA in February 2014. By breaking up its operations into six distinct companies, Grupo Clarin will avoid a forced dismantling under the terms of the new media ownership law.
Brazil’s regulator plans to auction spectrum in the 700MHz band suitable for LTE services.
Telecom Italia has agreed to sell its 22.7% holding in Telecom Argentina to the investment firm Fintech Group. The sale was part of Telecom Italia’s general strategy to raise €4 billion in a bid to revive its business and avoid a credit downgrade.