Americas Market Perspective / Vol. 8, Issue 44, Edition 11

Pyramid Research, Inc, November 2008

IPTV in the Dominican Republic: A Dire Present but a Bright Future

EVENT SPOTLIGHT

Codetel, the fixed arm of América Móvil in the Dominican Republic, announced in September 2008 that it would launch IPTV by the end of the year. In August 2008, a competitor — Triple-Play, owned by ETG-TEL, Espinal Technology Group — launched an IPTV service in the Dominican municipality Restauración with an initial investment of US$7.5m. In accordance with a mandate from the Dominican regulator (Indotel), ETG-TEL will launch their service in 500 rural communities without broadband Internet access.

Although the Dominican Republic is a country where new technologies and services, such as WiMAX and video conferencing, have so far been well-received by telecom customers, an immediate success for IPTV is unlikely. Pyramid Research believes that the adoption of IPTV service in the Dominican Republic will be sluggish in the short run due to a strong pay-TV sector, low broadband penetration and a relatively low GDP per capita.

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