In 2016, Puerto Rico generated total telecom and pay-TV service revenue of US$2.0bn (equivalent to 3.0% of nominal GDP), an increase of 0.2% since 2015, primarily due to growth in the mobile data and fixed Internet segments. Mobile data is expected to replace mobile voice as the largest contributing segment by 2019, with its share of overall revenue to increase from 21.2% in 2016 to 39.4% by 2021
The top two operators, Claro and AT&T along with its subsidiary DIRECTV, which provide fixed, mobile services and pay-TV, accounted for 63.9% of total service revenue in 2016. Claro will continue to maintain its leadership position through 2021. The announced merger of Sprint and Open Mobile is expected to further intensify competition in the mobile market in the coming years.
3G was the most adopted technology in Puerto Rico, accounting for 64.2% of mobile subscriptions in 2016, but its share is expected to decline to 46.5% by 2021, owing to customers’ migration to more advanced LTE/LTE-A technologies. 4G subscriptions will witness a CAGR of 21.3% during 2016-2021, as operators invest in LTE/LTE-A network expansion and rising demand for mobile content.
It is expected that overall service revenue to grow at a CAGR of 0.9% during 2016-2021. Growth will be driven by the data segment, in particular mobile data revenue, as a result of increasing adoption of LTE/LTE-A services and availability of data-centric packages. The fixed/mobile revenue split will be dominated by the mobile segment through 2016-2021, driven by rising mobile broadband adoption. Broadband lines will grow at a 3.0% CAGR during 2016-2021, with penetration to increase from 18.6% of the population in 2016 to 23.6% by 2021. Growth will be driven by the government’s Gigabit Island Plan, which intends to support high-speed broadband expansion and adoption, thereby improving Internet connectivity in the country.
Puerto Rico closed 2016 with 0.7m pay-TV accounts and a household penetration of 57.2%. Going forward, we expect Puerto Rican pay-TV accounts to decline at a -0.5% CAGR during 2016-2021, primarily due to tough economic conditions and increasing popularization of OTT video alternatives. IPTV subscriptions will witness the highest CAGR of 6.5% during 2016-2021, primarily driven by growing high-speed Internet connectivity.
The report "Puerto Rico: Gigabit Island Plan and LTE/LTE-A Expansion to Support Fixed Internet and Mobile Data Growth" provides detailed analysis of the near-term opportunities, competitive dynamics and evolution of demand by service type and technology/platform across the fixed telephony, broadband, mobile and pay-TV sectors, as well as a review of key regulatory trends.
In particular, this report provides the following
- Regional context: Telecom market size and trends in Puerto Rico compared with other countries in the region.
- Economic, demographic and political context in Puerto Rico.
- The regulatory environment and trends: A review of the regulatory setting and agenda for the next 18-24 months as well as relevant developments pertaining to spectrum licensing, national broadband plans, number portability and more.
- A demand profile: Analysis as well as historical figures and forecasts of service revenue from the fixed telephony (including VoIP), broadband, mobile voice, mobile data and pay-TV markets.
- Service evolution: A look at changes in the breakdown of overall revenue between the fixed/pay-TV and mobile sectors and between voice, data and video from 2016 to 2021.
- The competitive landscape: An examination of key trends in competition and in the performance, revenue market shares and expected moves of service providers over the next 18-24 months.
- In-depth sector analysis of fixed telephony, broadband, mobile voice, mobile data and pay-TV services: A quantitative analysis of service adoption trends by network technology and by operator, as well as of average revenue per line/subscription and service revenue through the end of the forecast period.
Companies mentioned in this report: AT&T Puerto Rico, Claro Puerto Rico, T-Mobile Puerto Rico, Open Mobile Puerto Rico, Sprint Puerto Rico, DirecTV, Dish, Liberty Puerto Rico
- The author expects overall service revenue to grow at a CAGR of 0.9% during 2016-2021. Growth will be driven by the data segment, in particular mobile data revenue, as a result of increasing adoption of LTE/LTE-A services and availability of data-centric packages. The fixed/mobile revenue split will be dominated by the mobile segment through 2016-2021, driven by rising mobile broadband adoption.
- Competition in the Puerto Rican telecom market has intensified in recent years in the wake of several mergers and acquisitions. Going forward, competition is set to intensify further with the recently announced merger of Sprint’s operations in Puerto Rico and the US Virgin Islands with Open Mobile in February 2017. The merged entity is expected to be a strong contender in the mobile market with enhanced network capacity and spectrum assets.
- The broadband penetration in Puerto Rico is one of the highest in the region, just behind Uruguay and Argentina, owing to the island’s high degree of urbanization as well as strong concentration of its population. The rise in investment by operators and the government to develop fixed infrastructure under the Gigabit Island Plan will support broadband growth in Puerto Rico.
Reasons to buy
- This Country Intelligence Report offers a thorough, forward-looking analysis of Puerto Rico's telecommunications and pay-TV markets, service providers and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
- Accompanying the author’s Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in Puerto Rico's mobile communications, fixed telephony/VoIP, broadband and pay-TV markets, including the evolution of service provider market shares.
- With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
- The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in Puerto Rico's telecommunications and pay-TV markets.
- The broad perspective of the report coupled with comprehensive, actionable detail will help operators, equipment vendors and other telecom industry players succeed in the challenging telecommunications market in Puerto Rico.
Market and competitor overview
Economic, demographic and political context
Major market players
Opportunities in the market
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