Last updated: 10 Feb 2011 Update History
Report Status: Archived
Report Pages: 67
Analyst: Lucia Bibolini
Publication Overview
The Colombian telecom market is favourable towards foreign investors and has a regulatory framework that favours competition. This report covers trends and developments in telecommunications, mobile, Internet, broadband, pay TV, and converging media. Subjects include:
· Market and industry analyses, trends and developments;
· Facts, figures, and statistics;
· Government policies and regulatory issues;
· Historical information;
· Telecom infrastructure;
· Major players, revenues, subscribers, ARPU;
· Internet, VoIP, IPTV;
· Mobile voice and data markets;
· Broadband (DSL, cable modem, WiMAX, mobile broadband, etc);
· Convergence and triple play solutions;
· Pay TV market;
· Scenario forecasts for the fixed-line, mobile, and broadband markets.
Researcher:- Lucia Bibolini
Current publication date:- February 2011 (10th Edition)
Next publication date:- February 2012
Executive Summary
Competition livens up in Colombia’s promising telecom market
Colombia’s telecommunications could offer substantial returns for investors willing to take on emerging market risks. The outlook is promising for the country’s economy, which is forecast to grow by an average of 4.5% annually during the 2010-2020 decade.
The Colombian telecom market has been experiencing intensifying competition, increasing convergence, and the emergence of a rapidly growing broadband sector. A single Convergence Licence allows companies to offer fixed-line telephony, Internet access, broadband, and other value-added services.
During 2011, radical transformations are expected both in terms of market consolidation and in the provision of new services, with fixed-line operators ETB and Emcali seeking strategic partners and/or investors, and sister companies Telmex and Comcel combining their fixed and mobile operations.
In Colombia, both the number of fixed lines in service and the national teledensity have been decreasing. Most of the fixed telephone lines are concentrated in the larger cities, so that facilities are quite poor in small urban centres and rural areas. Nevertheless, while lower than average for South America, Colombia’s fixed-line teledensity measures up favourably with the country’s low economic indicators.
The country has some 30 local telephone providers, partly private, and partly owned by the municipalities where they operate. Indeed, the participation of private capital in local telephony is relatively small, though companies are gradually selling shares to private investors.
The erstwhile fixed-line market leader, Telefónica Telecom, has been overtaken by ETB in terms of fixed lines in service. The third largest operator is municipally owned UNE, which has seen an increase in fixed-line customers and has been particularly active in offering bundled services. The fourth place is occupied by Telmex Colombia, which is also steadily increasing its fixed-line market share thanks to triple-play packages.
Long-distance services were liberalised in mid-2007. To operate, long-distance providers need a Convergence Licence and a multicarrier access code.
Although the Colombian mobile market has slowed down, it holds significant growth potential, particularly in the areas of mobile broadband and value-added services. América Móvil’s Comcel is the leading mobile operator, followed by Telefónica’s Movistar and Millicom-controlled Tigo. Avantel uses iDEN technology to serve a small number of subscribers in the corporate market. UNE-EPM is the country’s fifth mobile operator, but intends to focus on mobile broadband rather than voice services.
Helped along by a regulatory framework that encourages competition and by government efforts to reduce the ‘digital divide’, broadband is growing strongly in Colombia. In fact, this is one of the few Latin American countries where dominant telecom operators are obliged to provide local loop unbundling and wholesale services.
ADSL is the leading broadband technology, but cable broadband continues to grow both in subscriber numbers and in geographical coverage due to the popularity of triple-play solutions.
The cable-TV sector has undergone major consolidation and, as a result, two companies, Telmex and UNE, together control 90% of the market. In the satellite-TV sector, Telefónica Telecom has succeeded in gaining more than one third of the market in only three years since launching services.
Colombia’s 3G data or mobile broadband market took off in 2009, but penetration is still only about 2%. Unlike other Latin American countries, Colombian operators advertise their 3G data services as high-speed mobile Internet rather than mobile broadband due to regulations on minimum broadband speeds (1,024Kb/s download and 512Kb/s upload).
Market highlights:
Colombia Internet, broadband, fixed-line, and mobile statistics – 2007 - 2010
Sector |
2007 |
2008 |
2009 |
2010 (e) |
Broadband |
||||
Total subscribers (million) |
1.21 |
1.90 |
2.22 |
2.57 |
Penetration rate |
2.7% |
4.3% |
4.9% |
5.6% |
Annual growth |
92% |
58% |
16% |
16% |
Fixed lines in service |
||||
Total subscribers (million) |
7.78 |
7.98 |
7.28 |
7.20 |
Penetration rate |
17.7% |
18.0% |
16.2% |
15.8% |
Annual growth |
0.8% |
2.6% |
-8.7% |
-1.2% |
Mobile telephony subscribers |
||||
Total subscribers (million) |
33.48 |
40.67 |
40.38 |
43.00 |
Penetration rate |
76.2% |
91.5% |
89.8% |
94.5% |
Annual growth |
14% |
21% |
-1% |
6% |
(Source: BuddeComm based on industry data)
Data in this report is the latest available at the time of preparation and may not be for the current year.
For those needing an objective and high-level strategic analysis on Colombia, this report is essential reading and gives further information on:
The Colombian telecom market is favourable towards foreign investors and has a regulatory framework that favours competition. This report covers trends and developments in telecommunications, mobile, Internet, broadband, pay TV, and converging media. Subjects include:
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