Colombia Telecommunications Industry Update Quarter 3 2012

  • May 2014
  • -
  • Business Monitor International
  • -
  • 95 pages

Includes 3 FREE quarterly updates

The Colombian telecommunications industry is growing rapidly, based on strong foundations and bolstered by good policy, and strong economic growth. We expect Colombia to be an outperformer over our projection period, with the government’s Plan Vive Digital increasing broadband penetration rapidly.
The Ministry of Communications won the 2012 Digital Leadership Award in February – a strong endorsement of the country’s ICT policy. Colombia was one of the first countries in the region to launch LTE services, and the first to auction the 2.6GHz spectrum. It was also one of the first countries globally to auction 700MHz spectrum and is planning to double the amount of assigned spectrum in the next three years.
This will ensure the industry continues on a strong growth trajectory, despite the fact that subscriber losses were recorded in Q411. According to the latest data available from operators and MinTIC, Colombia’s mobile industry totalled 46.2mn subscribers, with net losses of around 1.5mn subscribers. These losses were the result of Comcel shedding 2.38mn inactive subscribers, and they were so substantial that the industry dropped back under the 100% penetration mark. This had a negative effect on the overall subscriber base, but Comcel’s ARPU benefited as a result.
The other operators in the industry reported growth, although subscriber additions were relatively muted across the board. This may be a sign that operators are focusing more on value-added services. It also may mean that new MVNO UNE EPM is attracting subscribers. The industry player launched an MVNO in Q311.
Q212 also saw fixed-line operator ETB enter the mobile industry, after its January 2012 launch was postponed due to a corporate reshuffle, and the appointment of a new president. In a similar vein to UNE, SIM cards are provided free to subscribers, and calling costs low. We believe these companies will have success capturing the low-cost industry, while MNOs will focus on the high-revenue subscribers. However, in UNE’s case, the launch of an LTE network indicates that in the future it will offer high-value mobile services. Currently, the LTE offerings are for broadband connectivity only.
On March 23 2012, Colombia's Ministry of Information Technology and Telecommunications (MinTIC) formally launched the tender for four LTE spectrum licences. If completed on schedule, the auction will enable the winning licensees to keep pace with UNE EPM, which has already started deploying its 4G network and has said it aims to sign as many as 180,000 subscribers within its first year. The move also places Colombia at the forefront of LTE development in the Latin American region, according to the latest BMI projections .

Table Of Contents

Executive Summary . 5
Industry SWOT Analysis 6
Colombia Mobile Industry SWOT 6
Colombia Wireline SWOT .. 7
Colombia Political Environment and Risk Analysis .. 8
Colombia Economic Environment and Risk Analysis 8
Colombia Business Environment SWOT 9
Risk/Reward Ratings . 10
Latin America Risk Reward Ratings 10
Colombia . 13

Market Projection Scenario .. 15
Mobile ... 15
Data : ARPU Projection (COP) . 17
Fixed Line . 19
Internet.. 20
Market Data Analysis . 22
Mobile Industry Overview... 22
MVNOs 24
Subscriber Mix . 27
ARPU and MOU . 28
3G 29
4G 30
Mobile Contract Wins ... 32
Mobile Operator Data .. 33
Data : Colombia Mobile Industry Overview .. 33
Data : Comcel .. 33
Data : Tigo .. 34
Mobile Content . 36
Regional Overview ... 36
Country Outlook .. 39
SMS .. 39
Mobile Internet 40
VAS Timeline 43
Fixed Line . 44
Pay TV . 48
Internet.. 50
Data : Colombia Internet Subscribers By Department 50
Data : Colombia Internet Subscribers By Type (000) 2011 . 53
Wireline Developments . 55
Regulatory Environment ... 56
Division Of Regulatory Responsibilities In Colombia .. 56
Background And Regulatory Bodies 56

Industry Developments .. 58

Competition Overview 60

Key Players
.. 60
Data :

Key Players
: Colombia Telecoms Segment .. 60
Data : Selected Operator Financial Parameters.. 60
Company Monitor .. 61
Data : Alcatel-Lucent, Selected Latin America Contracts, Q411 And Q112 64

Industry Analysis 73
Mobile .. 73
Data : Regional Mobile Penetration Overview 74
Fixed Line 75
Data : Regional Fixed-Line Penetration Overview .. 76
Internet.. 77
Data : Regional Broadband Penetration Overview . 77
Data : Regional Internet Penetration Overview ... 78
Demographic Outlook ... 79
Data : Colombia's Population By Age Group, 1990-2020 ('000) . 80
Data : Colombia's Population By Age Group, 1990-2020 (% of total) 81
Data : Colombia's Key Population Ratios, 1990-2020 82
Data : Colombia's Rural And Urban Population, 1990-2020 .. 82
BMI Methodology ... 83
How We Generate Our Market Projections ... 83
Data : Key Indicators For Telecommunications Market Projections 83
Telecoms Business Environment Ratings .. 85
Risk/Reward Ratings Methodology .. 85
Ratings System . 85
Indicators . 85
Data : Ratings Indicators . 86
Weighting . 87
Data : Weighting Of Indicators 87
Sources 87

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