Bolivia - Telecoms, Mobile and Broadband

Additional Information

Executive Summary

Bolivia - Telecoms, Mobile and Broadband

One of the poorest and least developed Latin American nations, Bolivia has South America’s lowest mobile penetration and second lowest fixed-line teledensity. Mobile telephony suffers from poor quality of service and inadequate network capacity.

In May 2008, the government renationalised the incumbent operator Entel. Telecom Italia, previous part owner of Entel, has yet to reach a peaceful settlement with the Bolivian government and is resorting to legal confrontation.

The fixed-line market is open to competition, with several cooperatives and private companies offering local and long-distance telephony services. Some operators have adopted VoIP, some use fixed-wireless technologies, and some rent fibre optic capacity. Three companies provide mobile telephony; the mobile market leader is Entel, followed by Millicom’s Tigo.

While ADSL, cable modem, and WiMAX technologies are all available in Bolivia, the broadband market is still embryonic. Even so, the number of operators offering broadband to residential and business customers has increased significantly, and this has led to some reduction in the price of Internet access.

Key Highlights

• Several operators have launched VoIP, though only licensed telephone companies are allowed to offer it, as it is considered a voice service rather than a value added service. For more information, see Bolivia - Telecoms, Mobile and Broadband
• Three operators offer WiMAX services in Bolivia. Considering the country’s low fixed-line teledensity, WiMAX could be the answer to the growing demand for broadband. For more information, see Bolivia - Telecoms, Mobile and Broadband
• Tigo has launched 3G mobile services based on WCDMA technology. For more information, see Bolivia - Telecoms, Mobile and Broadband
• Since renationalisation, Entel has been expanding its mobile network to areas with no previous coverage. It plans to invest US$120 million during 2009-2010 to provide mobile telephony in remote areas. For more information, see Bolivia - Telecoms, Mobile and Broadband
• Bolivia is one of the only countries in Latin America that has active Mobile Virtual Network Operators (MVNOs). For more information, see Bolivia - Telecoms, Mobile and Broadba

One of the poorest and least developed Latin American nations, Bolivia has South America’s lowest mobile penetration and second lowest fixed-line teledensity. Mobile telephony suffers from poor quality of service and inadequate network capacity.

In May 2008, the government renationalised the incumbent operator Entel. Telecom Italia, previous part owner of Entel, has yet to reach a peaceful settlement with the Bolivian government and is resorting to legal confrontation.

The fixed-line market is open to competition, with several cooperatives and private companies offering local and long-distance telephony services. Some operators have adopted VoIP, some use fixed-wireless technologies, and some rent fibre optic capacity. Three companies provide mobile telephony; the mobile market leader is Entel, followed by Millicom’s Tigo.

While ADSL, cable modem, and WiMAX technologies are all available in Bolivia, the broadband market is still embryonic. Even so, the number of operators offering broadband to residential and business customers has increased significantly, and this has led to some reduction in the price of Internet access.

Key hightlights

• Several operators have launched VoIP, though only licensed telephone companies are allowed to offer it, as it is considered a voice service rather than a value added service.
• Three operators offer WiMAX services in Bolivia. Considering the country’s low fixed-line teledensity, WiMAX could be the answer to the growing demand for broadband.
• Tigo has launched 3G mobile services based on WCDMA technology.
• Since renationalisation, Entel has been expanding its mobile network to areas with no previous coverage. It plans to invest US$120 million during 2009-2010 to provide mobile telephony in remote areas.
• Bolivia is one of the only countries in Latin America that has active Mobile Virtual Network Operators (MVNOs.