Conatel's planned auction of 700MHz and 2.6GHz spectrum bands confirm our view thatadvanced wireless data services will drive growth in the mobile segment. In addition, operators will look atopportunities in LTE mobile broadband and a consolidating pay-TV market to grow their subscriber baseand their revenues, which were limited by an underdeveloped wireline market. Despite weak competition,we expect better real GDP growth prospects from 2018 onwards to allow for higher service uptake,combined with improved monetisation opportunities for operators.
The mobile market reached 7.5mn subscribers at the end of Q1 2017. This represented a y-o-y growth of0.7% and penetration surpassed 110.1% as a result.
Combined fixed and mobile broadband connections reached 414,200 by end-2015. Mobile continues toaccount for the majority of subscriptions at just over 50%.