Venezuela Telecommunications Q1 2019
Demand for telecoms services will continue in decline as long as hyperinflation erodes purchasing power. Operators'revenues dwindle even with new tariffs greenlit by the regulator, taking a toll on operator capex on networks and halting thedevelopment of the market. To add to operators' difficulties, looting and vandalism of telecoms equipment and facilities meansoperators have to focus their capex in repairing, rather than improving their networks. Even recession-proof pay-TV is declining,showing the depth of economic difficulties and their impact on the market. Venezuela still has strong investment potential, butreturns will not be realisable until the government's stance towards private investment changes radically.
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