Venezuela Telecommunications Report Q2 2018
Hyper-inflation's impact on disposable incomes means that demand for telecoms services is in decline. Even though theregulator has allowed tariff hikes, operator's revenues still dwindle in real terms, leaving them with less capital to invest in theirnetworks. Furthermore, vandalism and looting of telecoms infrastructure forces operators to repair rather than expand or upgradetheir networks.The fact that pay-TV, usually resilient to recessions, is also in decline proves that the current economic and politicalcrisis is directly impacting the market. We still believe that Venezuela has strong investment potential, but attractive opportunitieswill not appear until a more pragmatic and business-friendly government is in power.
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