Argentina: Market Consolidation Paired with Converged Multiplay Services to Intensify Competition in Telecom Markets
Argentina telecom market will generate US$10.6bn in service revenue in 2017, 5.1% less than the previous year. In local currency terms, it will expand by 8.2%. Mobile data will continue to be the largest revenue contributor with 29.0% of total revenue in 2017. This segment will reach $3.6bn by 2022, driven by operators’ focus on 4G LTE network expansion.
Revenue from voice services is on the decline in the 2017-2022 periods. Fixed and mobile data services revenue will grow at a CAGR of 3.2%, driven by the growing coverage of 4G LTE and the expansion of fiber networks. In fact, LTE networks reached more than 154 cities in 2016. It is expected that Argentina mobile services revenue to grow at a CAGR of -0.9%. In local currency, the mobile market will grow at a CAGR of 7.0%. Mobile services revenue will be driven by growth in mobile data revenue.
In 2017, broadband lines will reach 8.9m, for a population penetration of 20.5%. We expect broadband lines to reach 11.0m by year-end 2022, for a population penetration of 24.2%, owing to operators’ initiatives to offer more attractive pricing packages and the expansion of their fixed broadband coverage to rural areas in line with the government’s National Broadband Strategy. With 61.6% of all subscriptions, the 3G family of technologies will have the largest share of the market in Argentina in 2017. We expect LTE subscriptions to take over 3G by 2020, with its share increasing from 22.0% of total mobile subscriptions in 2017 to 52.1% by 2022 to reach 38.9m, as operators focus on expanding 4G network coverage.
Revenue generated by the top four operators, Telefónica, Telecom Argentina, Claro and Cablevisión, will account for 79.7% (or $8.4bn) of the total 2017 service revenue. Competition among these top four players will intensify over the next few years, driven by Macri’s emergency decree (DNU-1340), which promotes digital convergence, allowing all operators to offer bundled services including pay-TV, fixed voice and Internet, and mobile services. Additionally, the merger announced by Cablevisión and Telecom Argentina in June 2017 will enable the new company to offer quadruple-play services nationwide, putting pressure on the market share of Telefónica and Claro.
The report Argentina: Market Consolidation Paired with Converged Multiplay Services to Intensify Competition in Telecom Markets provides an executive-level overview of the telecommunications market in Argentina today, with detailed forecasts of key indicators up to 2022. Furthermore, he report provides detailed analysis of the near-term opportunities, competitive dynamics and evolution of demand by service type and technology/platform across the fixed telephony, broadband, and mobile, as well as a review of key regulatory trends.
In particular, this report provides the following analysis -
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