Market Research Logo

Ecuador: Fiber Network Deployments Coupled with Investments in 4G Network Expansion to Support Telecom Growth

Ecuador: Fiber Network Deployments Coupled with Investments in 4G Network Expansion to Support Telecom Growth

Summary

In 2016, Ecuador generated an estimated telecom service revenue of US$3.2bn (equivalent to 3.3% of nominal GDP), a 3.4% decrease in comparison to 2015, due to decline in mobile voice and circuit switched revenue. Despite the decline, mobile voice continued to be the largest revenue-contributing segment and accounted for 34.5% of total service revenue in 2016, but it will be surpassed by mobile data from 2018 onward, owing to operators’ investments in 4G network expansion and data bundles offered by operators.

It is expected that overall service revenue to grow at a CAGR of 2.0% during 2016-2021. The growth will be driven by mobile data, fixed VoIP and fixed broadband segments. The fixed/mobile revenue split will be dominated by the mobile segment through 2016-2021; by the end of the period, mobile revenue will account for 59.1% of total service revenue.

2G remained the most used technology and accounted for 44.4% of mobile subscriptions in 2016. However, its share will decline over the forecast period and will reach 6.0% by 2021. 3G will take the top position from 2017 onward and will be replaced by 4G from 2019 onward. We expect 4G subscriptions to reach 10.8m by 2021, accounting for 61.0% of total mobile subscriptions.

The top two operators, Claro Ecuador and CNT, which provide fixed and mobile services, accounted for 67.5% of total service revenue in 2016. Claro will continue to maintain its leadership position in the telecom market through 2021. Operators are focusing on 4G network expansion, promotional offers and competitive pricing to drive future growth.

Broadband lines will grow moderately during 2016-2021, with the penetration of population to increase from 10.3% in 2016 to 13.7% by 2021. Growth will be driven by government and operator investments in fiber network deployments to improve broadband availability. Operators should emphasize increasing investments in the fixed and mobile market to support the objectives set by the Ministry of Telecommunications and Information Society in its National Plan 2016-2021. 4G network expansion by operators will provide growth opportunities for vendors and investors.

The report Ecuador: Fiber Network Deployments Coupled with Investments in 4G Network Expansion to Support Telecom Growth provides an executive-level overview of the telecommunications market in Ecuador today, with detailed forecasts of key indicators up to 2021.

In particular, this report provides the following -

  • Regional context: Telecom market size and trends in Ecuador compared with other countries in the region.
  • Economic, demographic and political context in Ecuador.
  • The regulatory environment and trends: A review of the regulatory setting and agenda for the next 18-24 months as well as relevant developments pertaining to spectrum licensing, national broadband plans, number portability and more.
  • A demand profile: Analysis as well as historical figures and forecasts of service revenue from the fixed telephony, broadband, mobile voice, and mobile data markets.
  • Service evolution: A look at changes in the breakdown of overall revenue between the fixed and mobile sectors and between voice, data and video from 2016 to 2021.
  • The competitive landscape: An examination of key trends in competition and in the performance, revenue market shares and expected moves of service providers over the next 18-24 months.
  • In-depth sector analysis of fixed telephony, broadband, mobile voice, and mobile data services: A quantitative analysis of service adoption trends by network technology and by operator, as well as of average revenue per line/subscription and service revenue through the end of the forecast period.
Companies mentioned in this report: Claro, Movistar, CNT, TVCable, DirecTV, ETAPA.

Scope
  • In 2016, Ecuador generated an estimated telecom service revenue of US$3.2bn (equivalent to 3.3% of nominal GDP). Mobile voice continued to be the largest revenue-contributing segment of total service revenue in 2016, but the same will be surpassed by mobile data from 2018 onward, owing to operator investments in 4G network expansion and data bundles offered by operators.
  • The top two operators, Claro Ecuador and CNT, which provide fixed and mobile services, accounted for more than 65% of total service revenue in 2016. Operators are focusing on 4G network expansion, promotional offers and competitive pricing to drive future growth.
  • Broadband lines will grow moderately during 2016-2021, with penetration of population to increase from 10.3% in 2016 to 13.7% by 2021. Growth will be driven by government and operator investments in fiber network deployments to improve broadband availability.
Reasons to buy
  • This Country Intelligence Report offers a thorough, forward-looking analysis of Ecuador's telecommunications markets, service providers and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
  • Accompanying GlobalData’s Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in Ecuador's mobile communications, fixed telephony, broadband markets, including the evolution of service provider market shares.
  • With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
  • The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in Ecuador's telecommunications markets.
  • The broad perspective of the report coupled with comprehensive, actionable detail will help operators, equipment vendors and other telecom industry players succeed in the challenging telecommunications market in Ecuador.


Executive summary
Market and competitor overview
Regional context
Economic, demographic and political context
Regulatory environment
Demand profile
Service evolution
Competitive landscape
Major market players
Segment analysis
Mobile services
Fixed services
Pay-TV services
Identifying opportunities
Opportunities in the market
About the authors
Country Intelligence Report coverage
List of Tables
Ecuador telecom market size and growth prospects in a regional context, 2016E
Country indicators
Regulatory structure and policy
Major telecommunications policy issues
Ecuador communications market revenue, 2014-2021, US$
Segment revenue CAGRs, 2016-2021, US$
Segment revenues 2014-2021
Service revenue mix: voice, data & video, 2016, 2021
Service revenue mix: fixed & mobile, 2016, 2021
Service revenue by operator, 2016
Key telecom market players
Major telecommunications market players
Mobile subscriptions and penetration, 2014-2021
Key mobile market indicators, 2016
Mobile services revenue mix, 2016, 2021
ARPS by payment and device type, 2016
Mobile market shares by subscriptions, 2014-2021
Mobile subscriptions by technology family, 2014-2021
Fixed-line penetration of population, 2014-2021
Key fixed market indicators, 2016
Fixed voice and Internet revenue, 2014-2021
Fixed market shares by service, 2016E
Access lines by technology
Pay-TV subscriptions by technology, 2014-20121
Opportunities in the Ecuador telecommunications market
List of Figures
Ecuador telecom market size and growth prospects in a regional context, 2016E
Country indicators
Regulatory structure and policy
Major telecommunications policy issues
Ecuador communications market revenue, 2014-2021, US$
Segment revenue CAGRs, 2016-2021, US$
Segment revenues 2014-2021
Service revenue mix: voice, data & video, 2016, 2021
Service revenue mix: fixed & mobile, 2016, 2021
Service revenue by operator, 2016
Key telecom market players
Major telecommunications market players
Mobile subscriptions and penetration, 2014-2021
Key mobile market indicators, 2016
Mobile services revenue mix, 2016, 2021
ARPS by payment and device type, 2016
Mobile market shares by subscriptions, 2014-2021
Mobile subscriptions by technology family, 2014-2021
Fixed-line penetration of population, 2014-2021
Key fixed market indicators, 2016
Fixed voice and Internet revenue, 2014-2021
Fixed market shares by service, 2016E
Access lines by technology
Pay-TV subscriptions by technology, 2014-20121
Opportunities in the Ecuador telecommunications market

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report