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Ecuador - Telecoms, Mobile, Broadband and Forecasts


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Strong expansion expected in Ecuador’s mobile and fixed broadband markets

Ecuador has the lowest fixed telephone prices in the region, mainly because tariffs are set by the government. Nonetheless, in line with the global trend, Ecuadorians have been turning to mobile handsets in preference to the traditional fixed-line phone.

Ecuador is one of the poorer countries in Latin America, yet its mobile penetration is higher than the regional average. Indeed, the country’s telecom market is heavily skewed towards mobility, with seven mobile phones for every fixed line in service.

During the second half of 2011 and first months of 2012, the mobile market appeared to stall, as the compulsory registration of SIM cards, which started in July 2011, removed inactive accounts. The slowdown, however, should only be temporary, particularly in the case of mobile broadband, which operators have been promoting as an alternative to fixed broadband. Considering the country’s low teledensity and fixed broadband penetration, the mobile broadband market is expected to grow strongly in the coming years.

Fixed broadband, however, is also growing strongly, with state-owned CNT capitalising on its relatively new ADSL service. The government is keen to advance universalisation and improve teledensity, and we can expect CNT to continue its efforts to expand the country’s infrastructure.

Besides CNT, there are another eight fixed-line companies and a large number of broadband providers.

In the mobile market, Ecuador has three operators:

Claro – the market leader, controlled by América Móvil;
Movistar – controlled by Telefónica;
CNT – the smallest operator, with only 2% of the market.

Market highlights:

Ecuador has adopted anti-trust regulations for the first time, including a controversial article that limits private ownership in the broadcasting market.
A new telecom bill has been in the pipeline since 2009, but parliamentary approval has been repeatedly postponed.
Claro, Ecuador’s leading mobile operator, gains from mobile portability.
The pay TV market receives a boost from CNT’s launch of satellite TV services.
The government’s National Broadband Plan aims to triple broadband connections by 2016.
As a measure to reduce the theft of mobile devices, SIM card owners are required to register their details or be disconnected.

Companies covered in this report:

Fixed line operators include CNT, Etapa, TVCable (Suratel), Claro (Ecuadortelecom/Telmex), Linkotel, Etapatelecom, Global Crossing, Grupo Coripar, and Starsat.
Mobile operators include Claro, Movistar, and CNT.
Fixed broadband providers include CNT, TVCable, Claro, PuntoNet, Ecuanet/Megadatos. Easynet, Trans-telco, Empresa Eléctrica Azogues, Empresa Eléctrica Regional Centrosur, Transelectric, and Telconet.
Pay TV providers include TVCable, DirecTV, Univisa, Claro, and CNT TV.

Ecuador’s fixed-line, broadband, and mobile statistics – 2010 - 2012
Sector | 2010 | 2011 | 2012 (e)
Fixed-lines in service
Total subscribers (million) | 2.08 | 2.21 | 2.30

Broadband

Total subscribers | 458,000 | 635,000 | 790,000

Mobile telephony subscribers

Total subscribers (million) | 15.12 | 15.87 | 16.40
(Source: BuddeComm based on industry data)

Ecuador has excellent growth prospects especially in mobile and fixed broadband services. The report covers trends and developments in the fixed-line, mobile, internet, broadband, and pay TV markets.

Subjects include:

Market and industry analyses, trends and developments;
Facts, figures, and statistics;
Government policies and regulatory issues;
Major players (fixed, mobile and broadband);
Fixed-line market and infrastructure;
Broadband market (including ADSL, cable modem, BPL, FttH, and WiMAX);
Internet and VoIP;
Convergence and triple play solutions;
Broadcasting (including cable TV and satellite-based TV services);
Mobile market (including 3G and mobile broadband);
Scenario forecasts for the fixed-line, mobile, and broadband markets for the years 2015 and 2020.

Lucia Bibolini July 2012


1. Executive summary
2. Key statistics
3. Country overview
3.1 Outlook
4. Telecommunications market
4.1 Overview of Ecuador’s telecom market
4.2 Market analysis – 2012
5. Regulatory environment
5.1 Background
5.2 Regulatory authorities
5.2.1 Overview
5.3 Interconnect
5.4 Number portability
5.5 Anti-Monopoly Law of 2011
5.6 New Telecommunications Bill
6. Fixed network operators in Ecuador
6.1 Overview
6.2 CNT
6.3 Etapa
7. Telecommunications infrastructure
7.1 National telecom network
7.1.1 Fixed-line statistics
7.1.2 Public payphones
7.2 Forecasts – fixed-line market 2015; 2020
7.2.1 Scenario 1 – higher fixed line growth
7.2.2 Scenario 2 – lower fixed line growth
7.3 International infrastructure
7.4 Infrastructure developments
7.4.1 IP and Voice over Internet Protocol (VoIP)
8. Wholesale
9. Fixed broadband access market
9.1 Overview
9.1.1 Broadband statistics
9.1.2 National broadband plan
9.2 Forecasts – fixed broadband market 2015; 2020
9.2.1 Scenario 1 – higher broadband growth
9.2.2 Scenario 2 – lower broadband growth
9.3 Asymmetric Digital Subscriber Line (ADSL)
9.3.1 Fast Boy (CNT)
9.4 Cable modems
9.5 Broadband Powerline (BPL)
9.6 Wireless broadband
9.6.1 WiMAX
9.7 Fibre-to-the-home (FttH) networks
9.8 Media convergence
10. Broadcasting
10.1 Pay TV overview
10.1.1 TVCable
10.1.2 DirecTV
10.1.3 Univisa
10.1.4 Claro (Ecuadortelecom)
10.1.5 CNT TV
11. Mobile communications
11.1 Overview of Ecuador’s mobile market
11.1.1 Mobile statistics
11.2 Forecasts – mobile market 2015; 2020
11.2.1 Scenario 1 – higher mobile market growth
11.2.2 Scenario 2 – lower mobile market growth
11.3 Regulatory issues
11.3.1 Mobile licence renewals
11.3.2 SIM card registration
11.4 Mobile technologies
11.4.1 Overview
11.4.2 Second Generation (2G) mobile
11.4.3 Third generation (3G) mobile
11.5 Major mobile operators
11.5.1 Claro (Conecel)
11.5.2 Movistar (Otecel)
11.5.3 CNT
11.6 Mobile voice services
11.6.1 Prepaid
11.7 Mobile broadband
12. Notes on scenario forecasts
13. Related reports
List of Tables, Charts and Exhibits
Table 1 – Country statistics Ecuador – 2012
Table 2 – Telephone network statistics – 2012
Table 3 – Internet user statistics – 2012
Table 4 – Fixed broadband statistics – 2012
Table 5 – Mobile statistics – 2012
Table 6 – National telecommunications authorities
Table 7 – Evolution of GDP in Ecuador – 2000 - 2013
Table 8 – Fixed and mobile market share - 1997 - 2012
Table 9 – Fixed lines in service – operators’ market share – 2001 - 2012
Table 10 – CNT – lines in service – 2001 - 2012
Table 11 – Etapa – lines in service – 2001 - 2012
Table 12 – Fixed lines in service and teledensity – 1997 - 2012
Table 13 – Public telephones – 2003 - 2012
Table 14 – Forecast fixed-line growth – higher growth scenario – 2015; 2020
Table 15 – Forecast fixed-line growth – lower growth scenario – 2015; 2020
Table 16 – Internet users and user penetration rate – 1998 - 2012
Table 17 – Fixed broadband subscribers and penetration rates - 2001 - 2012
Table 18 – Fixed broadband market share – major operators - 2008 - 2012
Table 19 – Forecast broadband growth – higher growth scenario – 2015; 2020
Table 20 – Forecast broadband growth – lower growth scenario – 2015; 2020
Table 21 – CNT – ADSL subscribers – 2008 - 2012
Table 22 – TVCable – cable modem subscribers – 2008 - 2012
Table 23 – Claro – cable modem subscribers – 2008 - 2012
Table 24 – Pay TV subscribers and penetration – 2004 - 2012
Table 25 – Pay TV technology market share – 2004 - 2012
Table 26 – Mobile subscribers by operator and technology – April 2012
Table 27 – Mobile subscribers and penetration rate – 1997 - 2012
Table 28 – Evolution of mobile ARPU in Ecuador – major operators – 2008 - 2011
Table 29 – Forecast mobile subscriber growth – higher growth scenario – 2015; 2020
Table 30 – Forecast mobile subscriber growth – lower growth scenario – 2015; 2020
Table 31 – Mobile subscribers by technology – 2001 - 2012
Table 32 – 3G subscribers – 2008 - 2012
Table 33 – Mobile operators’ market share – 1997 - 2012
Table 34 – Claro – mobile subscribers – 1997 - 2012
Table 35 – Movistar – mobile subscribers – 1997 - 2012
Table 36 – Alegro – mobile subscribers – 2003 - 2012
Table 37 – Mobile prepaid/postpaid ratio – 2002 - 2012
Table 38 – Mobile broadband subscribers – 2009 - 2012
Chart 1 – Fixed and mobile market share at a glance – 1997 – 2012
Chart 2 – Fixed broadband market share at a glance – 2008 – 2012
Chart 3 – Mobile market evolution at a glance – 2002 - 2012
Chart 4 – Mobile operators’ market share at a glance – April 2012
Exhibit 1 – Map of Ecuador

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