Though heavily skewed towards mobility, the fixed-mobile ratio has stabilised in Ecuador
With GDP growth averaging 5.4% in the three years from 2010 to 2012, Ecuador is considered one of the better performing economies in Latin America. Growth, however, is expected to decelerate. The country's GDP per capita is far below the regional average; despite improvements, poverty levels are still high.
Ecuador's fixed-line teledensity lags behind that of neighbouring countries, with significant unsatisfied demand. A large portion of the country has little or no fixed telephone coverage, partly because remote mountainous areas make the cost of laying out copper wire prohibitive.
In line with the global trend, Ecuadorians have turned to mobile handsets in preference to the traditional fixed-line phone. The country's telecom market is heavily skewed towards mobility, with seven mobile phones for every fixed line in service. Nevertheless, the ratio between fixed and mobile accounts has remained stable since 2009.
Although Ecuador has seven fixed-line operators and a large number of Internet Service Providers (ISPs), state-owned incumbent CNT dominates the fixed-line and therefore the ADSL market.
The mobile sector is virtually a duopoly between América Móvil's Conecel (trading as Claro) and Telefónica's Otecel (trading as Movistar), with CNT (previously Telecsa/Alegro) having a small share of the market.
The government is keen to advance universalisation and improve teledensity, and we can expect CNT to continue its efforts to expand the country's fixed-line infrastructure. CNT will also continue to capitalise on its ADSL service, which only took off in 2009 and still faces significant unsatisfied demand. A national broadband plan aims to expand and improve internet access for all Ecuadoreans. The fixed broadband market including both ADSL and cable modem services should continue to grow by at least 25% annually. The mobile broadband market is also expected to grow strongly in the coming years.
A new Telecom Law has been the subject of national and international controversy, particularly for its treatment of broadcasting. The most controversial points include the redistribution of spectrum and the creation of a regulatory authority in charge of censorship.
The regulator has awarded spectrum to CNT for the provision of 4G LTE services, which the operator hopes to launch by end-2013.
Fixed-line operator Etapa has entered the pay TV market, launching DTH satellite TV services in Cuenca.
The Ministry of Electricity and Renewable Resources has approved a smart grid policy for Ecuador that could make the country a regional pioneer in this field.
DirecTV's subscriber base has soared allowing the satellite TV operator to overtake TVCable and become the leading pay TV provider in Ecuador
Supertel has presented a report on MVNOs recommending new legislation whereby prospective MVNOs can request/require operators to share their spectrum and other network resources.
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 Regional Centrosur, Transelectric, and Telconet.
Pay TV providers include DirecTV, TVCable, CNT TV, Claro, and Univisa.
Ecuador's fixed-line, broadband, and mobile statistics 2011 - 2013
Sector | 2011 | 2012 | 2013 (e)
Fixed-lines in service
Teledensity per capita | 15.0% | 15.4% | 15.7%
Penetration per capita | 4.3% | 5.9% | 7.2%
Mobile telephony subscribers
Penetration per capita | 108% | 114% | 120%
(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, and FttH);
Internet and VoIP;
Convergence and triple play solutions;
Broadcasting (including cable TV and satellite-based TV services);
Mobile market (including 3G/4G, UMTS, LTE, and mobile broadband);
Scenario forecasts for the fixed-line, mobile, and broadband markets for the years 2015 and 2020.