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Telecoms, IP Networks, Digital Media and Forecasts - Ecuador

Telecoms, IP Networks, Digital Media and Forecasts - Ecuador

Regulator negotiates spectrum price to enable Claro and Movistar to offer services based on LTE

Supported by continuing growth in GDP, Ecuador is considered one of the better performing economies in Latin America. Nevertheless, GDP per capita remains far below the regional average.

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.

Market highlights:

The regulator awarded additional spectrum to CNT for the provision of LTE services, with a commercial made launch at the end of 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.
In late 2013 the regulator shut down Univisa in Cuenca and Azogues for delivering services in areas where it was not licensed.
Supertel recommended legislation which would allow prospective MVNOs to require operators to share their spectrum and other network resources.
The government has promoted its National Plan for Good Living 2013-2017 for socio-economic development.
IT initiative Digital Training through Mobile Classrooms has been praised by ITU as a vehicle for pushing ICT deeper into rural areas;
The Pacific Caribbean Cable System (PCCS) is expected to be lit in late 2014, dramatically increasing international bandwidth for Ecuador.
The first phase of ASO is scheduled for December 2016, with complete transition to digital TV expected in late 2018.
The government in late 2013 secured $30 million loan to develop smart metering and extend electricity to 15,000 unserved dwellings;
In March 2014 the $138.5 million fine imposed by the Superintendency of Market Power Control fined on Claro for anti-competitive practices was overturned;
Clarovideo's mobile VoD service launches in Ecuador;
Ocean Networks secures funding for the South America Pacific Link (SAPL);
In April 2014 the regulator negotiated with Claro and Movistar in preparation for the release of spectrum to the operators by the end of the year, enabling them to compete with CNT with the provision of LTE services;
AT&T has made a $48.5 billion bid for the US and Latin American operations of DirecTV;
Regulator imposes QoS measures on mobile operators;
MNP process reduced to one working day;
Globalstar provides mobile satellite equipment to Ecuadoran fishing fleet;
Report includes the regulator's market data to mid-2014.

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.

Telecom penetration by service 2014 (e)
Market | Penetration rate
Mobile | 113%
Fixed | 16%
Broadband | 7.7%
(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.

1. Executive summary
2. Key statistics
3. Country overview
3.1 Economic background
3.1.1 GDP growth
3.2 Outlook
4. Telecommunications market
4.1 Overview of Ecuador's telecom market
4.2 Market analysis
5. Regulatory environment
5.1 Background
5.2 Regulatory authorities
5.2.1 Overview
5.2.2 National Plan for Good Living 2013-2017
5.3 Interconnect
5.4 Anti-Monopoly Law of 2011
5.5 New Telecommunications Law - 2013
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) and smart grids
9.6 Fibre-to-the-Premises (FttP) networks
10. Broadcasting
10.1 Pay TV overview
10.2 Pay TV statistics
10.3 Major pay TV operators
10.3.1 DirecTV
10.3.2 TVCable
10.3.3 CNT TV
10.3.4 Claro (Ecuadortelecom)
10.3.5 Univisa
10.4 Digital Terrestrial TV (DTTV)
11. Mobile communications
11.1 Overview of Ecuador's mobile market
11.1.1 Mobile statistics
11.2 Regulatory issues
11.2.1 Mobile licence renewals
11.2.2 SIM card registration
11.2.3 Mobile Virtual Network Operators (MVNOs)
11.2.4 Infrastructure sharing
11.2.5 Mobile Number Portability (MNP)
11.2.6 Quality of Service (QoS) measures
11.3 Mobile technologies
11.3.1 Overview
11.3.2 Second Generation (2G) mobile GSM/CDMA
11.3.3 Third generation (3G) mobile UMTS/HSPA
11.3.4 Fourth generation (4G) mobile - LTE
11.4 Major mobile operators
11.4.1 Claro (Conecel)
11.4.2 Movistar (Otecel)
11.4.3 CNT
11.5 Mobile voice services
11.5.1 Prepaid
11.6 Mobile broadband
11.7 M-banking
11.8 Satellite mobile services
11.9 Forecasts mobile market 2015; 2020
11.9.1 Scenario 1 higher mobile market growth
11.9.2 Scenario 2 lower mobile market growth
12. Notes on scenario forecasts
13. Related reports
Table 1 Country statistics Ecuador 2013
Table 2 Telephone network statistics 2014 (e)
Table 3 Internet user statistics 2014 (e)
Table 4 Fixed broadband statistics 2014 (e)
Table 5 Mobile statistics 2014 (e)
Table 6 National telecommunications authorities
Table 7 Evolution of GDP in Ecuador 2000 - 2014
Table 8 Historic - Fixed and mobile market share - 1997 - 2004
Table 9 Fixed and mobile market share - 2005 - 2014
Table 10 Fixed lines in service operators' market share 2001 - 2014
Table 11 CNT lines in service 2001 - 2014
Table 12 Etapa lines in service 2001 - 2013
Table 13 Historic - Fixed lines in service and teledensity 1997 - 2004
Table 14 Fixed lines in service and teledensity 2005 - 2015
Table 15 Public telephones 2003 - 2013
Table 16 Forecast fixed-line growth higher growth scenario 2015; 2020
Table 17 Forecast fixed-line growth lower growth scenario 2015; 2020
Table 18 International bandwidth 2006 - 2013
Table 19 Registered cybercafés 2008- 2013
Table 20 Registered ISPs 2002- 2013
Table 21 Historic - Internet users and penetration 1998 - 2004
Table 22 Internet users and penetration 20051 - 2015
Table 23 Internet subscribers and penetration 20051 - 2015
Table 24 Fixed broadband subscribers and penetration rates - 2001 - 2015
Table 25 Fixed broadband market share major operators - 2008 - 2013
Table 26 Forecast broadband growth higher growth scenario 2015; 2020
Table 27 Forecast broadband growth lower growth scenario 2015; 2020
Table 28 CNT ADSL subscribers 2008 - 2013
Table 29 TVCable cable modem subscribers 2008 - 2013
Table 30 Claro cable modem subscribers 2008 - 2013
Table 31 Pay TV subscribers and penetration 2004 - 2014
Table 32 Pay TV technology market share 2004 - 2013
Table 33 Historic - Mobile subscribers and penetration rate 1997 - 2004
Table 34 Mobile subscribers and penetration rate 2005 - 2015
Table 35 Evolution of mobile ARPU major operators 2009 - 2012
Table 36 Base stations by operator - 2012 - 2014
Table 37 Annual mobile numbers ported - 2009 - 2014
Table 38 Mobile subscribers by technology 2001 - 2014
Table 39 GSM subscribers 2003 - 2014
Table 40 3G subscribers 2008 - 2014
Table 41 HSPA+ subscribers 2012 - 2014
Table 42 Mobile operators' market share 1997 - 2014
Table 43 Historic - Claro mobile subscribers 1997 - 2004
Table 44 Claro mobile subscribers 2005 - 2014
Table 45 Historic - Movistar mobile subscribers 1997 - 2004
Table 46 Movistar mobile subscribers 2005 - 2014
Table 47 Movistar mobile financial data 2012 - 2013
Table 48 CNT mobile subscribers 2003 - 2014
Table 49 Mobile prepaid/postpaid ratio 2002 - 2014
Table 50 Mobile broadband subscribers 2009 - 2014
Table 51 Mobile broadband market share of subscribers by operator 2013 - 2014
Table 52 Forecast mobile subscriber growth higher growth scenario 2015; 2020
Table 53 Forecast mobile subscriber growth lower growth scenario 2015; 2020
Chart 1 Fixed and mobile market share at a glance 2005 2014
Chart 2 Fixed lines in service and teledensity 2005 2015
Chart 3 Internet users and user penetration rate 2001 2015
Chart 4 Fixed broadband subscribers and penetration rates - 2001 2015
Chart 5 Mobile market evolution at a glance 2005 - 2015
Exhibit 1 Map of Ecuador

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