Uruguay - Telecoms, IP Networks and Digital Media - Insights and Statistics

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Uruguay - Telecoms, IP Networks and Digital Media - Insights and Statistics

Uruguay's pay TV operators contest new media law

Uruguay's GDP per capita was one of the highest performing in the region during 2010 and 2011. It has since slowed to a more moderate 3.5%, a level expected to continue into 2015. The country is among the more politically stable in Latin America, is relatively free from corruption and is not prone to the natural disasters which affect other countries in the region, particularly in the Caribbean. The government has been supportive of business, and has pursued prudent macroeconomic policies which have been sympathetic to investment. Transparent regulations, growing domestic consumption, high living standards, and a cheap labour force are expected to continue drawing international capital.

Bar a few Caribbean islands, Uruguay enjoys the highest broadband penetration in Latin America, the second highest fixed-line teledensity after Costa Rica, and the second highest mobile penetration after Panama. With high literacy rates and widespread computer availability, Uruguay is one of the world's leading software exporters and South America's outsourcing hub. In terms of computer penetration, Uruguay tops all other countries in the region by a considerable margin.

Uruguay is one of the very few Latin American countries where the local fixed-line market is neither privatised nor liberalised. Antel, the state-owned incumbent, has a monopoly in the provision of local telephony and fixed broadband services. Other segments of the telecom market have been opened to competition, including international long-distance telephony, mobile telephony, and fixed-wireless broadband.

Uruguay is also one of the few countries in the world where broadband access via cable modem does not exist. Although cable networks are well equipped technologically, and digital cable TV is widely available, telecom law prohibits data transmission over pay TV networks. There are ongoing discussions over the need to change regulations and permit cable TV providers to offer broadband. Cable broadband would help strengthen the pay TV market, make triple-play solutions more widely available, and give customers the freedom to choose their internet provider.

A new media law was passed in December 2014, aimed at curbing media concentration and providing greater certainty to licence holders. However, media companies have objected to some restrictive provisions, such as those which limit pay TV operators from having more than 25% share of subscribers nationally, or from providing telecom services on their networks.

Antel's Fibre-to-the-Premises (FttP) program is by far the most ambitious broadband effort in Latin America. Together with the FttP network, the opening of a new submarine cable system (Bicentenario) in early 2012 has helped boost Uruguay's internet download speed. International bandwidth tripled as a result of the cable landing.

Three players compete in the Uruguayan mobile market: Antel, Telefónica's Movistar, and América Móvil's Claro. Antel is the mobile market leader, followed by Movistar.

All three mobile operators offer mobile broadband through 3G and LTE networks. Mobile broadband is the fastest growing telecom sector by far. Operators have achieved nationwide UMTS coverage, attracting a growing number of subscribers outside of Montevideo. An estimated 30% of the population have opted for mobile broadband, and the number of subscribers is soaring. Antel was also one of the first companies in the region to launch commercial LTE services. The LTE network supplements FttP broadband in areas where the latter is not available. It is intended that the entire population will have access to either LTE, FttP, or both technologies.

Penetration of telecom services - 2014
Market penetration | 2014 (e)
Fixed-line telephony | 32%
Fixed-broadband | 20%
Mobile telephony | 160%
(Source: BuddeComm)

Key developments:

New media law criticised for restriction on ban on pay TV operators offering telecom services; Claro again prepares to launch DTH services after its licence was twice revoked;
The government auctioned blocks of spectrum in the 900MHz, 1900MHz, and 1700-2100MHz frequency bands, raising $64 million.
The government in mid-2013 cancelled Claro's licence to provide satellite pay-TV services.
Antel's LTE network continues to be expanded across the country, complementing the FttP service.
A service dubbed Universal Hogares aims to connect every Uruguayan home to the internet. The service is available to all those who already have a fixed telephone line, or those who acquire one, and offers basic ADSL access with no monthly fees.
The Bicentenario submarine cable linking Argentina and Uruguay was inaugurated and made operational in early 2012 with an initial capacity of 50Gb/s. The system's total design capacity is 3.84Tb/s.
Alcatel-Lucent was contracted by Claro Uruguay to build an LTE network, with expansion to a number of cities planned during 2014. The commercial launch of LTE services enables it to compete with Antel's service.
By July 2014 Antel's FttP network connected 350,000 premises. A total of 800,000 premises will be passed on completion in 2015, offering data at 120Mb/s.
Antel has signed an LTE connectivity agreement with network operators, allowing roaming between LTE networks globally.
Clarovideo PPV platform launches for Claro mobile phone subscribers;
Net Insight selected to build a national DTT network by November 2015;
Movistar launches commercial LTE services in Montevideo;
Report includes the regulator's market data to June 2014, recent market developments.

Companies mentioned in this report:

Antel, Claro Uruguay, Movistar Uruguay, Dedicado.

Publication overview:

This report provides a comprehensive overview of the trends and developments in Uruguay's telecommunications market. This 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;
Industry and regulatory issues;
Infrastructure developments;
Major Players, Revenues, Subscribers, ARPU, MoU;
Internet, VoIP, IPTV;
Mobile Voice and Data Markets;
Broadband (FttP, DSL, cable, wireless);
Convergence and Digital Media;
3G subscriber and mobile ARPU forecasts;
Broadband market forecasts for selective years to 2020.
Government policies affecting the telecoms industry;
Market liberalisation and industry issues;
Telecoms operators privatisation, IPOs, acquisitions, new licences;
Mobile technologies (GSM; 3G, HSPA, LTE).

1. Executive summary
2. Key statistics
3. Country overview
3.1 Economic background
4. Telecommunications market
4.1 Overview of Uruguay's telecom market
4.2 Market analysis
5. Regulatory environment
5.1 Regulatory authority
5.1.1 Unidad Reguladora de Servicios de Comunicaciones (URSEC)
5.2 Telecom sector liberalisation in Uruguay
5.3 Privatisation
5.4 Regulatory developments
5.4.1 New Media Law December 2014
6. Fixed network operators in Uruguay
6.1 Overview of operators
6.2 Antel
7. Telecommunications infrastructure
7.1 National telecom network
7.1.1 Fixed-line statistics
7.1.2 Public payphones
7.2 International infrastructure
7.3 Infrastructure developments
7.3.1 Voice over Internet Protocol (VoIP)
7.3.2 Fixed-wireless and Wireless Local Loop (WLL)
8. Wholesale
9. Fixed broadband access market
9.1 Overview
9.1.1 Broadband statistics
9.1.2 Ceibal Plan
9.1.3 Internet for All (Universal Hogares)
9.1.4 Fibre-to-the-Premises (FttP) networks
9.2 Media convergence
10. Broadcasting
10.1 Pay TV overview
10.2 Pay-TV statistics
10.3 Digital Terrestrial TV (DTTV)
11. Mobile communications
11.1 Overview of Uruguay's mobile market
11.1.1 Mobile statistics
11.2 Regulatory issues
11.2.1 Spectrum allocations and spectrum auctions
11.2.2 Auction results 2013
11.2.3 SIM card registration
11.3 Mobile technologies
11.3.1 Overview
11.3.2 Third generation mobile
11.3.3 Long-term Evolution (LTE)
11.4 Major mobile operators
11.4.1 Antel
11.4.2 Movistar
11.4.3 Claro
11.5 Mobile voice services
11.5.1 Prepaid
11.6 Mobile Messaging
11.6.1 Short Message Service (SMS)
11.7 Mobile broadband
11.8 Mobile satellite
12. Forecasts
12.1 Forecasts mobile market 2015; 2020
12.1.1 Scenario 1 higher mobile market growth
12.1.2 Scenario 2 lower mobile market growth
12.2 Forecasts fixed-line market 2015; 2020
12.2.1 Scenario 1 higher fixed line growth
12.2.2 Scenario 2 lower fixed line growth
12.3 Forecasts fixed broadband market 2015; 2020
12.3.1 Scenario 1 higher broadband growth
12.3.2 Scenario 2 lower broadband growth
13. Related reports
Table 1 Country statistics Uruguay 2014 (e)
Table 2 Telephone network statistics 2014 (e)
Table 3 Internet user statistics 2014 (e)
Table 4 Broadband statistics 2014 (e)
Table 5 Mobile statistics 2014 (e)
Table 6 National telecommunications authority
Table 7 Evolution of GDP in Uruguay 2000 - 2014
Table 8 Ratio of mobile to fixed-line phones - 1997 - 2014
Table 9 Telecom services comparative change in price 2005 - 2013
Table 10 Telecommunications sector contribution to GDP 2005-2014
Table 11 Telecommunications sector contribution to GDP 2005-2014
Table 12 Telecommunications revenue 2008 - 2014
Table 13 Telecommunications revenue by sector 2012
Table 14 Telecom share of revenue by segment 2005 - 2012
Table 15 Fixed-line services revenue 2008 - 2012
Table 16 Fixed-line national and mobile traffic 2008 - 2014
Table 17 Fixed-line traffic to mobile networks 2008 - 2014
Table 18 Historic - Fixed lines in service and teledensity 1997 - 2004
Table 19 Fixed lines in service and teledensity 2005 - 2014
Table 20 Historic - Public payphones 1997 - 2004
Table 21 Public payphones 2005 - 2014
Table 22 International internet bandwidth 2001 - 2014
Table 23 Historic - Internet users and user penetration rate 1997 - 2004
Table 24 Internet users and user penetration rate 1997 - 2014
Table 25 Fixed and fixed wireless broadband subscribers and penetration rates 2005 - 2014
Table 26 Fixed-line broadband subscribers by platform 2011 - 2014
Table 27 Fixed broadband operators' market share 2008 - 2014
Table 28 Fixed and mobile broadband subscribers - 2008 - 2014
Table 29 Dial-up internet subscribers - 2008 - 2013
Table 30 Dial-up internet traffic - 2011 - 2013
Table 31 Pay-TV subscribers and penetration rates 2001 - 2014
Table 32 Pay-TV operators' market share 2010- 2014
Table 33 Mobile market revenue 2008- 2014
Table 34 Historic - Mobile subscribers and penetration rate 1997 - 2004
Table 35 Mobile subscribers and penetration rate 2005 - 2014
Table 36 Mobile operators' market share 2002 - 2014
Table 37 Evolution of mobile ARPU in Uruguay major operators 2008 - 2011
Table 38 Antel mobile subscribers 2002 - 2014
Table 39 Movistar mobile subscribers - 2002 - 2014
Table 40 Claro mobile subscribers 2004 - 2014
Table 41 Mobile prepaid/postpaid ratio 2005 - 2014
Table 42 Mobile prepaid and contract subscribers 2007 - 2014
Table 43 SMS message volume 2009 - 2014
Table 44 Average SMS sent per subscriber per month 2012 - 2014
Table 45 Mobile broadband subscribers and penetration rates 2008 - 2014
Table 46 Forecast mobile subscribers higher growth scenario 2015; 2020
Table 47 Forecast mobile subscribers lower growth scenario 2015; 2020
Table 48 Forecast fixed line subscribers higher growth scenario 2015; 2020
Table 49 Forecast fixed line subscribers lower growth scenario 2015; 2020
Table 50 Forecast fixed broadband subscribers higher growth scenario 2015; 2020
Table 51 Forecast broadband subscribers lower growth scenario 2015; 2020
Chart 1 Evolution of telecom revenue at a glance 2005-2014
Chart 2 Telecom revenue by segment 2005 - 2012
Chart 3 Fixed-line national and mobile traffic 2008 2014
Chart 4 Fixed lines in service and teledensity 2005 2014
Chart 5 Mobile subscribers and penetration rate 2005 2014
Exhibit 1 Map of Uruguay
Exhibit 2 - Licensed ILD operators in Uruguay
Exhibit 3 Antel at a glance

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