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Venezuela - Telecoms, IP Networks, Digital Media and Forecasts

Venezuela - Telecoms, IP Networks, Digital Media and Forecasts

Regulator raises Bs.F.4.6 billion in multi-spectrum auction: mobile broadband expansion anticipated in 2015

With a slower economic growth, high inflation and falling prices for the country’s key export commodity, the general outlook for 2015 is not promising. Nevertheless, the country’s telecom market is expected to grow steadily, led by 3G and LTE services as well as by satellite-based pay TV services and the nascent IPTV sector.

Growth in the number of fixed lines has fallen sharply in recent years, to only 0.4% in the first half of 2014, and fixed-line revenue now account for a shrinking portion of total telecom revenue. In line with consumer trends in the use of services, the share of mobile, internet, and pay TV revenues has been rising. A number of private operators compete in all telecom sectors, but the country’s state-owned telecom incumbent CANTV dominates the fixed, mobile, and broadband markets.

Along with the main competitors Movistar and Digitel, all operators have ambitious investment plans, largely aimed at improving their networks and expanding the reach and capabilities of new technologies including FttP and LTE

Mobile penetration in Venezuela is below the South American average. The mobile market is recovering from the downturn suffered during Venezuela’s economic recent recession, but estimated growth is low compared with previous years.

Despite the slump in subscriber growth, the volume of data traffic has been increasing exponentially. Spurred by the huge popularity of social networks in Venezuela, the country has experienced a surge in the demand for smartphones, and with it the need for more capable networks and higher data allowances.

Three major players operate in the Venezuelan mobile market: Movilnet, the market leader and mobile subsidiary of state-owned CANTV; Movistar, the Venezuelan unit of Spain’s Telefónica; and Digitel, a locally owned private company.

Fixed broadband penetration and speeds are also lower than the regional average. CANTV is the country’s exclusive ADSL provider, while a few cable TV companies also offer cable broadband services. The Venezuelan government has launched a National Fibre-Optic Backbone project to guarantee a uniform distribution of high-speed internet access nationally, with CANTV in charge of implementing the project. The government intends to lease capacity on the National Fibre-Optic Backbone to cooperatives and small companies.

Pay TV is the fastest growing telecom sector in Venezuela after mobile broadband, and accounts for 15% of all telecom revenue in the country. The market leaders are DirecTV, Inter, SuperCable, NetUno, Movistar, and CANTV.

Key developments:

CANTV extends fibre-optic backbone infrastructure, reports doubling of profits in 2013; regulator raises Bs. F.4.6 billion in multi-spectrum auction; MNOs begin project to build 30 shared-access base stations to serve remote areas; Digitel reports having 100,000 active customers on its LTE network; Movistar switches off its CDMA mobile and fixed-wireless voice and data network; mobile operators invest in congested networks to develop mobile broadband capabilities; CANTV deploys 8,760 antennae for regional schools and health centres; Vivo Play launches in Venezuela; AT&T to acquire DirecTV’s US and Latin American operations; DTT reaches 60% population coverage; National Fibre-Optic Backbone project deployment is 70% complete; pay TV market suffering from rampant signal theft; satellite TV market competition; regulator’s market data to Q2 2014, operators’ data to Q3 2014, recent market developments.

Companies and subsidiaries mentioned in this report include:

CANTV, Movistar, Digitel, Inter, NetUno, Alodiga, Multiphone, Totalcom, Convergía, Movilnet, MovilMax, Tesacom, SuperCable, DirecTV.

Data in this report is the latest available at the time of preparation and may not be for the current year


1. Key Statistics
1.1 Country overview
1.1.. Outlook
2. Telecommunications Market
2.1 Overview of Venezuela's telecom market
2.2 Market analysis
3. Regulatory Environment
3.1 Regulatory authority
3.1.. Telecom Ministry
3.1.. Conatel
4. Fixed Network Operators
4.1 Overview of operators
4.1.. Local fixed-line market
4.1.. Long distance fixed-line market
4.2 CANTV
4.3 Movistar (Telefónica)
4.4 Digitel
4.5 Inter
4.6 NetUno
5. Telecommunications Infrastructure
5.1 National telecom network
5.1.. Fixed-line statistics
5.2 International infrastructure
5.2.. Terrestrial links
5.2.. Submarine cable networks
5.2.. Satellite networks
5.3 Infrastructure developments
5.3.. IP and Voice over Internet Protocol (VoIP)
5.4 Wholesale overview
6. Broadband Market
6.1 Overview
6.1.. Fixed broadband statistics
6.1.. Broadband market analysis
6.1.. Broadband providers
6.2 Government initiatives
6.2.. Laptops for schools
6.2.. National Fibre-Optic Backbone Project
6.3 Cable modems
6.4 Asymmetrical Digital Subscriber Line (ADSL)
6.5 Fibre-to-the-Premises (FttP)
6.6 WiMAX
6.7 Satellite broadband
6.8 Mobile broadband
6.9 Media convergence
6.9.. Triple play
6.9.. Broadband TV (IPTV)
7. Digital Media / Digital Economy
7.1 Digital economy
7.1.. E-commerce
7.2 Digital media
7.2.. Social networks
7.3 Broadcasting
7.3.. Pay TV overview
7.3.. Cable TV
7.3.. Satellite-based digital pay TV developments
7.3.. Digital Terrestrial TV
8. Mobile Communications
8.1 Overview of Venezuela's mobile market
8.1.. Mobile statistics
8.1.. Average Revenue per User (ARPU)
8.1.. Spectrum auctions
8.1.. Network sharing
8.2 Mobile technologies
8.2.. CDMA
8.2.. Third Generation (3G) mobile
8.2.. Long-term Evolution (LTE)
8.2.. Mobile handsets/smartphones
8.3 Major mobile operators
8.3.. Movilnet (CANTV)
8.3.. Movistar (Telefónica)
8.3.. Digitel
8.4 Mobile voice services
8.4.. Prepaid
8.5 Mobile messaging
8.5.. Short Message Service (SMS)
8.6 Mobile satellite
9. Forecasts
9.1 Forecast. fixed-line market 2013; 2015; 2020
9.1.. Scenario . higher fixed line growth
9.1.. Scenario . lower fixed line growth
9.2 Forecast. fixed broadband marke. 2013; 2015; 2020
9.2.. Scenario . higher broadband growth
9.2.. Scenario . lower broadband growth
9.3 Forecast. mobile marke. 2013; 2015; 2020
9.3.. Scenario . higher mobile market growth
9.3.. Scenario . lower mobile market growth
Tabl. . Country statistic. 2014 (e)
Tabl. . Telephone network statistic. 2014 (Jun)
Tabl. . Internet user statistic. 2014 (e)
Tabl. . Broadband statistic. 2014 (e)
Tabl. . Mobile statistic. 2014 (e)
Tabl. . National telecommunications authority
Tabl. . Evolution of GDP in Venezuel. 2000 - 2014
Tabl. . Historic - Fixed and mobile market share of subscriber. 1998 - 2004
Tabl. . Fixed and mobile market share of subscriber. 2005 - 2014
Tabl. 1. Telecom revenues and investment. 2001 - 2014
Tabl. 1. Telecom revenue as a percentage of GD. 2001 - 2014
Tabl. 1. Telecom revenues by segmen. 2008 - 2012
Tabl. 1. Telecom revenue share by segmen. 2012; 2014
Tabl. 1. Fixed-line prepaid/postpaid rati. 2001 - 2014
Tabl. 1. CANTV group revenu. 2012 - 2013
Tabl. 1. CANT. fixed lines in service and market shar. 1999 - 2013
Tabl. 1. Movista. fixed lines in service and market shar. 2004 - 2014
Tabl. 1. Historic - Fixed lines in service and teledensit. 1997 - 2004
Tabl. 1. Fixed lines in service and teledensit. 2005 - 2014
Tabl. 2. Historic - Public payphone. 1997 - 2004
Tabl. 2. Public payphone. 2005 - 2014
Tabl. 2. Fixed-line voice traffi. 2005 - 2014
Tabl. 2. Historic - Internet users and user penetration rat. 1998 - 2004
Tabl. 2. Internet users, subscribers and user penetration rat. 2005 - 2015
Tabl. 2. Dial-up internet subscriber. 2000 - 2014
Tabl. 2. Fixed broadband subscribers and penetration rate. 2000 - 2014
Tabl. 2. Fixed broadband technologie. market shar. 2001-2014
Tabl. 2. CANT. broadband subscriber. 2000 - 2013
Tabl. 2. Internet service revenu. 2001 - 2014
Tabl. 3. Mobile broadband subscriber. 2009 - 2015
Tabl. 3. Venezuel. B2C e-commerce spendin. 2005 - 2013
Tabl. 3. Facebook users and penetratio. 2008 - 2013
Tabl. 3. Historic - Pay TV subscribers and penetration rate. 1997 - 2004
Tabl. 3. Pay TV subscribers and penetration rate. 2005 - 2014
Tabl. 3. Major pay TV provider. market shar. 2010 - 2013
Tabl. 3. Pay TV service revenu. 2001 - 2014
Tabl. 3. Broadcasting service revenu. 2001 - 2014
Tabl. 3. Historic - Mobile subscribers and penetration rat. 1997 - 2004
Tabl. 3. Mobile subscribers and penetration rat. 2005 - 2015
Tabl. 4. Mobile voice traffi. 2001 - 2014
Tabl. 4. Mobile sector revenu. 2001 - 2014
Tabl. 4. Mobile ARP. 2002 - 2013
Tabl. 4. Mobile ARPU by operato. 2009 - 2012
Tabl. 4. Market share of mobile operator. 2001 - 2013
Tabl. 4. Movilne. mobile subscriber. 2001 - 2013
Tabl. 4. Movistar subscriber. 2001 - 2013
Tabl. 4. Mobile prepaid/postpaid rati. 1997 - 2014
Tabl. 4. SMS messages sent, annual chang. 2002 - 2014
Tabl. 4. SMS messages sent, annual chang. 200. 2014
Tabl. 5. Forecast fixed line. higher growth scenari. 2013; 2015; 2020
Tabl. 5. Forecast fixed line. lower growth scenari. 2013; 2015; 2020
Tabl. 5. Forecast broadband subscriber. higher growth scenari. 2013; 2015; 2020
Tabl. 5. Forecast broadband subscriber. lower growth scenari. 2013; 2015; 2020
Tabl. 5. Forecast mobile subscriber. higher growth scenari. 2013; 2015; 2020
Tabl. 5. Forecast mobile subscriber. lower growth scenari. 2013; 2015; 2020
Chart . Evolution of revenues and investment. 2001 - 2014
Chart . Fixed lines in servic. market evolution at a glanc. 2005 - 2014
Chart . Internet users and user penetration rat. 200. 2015
Chart . Fixed broadband subscriber. market evolution at a glanc. 2003 - 2014
Chart . Mobile subscribers and penetration at a glanc. 2003 - 2015
Exhibi. . Map of Venezuela
Exhibi. . CANTV at a glance
Exhibi. . Movilnet at a glance
Exhibi. . Movistar at a glance
Exhibi. . Digitel at a glance

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