Bolivia - Telecoms, Mobile and Broadband

Executive summary

Bolivians own ten mobile phones for every fixed line in service

Bolivia is one of the poorest and least developed Latin American nations, with correspondingly low rates of mobile penetration and fixed-line teledensity.

The structure of Bolivian telecommunications is different from most other countries. Local services are provided primarily by 15 telephone cooperatives. These are non-profit-making companies privately owned and controlled by their users. Since liberalisation, the cooperatives also provide long-distance telephony. Several also offer broadband and pay-TV services.

Bolivia has a multicarrier system where consumers can choose their long-distance carrier for each call by dialling the carrier’s prefix. A number of operators have adopted VoIP, while others use fixed-wireless technologies, and some rent fibre-optic capacity.

Empresa Nacional de Telecomunicaciones (Entel) is the incumbent long-distance operator. Previously controlled by Telecom Italia, Entel was renationalised in April 2007. After years of bitter disputes between the Italian telco and the Bolivian government, in November 2010 Telecom Italia accepted compensation totalling US$100 million for its 50% stake in Entel. The agreement effectively settled all legal action between the two parties.

Besides providing long-distance services, Entel is Bolivia’s leading mobile company, with a 44% share of the market. It also offers local telephony, ADSL broadband access, and satellite pay-TV.

Bolivia has more than ten times as many mobile phones as fixed lines, and the trend towards fixed-mobile substitution continues. Besides Entel, another two companies offer mobile telephony: Tigo, wholly-owned by Luxembourg-based Millicom International, and NuevaTel, trading as Viva and controlled by US firm Trilogy International.

Bolivia’s mobile penetration is the fifth lowest in the region after Cuba, Haiti, Nicaragua, and Costa Rica. This result, however, is no lower than could be expected considering Bolivia’s GDP per capita is the second lowest in Latin America after Nicaragua.

While ADSL, cable broadband, WiFi, and WiMAX technologies are all available, the broadband market is small. Bolivia is the most expensive country in South America for broadband access. ADSL is the leading broadband technology, but is unavailable in many areas or has reached saturation levels due to the country’s low teledensity and poor fixed-line infrastructure.

Bolivia is the Latin American country with the largest WiMAX share of broadband customers. While in the rest of the region WiMAX began to shrink dramatically in 2009, in Bolivia growth continued through 2010. Nevertheless, we expect 3G/UMTS mobile broadband to replace WiMAX by 2012.

Tigo has been offering 3G/UMTS services since August 2008, and Viva since August 2010. As a state owned company, Entel has focused primarily on social services and universalisation efforts rather than on developing new technologies. Nevertheless, it is expected to launch a UMTS network in 2011. Considering the poor quality and high cost of fixed broadband in Bolivia, 3G could become an attractive option for Internet users, although growth will necessarily be limited by the country’s high level of poverty.

Market highlights:

• Entel has been expanding its mobile network under a project dubbed ‘Territory with Total Coverage’, aimed at providing telecom services to all Bolivians, including those living in small rural villages.
• Bolivia is building its own satellite, named Tupac Katari, primarily to provide telecom services in isolated rural areas. The US$300 million project is being financed 85% with funds from China. Launch is expected by 2013.
• A proposed transcontinental cable system passing through Paraguay and Bolivia could provide a link with international submarine networks and substantially reduce broadband prices in both landlocked countries.

Bolivia – key telecom parameters – 2009 - 2010

(Source: BuddeComm)

With its low penetration levels, the Bolivian telecom market has much room to grow once the country is able to rise out of poverty. 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, broadband, and pay TV);
• Infrastructure developments;
• Internet and broadband market (DSL, cable modem, WiMAX);
• Mobile market (including 3G and mobile broadband).

Lucia Bibolini

February 2011

Table of Contents

• 1. Executive summary
• 2. Key statistics
• 3. Telecommunications market
  • 3.1 Country overview
  • 3.2 Overview of Bolivia’s telecom market
  • 3.3 Total Coverage project
• 4. Regulatory environment
  • 4.1 Background
  • 4.2 Regulatory authority
    • 4.2.1 ATT (previously Sittel)
  • 4.3 Privatisation of Entel
  • 4.4 Renationalisation of Entel
  • 4.5 Telecom sector liberalisation in Bolivia
  • 4.6 Per-second billing
• 5. Fixed network operators in Bolivia
  • 5.1 Overview of operators
  • 5.2 Entel
  • 5.3 Cooperatives
    • 5.3.1 Overview
    • 5.3.2 Cotas and Teledata
    • 5.3.3 Cotel
    • 5.3.4 Comteco
• 6. Telecommunications infrastructure
  • 6.1 National telecom network
    • 6.1.1 Fixed-line statistics
    • 6.1.2 Public payphones
  • 6.2 International infrastructure
    • 6.2.1 Overview
    • 6.2.2 Satellite networks
  • 6.3 Infrastructure developments
    • 6.3.1 Wireless Local Loop (WLL)
    • 6.3.2 IP and Voice over Internet Protocol (VoIP)
• 7. Broadband access market
  • 7.1 Overview
    • 7.1.1 Internet/broadband statistics
  • 7.2 ADSL
  • 7.3 WiMAX
  • 7.4 Media convergence
• 8. Broadcasting
• 9. Mobile communications
  • 9.1 Overview of Bolivia’s mobile market
    • 9.1.1 Mobile statistics
  • 9.2 Mobile technologies
  • 9.3 Major mobile operators
    • 9.3.1 Entel Movil
    • 9.3.2 Tigo (Telecel)
    • 9.3.3 Viva (NuevaTel)
• 10. Related reports

• Table 1 – Country statistics Bolivia – 2011
• Table 2 – Telephone network statistics – 2011
• Table 3 – Internet user statistics – 2011
• Table 4 – Broadband statistics – 2011
• Table 5 – Mobile statistics – 2011
• Table 6 – National telecommunications authority
• Table 7 – Evolution of GDP in Bolivia – 2000 - 2011
• Table 8 – Fixed-line/mobile market share – 1996 - 2011
• Table 9 – Entel – fixed lines in service – 2000 - 2011
• Table 10 – Fixed lines in service and teledensity – 1996 - 2011
• Table 11 – Public payphones in service – 1996 - 2011
• Table 12 – Entel – ADSL subscribers – 2003 - 2011
• Table 13 – Internet users and user penetration rate – 1996 - 2011
• Table 14 – Fixed broadband subscribers and penetration rates – 2002 - 2011
• Table 15 – ADSL subscribers – 2002 - 2011
• Table 16 – Mobile subscribers and penetration rate – 1997 - 2011
• Table 17 – Entel – mobile subscribers – 2000 - 2011
• Table 18 – Tigo – mobile subscribers – 2003 - 2011

• Chart 1 – Entel – revenue by segment – 2007-2009
• Chart 2 – Fixed broadband market share by technology – June 2010
• Chart 3 – ADSL subscribers – 2002-2011
• Chart 4 – WiMAX subscribers – 2007-2010
• Chart 5 – Mobile operators’ market share – 2003-2011

• Exhibit 1 – Map of Bolivia
• Exhibit 2 – Entel Bolivia at a glance
• Exhibit 3 – List of cooperatives