2008 Latin America - Telecoms Mobile and Broadband in The Eastern Nations

BuddeComm’s Annual Publication on the Eastern nations of South America, 2008 Telecoms, Mobile and Broadband in Latin America – the Eastern Nations, profiles five nations that occupy the north-east and centre-east of South America, bordering the Atlantic Ocean and the Caribbean Sea – except for Paraguay, which is land-locked. Guyana and Suriname share many characteristics with the Caribbean Nations, with which they are frequently associated. Brazil is a leading investment destination for international operators and suppliers, given its size and potential to develop into a top world market.

The Eastern Nations of Latin America are considerably diverse. In size, they range from Brazil, the fifth largest country in the world, with a land area of 8.5 million sq km and 191 million people, to Suriname, the smallest country in South America, with 161 thousand sq km and half a million people. Economically, the countries are also vastly different. With the fourth largest oil reserves in the world, Venezuela’s GDP per capita is one of the region’s highest, while Guyana’s is one of the lowest.

Despite the huge differences in size and economy, mobile penetration is similar in all five countries. Fixed-to-mobile substitution is prevalent throughout the sub-region, led by Paraguay where mobile phones outnumber fixed lines in service by as much as twelve to one.

This report presents a concise overview of sector liberalisation and privatisation among the Eastern nations of South America, government initiatives and regulations in the telecom industry, the development of product offerings for both mobile and broadband technologies, essential country and operator statistics in all telecom sectors, and the emergence of convergence and triple play.

Key highlights

·         The fixed-line market has been liberalised in Brazil and Venezuela; although the incumbents continue to dominate the fixed-line infrastructure in both countries, they are slowly losing market share to smaller operators. Guyana and Suriname are preparing for fixed-line liberalisation after years of failed attempts, while Paraguay continues to function in a monopolistic environment.

·         Brazil’s fixed-line market has been privatised since 1998, while Venezuela’s was privatised in 1991 and renationalised in 2007. Suriname and Paraguay’s incumbents are wholly state-owned. Guyana’s incumbent telco has been privatised since 1991, but holds exclusivity over all fixed-line services.

·         Mobile telephony is highly competitive in all five countries, with several operators offering services. Mobile penetration ranges from around 60% to 80%, and the mobile market continues to post double-digit growth. Prepaid cards have played a significant role in driving growth, making mobile phones accessible to many customers who do not meet credit requirements for postpaid services.

·         Broadband penetration is low but on the rise, varying from about 4% in Brazil and 3% in Venezuela, to less than 0.5% in Suriname, Guyana, and Paraguay. There is good investment potential in this market.

·         Triple play strategies combining voice, Internet, and video services have been adopted in Brazil and Venezuela, but the small markets of Suriname, Guyana, and Paraguay are still behind technologically.

Eastern nations – mobile penetration and annual growth – September 2007

(Source: BuddeComm)

For those needing high-level strategic information and objective analysis on this region, this 170+ page report is essential reading and gives further information on:

·         Regulatory developments and spectrum auctions;

·         Fixed-line developments, including the adoption of alternative technologies such as VoIP;

·         Mobile telephony growth and the uptake of mobile data services;

·         Broadband growth and incursions into wireless technologies such as WiMAX;

·         Convergence, triple play, High Definition TV, IPTV, and other new technologies;

·         Scenario forecasts for the fixed line, mobile, and broadband markets of Brazil and Venezuela.

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