2015 Colombia - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

Colombia launches phase two of Digital Connections Project

Colombia’s telecom infrastructure is reasonably well developed in urban areas, where service availability is relatively high for Latin America, though facilities remain poor in smaller centres and rural areas. The government has endeavoured to address this with a number of public programs, and has facilitated the entry of operators to the mobile market in a bid to improve competition and extend the availability of mobile broadband services nationally.

The fastest growing sector is in mobile broadband based on LTE infrastructure, as well as fixed broadband in the cable and fibre markets. Fixed-line teledensity in Colombia is well below the Latin American average. There are numerous providers operating municipally, regionally or nationally but the number of lines in service continues to fall steadily, with customers abandoning traditional phones in favour of mobile handsets. This trend is likely to continue into 2016 and 2017 as consumers take advantage of the improved data offerings from upgraded mobile networks and as upgraded broadband infrastructure delivers VoIP to a wider customer base.

Colombia’s broadband penetration is relatively high for the region, though growth in the sector has been hampered by poor fixed-line infrastructure in many departments. Government efforts to improve services in the more deprived areas have had considerable success, leading to far higher growth in the number of broadband subscriptions among the lower socio-economic groups in recent years.

DSL is the leading broadband technology, though cable broadband has grown at a faster rate and by mid-2015 the platform was on a par with DSL in terms of the number of connections. The resurgence of cable modem is largely due to the growing popularity of bundled services which upgraded cable infrastructure can support.

Colombia’s mobile penetration is also relatively high for the region. While market growth has slowed, it retains significant potential, particularly in the mobile broadband sector where penetration is still low. Recent investments in mobile infrastructure has resulted in dramatic growth in the number of LTE-based mobile broadband connections, while during 2015 the number of 3G-based connections began to fall for the first time.

This report provides an overview of Colombia’s telecom infrastructure and regulatory environment, together with profiles of the major fixed-line operators and a range of market statistics and analyses. It also covers trends in the mobile market, including key market statistics and an assessment of the strategies of major mobile operators as well as the main MVNOs. In addition the report reviews the broadband and pay TV markets, including by relevant statistics and forecasts to 2020.

Key developments:

• Level 3 Communications to build 400Gb/s spur to the SAC cable;
• Azteca completes 20,500 terrestrial cable connecting 80% of the country;
• ETB acquires cable TV provider Ingelcom;
• New rules from the Communication Regulation Commission prevent telcos signing exclusive use agreements on infrastructure in buildings;
• América Móvil makes commercial use of its AMX-1 submarine cable;
• Regulator launches phase two of its Digital Connections Project;
• DirecTV launches a fixed and wireless internet via its LTE network;
• COP1.2 trillion to be invested in National Fibre Optic Project;
• ETB to cover one million premises with FttP by end-2018;
• National Television Authority replaces CNTV for regulating and managing TV services;
• Tigo Colombia signs up with Internet.org;
• Report update includes the regulator’s market data updates to March 2015, telcos’ financial and operating data to Q3 2015, recent market developments.

Companies mentioned in this report:

Movistar/Telefónica, Claro (Telmex/Comcel), UNE-EPM, Emcali, Tigo, Avantel, Empresa de Telecomunicaciones de Santa Fe de Bogotá (ETB), Emcali, Telebucaramanga, Telefónica de Pereira, Edatel, UNE-EPM, Claro (Telmex), Movistar (previously Telefónica Telecom), ETB, BT Colombia, Calipso, Caucatel, Colomsat, Synapsis, Emcali, Telebucaramanga, Edatel, DirecTV, Global TV, Claro/Comcel, Movistar, Tigo, Avantel, DirecTV, UNE-EPM, Uff! Móvil, ETB, Metrotel, Emcali, Virgin Mobile, Móvil Éxito, Globalstar.