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Market |
Telecommunications |
Report Type |
Market Research |
Country |
South America |
Published |
5 August 2009 |
Number of Pages |
77 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
End of year data shows that Panama’s mobile market had a higher penetration rate than the report had previously estimated. The introduction of two new operators should also mean that the market’s growth remains robust. Newcomer Digicel announced that it had added 1.1mn new subscribers in Honduras and Panama over its first five months. The report estimates that Honduras took the bulk of these as there is greater scope for growth and the operator launched a month earlier in the market. However, Digicel’s presence in Panama helped to maintain the strong growth rate seen in the market. A similar effect on the Honduran market has also been seen by Digicel’s entrance to the market and the company has indicated its interest in Costa Rica and Nicaragua where its presence would almost certainly be a real boost to growth in these markets .
Meanwhile, the established operators, América Móvil, Telefónica and Millicom International Cellular, seemed to report slower growth in Q109, a result of greater competition and higher penetration rates .
BMI forecasts that only Costa Rica and Nicaragua will have penetration rates below 100% by the end of our forecast period although growth could accelerate in either as additional competition is introduced .
Costa Rica’s market is set to see competition enter for the first time with the first six companies licensed to provide internet services in the country. Mobile services are not set to enter the market until 2010 but there is expected to be very high interest from regional operators in entering one of the few remaining telecoms monopolies in the region. Incumbent Instituto Costarricense de Electricidad (ICE) has been preparing itself for the entrance of competition, with contracts awarded to enable it to offer a wider range of mobile services .
In our Business Environment Rankings Belize’s tumble to 11th place caused the only major shake up in the table. A revision of subscriber figures led us to downgrade forecasts for growth lowering the country’s Telecoms Market score. Panama’s prospective growth on the other hand increased on the back of two new competitors entering the market. Honduras, Costa Rica and Nicaragua remain at the bottom of our rankings for a variety of reasons but their poor Telecoms Market scores particularly hold them back.
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