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Venezuela Telecommunications Report Q4 2009

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An electronic version (mostly PDF, but can be Excel or PPT), which is either available for immediate download or will be sent via email by the Publisher of the report. The licencing for an electronic version is for use by the purchaser ONLY.

£330.00

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Market

Telecommunications

Report Type

Market Research

Country

Venezuela

Published

18 August 2009

Number of Pages

72

Report Delivery

Download

Delivery Lead Time

Immediate

Publisher

Business Monitor International

Venezuela Telecommunications Report Q4 2009: Venezuela broadband market continues to report strong growth

Venezuela’s mobile market creeps ever closer to 100% penetration with 27.6mn subscribers at the end of Q109. Growth in the market has inevitably slowed as the market approaches maturity, but it is anticipated a respectable level of growth to continue in the market as state-owned incumbent, Compañía Anónima de Teléfonos de Venezuela (CANTV), continues its focus on low-income subscribers. The operator is largely responsible for all the growth in the fixed-line and broadband markets and produced most of the growth in the mobile market in Q109. The company no longer produces a breakdown of its subscriber figures, but it appears to be the driving force behind the Venezuelan telecoms market. Its new services and packages have been encouraging greater numbers of Venezuelans into the telecoms market, many for the first time.

May saw the launch of the first Venezuelan-produced handset from the government’s joint venture with China’s ZTE. The ‘Bolivarian’ handset went on sale on Mother’s Day in Venezuela and reportedly sold out of handsets on its first day. The cost of the handset is considerably lower than any other sold by Movilnet, CANTV’s mobile arm, and is available exclusively to the state-owned operator. President Chávez has hailed the new handset and stated plans to expand into other Latin American markets. While the handset may not significantly spur growth in the market, it will certainly enable many subscribers to acquire a new handset. More advanced services and models are available from Digitel and Movistar, both of which have launched 3G services although they are focusing on mobile broadband in the short run.

The broadband market continues to report strong growth, and the increases reported in the first quarter of 2008 show that there is unlikely to be a significant slowdown in the expansion of services. Alternative operators provide some competition to CANTV, but the incumbent’s prepaid services certainly seem to appeal to the market.

Venezuela saw an improvement to its Telecoms Market score in BMI’s Business Environment Rankings in Q409, although it retained its position in the market. Greater ARPUs reported by Movistar indicate that the market has been quite resilient in the face of economic turmoil, but it is believed that ARPU at Movilnet is likely to have declined somewhat as it focuses on lower income subscribers. Movistar has launched its 3G network, and Digitel also followed suit, although the latter stated it would delay further roll-out of services in light of ongoing turmoil in the financial markets and the economy. GDP is expected to decline in 2009 and then further in 2010, giving Venezuela one of the lowest Country Risk scores in the region.

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Select License Type

Electronic License

Electronic License

An electronic version (mostly PDF, but can be Excel or PPT), which is either available for immediate download or will be sent via email by the Publisher of the report. The licencing for an electronic version is for use by the purchaser ONLY.

£330.00

Change Currency

GBP EURO USD

Change Currency

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