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Ecuador - Telecoms, Mobile, Broadband and Forecasts
Market Briefing
Published: July 2010
Pages: 39
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 309.00 Buy Now!
Research from: Paul Budde Communication Pty Ltd.
Sector: Mobile Markets
The Ecuador - Telecoms, Mobile, Broadband and Forecasts report includes all BuddeComm research data and analysis on this country. Covering trends and developments in telecommunications, mobile, internet, broadband, infrastructure and regulation.
Please review the Executive Summary and Table of Contents for more details.
Executive summary
Ecuador’s fixed-line teledensity lags considerably behind other Latin American countries. A large portion of the country has little or no fixed telephone coverage, partly because remote mountainous areas make the cost of laying out copper wire prohibitive. Wireless solutions have been used to resolve some of the problems.
Nevertheless, the number of fixed lines in Ecuador continues to increase annually by over 4%, pushing teledensity up every year by about half a percent. Albeit slow, this is a better result than in most other Latin American countries where fixed line growth has come to a virtual standstill.
The government is keen to advance universalisation and improve teledensity. Although it is unlikely to meet the aims it outlined in 2008, when it hoped to achieve 19% teledensity by 2010, we can expect it will continue in its efforts to expand the country’s telecom infrastructure.
The state-owned incumbent, CNT, dominates Ecuador’s fixed-line sector, with a market share of about 90% of the country’s main lines. Besides CNT, there are another eight fixed-line operators.
Following CNT’s campaign to increase fixed broadband penetration through network expansion and cheaper packages of its ADSL service, in 2009 a major shift took place from dial-up to broadband. By March 2010, only 3% of Ecuador’s Internet subscribers were on dial-up, down from 51% at end-2008.
Broadband technologies available in Ecuador include cable modem, ADSL, wireless, satellite, fibre optic, and dedicated corporate networks. Though it had a late start in Ecuador, ADSL is the fastest growing technology, but cable modem still accounts for about 40% of the broadband market.
Compared with the country’s economic indicators, mobile penetration is extremely high, having passed the 100% milestone. Nevertheless, mobile subscribers are expected to continue growing, albeit more slowly. Most Ecuadorians have prepaid plans, thus it is not expensive for them to have two mobile accounts. Some prefer to have one phone for work and one for personal use; some have one phone for each mobile company to take advantage of special offers; and some require two SIM cards, one for their phone and one for their USB modem for mobile broadband access. Therefore, there is potential for growth well beyond 100% penetration.
Mobile broadband has been extremely successful in Ecuador; in May 2010, the number of mobile broadband customers was equivalent to more than half the number of fixed-broadband subscribers.
Three operators compete in the mobile market:
Conecel – the market leader, controlled by América Móvil, and trading as Porta;
Otecel – controlled by Telefónica, and trading as Movistar;
Telecsa – controlled by CNT, and trading as Alegro.Market highlights:
Mobile number portability was launched in late 2009; in the first three months, only 0.2% of Ecuador’s subscriber base requested to be ported, primarily from Porta to Movistar.
CNT’s projects for 2010 include the installation of a 1,850km fibre-optic backbone and the expansion of the fixed-line network in rural areas, where connectivity will be boosted by means of CDMA-450 technology.
The respective company boards have resolved that Etapatelecom should be merged back into its parent company Etapa, due to Etapatelecom’s disappointing results.
The government is selling a 35% stake in Ecuador’s leading cable TV company TVCable.
Ecuador’s smallest mobile company Alegro is being absorbed into CNT, following a presidential decision in March 2010.
CNT has said it will invest US$40 million in Alegro during 2010, and that total investment from 2010 to 2013 would reach approximately US$100 million, most of which would go into deploying 3G UMTS infrastructure.Ecuador – key telecom parameters – 2009 - 2010
Category20092010 (e)
Fixed-line service
Total number of subscribers (million)1.992.08
Annual growth5.5%4.4%
Teledensity14.2%14.6%
Internet
Internet users (million)2.052.60
Annual growth57%27%
Internet users penetration14.7%18.3%
Broadband
Total number of subscribers236,000355,000
Annual growth48%50%
Penetration rate1.7%2.5%
Mobile telephony subscribers
Total number of subscribers (million)13.4615.60
Annual growth15%16%
Mobile penetration rate96.1%109.8%
(Source: BuddeComm)
Ecuador has good long-term growth potential especially in mobile and broadband services. 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 and broadband);
Infrastructure development;
Internet and broadband market (DSL, cable modem, wireless, BPL);
Mobile market (including 3G and mobile broadband);
Scenario forecasts for the fixed-line, mobile, and broadband markets for the years 2015 and 2020.
Please review the Executive Summary and Table of Contents for more details.
Executive summary
Ecuador’s fixed-line teledensity lags considerably behind other Latin American countries. A large portion of the country has little or no fixed telephone coverage, partly because remote mountainous areas make the cost of laying out copper wire prohibitive. Wireless solutions have been used to resolve some of the problems.
Nevertheless, the number of fixed lines in Ecuador continues to increase annually by over 4%, pushing teledensity up every year by about half a percent. Albeit slow, this is a better result than in most other Latin American countries where fixed line growth has come to a virtual standstill.
The government is keen to advance universalisation and improve teledensity. Although it is unlikely to meet the aims it outlined in 2008, when it hoped to achieve 19% teledensity by 2010, we can expect it will continue in its efforts to expand the country’s telecom infrastructure.
The state-owned incumbent, CNT, dominates Ecuador’s fixed-line sector, with a market share of about 90% of the country’s main lines. Besides CNT, there are another eight fixed-line operators.
Following CNT’s campaign to increase fixed broadband penetration through network expansion and cheaper packages of its ADSL service, in 2009 a major shift took place from dial-up to broadband. By March 2010, only 3% of Ecuador’s Internet subscribers were on dial-up, down from 51% at end-2008.
Broadband technologies available in Ecuador include cable modem, ADSL, wireless, satellite, fibre optic, and dedicated corporate networks. Though it had a late start in Ecuador, ADSL is the fastest growing technology, but cable modem still accounts for about 40% of the broadband market.
Compared with the country’s economic indicators, mobile penetration is extremely high, having passed the 100% milestone. Nevertheless, mobile subscribers are expected to continue growing, albeit more slowly. Most Ecuadorians have prepaid plans, thus it is not expensive for them to have two mobile accounts. Some prefer to have one phone for work and one for personal use; some have one phone for each mobile company to take advantage of special offers; and some require two SIM cards, one for their phone and one for their USB modem for mobile broadband access. Therefore, there is potential for growth well beyond 100% penetration.
Mobile broadband has been extremely successful in Ecuador; in May 2010, the number of mobile broadband customers was equivalent to more than half the number of fixed-broadband subscribers.
Three operators compete in the mobile market:
Conecel – the market leader, controlled by América Móvil, and trading as Porta;
Otecel – controlled by Telefónica, and trading as Movistar;
Telecsa – controlled by CNT, and trading as Alegro.Market highlights:
Mobile number portability was launched in late 2009; in the first three months, only 0.2% of Ecuador’s subscriber base requested to be ported, primarily from Porta to Movistar.
CNT’s projects for 2010 include the installation of a 1,850km fibre-optic backbone and the expansion of the fixed-line network in rural areas, where connectivity will be boosted by means of CDMA-450 technology.
The respective company boards have resolved that Etapatelecom should be merged back into its parent company Etapa, due to Etapatelecom’s disappointing results.
The government is selling a 35% stake in Ecuador’s leading cable TV company TVCable.
Ecuador’s smallest mobile company Alegro is being absorbed into CNT, following a presidential decision in March 2010.
CNT has said it will invest US$40 million in Alegro during 2010, and that total investment from 2010 to 2013 would reach approximately US$100 million, most of which would go into deploying 3G UMTS infrastructure.Ecuador – key telecom parameters – 2009 - 2010
Category20092010 (e)
Fixed-line service
Total number of subscribers (million)1.992.08
Annual growth5.5%4.4%
Teledensity14.2%14.6%
Internet
Internet users (million)2.052.60
Annual growth57%27%
Internet users penetration14.7%18.3%
Broadband
Total number of subscribers236,000355,000
Annual growth48%50%
Penetration rate1.7%2.5%
Mobile telephony subscribers
Total number of subscribers (million)13.4615.60
Annual growth15%16%
Mobile penetration rate96.1%109.8%
(Source: BuddeComm)
Ecuador has good long-term growth potential especially in mobile and broadband services. 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 and broadband);
Infrastructure development;
Internet and broadband market (DSL, cable modem, wireless, BPL);
Mobile market (including 3G and mobile broadband);
Scenario forecasts for the fixed-line, mobile, and broadband markets for the years 2015 and 2020.