Venezuela: Venezuela Communication Profile 2012
2012/04/06
Venezuela Communication Profile 2012
20/11/2010 The re-nationalized in place, CANTV, was undertaking social programs for the disadvantaged population, to expand the reach of its telephone network in rural telecommunications services are rare or nonexistent. Venezuela's GDP per capita is highest in Latin America bar a few Caribbean islands, and yet, although poverty and income inequality declined substantially since 2002, but approximately one quarter of the population is poor.
While basic telephony has stagnated or declined in the rest of the region, Venezuela's fixed lines in service grew at a compound annual growth rate of 13% between 2006 and 2009, growing teledensity well above the regional average compared to the levels that were extremely low compared with economic indicators of the country. Provided CANTV avoids bureaucracy and corruption, state ownership appears to be beneficial for the teledensity in the nature of intensive infrastructure sector landlines.
Country's Internet and broadband penetration, however, are below the average for Latin America and much lower than expected, based on the country's GDP per capita. There is no market for wholesale broadband in Venezuela. State-owned CANTV has a monopoly in the provision of ADSL. There is no ISP in the country acting as resellers of its ADSL services. Competition in the broadband market comes as cable modems, broadband wireless and satellite. Accordingly, Venezuela ADSL is slower and more expensive than in other Latin American countries.
If the government was to introduce local loop unbundling, and allow private operators to lease bandwidth of CANTV for broadband services, competition would lower prices and improve quality (and speed), and one could expect a boom in the country's broadband and ICT sector. CANTV would be able to focus on infrastructure, the recovery of its investment costs of rental income, rather than trying to operate as a heaviness, a vertically integrated.
mobile phone penetration in Venezuela has surpassed the 100%, is positioned well above the Latin American average. The mobile industry has reached a high level of maturity and remains a dynamic and competitive market with three operators competing for market share. Mobile broadband is becoming an attractive alternative for Internet users and a major source of revenue for companies faced with a nearly saturated market.
Venezuela is the regional leader in terms of SMS traffic, number of text messages being about twice the number of minutes an average Venezuelan talks on a mobile phone.
Market Overview:
- • Although the Venezuelan economy contracted in 2009, the telecommunications industry grew by 10%, better than any other sector.
- • The prospects of the telecommunications market is reasonably promising for 2010, but more uncertain for 2011. Laws and decrees perceived as an infringement of private property have decreased inflow of foreign capital. Indeed, telecom investments came mainly from public spending; galloping energy shortages and inflation can erode Venezuela's international reserves and budget cuts force in the telecommunications sector.
- • Mobile broadband has taken off in Venezuela, and becomes an attractive alternative for users of Internet, broadband fixed the country is suffering from slow speeds and downtime.
- • Cable TV operator NetUno Venezuela deploys FTTH network first to connect new housing developments in Caracas.
- • Operator Mobile Movistar plans to deploy LTE infrastructure in major cities of Venezuela in the second half of 2011, but awaits the necessary frequencies mobile.
- • CANTV plans to launch IPTV in the second half of 2010, but before he can do it will need to increase speeds and lower prices for its ADSL services.
Convergence, Broadband & Internet Market
Internet and broadband penetration in Venezuela are lower than average for Latin America, which leaves considerable room for growth considering that the country's GDP per capita is the highest in the region. Fixed-line incumbent CANTV dominates the broadband market with its ADSL service; in fact, lack of competition has made ADSL expensive compared with neighbouring countries, and the speeds are slow. However, new technologies such as WiMAX and BPL are proving successful in Venezuela, therefore broadband may become less dependent on ADSL and the fixed-line infrastructure.
- Convergence solutions are also popular
- triple player Inter is the number two broadband provider
- cable TV market leader.
Fixed-Line Market & Infrastructure
While basic telephony stagnates in the rest of the region, Venezuela has been reporting double digit growth figures for its fixed-lines in service. Teledensity has risen from levels that used to be abysmally low, given the country's other economic indicators, to about 21%, somewhat higher than average for Latin America. State-owned CANTV has been undertaking social programs for the disadvantaged sections of the population and has been expanding the reach of its telephone network to rural areas with poor or nonexistent telecom services. Based on the country's GDP per capita, which is the highest in Latin America, teledensity has still considerable room for growth.
Mobile Market
Venezuela's mobile penetration is one of the highest in the region, with mobile subscribers still growing strongly even while preparing to cross the 100% penetration barrier. The country remains one of the last bastions of CDMA in Latin America, but the two leading mobile operators, Movilnet and Movistar, are finally turning to GSM. In fact, the launch of a GSM network by Movilnet in December 2008 should help to buoy the market despite the economic downturn. Venezuela is a regional leader in terms of SMS traffic, the number of text messages surpassing the number of minutes the average Venezuelan talks on a mobile phone.
Telecom Market Trends
Venezuela is one of the world's top ten oil-exporting countries. Its GDP per capita is the highest in Latin America, bar a few Caribbean islands. But after years of oil-funded growth, the country has been facing plummeting oil prices since the start of the global financial crisis. The government believes it can weather the downturn thanks to its large international reserves, but predictions on Venezuela's outlook are as polarised as its politics. CONAPRI, Venezuela's investment agency, claims that the country offers good opportunities to investors in the areas of outsourcing, web-platform based business, wireless networks, and VoIP services.
Internet country code:
.ve
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