New Venezuelan government may consider privatisation of CANTVVenezuela’s overall telecom market has been beset by difficulties resulting from the ongoing economic crisis. Growth in the fixed-line market which has been steady in recent years came to an end in 2015, when the number of lines in service fell 3.5% year-on-year. Similarly, the number of mobile subscribers fell in 2015 as customers strip back discretionary spend.
Given the combination of economic crisis and high inflation, as well as lower prices for the country’s key export commodity, oil, the general outlook for 2016 is not promising. A new government elected in December 2015 has suggested some plans for the telecom sector specifically, potentially including an overhaul of the sector’s regulator, amending the Telecommunications Act, and privatising the incumbent operator CANTV, which had been nationalised by the previous government in 2007.
Despite the economic troubles, there is growth in some sectors, including mobile data based on LTE, as well as satellite-based pay TV services and videostreaming. CANTV, and its main competitors Movistar and Digitel, have maintained investment to improve networks and expand the reach and capabilities of new technologies and services.
Three major players operate in the Venezuelan mobile market: Movilnet, the mobile subsidiary of state-owned CANTV and the market leader, followed by Movistar, the Venezuelan unit of Spain’s Telefónica, and Digitel, a locally owned private company. In the broadband segment CANTV remains the country’s exclusive provider of broadband based on DSL, though there are a number of small and localised cable TV companies which offer cable modem access. The government has progressed with its National Fibre-Optic Backbone project aimed at providing uniform distribution of broadband access. CANTV is in charge of implementing the project.
This report provides an overview of Venezuela’s telecom infrastructure, market and regulatory environment, together with profiles of major fixed-line operators. It also provides a range of statistics and market analyses. It includes an overview of the broadband and pay TV markets, accompanied by broadband scenario forecasts to 2020, as well as the mobile market, together with profiles of the mobile operators and scenario forecasts.
Key developments:
Election of new government prompts rumours of CANTV privatisation;
CANTV extends fibre-optic backbone infrastructure;
Falling GDP and lower revenue from oil exports place strain on consumer spend for telecom services;
Growing smartphone penetration encourages use of mobile data;
Telefónica and AT&T see dramatic write-down on revenue and value of assets following currency devaluation;
MNOs set up shared-access base stations to serve remote areas;
CANTV’s Wi-Fi program connects 3,000 public spaces by November 2015;
DTTV subscriber base reaches 850,000 by end-2015;
Report update includes the regulator’s market data to September 2015, recent market developments.Companies mentioned in this report:
CANTV, Movistar, Digitel, Inter, NetUno, Alodiga, Multiphone, Totalcom, Convergía, Movilnet, MovilMax, Tesacom, SuperCable.
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1. Key statistics
1.1 Country overview
2. Telecommunications market
2.1 Market analysis
3. Regulatory environment
3.1 Telecom Ministry
3.2 Conatel
4. Fixed network operators
4.1 Introduction
4.2 CANTV
4.3 Movistar (Telefónica)
4.4 Digitel
4.5 Inter
4.6 NetUno
5. Telecommunications infrastructure
5.1 Overview of the national telecom network
5.1.1 Fixed-line statistics
5.2 International infrastructure
5.2.1 Terrestrial links
5.2.2 Submarine cable networks
5.2.3 Satellite networks
5.3 Wholesale
6. Broadband market
6.1 Fixed broadband access market
6.1.1 Introduction and statistical overview
6.1.2 Market analysis
6.1.3 Government initiatives
6.1.4 Broadband statistics
6.1.5 Forecasts – fixed broadband market – 2015; 2017; 2020
6.2 Hybrid Fibre Coax (HFC) networks
6.3 Digital Subscriber Line (DSL) networks
6.4 Fibre-to-the-Premises (FttP) networks
6.5 Other fixed broadband services
6.5.1 Wi-Fi/WiMAX
6.5.2 Satellite broadband
7. Digital media
7.1 Introduction
7.2 Bundled services
7.3 Inter
7.4 SuperCable
7.5 NetUno
7.6 Satellite-based digital pay TV developments
7.7 Digital Terrestrial TV
7.8 Videostreaming
7.9 Social networks
7.10 Communications
7.10.1 IP and Voice over Internet Protocol (VoIP)
8. Digital economy
8.1 E-commerce
9. Mobile communications
9.1 Market analysis
9.2 Mobile statistics
9.2.1 General statistics
9.2.2 Prepaid
9.2.3 Average Revenue per User (ARPU)
9.2.4 Mobile data
9.2.5 Mobile broadband
9.2.6 Forecasts – mobile market – 2015; 2017; 2020
9.3 Regulatory issues
9.3.1 Spectrum auctions
9.3.2 Network sharing
9.4 Mobile infrastructure
9.4.1 Digital networks
9.4.2 Other infrastructure developments
9.5 Major mobile operators
9.5.1 Movilnet (CANTV)
9.5.2 Movistar (Telefónica)
9.5.3 Digitel
9.6 Mobile handsets
Table 1 – Country statistics – 2015 (e)
Table 2 – Telephone network statistics – 2015 (e)
Table 3 – Internet user statistics – 2015 (e)
Table 4 – Broadband statistics – 2015 (e)
Table 5 – Mobile statistics – 2015 (e)
Table 6 – National telecommunications authority
Table 7 – Evolution of GDP in Venezuela – 2010 - 2015
Table 8 – Telecom revenues and investments – 2001 - 2015
Table 9 – Telecom revenue as a percentage of GDP – 2001 - 2015
Table 10 – Fixed-line prepaid/postpaid ratio – 2001 - 2014
Table 11 – CANTV group revenue – 2012 - 2013
Table 12 – CANTV – fixed lines in service and market share – 1999 - 2013
Table 13 – Movistar – fixed lines in service and market share – 2004 - 2012
Table 14 – Historic - Fixed lines in service and teledensity – 1997 - 2004
Table 15 – Fixed lines in service and teledensity – 2005 - 2016
Table 16 – Historic - Public payphones – 1997 - 2004
Table 17 – Public payphones – 2005 - 2015
Table 18 – Fixed-line voice traffic – 2005 - 2016
Table 19 – Fixed-line revenue and investment – 2005 - 2016
Table 20 – Historic - Internet users and user penetration rate – 1998 - 2004
Table 21 – Internet users, subscribers and user penetration rate – 2005 - 2015
Table 22 – Dial-up internet subscribers – 2000 - 2015
Table 23 – Fixed broadband subscribers and penetration rates – 2000 - 2014
Table 24 – Fixed broadband technologies – market share – 2001 - 2015
Table 25 – CANTV – broadband subscribers – 2000 - 2013
Table 26 – Internet service revenue – 2001 - 2016
Table 27 – Forecast broadband subscribers –– 2015; 2017; 2020
Table 28 – Historic - Pay TV subscribers and penetration rates – 1997 - 2004
Table 29 – Pay TV subscribers and penetration rates – 2005 - 2015
Table 30 – Major pay TV providers – market share – 2010 - 2012
Table 31 – Broadcasting service revenue – 2001 - 2015
Table 32 – Facebook users and penetration – 2008 - 2013
Table 33 – Venezuela – B2C e-commerce spending – 2005 - 2013
Table 34 – Historic - Mobile subscribers and penetration rate – 1997 - 2004
Table 35 – Mobile subscribers and penetration rate – 2005 - 2016
Table 36 – Mobile voice traffic – 2001 - 2016
Table 37 – Mobile sector revenue – 2001 - 2016
Table 38 – Mobile prepaid/postpaid ratio – 1997 - 2015
Table 39 – Mobile prepaid/postpaid subscribers – 1997 - 2015
Table 40 – Mobile ARPU – 2002 - 2013
Table 41 – Mobile ARPU by operator – 2009 - 2012
Table 42 – SMS messages sent, annual change – 2002 – 2015
Table 43 – SMS messages sent, annual change – 2002 - 2015
Table 44 – Mobile broadband subscribers – 2009 - 2016
Table 45 – Forecast mobile subscribers – higher growth scenario – 2015; 2017; 2020
Table 46 – Market share of mobile operators – 2001 - 2015
Table 47 – Movilnet – mobile subscribers – 2001 - 2013
Table 48 – Movistar subscribers – 2001 - 2013
Chart 1 – Evolution of revenues and investments – 2001 - 2015
Chart 2 – Fixed lines in service – market evolution at a glance – 2005 - 2016
Chart 3 – Internet users and user penetration rate – 2005 – 2016
Chart 4 – Fixed broadband subscribers – market evolution at a glance – 2003 - 2016
Chart 5 – Mobile subscribers and penetration at a glance – 2003 - 2016
Exhibit 1 – Map of Venezuela
Exhibit 2 – CANTV at a glance
Exhibit 3 – Movilnet at a glance
Exhibit 4 – Movistar at a glance
Exhibit 5 – Digitel at a glance
