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Government Backing Helps the Colombian Telecommunications Services Market Expand Finds Frost & Sullivan - Service bundles and value-added services to enable providers to permeate the underpenetrated low-income segments
Government Backing Helps the Colombian Telecommunications Services Market Expand Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Bogota, Colombia, 2011/10/19 - Service bundles and value-added services to enable providers to permeate the underpenetrated low-income segments.

   
 
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The political and economic stability in Colombia had enabled its economy to grow at 4.0 to 6.0 percent a year, before the 2009 global economic downturn, which helped raise the profile of the country's telecommunications services. The expansion of the small and medium-size businesses (SMBs), following the economic revival in 2010, will also contribute to the growth of the market.

New analysis from Frost & Sullivan (ipcommunications.frost.com), Colombian Total Telecommunications Services Market, finds that the market set up 54.7 million lines in service and had generated $7.67 billion in revenues during 2009.The market is forecast to grow at a compound annual growth rate (CAGR) of 6.5 percent to reach 79.8 million lines in 2015, while revenues are projected to experience a CAGR of 5.0 percent, reaching $10.29 billion the same year.

The telecommunication services market bounced back from the economic downturn of 2009 with a growth rate of 4.9 percent in 2010, on the back of favorable Government projects such as the 'Vive Digital Colombia'. This particular project is expected to increase broadband connections fourfold by 2014, to reach 8.8 million connections, covering 50 percent of the households in the country.

"Government incentives and tax reductions are necessary to stimulate investments, attract services providers and thereby, raise the level of competition and quality of services nationwide," says Frost & Sullivan Industry Analyst Gina Sanchez. "Additionally, service providers must pursue more cost-efficient and faster technologies - rather than the traditional digital subscriber line (DSL) and cable modem - to provide last-mile access, including fiber-to-the-home (FTTH), 3G, 4G, and other services."

While the mobile telephony segment leads the total market in terms of revenues ($4.46 billion) and number of lines (41.32 million), broadband and pay-TV services are expected to register the highest CAGR of 18.1 percent and 9.4 percent, respectively, from 2009 to 2015.

The market could tap its potential more efficiently if it obtains significant investments and the PC as well as smartphone penetration improves among the lower-income segments and distant geographic areas. These two issues have delayed the return on investment (ROI) for low-priced products, thus restricting the usage of telecommunications services to high-income segments.

Service providers can offset these penetration concerns by offering customized bundles for the medium- and lower-income segments, especially in services such as broadband and pay-TV. They could also provide value-added offers in the mobile segment, encouraging the use of mobile applications such as the Internet and mobile TV.

Such novel services are vital since the market is influenced by the global trends of convergence and market consolidation. Colombia has already rolled out more attractive triple-play and quadruple-play offerings than other countries in Latin America. With the addition of new services such as voice over Internet protocol (VoIP), IPTV, unified communications and mobile TV, telcos are evolving into Internet-centric operators.

"However, the challenge is to go one step ahead and become the sole telecommunications service provider within a household or a business," notes Sanchez. "Market participants will be well served if they become the one-stop source of all services, using fixed and mobile networks, with a single bill and point of customer service."

If you are interested in more information on this study, please send an email to Tatiana Brull, Corporate Communications, at tatiana.brull[.]frost.com, with your contact details.

Colombian Total Telecommunications Services Market is part of the Communications Services Growth Partnership Services program, which also includes research in the following markets: Latin American Pay TV Services Markets, Latin America Mobile Content Markets, Latin American Data Communications Services Markets, and Latin American Broadband Services Markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Colombian Total Telecommunications Services Market / N7E4

 
 
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Government Backing Helps the Colombian Telecommunications Services Market Expand Finds Frost & Sullivan

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