Market Research Report
Ecuador: Fiber Network Deployments Coupled with Investments in 4G Network Expansion to Support Telecom Growth
|Published by||GlobalData||Product code||524348|
|Published||Content info||35 Pages
Delivery time: 1-2 business days
|Ecuador: Fiber Network Deployments Coupled with Investments in 4G Network Expansion to Support Telecom Growth|
|Published: June 27, 2017||Content info: 35 Pages||
In 2016, Ecuador generated an estimated telecom service revenue of US$3.2bn (equivalent to 3.3% of nominal GDP), a 3.4% decrease in comparison to 2015, due to decline in mobile voice and circuit switched revenue. Despite the decline, mobile voice continued to be the largest revenue-contributing segment and accounted for 34.5% of total service revenue in 2016, but it will be surpassed by mobile data from 2018 onward, owing to operators' investments in 4G network expansion and data bundles offered by operators.
It is expected that overall service revenue to grow at a CAGR of 2.0% during 2016-2021. The growth will be driven by mobile data, fixed VoIP and fixed broadband segments. The fixed/mobile revenue split will be dominated by the mobile segment through 2016-2021; by the end of the period, mobile revenue will account for 59.1% of total service revenue.
2G remained the most used technology and accounted for 44.4% of mobile subscriptions in 2016. However, its share will decline over the forecast period and will reach 6.0% by 2021. 3G will take the top position from 2017 onward and will be replaced by 4G from 2019 onward. We expect 4G subscriptions to reach 10.8m by 2021, accounting for 61.0% of total mobile subscriptions.
The top two operators, Claro Ecuador and CNT, which provide fixed and mobile services, accounted for 67.5% of total service revenue in 2016. Claro will continue to maintain its leadership position in the telecom market through 2021. Operators are focusing on 4G network expansion, promotional offers and competitive pricing to drive future growth.
Broadband lines will grow moderately during 2016-2021, with the penetration of population to increase from 10.3% in 2016 to 13.7% by 2021. Growth will be driven by government and operator investments in fiber network deployments to improve broadband availability. Operators should emphasize increasing investments in the fixed and mobile market to support the objectives set by the Ministry of Telecommunications and Information Society in its National Plan 2016-2021. 4G network expansion by operators will provide growth opportunities for vendors and investors.
The report "Ecuador: Fiber Network Deployments Coupled with Investments in 4G Network Expansion to Support Telecom Growth" provides an executive-level overview of the telecommunications market in Ecuador today, with detailed forecasts of key indicators up to 2021.
In particular, this report provides the following -
Companies mentioned in this report: Claro, Movistar, CNT, TVCable, DirecTV, ETAPA.