Venezuela - Telecoms, Mobile and Broadband

Venezuela's fixed-line teledensity was relatively high for the region before the steady growth in the number of lines came to an end in 2015. Since then, the number of lines has plummeted, and by late 2021 teledensity had fallen to about 17.3%. The cause is largely linked to the country's ongoing economic troubles, which have compelled many people to terminate fixed-line telecom services and others still to flee the country.

The financial concerns of customers have been exacerbated by the decrepit state of much of the fixed network, which has been hampered by the difficulty for telcos and infrastructure suppliers to pay for equipment from foreign vendors. This has resulted in a poor quality of service in many areas of the country. These pressures have also distorted sector revenue and have placed into disarray operators' investment plans aimed at improving networks and expanding the reach and capabilities of new technologies and services.

The fixed broadband penetration rate is lower than the regional average, while data speeds are also relatively low. There is no effective competition in the provision of DSL, and as a result the state-owned incumbent CANTV has had little incentive to improve services from its meagre revenue streams.

Mobile penetration in Venezuela is also below the regional average. The number of mobile subscribers fell by an estimated 2.4% in 2020, year-on-year, as subscribers terminated services in a bid to reduce discretionary spending. This decline is expected to continue into 2022, with subscriber growth not returning until 2023.

The three MNOs Movilnet, Movistar, and Digitel have also had to contend with widespread theft of equipment and with erratic electricity supply to their remaining base stations. Movistar has also been hit by currency restrictions and has depended on support from Telefónica Group to stay afloat. Nevertheless, it seems determined to remain in the market.

This report provides an overview of Venezuela's telecom infrastructure, market, and regulatory environment, together with profiles of the major fixed-line operators. It also provides a range of statistics and market analyses. The report also reviews the fixed and wireless broadband markets, as well as the mobile market, including an assessment of key market statistics and general sector analyses on a very difficult competitive environment.

BuddeComm notes that the outbreak of the Coronavirus continues to have a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure.

Overall progress towards 5G may be postponed or slowed down in some countries.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.

Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.

The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.

Key developments:

Simon Bolivar Satellite (VeneSat-1) drifts off its allocated orbital path and becomes non-operational;

AT&T closes its DirecTV Latin America unit in Venezuela due to US sanctions, Chilean investment firm Scale Capital acquires DirecTV's operations, aims to launch mobile services;

Pluto TV launches ad-supported streaming platform;

Chilean investment firm Scale Capital acquires DirecTV's operations, aims to launch mobile services;fa

Conatel awards new ISP licence to Conext Venezuela;

Report update includes the regulator's market data to December 2019, operator data updates to Q4 2020, Telecom Maturity Index charts and analyses, assessment of the global impact of Covid-19 on the telecoms sector, recent market developments.

Companies mentioned in this report:

Movilnet, Movistar, Digitel, MovilMax, Tesacom, CANTV, Inter, NetUno, SuperCable, Alodiga, Multiphone, Totalcom, Convergía.

Key statistics

Regional Latin America Market Comparison

Market characteristics
Market Leaders
Market Challengers
Market Emergents
TMI versus GDP
Mobile and mobile broadband penetration
Fixed versus mobile broadband penetration

Country overview

Covid-19 and its impact on the telecom sector

Economic considerations and responses
Subscribers
Infrastructure

Telecommunications market

Market analysis

Regulatory environment

Regulatory authorities
- Telecom Ministry
- Conatel
Fixed-line developments
- Universal Service Fund (USF)
- Domain Name Regulation
Mobile network developments
- Spectrum auctions
- Network sharing

Mobile market

Market analysis
Mobile statistics
Mobile infrastructure
- Digital networks
- Other infrastructure developments
- Mobile data
- Mobile broadband
Major mobile operators
- Movilnet (CANTV)
- Movistar (Telefónica Venezolana)
- Digitel

Fixed-line broadband market

Introduction and statistical overview
- Market analysis
Broadband statistics
Hybrid Fibre Coax (HFC) networks
Digital Subscriber Line (DSL) networks
Fibre-to-the-Premises (FttP) networks
Other fixed broadband services
- Wi-Fi/WiMAX
- Satellite broadband

Digital economy

E-commerce
Mobile payments
E-Learning

Fixed network operators

Introduction
CANTV
Movistar (Telefónica)
Digitel
Inter
NetUno

Telecommunications infrastructure

Overview of the national telecom network
- National Fibre-Optic Backbone
International infrastructure
- Terrestrial links
- Submarine cable networks
- Satellite networks
Wholesale

Appendix - Historic data

Glossary of abbreviations

Related reports

List of Tables

Table 1 - Top Level Country Statistics and Telco Authorities - Venezuela - 2021 (e)
Table 2 - Evolution of GDP in Venezuela - 2011 - 2021
Table 3 - Telecom revenues and investments - 2011 - 2019
Table 4 - Telecom revenue by sector (Bs.F billion) - 2011 - 2019
Table 5 - Change in the number of mobile subscribers and penetration - 2011 - 2026
Table 6 - Mobile voice traffic - 2011 - 2020
Table 7 - Mobile sector revenue - 2011 - 2020
Table 8 - Change in the prepaid/postpaid ratio of mobile subscriptions - 2011 - 2020
Table 9 - Change in the number of prepaid/postpaid mobile subscribers (million) - 2011 - 2020
Table 10 - Change in the distribution of mobile subscribers by technology - 2014 - 2019
Table 11 - M2M connections - 2014 - 2019
Table 12 - Decline in SMS traffic, annual change - 2011 - 2020
Table 13 - Dedicated mobile broadband subscribers - 2011 - 2021
Table 14 - Growth in the number of active mobile broadband subscribers - 2011 - 2026
Table 15 - Increase in mobile data traffic - 2014 - 2019
Table 16 - Market share of mobile subscribers by operator - 2011 - 2019
Table 17 - Movilnet - mobile subscribers - 2011 - 2019
Table 18 - Movistar mobile service revenue - 2015 - 2020
Table 19 - Movistar subscribers - 2011 - 2020
Table 20 - Internet users and penetration rate - 2011 - 2019
Table 21 - Dial-up internet subscribers - 2011 - 2019
Table 22 - Growth in the number of fixed broadband subscribers and penetration - 2011 - 2026
Table 23 - Change in the market share of fixed broadband subscriptions by platform - 2011 - 2019
Table 24 - CANTV - broadband subscribers - 2011 - 2013; 2018 -2019
Table 25 - Internet service revenue - 2011 - 2019
Table 26 - Cable broadband subscribers - 2011 - 2019
Table 27 - DSL broadband subscribers - 2011 - 2019
Table 28 - Fibre broadband subscribers - 2014 - 2019
Table 29 - Change in the number of CANTV's fixed lines in service and market share - 2011 - 2015; 2018-2019
Table 30 - Change in the number of Movistar Venezuela's fixed lines in service - 2011 - 2019
Table 31 - Development of Movistar Venezuela's financial data (€ million) - 2015 - 20d20
Table 32 - Decline in the number of fixed lines in service and teledensity - 2011 - 2026
Table 33 - Fixed-line and mobile voice traffic (billion minutes) - 2011 - 2019
Table 34 - International internet bandwidth - 2011 - 2020
Table 35 - Historic - Telecom sector revenue and investment - 2001 - 2010
Table 36 - Historic - Telecom sector revenue by sector (Bs. F billion) - 2008 - 2010
Table 37 - Historic - Telecom revenue as a percentage of GDP - 2001 - 2010
Table 38 - Historic - Active mobile subscribers and penetration rate - 1997 - 2010
Table 39 - Historic - Mobile voice traffic - 2001 - 2010
Table 40 - Historic - Mobile sector revenue - 2001 - 2010
Table 41 - Historic - Mobile prepaid/postpaid ratio - 1997 - 2010
Table 42 - Historic - Mobile prepaid/postpaid subscribers (million) - 2000 - 2010
Table 43 - Historic - SMS messages traffic and annual change - 2002 - 2010
Table 44 - Historic - Dedicated mobile broadband subscribers - 2008 - 2010
Table 45 - Historic - Market share of mobile subscribers by operator - 2001 - 2010
Table 46 - Historic - Movilnet - mobile subscribers - 2001 - 2010
Table 47 - Historic - Movistar subscribers - 2001 - 2010
Table 48 - Historic - Internet users and user penetration rate - 1998 - 2010
Table 49 - Historic - Dial-up internet subscribers - 2000 - 2010
Table 50 - Historic - Fixed broadband subscribers and penetration rates - 2000 - 2010
Table 51 - Historic - Fixed broadband technologies - market share - 2001 - 2010
Table 52 - Historic - CANTV - broadband subscribers - 2000 - 2010
Table 53 - Historic - Internet service revenue - 2001 - 2010
Table 54 - Historic - Cable broadband subscribers - 2007 - 2010
Table 55 - Historic - DSL broadband subscribers - 2007 - 2010
Table 56 - Historic - CANTV's fixed lines in service and market share - 2000 - 2010
Table 57 - Historic - Movistar's fixed lines in service - 2004 - 2016
Table 58 - Historic - Fixed lines in service and teledensity - 1997 - 2010
Table 59 - Historic - Fixed-line and mobile voice traffic (billion minutes) - 2001 - 2010
Table 60 - Historic - International internet bandwidth - 2004 - 2010
Table 61 - Historic - Movistar Venezuela's financial data (Bs. F billion) - 2014 - 2016
Table 62 - Movistar Venezuela's accesses by platform (million) - 2011 - 2016

List of Charts

Chart 1 - Latin America Telecoms Maturity Index - Market Leaders
Chart 2 - Latin America Telecoms Maturity Index - Market Challengers
Chart 3 - Latin America Telecoms Maturity Index - Market Emergents
Chart 4 - Latin America - Telecoms Maturity Index vs GDP per capita
Chart 5 - Latin America - Mobile subscriber penetration vs mobile broadband penetration
Chart 6 - South America mobile subscriber penetration vs mobile broadband penetration
Chart 7 - Central America - mobile subscriber penetration vs mobile broadband penetration
Chart 8 - South America - Fixed and mobile broadband penetration
Chart 9 - Central America - Fixed and mobile broadband penetration
Chart 10 - Evolution of revenues and investments - 2011 - 2019
Chart 11 - Telecom revenue by sector (Bs.F billion) - 2011 - 2019
Chart 12 - Change in the number of mobile subscribers and penetration - 2011 - 2026
Chart 13 - Change in the prepaid/postpaid ratio of mobile subscriptions - 2011 - 2020
Chart 14 - Mobile prepaid/postpaid subscribers - 2011 - 2020
Chart 15 - Change in the distribution of mobile subscribers by technology - 2014 - 2019
Chart 16 - Decline in SMS traffic - 2011 - 2020
Chart 17 - Dedicated mobile broadband subscribers - 2011 - 2021
Chart 18 - Growth in the number of active mobile broadband subscribers - 2011 - 2026
Chart 19 - Market share of mobile subscribers by operator - 2011 - 2019
Chart 20 - Internet users and user penetration rate - 2011 - 2019
Chart 21 - Growth in the number of fixed broadband subscribers and penetration - 2011 - 2026
Chart 22 - Decline in the number of fixed lines in service and teledensity - 2011 - 2026
Chart 23 - Fixed-line and mobile voice traffic - 2011 - 2019

List of Exhibits

Exhibit 1 - Map of Telecom Maturity Index global ranking among countries in Latin America
Exhibit 2 - Generalised Market Characteristics by Market Segment
Exhibit 3 - Latin America - Market Leaders and market developments
Exhibit 4 - Latin America - Market Challengers and market developments
Exhibit 5 - Latin America - Market Emergents and market developments
Exhibit 6 - Map of Venezuela
Exhibit 7 - Submarine cable network links to Venezuela - 2021

Venezuela - Telecoms, Mobile and Broadband - Statistics and Analyses

Description

Table of Contents

List of Tables

Venezuela's economic crisis stifling the telecoms sector

Key developments:

Companies mentioned in this report:

Table of Contents

Key statistics

Regional Latin America Market Comparison

Country overview

Covid-19 and its impact on the telecom sector

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Digital economy

Fixed network operators

Telecommunications infrastructure

Appendix - Historic data

Glossary of abbreviations

Related reports

List of Tables

List of Charts

List of Exhibits