Bolivia - Telecoms, Mobile and Broadband

Although Bolivia had enjoyed strong economic growth prior to the Covid-19 pandemic, GDP remains among the lowest in South America. Many areas of the country outside the main cities are poor and undeveloped, and there is a sizeable proportion of the population which live in remote valleys and areas where telecom infrastructure has been chronically neglected. As a result, the penetration of telecom services is relatively low.

The structure of Bolivia's fixed telecom market is different from most other countries. Local services are primarily provided by 15 telecom cooperatives. These are non-profit-making companies privately owned and controlled by their users. Since the market was liberalised, the cooperatives have also provided long-distance telephony, while several also offer broadband and pay TV services. They have invested in network upgrades in a bid to improve services for customers, and to expand their footprints.

Bolivia has a multi-carrier system wherein consumers can choose a long-distance carrier for each call by dialling the carrier's prefix. Several operators have also adopted fixed-wireless technologies, and some rent fibre-optic capacity.

State-owned Empresa Nacional de Telecomunicaciones (Entel) is the country's incumbent long-distance operator, also offering local telephony, DSL, and pay TV services. Its subsidiary Entel Movil is Bolivia's largest mobile network provider.

Bolivia's fixed broadband services remain expensive, though the cost of bandwidth is only a fraction of what it was only a few years ago. Services are still unavailable in many rural and remote areas, and even in some of the major urban areas. Being a landlocked country, Bolivia had no direct access to submarine cable networks, and relies on satellite services or terrestrial links across neighbouring countries. In September 2020 Entel inaugurated a new cable running via Peru, which has increased capacity and contributed to a dramatic fall in end-user prices.

Fixed broadband services are fast migrating from DSL to fibre, while there are also cable broadband services available in some major cities.

Since it was renationalised in 2007 Entel has focused on providing telecom services in rural areas under a project known as 'Territory with Total Coverage'. This project aims to increase telecom coverage through mobile rather than through fixed networks.

Bolivia has almost twenty times as many mobile phone subscribers as fixed line connections, and the trend towards fixed-mobile substitution continues. Besides Entel, two other companies offer mobile telephony: Tigo, wholly owned by Luxembourg-based Millicom International, and NuevaTel, trading as Viva and controlled by Trilogy International. A proposed deal to merge Millicom's business units in the region with those of Liberty Latin America was called off in February 2019.

All three mobile companies offer 3G and LTE services. Due to the poor quality, high cost, and poor reach of DSL, mobile networks have become the principal platform for voice services and data access. The take-up of services based on LTE has risen steadily as network builds have developed. Tigo launched the first LTE services in mid-2014, followed by Viva in mid-2015. By early 2021 both companies' networks reached more than 95% of the population. About 92% of all internet accesses are via smartphones.

BuddeComm notes that the outbreak of the Covid-19 pandemic continues to have a significant impact on production and supply chains globally. Since 2020 the telecoms sector, to various degrees, has experienced a downturn in mobile device production. It was also difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G has been 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, has offset such pressures. In many markets the net effect will continue to be a steady though reduced increased in subscriber growth.

Although it is challenging to predict and interpret the long-term impacts of the pandemic, 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:

Entel connects Bolivia to the Pacific via a 2,000km cable through Peru;

International roaming charges for travellers between Bolivia, Colombia, Ecuador, and Peru to be gradually reduced;

Bolivia's space agency confirms plans to boost the provision of satellite-based internet in rural areas;

Entel installs 500 free Wi-Fi points in urban and rural municipalities;

Communication towers in Yapacani destroyed over Covid-19 conspiracy fears;

B$125 million investment committed to resume Entel's network expansion projects in rural areas;

Iskratel deploys GPON broadband network for the ISP Cotap;

Report update includes the regulator's market data to June 2021, operator data to Q3 2021, Telecom Maturity Index charts and analyses, recent market developments.

Companies mentioned in this report:

Autoridad de Fiscalización y Control Social de Telecomunicaciones y Transporte (ATT), Entel Movil, Tigo (Telefónica), Viva (NuevaTel), SES World Skies.

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

Overview
Regulatory authority
Fixed-line developments
- Privatisation of Entel
- Renationalisation of Entel
- Telecom sector liberalisation
- Telecommunications Law 2011
Mobile market developments
- Mobile Number Portability (MNP)
- Roaming

Mobile market

Market analysis
Mobile statistics
- General statistics
Mobile broadband
Mobile infrastructure
- 5G
- 4G (LTE)
- 3G
Major mobile operators
- Entel Movil
- Tigo Bolivia
- Viva (NuevaTel)
Mobile Virtual Network Operators (MVNOs)
Mobile content and applications
- M-payments

Fixed-line broadband market

Introduction and statistical overview
Market analysis
Broadband statistics
Government ICT plans
Fixed-line broadband technologies
- Hybrid Fibre Coax (HFC) networks
- Digital Subscriber Line (DSL) networks
- Fibre-to-the-Premises (FttP) networks
- Other fixed broadband services

Digital economy

Entertainment
e-Health developments
e-Learning
Internet of Things (IoT)

Fixed network operators

Introduction
Entel
Cooperatives
- Overview

Telecommunications infrastructure

Overview of the national telecom network
International infrastructure
- Satellite networks
Infrastructure developments
- Wireless Local Loop (WLL)

Appendix - Historic data

Glossary of abbreviations

Related reports

List of Tables

Table 1 - Top Level Country Statistics and Telco Authorities - Bolivia - 2021 (e)
Table 2 - Evolution of GDP in Bolivia - 2011 - 2021
Table 3 - Fixed-line/mobile market share of lines - 2011 - 2021
Table 4 - Development of telecom market revenue by sector (B$ million) - 2011 - 2020
Table 5 - Change in telecom fixed voice revenue by type (B$ million) - 2011 - 2020
Table 6 - Growth in the number of mobile subscribers and penetration - 2011 - 2026
Table 7 - Change in mobile voice traffic - 2011 - 2020
Table 8 - Change in mobile voice traffic per subscriber - 2011 - 2020
Table 9 - Change in annualised mobile ARPU - 2011 - 2020
Table 10 - Growth in the number of active mobile broadband subscribers and penetration - 2011 - 2026
Table 11 - Mobile internet connections by platform - 2014 - 2020
Table 12 - Growth in the number of Tigo's mobile subscribers - 2011 - 2021
Table 13 - Development of Tigo's financial data ($ million) - 2014 - 2021
Table 14 - Change in the number of Viva's mobile subscribers - 2015 - 2021
Table 15 - Viva mobile LTE subscribers - 2015 - 2020
Table 16 - Development of Viva's financial data ($ million) - 2016 - 2021
Table 17 - Development of Viva's mobile revenue by type ($ million) - 2015 - 2021
Table 18 - Change in Viva's mobile ARPU ($ per month) - 2017 - 2021
Table 19 - Total fixed and mobile internet accesses - 2011 - 2021
Table 20 - Growth in the number of fixed broadband subscribers and penetration - 2011 - 2026
Table 21 - Change in the fixed broadband market share by technology - 2011 - 2020
Table 22 - Cable broadband subscribers - 2011 - 2020
Table 23 - Change in the number of DSL subscribers - 2011 - 2020
Table 24 - Increase in the number of fibre broadband subscribers - 2012 - 2020
Table 25 - WiMAX broadband subscribers - 2015 - 2020
Table 26 - Satellite broadband subscribers - 2010 - 2020
Table 27 - Fixed lines in service and teledensity - 2011 - 2026
Table 28 - Change in local and national fixed-line traffic (million minutes) - 2011 - 2020
Table 29 - Change in average local fixed-line traffic per line - 2011 - 2020
Table 30 - International bandwidth - 2011 - 2020
Table 31 - Historic - Evolution of GDP in Bolivia - 2000 - 2010
Table 32 - Historic - Fixed-line/mobile market share of lines - 1996 - 2010
Table 33 - Historic - Fixed internet users and user penetration rate - 2011 - 2016
Table 34 - Historic - Telecom market revenue by sector (B$ million) - 2005 - 2010
Table 35 - Historic - Telecom fixed voice revenue by type (B$ million) - 2005 - 2010
Table 36 - Historic - Mobile subscribers and penetration rate - 1996 - 2010
Table 37 - Historic - Market share of mobile operators - 2003 - 2017
Table 38 - Historic - Mobile voice traffic - 2006 - 2010
Table 39 - Historic - Annualised mobile voice ARPU - 2005 - 2010
Table 40 - Historic - Mobile voice traffic per month per subscriber - 2006 - 2010
Table 41 - Historic - Active mobile broadband subscribers - 2007 - 2010
Table 42 - Historic - Entel - mobile subscribers - 2000 - 2012
Table 43 - Historic - Tigo mobile subscribers - 2003 - 2010
Table 44 - Historic - Fixed internet users and user penetration rate - 1996 - 2010
Table 45 - Historic - Total fixed and mobile internet accesses - 2002 - 2010
Table 46 - Historic - Fixed broadband subscribers and penetration rates - 2002 - 2010
Table 47 - Historic - Fixed broadband market share by technology - 2002 - 2010
Table 48 - Historic - Cable broadband subscribers - 2002 - 2010
Table 49 - Historic - DSL subscribers - 2002 - 2010
Table 50 - Historic - Entel revenue - 2001 - 2015
Table 51 - Historic - Entel fixed lines in service and market share - 2000 - 2012
Table 52 - Historic - Fixed lines in service and teledensity - 1996 - 2010
Table 53 - Historic - International bandwidth - 2000 - 2010

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 - Development of telecom market revenue by sector (B$ million) - 2011 - 2020
Chart 11 - Change in telecom fixed voice revenue by type (B$ million) - 2011 - 2020
Chart 12 - Growth in the number of mobile subscribers and penetration - 2011 - 2026
Chart 13 - Change in mobile voice traffic - 2011 - 2020
Chart 14 - Change in mobile voice traffic per subscriber - 2011 - 2020
Chart 15 - Change in annualised mobile ARPU - 2011 - 2020
Chart 16 - Growth in the number of active mobile broadband subscribers and penetration - 2011 - 2026
Chart 17 - Change in the number of Tigo's mobile subscribers - 2011 - 2021
Chart 18 - Development of Tigo's financial data ($ million) - 2014 - 2021
Chart 19 - Change in the number of Viva's mobile subscribers - 2015 - 2021
Chart 20 - Development of Viva's financial data ($ million) - 2016 - 2021
Chart 21 - Development of Viva's mobile revenue by type ($ million) - 2015 - 2021
Chart 22 - Change in Viva's mobile ARPU ($ per month) - 2017 - 2021
Chart 23 - Growth in the number of fixed broadband subscribers and penetration - 2011 - 2026
Chart 24 - Change in the fixed broadband market share by technology - 2011 - 2020
Chart 25 - Fixed lines in service and teledensity - 2011 - 2026
Chart 26 - Change in local and national fixed-line traffic (million minutes) - 2011 - 2020

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 Bolivia
Exhibit 7 - List of cooperatives

Bolivia - Telecoms, Mobile and Broadband - Statistics and Analyses

Description

Table of Contents

List of Tables

Entel inaugurates fibre connection to the Pacific Ocean via Peru

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