2008 Latine America - Telecoms, Mobile and Broadband in the Andean Bloc

The Andean Bloc countries are Bolivia, Colombia, Ecuador, and Peru, which are among the poorest countries in South America, with the lowest telecom indicators but with room for growth in all markets. Investment opportunities are good particularly in alternative technologies suited to the area's rugged terrain. This annual report offers a wealth of information on the trends and developments in telecommunications, mobile, Internet, broadband, and converging media.

Subjects include:

• Key statistics and forecasts;
• Market and industry overviews;
• Government policies and regulatory issues;
• Historical information;
• Major players (fixed-line, mobile, broadband, and pay TV);
• Telecom infrastructure (national and international, fixed and wireless);
• Mobile voice and data markets;
• Internet market and VoIP;
• Broadband (DSL, cable, wireless);
• Convergence, triple play, pay TV, and developments in digital TV.

Researcher - Lucia Bibolini

• Current publication date: March 2008 (7th Edition)
• Next publication date: February 2009

BuddeComm's Annual Publication on the Andean Bloc countries, 2008 Telecoms, Mobile and Broadband in Latin America - the Andean Bloc, profiles four nations that occupy the north-west and centre-west side of South America, bordering the Pacific Ocean - except for Bolivia, which is land-locked. With a total land area of 3.8 million sq km and a population of 99.5 million, these countries are characterised by tropical lowlands, snow-capped mountains, and extremely ragged landscapes.

The Andean Community of Nations - Comunidad Andina de Naciones (CAN) - is a trade bloc comprising Bolivia, Colombia, Ecuador, and Peru. CAN's membership decreased from six to four countries following the withdrawal of Chile in 1976, and of Venezuela in 2006. Founded in 1969, the trade bloc was called the Andean Pact until 1996. CAN's headquarters are in Lima, Peru.

Bolivia, Colombia, Ecuador, and Peru are among the poorest countries in South America, with the worst macroeconomic indicators in the region. Fixed-line teledensity is limited throughout the Andes by the low population density and the rough mountainous landscapes, which hinder the laying of copper wire. Bolivia has South America's lowest mobile penetration and second lowest fixed line teledensity. On the upside, there is considerable room for growth in all four markets, and good investment opportunities, particularly in alternative technologies suited to the area's rugged terrain.

This report presents a concise overview of sector liberalisation and privatisation in the Andean sub-region, government initiatives and regulations in the telecom industry, the development of product offerings for both mobile and broadband technologies, essential country and operator statistics in all telecom sectors, and the emergence of convergence and triple play.

Key highlights

• The fixed-line market has been liberalised in all four nations. Apart from Peru, which has one fixed line incumbent that dominates the last mile, the other countries have several regional operators - Bolivia has 15 local telephone cooperatives, and Colombia has around 30 local providers that operate municipally, regionally, or nationally. Long distance telephony is extremely competitive in all four markets. VoIP telephony has been adopted by a number of operators and is available through Internet cafs and telecentres.
• Due to the poor fixed-line teledensity, mobility has become the chosen alternative in the Andean countries, leading to a ratio of around 4.5 mobile phones for every fixed-line in service. Prepaid cards have played a significant role in driving growth, making mobile phones accessible to many customers who do not meet credit requirements for postpaid services.
• Besides mobile telephony, operators have been using various wireless and satellite technologies to reach isolated communities. WiMAX has become the future hope for this region, and the first WiMAX or pre-WiMAX networks have been deployed in all four countries.
• Broadband uptake is below the South American average, varying from about 2% in Peru and Colombia, to 0.1% and 0.6% in Bolivia and Ecuador respectively. ADSL is the leading technology by far. In Colombia, however, cable modem is strong and WiMAX has gained a 5% market share.
• Triple play strategies combining telephone, broadband, and pay TV services have been adopted or are being rolled out in all four markets. Colombia is the most advanced of the four in the area of convergence, with several major players offering triple play service, while the Peruvian government has created a single licensing system in the hope of encouraging convergence.

Mobile penetration and annual growth in Andean countries - 2006

• Country Penetration Annual growth
• Bolivia 35.8% 26%
• Colombia 67.0% 9%
• Ecuador 74.1% 20%
• Peru 43.1% 64%
• (Source: BuddeComm 2008)

• 1. Bolivia
  • 1.1 Key statistics
  • 1.2 Telecommunications market
    • 1.2.1 Overview of Bolivia's telecom market
  • 1.3 Regulatory environment
    • 1.3.1 Background
    • 1.3.2 Regulatory authority
    • 1.3.3 Privatisation of Entel
    • 1.3.4 Renationalization of Entel
    • 1.3.5 Telecom sector liberalisation in Bolivia
    • 1.3.6 Foreign investment
    • 1.3.7 Per-second billing
  • 1.4 Telecom network operators in Bolivia
    • 1.4.1 Overview of operators
    • 1.4.2 Entel
    • 1.4.3 Cooperatives
  • 1.5 Telecommunications infrastructure
    • 1.5.1 National telecom networks
    • 1.5.2 International infrastructure
    • 1.5.3 Infrastructure developments
  • 1.6 Internet market
    • 1.6.1 Overview
  • 1.7 Broadband market
    • 1.7.1 Overview
  • 1.8 Convergence
    • 1.8.1 Overview of media convergence
    • 1.8.2 Pay TV
  • 1.9 Mobile communications
    • 1.9.1 Overview of Bolivia's mobile market
    • 1.9.2 Mobile technologies and mobile data services
    • 1.9.3 Regulatory issues
    • 1.9.4 Major mobile operators
    • 1.9.5 Mobile voice services
• 2. Colombia
  • 2.1 Key statistics
  • 2.2 Telecommunication market
    • 2.2.1 Overview of Colombia's telecom market
  • 2.3 Regulatory environment
    • 2.3.1 Background
    • 2.3.2 Regulatory authorities
    • 2.3.3 Privatisation
    • 2.3.4 Telecom sector liberalisation in Colombia
    • 2.3.5 Number portability
    • 2.3.6 Per-minute billing
    • 2.3.7 Interconnect
    • 2.3.8 Rural telephony
    • 2.3.9 Consumer rights
    • 2.3.10 Compartel
    • 2.3.11 Free-Trade Agreement (FTA)
  • 2.4 Telecom network operators in Colombia
    • 2.4.1 Overview of operators
    • 2.4.2 Telefnica Telecom (previously Colombia Telecom)
    • 2.4.3 ETB
    • 2.4.4 UNE EPM Telecomunicaciones
    • 2.4.5 Emcali
    • 2.4.6 Telmex Colombia
  • 2.5 Telecommunications infrastructure
    • 2.5.1 National telecom networks
    • 2.5.2 International infrastructure
    • 2.5.3 Infrastructure developments
  • 2.6 Internet market
    • 2.6.1 Overview
    • 2.6.2 Compartel
  • 2.7 Broadband market
    • 2.7.1 Overview
    • 2.7.2 Major ISPs and broadband players
    • 2.7.3 Cable modems
    • 2.7.4 Asynchronous Digital Subscriber Line (ADSL)
    • 2.7.5 Wireless broadband
  • 2.8 Convergence
    • 2.8.1 Overview of media convergence
    • 2.8.2 Triple play models
    • 2.8.3 Digital TV
    • 2.8.4 Broadband TV (IPTV)
    • 2.8.5 Digital Terrestrial TV (DTTV)
  • 2.9 Mobile communications
    • 2.9.1 Overview of Colombia's mobile market
    • 2.9.2 Regulatory issues
    • 2.9.3 Mobile technologies
    • 2.9.4 Major mobile operators
    • 2.9.5 Mobile voice services
    • 2.9.6 Mobile data services
  • 2.10 Forecasts
    • 2.10.1 Forecasts - fixed-line services to 2017
    • 2.10.2 Forecasts - broadband market to 2017
    • 2.10.3 Forecasts - mobile market to 2017
• 3. Ecuador
  • 3.1 Key statistics
  • 3.2 Telecommunications market
    • 3.2.1 Overview of Ecuador's telecom market
  • 3.3 Regulatory environment
    • 3.3.1 Background
    • 3.3.2 Regulatory authorities
    • 3.3.3 Privatisation
    • 3.3.4 Telecom sector liberalisation in Ecuador
    • 3.3.5 Interconnect
  • 3.4 Telecom network operators in Ecuador
    • 3.4.1 Overview of operators
    • 3.4.2 Andinatel
    • 3.4.3 Pacifictel
    • 3.4.4 Etapa
    • 3.4.5 Linkotel
    • 3.4.6 Setel
    • 3.4.7 Ecutel
  • 3.5 Telecommunications infrastructure
    • 3.5.1 National telecom networks
    • 3.5.2 International infrastructure
    • 3.5.3 Infrastructure developments
  • 3.6 Internet market
    • 3.6.1 Overview
  • 3.7 Broadband market
    • 3.7.1 Overview
    • 3.7.2 Broadband Powerline (BPL)
    • 3.7.3 Wireless broadband
  • 3.8 Pay TV
  • 3.9 Mobile communications
    • 3.9.1 Overview of Ecuador's mobile market
    • 3.9.2 Regulatory issues
    • 3.9.3 Mobile technologies and mobile data services
    • 3.9.4 Major mobile operators
• 4. Peru
  • 4.1 Key statistics
  • 4.2 Telecommunications market
    • 4.2.1 Overview of Peru's telecom market
    • 4.2.2 Milestones
  • 4.3 Regulatory environment
    • 4.3.1 Regulatory authority
    • 4.3.2 FITEL
    • 4.3.3 Privatisation of Telefnica del Per
    • 4.3.4 Telecom sector liberalisation in Peru
    • 4.3.5 Single concession regime
    • 4.3.6 Carrier preselection
    • 4.3.7 Number Portability (NP)
    • 4.3.8 Settlement rates
    • 4.3.9 Interconnect
    • 4.3.10 Fixed-to-Mobile termination charges
    • 4.3.11 Price cap regulations
    • 4.3.12 Interoperability
    • 4.3.13 Callback services
    • 4.3.14 Agreement with Telefnica del Per - December 2006
    • 4.3.15 Repercussions of earthquake on telecommunications
  • 4.4 Telecom network operators in Peru
    • 4.4.1 Overview of operators
    • 4.4.2 Telefnica del Per
    • 4.4.3 Movistar Per
    • 4.4.4 Telmex Per
    • 4.4.5 Americatel Per
    • 4.4.6 Gilat To Home Per
    • 4.4.7 IDT Per
  • 4.5 Telecommunications infrastructure
    • 4.5.1 National telecom networks
    • 4.5.2 International infrastructure
    • 4.5.3 Infrastructure developments
  • 4.6 Internet market
    • 4.6.1 Overview
  • 4.7 Broadband market
    • 4.7.1 Overview
    • 4.7.2 Broadband operators
    • 4.7.3 Cable modems
    • 4.7.4 ADSL
    • 4.7.5 Wireless broadband
  • 4.8 Convergence
    • 4.8.1 Overview of media convergence
    • 4.8.2 Digital TV
  • 4.9 Mobile communications
    • 4.9.1 Overview of Peru's mobile market
    • 4.9.2 Regulatory issues
    • 4.9.3 Mobile technologies
    • 4.9.4 Major mobile operators
    • 4.9.5 Mobile voice services in Peru
    • 4.9.6 Mobile data services
  • 4.10 Forecasts
    • 4.10.1 Forecasts - fixed-line services to 2017
    • 4.10.2 Forecasts - broadband market to 2017
    • 4.10.3 Forecasts - mobile market to 2017
• 5. Glossary of Abbreviations
• List of Tables
  • Table 1 - Country statistics Bolivia - 2008
  • Table 2 - Telephone network statistics - 2006
  • Table 3 - Internet user statistics - 2006
  • Table 4 - Broadband statistics - June 2006
  • Table 5 - Mobile statistics - September 2007
  • Table 6 - National telecommunications authority
  • Table 7 - Fixed-line to mobile ratio - 1996 - 2007
  • Table 8 - Fixed lines in service, annual change and teledensity - 1996 - 2006
  • Table 9 - Public payphones and annual change - 1997 - 2006
  • Table 10 - Internet users, annual change and user penetration - 1997 - 2006
  • Table 11 - Dial-up subscribers and annual change - 1997 - 2006
  • Table 12 - Broadband subscribers, annual change and penetration - 2002 - 2006
  • Table 13 - Cable TV subscribers, annual change and penetration - 2000 - 2006
  • Table 14 - Mobile operators, technology, subscribers and annual change - September 2007
  • Table 15 - Mobile subscribers, annual change and penetration - 1996 - 2007
  • Table 16 - Mobile operators' market share - 2003 - 2007
  • Table 17 - Country statistics Colombia - 2008
  • Table 18 - Telephone network statistics - September 2007
  • Table 19 - Internet user statistics - June 2007
  • Table 20 - Broadband statistics - June 2007
  • Table 21 - Mobile statistics - September 2007
  • Table 22 - Regulatory authorities
  • Table 23 - Telecom revenue and annual change - 2000 - 2007
  • Table 24 - Telecom revenue by segment and annual change - 2006
  • Table 25 - Fixed lines in service - major operators' market share - 2000 - 2007
  • Table 26 - DLD traffic: market share by operator - 1999 - 2007
  • Table 27 - ILD outgoing traffic: market share by operator - 1999 - 2007
  • Table 28 - Telefnica Telecom lines in service and annual change - 2000 - 2007
  • Table 29 - ETB lines in service and annual change - 2000 - 2007
  • Table 30 - UNE EPM lines in service and annual change - 2000 - 2007
  • Table 31 - Fixed lines in service, annual change and teledensity - 1996 - 2007
  • Table 32 - Internet users, annual change and user penetration - 1997 - 2007
  • Table 33 - Dial-up and broadband subscriber ratio - 2003 - 2007
  • Table 34 - Dial-up subscribers and annual change - 2003 - 2007
  • Table 35 - Broadband subscribers, annual change and penetration - 2002 - 2007
  • Table 36 - Broadband market share by technology - 2003 - 2007
  • Table 37 - Cable modem subscribers, annual change and penetration - 2003 - 2007
  • Table 38 - ADSL subscribers, annual change and penetration - 2003 - 2007
  • Table 39 - WiMAX subscribers, annual change and penetration - 2006 - 2007
  • Table 40 - Cable TV subscribers, annual change and penetration - 2000 - 2007
  • Table 41 - Major cable TV providers' market share - 2005 - 2007
  • Table 42 - Satellite TV subscribers by operator and annual change - 2000 - 2007
  • Table 43 - Mobile operators, technology, subscribers and annual change - September 2007
  • Table 44 - Mobile subscribers and annual change, penetration - 1997 - 2007
  • Table 45 - Mobile market share by operator - 2002 - 2007
  • Table 46 - Comcel subscribers and annual change - 2000 - 2007
  • Table 47 - Movistar subscribers and annual change - 2001 - 2007
  • Table 48 - Tigo subscribers and annual change - 2003 - 2007
  • Table 49 - Prepaid/postpaid ratio - 2005 - 2007
  • Table 50 - Forecast fixed-line growth - lower growth scenario - 2007; 2012; 2017
  • Table 51 - Forecast fixed-line growth - higher growth scenario - 2007; 2012; 2017
  • Table 52 - Forecast broadband growth - lower growth scenario - 2007; 2012; 2017
  • Table 53 - Forecast broadband growth - higher growth scenario - 2007; 2012; 2017
  • Table 54 - Forecast mobile subscriber growth - lower growth scenario - 2007; 2012; 2017
  • Table 55 - Forecast mobile subscriber growth - higher growth scenario - 2007; 2012; 2017
  • Table 56 - Country statistics Ecuador - 2008
  • Table 57 - Telephone network statistics - November 2007
  • Table 58 - Internet user statistics - September 2007
  • Table 59 - Broadband statistics - September 2007
  • Table 60 - Mobile statistics - November 2007
  • Table 61 - National telecommunications authorities
  • Table 62 - Market share of mainlines in service by operator - 2001 - 2007
  • Table 63 - Andinatel lines in service, annual change, and digitisation - 2001 - 2007
  • Table 64 - Pacifictel lines in service, annual change, and digitisation - 2001 - 2007
  • Table 65 - Etapa lines in service, annual change, and digitisation - 2001 - 2007
  • Table 66 - Linkotel lines in service, annual change, and digitisation - 2004 - 2007
  • Table 67 - Fixed lines in service, annual change, teledensity, and digitisation - 1996 - 2007
  • Table 68 - Public telephones and annual change - 2003 - 2007
  • Table 69 - Internet users, annual change, and user penetration - 2000 - 2007
  • Table 70 - Dial-up subscribers and annual change - 2000 - 2007
  • Table 71 - Dial-up and broadband subscriber ratio - 2000 - 2007
  • Table 72 - Broadband subscribers, annual change and penetration - 2001 - 2007
  • Table 73 - Pay TV subscribers by technology and annual change - 2004 - 2007
  • Table 74 - Mobile operators, technology, subscribers and annual change - September 2007
  • Table 75 - Mobile subscribers, annual change, and penetration - 1996 - 2007
  • Table 76 - Mobile operators' market share - 1996 - 2007
  • Table 77 - Prepaid subscriber ratio by operator - 2002 - 2007
  • Table 78 - Conecel mobile subscribers and annual change - 1996 - 2007
  • Table 79 - Otecel mobile subscribers and annual change - 1996 - 2007
  • Table 80 - Alegro mobile subscribers and annual change - 2003 - 2007
  • Table 81 - Country statistics Peru - 2008
  • Table 82 - Telecom revenue and investment statistics - 2006
  • Table 83 - Telephone network statistics - September 2007
  • Table 84 - Internet user statistics - September 2007
  • Table 85 - Broadband statistics - 2007
  • Table 86 - Mobile statistics - September 2007
  • Table 87 - National telecommunications authority
  • Table 88 - Number of licensed operators per service - 2004 - 2007
  • Table 89 - Share of fixed lines in service (top four operators) - 2001 - 2007
  • Table 90 - Share of domestic long distance traffic (top five operators) - 2000 - 2007
  • Table 91 - Share of international long distance outgoing traffic (top five operators) - 2000 - 2007
  • Table 92 - TdP fixed lines in service and annual change - 2001 - 2007
  • Table 93 - Movistar fixed lines in service and annual change - 2001 - 2007
  • Table 94 - Telmex Per fixed lines in service and annual change - 2001 - 2007
  • Table 95 - Americatel fixed lines in service and annual change - 2002 - 2007
  • Table 96 - Fixed lines in service, annual change and teledensity - 1996 - 2007
  • Table 97 - Fibre optic cable length - 2002 - 2007
  • Table 98 - Public telephones and annual change - 1997 - 2007
  • Table 99 - FITEL Rural Projects Program
  • Table 100 - Internet users, annual change, and user penetration - 1997 - 2007
  • Table 101 - Narrowband broadband subscribers, annual change, and penetration - 1999 - 2007
  • Table 102 - Narrowband and broadband access ratio - 1999 - 2007
  • Table 103 - Dial-up subscribers and annual change - 2000 - 2007
  • Table 104 - Cabinas pblicas and annual change - 2000 - 2005
  • Table 105 - Broadband subscribers, annual change and penetration - 2000 - 2007
  • Table 106 - Broadband subscriber ratios by technology - 1999 - 2006
  • Table 107 - TdP broadband subscribers and annual change - 2003 - 2007
  • Table 108 - Cable modem subscribers and annual change - 2000 - 2006
  • Table 109 - ADSL subscribers and annual change - 2001 - 2006
  • Table 110 - Cable TV subscribers, annual change and penetration - 1999 - 2007
  • Table 111 - Cable Mgico subscribers and annual change - 2002 - 2007
  • Table 112 - Cable Express subscribers and annual change - 2002 - 2007
  • Table 113 - Cable Star subscribers and annual change - 2002 - 2007
  • Table 114 - Mobile operators, technology, subscribers and annual change - September 2007
  • Table 115 - Mobile subscribers, annual change and penetration - 1996 - 2007
  • Table 116 - Company market share - 1996 - 2007
  • Table 117 - Mobile technology market share - 2004 - 2007
  • Table 118 - Movistar mobile subscribers and annual change - 2001 - 2007
  • Table 119 - Claro subscribers and annual change - 2001 - 2007
  • Table 120 - Nextel subscribers and annual change - 2001 - 2007
  • Table 121 - Prepaid/postpaid ratio - 2001 - 2007
  • Table 122 - SMS messages per company - 2004 - 2007
  • Table 123 - MMS sent per company - 2004 - 2007
  • Table 124 - Forecast fixed-line growth - lower growth scenario - 2007; 2012; 2017
  • Table 125 - Forecast fixed-line growth - higher growth scenario - 2007; 2012; 2017
  • Table 126 - Forecast broadband growth - lower growth scenario - 2007; 2012; 2017
  • Table 127 - Forecast broadband growth - higher growth scenario - 2007; 2012; 2017
  • Table 128 - Forecast mobile subscriber growth - lower growth scenario - 2007; 2012; 2017
  • Table 129 - Forecast mobile subscriber growth - higher growth scenario - 2007; 2012; 2017
• List of Exhits
  • Exhibit 1 - Major submarine cable network landing in Bolivia
  • Exhibit 2 - Telefnica Telecom at a glance
  • Exhibit 3 - Colombia Telecom company history
  • Exhibit 4 - Colombia Telecom privatisation
  • Exhibit 5 - ETB at a glance
  • Exhibit 6 - UNE EPM telecom subsidiaries
  • Exhibit 7 - Orbitel history
  • Exhibit 8 - Telmex Colombia - acquisition of AT&T
  • Exhibit 9 - Major submarine cable networks landing in Colombia
  • Exhibit 10 - Major ISPs and broadband players - 2007
  • Exhibit 11 - Departmental WiMAX licences issued - December 2006
  • Exhibit 12 - Colombian regions for mobile licensing
  • Exhibit 13 - Comcel, Occel, and Celcaribe company history
  • Exhibit 14 - TEM Colombia company history
  • Exhibit 15 - Colombia Mvil company history
  • Exhibit 16 - Major submarine cable network landing in Ecuador
  • Exhibit 17 - Telefnica del Per at a glance
  • Exhibit 18 - Telmex Per company history
  • Exhibit 19 - Major submarine cable networks landing in Peru
  • Exhibit 20 - History of the Internet in Peru
  • Exhibit 21 - Telefnica Mviles Per (TEM Per) history
  • Exhibit 22 - BellSouth Peru and Comunicaciones Mviles del Per (CMP) history
  • Exhibit 23 - TIM Peru history