Venezuela’s economic crisis stifling the telecoms sector

Venezuela - Telecoms, Mobile and Broadband - Statistics and Analyses


Sydney, April 24, 2020 (GLOBE NEWSWIRE) -- Just released, this edition of Paul Budde Communication’s focus report on Venezuela outlines the major developments and key aspects in the telecoms markets.
Read the full report: https://www.budde.com.au/Research/Venezuela-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses

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 2018 teledensity had fallen to about 17%. 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, hampered by the difficulty 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, though 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 almost 6% in the first half of 2018 as subscribers terminated services in a bid to reduce discretionary spending. 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 in 2020 is having 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:

  • Movilnet extends LTE population coverage to about half of the population;
  • Telefónica confirms intention to stay in Venezuela despite difficulties;
  • MNOs suffering from stolen or damaged infrastructure;
  • Movilnet reports having one million LTE subscribers by mid-2018;
  • Report update includes the regulator's market data to June 2018, operator data updates to Q4 2018, Telecom Maturity Index charts and analyses, recent market developments.
  • Assessment of the global impact of COVID-19 on the telecoms sector.

Companies mentioned in this report:

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

    • Key statistics
      • Country overview
    • COVID-19 and its impact on the telecom sector
      • Economic considerations and responses
      • Mobile devices
      • Subscribers
      • Infrastructure
    • Telecommunications market
      • Market analysis
      • Regional Latin America Market Comparison
        • Telecom Maturity Index by tier
        • TMI versus GDP
        • Mobile and mobile broadband penetration
        • Fixed and mobile broadband penetration
    • Regulatory environment
      • Telecom Ministry
      • Conatel
    • 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
    • Broadband market
      • Introduction and statistical overview
        • Market analysis
        • Broadband statistics
        • Forecasts – fixed broadband market – 2019; 2021; 2023
      • 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 communications
  • Glossary of abbreviations
  • Market analysis
  • Mobile statistics
    • General statistics
    • Mobile data
    • Mobile broadband
    • Forecasts – mobile market – 2019; 2021; 2023
  • Regulatory issues
    • Spectrum auctions
    • Network sharing
  • Mobile infrastructure
    • Digital networks
    • Other infrastructure developments
  • Major mobile operators
    • Movilnet (CANTV)
    • Movistar (Telefónica)
    • Digitel

List of Tables

  • Table 1 – Top Level Country Statistics and Telco Authorities - Venezuela – 2018 (e)
  • Table 2 – Evolution of GDP in Venezuela – 2011 – 2018
  • Table 3 – Telecom revenues and investments – 2001 – 2018
  • Table 4 – Telecom revenue by sector – 2008 – 2018
  • Table 5 – Telecom revenue as a percentage of GDP – 2001 – 2018
  • Table 6 – CANTV – Fixed lines in service and market share – 1999 – 2015
  • Table 7 – Movistar – fixed lines in service – 2004 – 2016
  • Table 8 – Movistar Venezuela financial data (€) – 2015 – 2017
  • Table 9 – Movistar Venezuela financial data (Bs. F) – 2014 – 2016
  • Table 10 – Movistar Venezuela accesses by platform – 2014 – 2016
  • Table 11 – Historic - Fixed lines in service and teledensity – 1997 – 2009
  • Table 12 – Fixed lines in service and teledensity – 2010 – 2019
  • Table 13 – Fixed-line and mobile voice traffic – 2001 – 2018
  • Table 14 – International internet bandwidth – 2004- 2016
  • Table 15 – Historic - Internet users and user penetration rate – 1998 – 2009
  • Table 16 – Internet users and penetration rate – 2010 – 2019
  • Table 17 – Dial-up internet subscribers – 2000 – 2018
  • Table 18 – Fixed broadband subscribers and penetration rates – 2000 – 2019
  • Table 19 – Fixed broadband technologies – market share – 2001 – 2016
  • Table 20 – Historic - CANTV – broadband subscribers – 2000 – 2013
  • Table 21 – Internet service revenue – 2001 – 2018
  • Table 22 – Forecast broadband subscribers –– 2019; 2021; 2023
  • Table 23 – Cable broadband subscribers–– 2007 – 2016
  • Table 24 – DSL broadband subscribers–– 2007 – 2016
  • Table 25 – Fibre broadband subscribers–– 2014 – 2016
  • Table 26 – Historic – Active mobile subscribers and penetration rate – 1997 – 2009
  • Table 27 – Active mobile subscribers and penetration rate – 2010 – 2019
  • Table 28 – Mobile voice traffic – 2001 – 2018
  • Table 29 – Mobile sector revenue – 2001 – 2018
  • Table 30 – Mobile prepaid/postpaid ratio – 1997 – 2018
  • Table 31 – Mobile prepaid/postpaid subscribers – 2000 – 2018
  • Table 32 – SMS messages sent, annual change – 2002 – 2019
  • Table 33 – SMS messages sent, annual change – 2003 – 2019
  • Table 34 – Dedicated mobile broadband subscribers – 2008 – 2019
  • Table 35 – Active mobile broadband subscribers – 2010 – 2019
  • Table 36 – Mobile data traffic – 2014 – 2018
  • Table 37 – Forecast mobile subscribers – 2019; 2021; 2023
  • Table 38 – Mobile subscriber distribution by technology – 2014 – 2017
  • Table 39 – M2M connections – 2014 – 2018
  • Table 40 – Market share of mobile subscribers by operator – 2001 - 2018
  • Table 41 – Historic - Movilnet – mobile subscribers – 2001 – 2013
  • Table 42 – Historic - Movistar mobile service revenue – 2015 – 2017
  • Table 43 – Historic - Movistar subscribers – 2001 – 2016

List of Charts

  • Chart 1 – Evolution of revenues and investments – 2012 – 2018
  • Chart 2 – Latin America –Overall Telecoms Maturity Index
  • Chart 3 – Latin America Telecoms Maturity Index – Market Leaders Category
  • Chart 4 – Latin America Telecoms Maturity Index – Market Challengers Category
  • Chart 5 – Latin America Telecoms Maturity Index – Market Laggards Category
  • Chart 6 – South America –Telecoms Maturity Index by country
  • Chart 7 – Central America –Telecoms Maturity Index by country
  • Chart 8 – Latin America Telecoms Maturity Index vs GDP per Capita
  • Chart 9 – Latin America mobile subscriber penetration versus mobile broadband penetration
  • Chart 10 – Latin America fixed broadband penetration versus mobile broadband penetration
  • Chart 11 – Fixed lines in service and teledensity – 2005 – 2019
  • Chart 12 – Internet users and user penetration rate – 2005 – 2019
  • Chart 13 – Fixed broadband subscribers – 2000 – 2019
  • Chart 14 – Mobile subscribers and penetration at a glance – 2005 – 2019
  • Chart 15 – Mobile prepaid/postpaid subscribers – 2005 – 2018
  • Chart 16 – Active mobile broadband subscribers – 2010 – 2019
  • Chart 17 – Market share of mobile subscribers by operator – 2001 - 2018

List of Exhibits

  • Exhibit 1 – Map of Venezuela
  • Exhibit 2 – Generalised Market Characteristics by Market Segment
  • Exhibit 3 – South America - Key Characteristics of Telecoms Markets by Country
  • Exhibit 4 – Central America - Key Characteristics of Telecoms Markets by Country

Read the full report: https://www.budde.com.au/Research/Venezuela-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses


            

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