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Tuesday, July 5, 2011

Colombian Total Telecommunications Services Market

Research and Markets has announced the addition of Frost & Sullivan's new report "Colombian Total Telecommunications Services Market" to their offering.

During the past couple of years, Colombia has been experiencing political and economical stability that has enabled its economy to grow annually.

Driven by this, the Colombian telecommunications services market had grown at a high and stable rate, and started being considered a promising market in the Latin American region.

During 2009, however, the market was significantly impacted by the global economic recession. In 2010, the market had shown significant growth and signs of recovery.

However, low penetration of PC and smartphones and the difficulty to attain the return on investments (ROI) of broadband infrastructure in distant areas or among the lower income portion of the Colombian population are the main restraining factors.

Local Telephony - The Colombian local telephony segment has reached maturity and is expected to experience a steady decrease in revenues due to the impact of mobile telephony and the increasing use of new technologies and applications, such as e-mails, VoIP, social networks and VPNs, among others.

The profit margins are expected to considerably reduce and fixed operators are likely to concentrate on bundled solutions, triple-play, and quadruple play in order to increase the average revenue per user (ARPU).

Long Distance Telephony - The Long-Distance segment has been shrinking during the last five years, and this trend is expected to continue.

During 2009, this segment experienced a little increase in Revenues driven by the entry of new participants, specially in the outbound International Long-Distance (ILD) service.

However, the substitution of fixed lines by mobile lines, in addition to the increasing adoption of VoIP services are likely to lessen traffic.

Mobile Telephony - The Colombian mobile telephony segment experienced a rapid growth during the past few years, but since 2009, its growth rate has declined and the market has moved toward stabilization.

The mobile telephony segment is expected to be driven by the rise in mobile value-added services, such as mobile broadband services and mobile content, as well as mobile applications such as m-banking.

Pay TV - The Colombian pay TV segment is expected to grow significantly, owing to the increasing penetration amongst the lower-income classes through strong, competitive price strategies.

The main trend in this market is the offering of TV bundles, along with the service providers' existing fixed lines and Internet broadband services.

Fixed Broadband - While Colombia was the fifth fastest-growing Internet market in the world during 2008, in 2009 this dynamism significantly reduced and the existing broadband penetration is among the lowest in the Latin American Region.

As convergence is redefining the telecommunications market globally, more affordable PCs are being available, and the Government is showing its commitment to significantly increase broadband penetration amongst lower income classes, distant communities, and rural areas, the fixed broadband market segment in Colombia is projected to grow.

Data Communications Services - The data communications services market is expected to grow at a steady rate over the next few years.

It is likely to be based mainly on carrier networks developments, the improvement on the integration of telecommunications and IT services solutions, and the commercial development of the SMB segment.

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