Research and Markets has announced the addition of 2006 Latin America Telecoms, Mobile and Broadband in Bolivia, Chile, Colombia, Ecuador, Peru to their offering

This report provides information on Bolivia, Chile, Colombia, Ecuador and Peru. Each country has its own chapter and covers the following subjects.

• Key Statistics
• Market and Industry Overviews
• Regulatory Environment
• Major Players (fixed and mobile)
• Infrastructure
• Mobile Voice and Data Markets
• Internet, VoIP
• Broadband (DSL, cable, wireless)
• Pay TV and Convergence

The Andes mountain system extends for more than 8,900km along the entire length of western South America, from the Caribbean coast in the north to Tierra del Fuego in the south. The Andes form a natural wall separating the narrow western coastal region from the rest of the continent. This territory and it resources are shared by five countries: Bolivia, Chile, Colombia, Ecuador, and Peru.

Bolivia
One of the poorest and least developed Latin American nations, Bolivia has the second lowest fixed line teledensity (7%) in South America after Paraguay. Ethnic conflicts, socio-economic problems, and natural disasters all played their part in holding back fixed-line growth – but not mobile, which has grown steadily even during the recession years. Mobile subscribers have outnumbered fixed lines in service since 2000. In early 2006, there were almost four mobile phones for every fixed line in service. Even so, mobile penetration (26%) is still well below the regional average. The incumbent telecom operator, Entel, is the market leader in long distance telephony and, through its subsidiary Entel Movil, it is also the mobile market leader. Entel’s owner, Telecom Italia, has been in talks with a number of parties interested in acquiring its Bolivian operations.

Chile
Thanks to a healthy economy and early market liberalization, Chile’s telecom market is one of the most dynamic and promising in Latin America. In fact, Chile has one of the least-regulated telecom markets in the region, with full competition allowed in all areas. It boasts a modern fixed-line network, fully digitised since 1993 – and yet, mostly due to the move towards mobile solutions, the fixed-line sector remains flat. The long-distance sector, however, is one of the most competitive in Latin America, despite ongoing consolidation. As for the Internet and broadband market, Chile has the highest rates of penetration in Latin America (apart from a few Caribbean islands). Chile is also the regional leader in terms of convergence, and VTR GlobalCom was the first operator in Latin America to develop the triple play strategy, combining video, voice, and data over one broadband platform. WiMAX is being deployed by several operators, and a couple of companies are in the process of testing IPTV. In terms of mobile telephony, Chile has one of the highest penetration rates in Latin America: around 65% in early 2006. Mobile subscribers outnumber fixed-line connections by more than three to one.

Colombia
The year 2005 proved to be a period of transition for the Colombian telecom market, with intensifying competition, continued fixed-to-mobile substitution, and increasing convergence. The signing of the Free Trade Agreement (FTA) between Colombia and the USA in February 2006 had an important impact on Colombia’s telecom sector, promoting market liberalisation and privatisation. In April 2006, after years of thwarted privatisation efforts, the government finally sold a controlling stake in Colombia Telecom to Spain’s Telefónica. In early 2006, teledensity in Colombia was 17%, about average for Latin America. Like in other parts of the region, the fixed-line sector is stagnating. But the mobile market is one of the country’s most dynamic businesses. Mobile subscribers soared by 110% in 2005, and mobile penetration grew by 24% year-on-year to reach 48%. While broadband penetration is low compared with other Latin American countries, convergence strategies took the country by storm in 2005. Triple play first appeared in Colombia in 2004. By early 2006, another four companies had adopted the triple play strategy, with a further three in the pipeline. WiMax and WiFi have also been welcomed enthusiastically by Colombians.

Ecuador
Ecuador’s telecom indicators lag considerably behind those of other Latin American countries, with significant unsatisfied demand. Competition is slow to develop in the fixed-line market, hampered by the dominance of state-owned Andinatel and Pacifictel. Repeated privatisation attempts have failed, and the regulator is looking for a foreign company to take over the management of both operators. Fixed-line teledensity is one of the lowest in South America. The mobile telephony market, on the other hand, is by far the most dynamic telecom sector in Ecuador. By early 2006, there were about four mobile phones for every fixed line in service. Internet user penetration in Ecuador is the third lowest in South America after Bolivia and Paraguay. Internet uptake is hampered by the lack of telecom infrastructure and low PC penetration. On the other hand, there is a boom in cybercafés, as they also offer VoIP telephony. Broadband is freely available, though mostly limited to the corporate market.

Peru
Although the telecom market was liberalised in 1998, it is still heavily dominated by Telefónica del Perú (TdP), which has a near monopoly in basic telephony and broadband, and also holds the lion’s share of the mobile sector. Competition in the long-distance sector, on the other hand, is strong, helped along by a multicarrier system. At just over 8%, Peruvian fixed-line teledensity is among the lowest in Latin America. This can be blamed on high interconnection rates, low GDP per capita, fixed-to-mobile substitution, TdP’s hegemony, and geographical inaccessibility. Internet user penetration, on the other hand, is slightly above average for the region. Public Internet booths, called cabinas públicas, can be found on street corners in virtually every city and even small towns, providing Internet access and VoIP telephony to more than 80% of the population. Broadband is a virtual monopoly of TdP, although a new window of opportunity has opened for other operators to provide alternative broadband access using WiMAX technology. The first WiMAX services were launched in late 2005. Mobile penetration in Peru is far lower than the Latin American average, mostly due to high interconnection charges. From 2005, however, charges are gradually being reduced. With mobile prices dropping, the Peruvian mobile market could be on the verge of a veritable boom.