Growth predicted for Colombian broadband and pay-TV services
19.03.10
Colombian broadband and pay-TV services will together generate revenues of over US$ 3.6bn by 2015, with penetration levels for both services steadily increasing, according to a new report from Signals Telecom Consulting.
The report adds that broadband services will experience a compound annual growth rate (CAGR) of 15.27% during the period 2010 to 1015, while pay-TV services will have a CAGR of 11.52%. Over the next few years, the Colombian market is expected to undergo a process of evolution among telecommunications operators.
“We estimate that by 2015 the vast majority of homes with sufficient purchasing power - strata 3 to 6 – will already have contracted pay-TV services (82% of households) or fixed broadband (65% of households)," said Jose F. Otero, President of Signals Telecom Consulting. "These high penetration levels will increase pressure for service offering differentiation among the various market operators, virtually forcing them to invest in next-generation networks (NGN) while simultaneously trying to achieve exclusivity in content and applications of interest to their customers. This increase in costs will be matched by a steady reduction in rates for pay-TV signals and Internet access, which currently shore up operator revenue. Telephony will continue to lose relevance until it becomes a basic value added service."
In the coming years, the Colombian telecoms market is expected to continue with its consolidation process, creating companies that can operate with greater economies of scale: “It is clear that the sector most likely to suffer the impact of this consolidation will be that of CATV," concluded Mr. Otero. "This sector will continue to be adversely affected by the entry of new players offering pay-TV services, and because of the market’s tax regulations, leading companies will gradually migrate their users to an IPTV platform. Nevertheless, market composition will be defined by the future development of ETB and EMCALI, public operators in the cities of Bogota and Cali respectively."
19.03.10
Colombian broadband and pay-TV services will together generate revenues of over US$ 3.6bn by 2015, with penetration levels for both services steadily increasing, according to a new report from Signals Telecom Consulting.
The report adds that broadband services will experience a compound annual growth rate (CAGR) of 15.27% during the period 2010 to 1015, while pay-TV services will have a CAGR of 11.52%. Over the next few years, the Colombian market is expected to undergo a process of evolution among telecommunications operators.
“We estimate that by 2015 the vast majority of homes with sufficient purchasing power - strata 3 to 6 – will already have contracted pay-TV services (82% of households) or fixed broadband (65% of households)," said Jose F. Otero, President of Signals Telecom Consulting. "These high penetration levels will increase pressure for service offering differentiation among the various market operators, virtually forcing them to invest in next-generation networks (NGN) while simultaneously trying to achieve exclusivity in content and applications of interest to their customers. This increase in costs will be matched by a steady reduction in rates for pay-TV signals and Internet access, which currently shore up operator revenue. Telephony will continue to lose relevance until it becomes a basic value added service."
In the coming years, the Colombian telecoms market is expected to continue with its consolidation process, creating companies that can operate with greater economies of scale: “It is clear that the sector most likely to suffer the impact of this consolidation will be that of CATV," concluded Mr. Otero. "This sector will continue to be adversely affected by the entry of new players offering pay-TV services, and because of the market’s tax regulations, leading companies will gradually migrate their users to an IPTV platform. Nevertheless, market composition will be defined by the future development of ETB and EMCALI, public operators in the cities of Bogota and Cali respectively."