Excerpt Communications Markets in Bolivia

This report is part of Pyramid Researchs series of

Latin America Country Intelligence Reports

March 2009 Edition Omar Salvador, Senior Analyst, Americas

Table of contents
Section
Executive summary Market and competitor overview Bolivia in a regional context Economic, demographic and political context Regulatory environment Demand profile Service evolution Competitive landscape Major market players Segment analysis Mobile services Fixed services Identifying opportunities

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Report highlights
The market will generate $751m in revenue in 2009 and will continue growing over the forecast period to $978m in 2014. This growth will be fueled mainly by mobile voice services, which after growing 20% from 2007 to 2008 will continue its ascent at a 7.5% CAGR over the rest of the forecast period. Mobile data will also post growth, at a CAGR of 19.7%. In 2008, mobile revenue surpassed fixed revenue, and we expect the gap to widen over time. Bolivias broadband market remains one of the most underdeveloped in Latin America. Broadband penetration in 2008 stood at 1%, roughly one-fifth the regional average of 5%. Broadband revenue will increase at a CAGR of 18% over the next five years, from $30m in 2008 to $70m by 2013. Considering the low penetration of the broadband sector, the strength of cable/MMDS networks and Bolivias cooperative structure, we do not expect to see IPTV introduced in the country in the next five years. Communications Markets in Bolivia offers a precise, incisive profile of the countrys converged telecommunications, media and technology sectors based on proprietary data from our research in the Bolivian market. It provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies such as WiMAX, IPTV and VoIP. Published annually, this executive study provides a holistic view of the Bolivian communications market by analyzing key trends, evaluating near-term opportunities and assessing upcoming risks factors. Key findings of the report include: In 2008, the government seized Telecom Italias 51% shares in Entel, and a new constitution was approved in January 2009, paving the way for industry reforms to help the government gain control of the sector. We expect the regulators responsibilities to be transferred to the ministry of public services, which will likely slow the progress of the regulatory agenda and delay decisions and policy making. Bolivias market is one of the few in Latin America where neither Grupo Carso nor Telefnica is present. Given the fragmented nature of the industry and the presence of nationalized Entel, we anticipate cooperatives will cede some market share to mobile operators in the forecast period, while Entel will maintain its leadership.

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Report highlights (contd)

BOLIVIA COMMUNICATIONS MARKET REVENUE, 2007-2014
$1,000

Pay TV Broadband Internet

$800

Dial-up Internet Fixed VoIP

Revenue (US$ millions)

$600

Fixed circuit-switched voice Mobile data

$400

Mobile voice

$200

$0 2007A 2008A 2009E 2010E 2011E 2012E 2013E 2014E

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