Venezuela: Long-Awaited 4g Spectrum Available, but Operators Face Uphill Battle to Build Coverage

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‘Venezuela: Long-Awaited 4G spectrum Available, but Operators Face Uphill Battle to Build Coverage,’ a new Country Intelligence Report by Pyramid Research, offers a precise, incisive profile of Venezuela’s mobile and fixed telecommunications and pay-TV markets based on comprehensive proprietary data and insights from our research in the Venezuelan market. Published annually, this presentation-quality, executive-level report provides detailed analysis of the near-term opportunities, competitive dynamics and evolution of demand by service type and technology/platform across the fixed telephony and broadband, mobile and pay-TV sectors, in addition to a review of key regulatory trends.

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Key Findings

The Venezuelan telecom services market recorded total revenue of $14.0bn in 2014. Over the next five years, in US dollar terms, Venezuela’s total market revenue will shrink at a CAGR of -4.4% to reach $11.2bn in 2019 (in local currency terms, the telecom services market will grow at a five-year CAGR of 22.1%).

Fixed broadband penetration of population stood at 8.0% at year-end 2014, which translates into 2.4m lines. We expect broadband lines to reach 3.7m by year-end 2019, a penetration rate of 11.2% of the population. Much of the growth will be driven by Cantv reaching previously unserved areas of the country with comparably affordable xDSL-based prepaid and postpaid plans.

After many delays, the long-awaited 4G auction in Venezuela took place in December 2014 (originally announced for year-end 2013). Movistar secured 20MHz and 40MHz of spectrum in the AWS and 2.5GHz bands, respectively. Movilnet secured 20MHz in...