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Colombian Telecommunications Market offers Strong Growth Potential, finds Frost & Sullivan

- Customers will be the winners as intensifying competition stimulates operator investments

BOGOTA, Colombia, Feb. 14, 2013 /PRNewswire/ -- The positive economic outlook in Colombia, investments being made by competitors in order to offer triple-, quadruple- and quintuple-play bundles, as well as investments in technologies such as 3G, LTE, GigaEthernet, and FTTH, are driving constant and positive growth in the Colombian telecommunications markets.

New analysis from Frost & Sullivan (http://www.ipcommunications.frost.com), Colombia's Total Telecommunications Services Market, finds that the markets earned revenues of $10,710.0 million in 2012 and estimates this to reach $14,060.7 million in 2017. Market expansion will be driven by operators' efforts to expand coverage and boost both service quality and quantity, intensifying competition and government plans for digital inclusion – 'Vive Digital'. The research covers fixed telephony, mobile telephony, broadband services, pay TV services and, data communications services.

"Competition is promoting the development of competitively priced, integrated services and networks that improve quality, ubiquity, mobility and convergence," noted Frost & Sullivan Telecom Services Industry Analyst Gina Sanchez. "This is resulting in enhanced products and services for customers."

The development of value-added applications, including IPTV, VoIP, Web 2.0-based applications and social networks, are changing users' behaviors, inducing a more digitalized culture. In order to address this trend, Colombian companies are investing in pay TV service operations and integrating fixed and mobile operations to offer converged services.

All operators are now seeking to increase their capabilities through mergers and fusions of their formerly discrete fixed and mobile divisions. This is triggering greater market concentration.

Among the likely effects of extreme competition are commoditization and decreasing margins. This, together with low return on investments (ROI) related to building infrastructure networks in distant areas and small cities, has the potential to restrain the development of the Colombian telecom services market.

"Government incentives and tax reductions are necessary to stimulate investments and attract service providers to enter the market," remarked Sanchez. "This will elevate competition levels, improve the quality of services nationwide, as well as push operators to invest in faster, more cost-efficient technologies."

If you are interested in more information on this study, please send an e-mail with your contact details to Francesca Valente, Corporate Communications, at [email protected].

Colombia's Total Telecommunications Services Market is part of Telecom Services Growth Partnership Service program, which also includes research in the following markets: Latin American Mobile Services Markets, Latin America Broadband Services Markets, Latin American Data Communications Services Markets, and Latin American Mobile Broadband Services Markets. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Colombia's Total Telecommunications Services Market
NAF3-63

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54-11-4777-5300
F: +54-11-4777-5300
E: [email protected]

http://www.frost.com

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