Venezuela: Deteriorating Private Consumption and Foreign Exchange Controls Negatively Impact Telecom Sector Prospects

Summary 'The telecom market in Venezuela is expected to grow at a CAGR of 77.4% (in local currency terms) during 2016-2021, owing to increasing uptake of mobile data services. Rising inflation and difficult operating conditions in the country will cause private consumption and investments to fall. Going forward, the devaluation of the local currency and poor economic conditions will continue to drag the telecom market in Venezuela, thereby impacting the investments. Key Findings - The overall telecom service revenue in Venezuela is estimated to generate $9.3bn in 2016 and is estimated to witness a negative CAGR of -23.6% during 2016-2021. - The top three operators, Cantv/Movilnet and Movistar, which provide fixed and mobile and pay-TV services and mobile-only operator-Digitel, will together control 94.4% of telecom market in Venezuela in 2016. However, the telecom market will be highly impacted by the poor economic conditions and foreign exchange controls limiting the operator's investments on network infrastructure and upgrades. - The adoption of 4G services will be slow due to operator's failure in procuring network equipment, resulting in a penetration rate of 2.8% by the end of 2016, the lowest among the region. Movilnet is expected to launch commercial 4G services by the end-2016 followed by its current LTE field trials in urban centers. Synopsis “Venezuela: Deteriorating Private Consumption and Foreign Exchange Controls Negatively Impact Telecom Sector Prospects” provides an executive-level overview of the telecommunications market in Venezuela today, with detailed forecasts of key indicators up to 2021. It delivers deep quantitative and qualitative insight into Venezuela's telecom market, analyzing key trends, evaluating near-term opportunities and assessing risk factors, based on proprietary data from Pyramid Research's databases. It provides in-depth analysis of the following: - Venezuela in a regional context: a comparative review of market size and trends with that of other countries in the region. - Economic, demographic and political context in Venezuela. - The regulatory environment and trends: a review of the regulatory setting and agenda for the next 18-24 months as well as relevant developments pertaining to spectrum licensing, national broadband plans, number portability and more. - A demand profile: analysis as well as forecasts and historical figures of service revenue from fixed telephony (including VoIP), broadband, mobile voice and data, and pay-TV markets. - The service evolution: a look at the change in the breakdown of overall revenue by fixed/pay-TV and mobile sectors and by voice, data and video in the current year as well as the end of the forecast period. - The competitive landscape: an examination of key trends in competition and service providers' performance, revenue market shares and expected moves over the next 18-24 months. - An in-depth sector analysis of fixed telephony and broadband services, mobile voice and data services, and pay-TV services: a quantitative analysis of service adoption trends by technology/platform as well as operator, average revenue per line/subscription and service revenue through the end of the forecast period. - Main opportunities: this section details the near-term opportunities for operators, vendors and investors in Venezuela's telecommunications and pay-TV markets. Reasons To Buy - This Country Intelligence Report helps executives build proactive, profitable growth strategies by offering comprehensive, relevant analysis of Venezuela's telecommunications and pay-TV markets based on insights directly from the local market players. - The report offers a wealth of data on the telecom and pay-TV markets, with the mobile and fixed segments examined in detail. - The competitive landscape and the major players are given extra attention, enabling local players or prospective market entrants to gain the insight they need. - The broad but detailed perspective will help operators, equipment vendors and other telecom industry players to succeed in the challenging telecommunications market in Venezuela. - The report is designed for an executive-level audience, boasting presentation quality that allows it to be turned into presentable material immediately. - The report concludes with an exploration of the opportunities available in the Venezuelan market to operators, vendors and investors.