Fast Market Research recommends "Colombia Telecommunications Report Q1 2014" from Business Monitor International, now available
Boston, MA -- (SBWIRE) -- 12/24/2013 -- There is considerable potential for growth in Colombia, but some of this is being missed owing to market domination in the mobile sector and fragmentation in the fixed broadband sector. Government and regulatory moves to address these challenges are needed, but some proposals have seemed heavy-handed and likely to limit the market's growth over the long term. BMI is wary of regulatory interference in the market, particularly in the form of a government-owned network that operators buy capacity from. Positive developments in the form of mergers between smaller players in the fixed and broadband market offer potential for expansion, but BMI believes Colombia will follow the emerging market trend of being a predominantly wireless communications market over the medium to long term.
- Mobile forecasts remained unchanged as operators sought to rebuild after Q113's sharp losses
- Total broadband figures revised to highlight the weaker growth in dedicated mobile broadband services.
- Fixed-line subscribers grew slightly in H113, bucking the overall downward trend. Our long-term projections for the segment remain unchanged.
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Key Trends And Developments
A Colombian senator proposed the creation of a state-owned company to manage the country's telecoms infrastructure assets. Two of Colombia's largest mobile operators, America Movil's Claro and Telefonica's Movistar will have to renew their operating concessions in 2014, making the discussion an opportune moment to consider the future of the Colombian telecoms market. BMI believes a single state-controlled network operator has few advantages in the long term for consumers and would ultimately leave operators less willing to invest in the market.
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