Executive Summary
Five will roll out 4G LTE services
in Colombia
BuddeComm’s yearly update of
Colombia - Telecoms, Mobile, Broadband, and Forecasts provides a comprehensive
overview of the trends and developments in the telecommunications market of
Colombia, including the regulator’s statistics, company data, and other
industry indicators to the end of 2012, as well as estimates for 2013 and
expected market developments in the coming years.
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Economic climate
Like other countries around the
world, Colombia has been hit by the global economic slump. Reduced commodity
prices and demand have affected exports, slowing GDP growth. In the first half
of 2013, the country’s economy also suffered from industrial disputes and a
sluggish manufacturing sector.
Regulatory framework
The main regulatory instruments in
the telecom sector are the Convergence Decree and the ICT Law. The first sets
out the rules attached to the Convergence Licence. It also requires telcos with
dominant market position to provide wholesale services and unbundling. The
second promotes universal access, ensures free competition and the efficient
use of infrastructure and spectrum, and above all, it strengthens consumer
protection.
Telecom market outlook
We estimate that the fastest growing
sectors in 2013 will be 3G and 4G mobile services, satellite TV, and fixed
broadband. The fixed-line sector will continue to stagnate or contract. The
mobile telephony sector appears to be facing early market saturation: many of
the wealthier citizens already have two or more mobile phones, while a large
percentage of the population cannot afford even one.
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