DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/41e443/latin_america_tele) has announced the addition of the "Latin America Telecom Insider / Vol. 3, No 1, Edition 2 - Telefonica and Claro Spice Up Costa Rican Telecom Market" report to their offering.
Costa Rica is the last country in Latin America to liberalize its mobile market. It has been an attractive marketplace for pan-regional mobile operators due to its relatively low mobile penetration of the population (69% by the end of 2010, compared with 97% for Latin America and 107% for Central America excluding Costa Rica), high GDP per capita (US$7,660 in 2010 versus $8,028 for Latin America and $3,425 for the rest of Central America) and unique characteristics such as a low prepaid subscriber base and low sophistication of data services.
The recent liberalization process was closely followed by all major operators in Central America (America Mvil, Telefnica, Millicom, C&W and Digicel), but interest waned by late 2010 when the auction took place. Long delays in the process, anticipation of a consumer-friendly regulatory framework, expectation of a very competitive environment, tight credit markets to fund the transaction and internal strategic decisions made by operators combined to decrease the interest in bidding for a license for other players. However, the outcome of the auction will result in mobile penetration exceeding 130% by 2015, mostly driven by prepaid subscriptions and mobile broadband. By the same token, we anticipate a rapid migration in the mid- to high-end base toward mobile Internet subscriptions, thus increasing the share of mobile data services over total telecom revenue.
This Insider analyzes the future of the Costa Rican market, now that Claro and Movistar will compete against ICE, in light of what we have seen in other markets where those players participate and how we expect ICE to respond. This report will also examine how consumers will be affected since the market will have just three players and not four as expected. Cases will analyze the success of a state-owned player and other new entrant scenarios in Central America.
Published monthly for each of the worlds most dynamic regions, Telecom Insiders are packed with trend analysis, industry best practices, market sizing and forecasting, competitor analysis, and case studies, providing you information you can leverage to make better business decisions State-owned ICE faces important challenges and opportunities as a result of the recent liberalization and entry of new competitors into Costa Rica's mobile market, according to this new report.
Telefnica and Claro Spice Up Costa Rican Telecom Market analyzes the future of the Costa Rican market, now that Claro and Movistar will compete against ICE, in light of what Pyramid has seen in other markets where those players participate and how Pyramid expects ICE to respond. This report will also examine how consumers will be affected since the market will have just three players and not four as expected. Cases will analyze the success of a state-owned player and other new entrant scenarios in Central America.
By the end of 2010, the majority of markets in Latin America saw population penetration exceeding 100 percent. "Against that backdrop, Costa Rica offers America Mvil (Claro) and Telefnica the opportunity to close a 30 point penetration gap, with advantageous economies of scale coming from several operations in the region," says Jose Magana, Senior Analyst at Pyramid. "In addition, Costa Rica has a very small prepaid base (less than 30 percent of the total) and is in the early stages of the democratization of mobile data services, such as mobile Internet and mobile broadband," he adds.
"The price paid by Telefnica and Claro for mobile licenses is consistent with what we have seen in other auctions in Central America, and suggests that both operators will seek a significant share of the market over the coming years to challenge current incumbent ICE," explains Magana. "The outcome of the auction will result in mobile penetration exceeding 130 percent by 2015, mostly driven by prepaid subscriptions and mobile broadband. By the same token, Pyramid anticipates a rapid migration in the mid- to high-end base toward mobile Internet subscriptions, thus increasing the share of mobile data services over total telecom revenue," he adds.
Key Topics Covered:
- INTRODUCTION
- LIBERALIZATION OF COSTA RICA'S MOBILE MARKET
- The price paid for the spectrum reflects how attractive the market is for both players
- We see limited impact on customers in terms of tariffs and product innovation due to the fact that two additional players not three bid for a mobile license
- For ICE, the challenge is to protect its lucrative postpaid base, enhance its distribution channels and swiftly penetrate the mobile data segment
- MARKET DETAIL
- CASE STUDY: Ancel Uruguay shows that a state-owned company can be flexible and successful
- CASE STUDY: New entrants in Central America spice up the market
- CONCLUSIONS
- Key findings
- Recommendations
- RELATED RESOURCES
- Table of Exhibits
Companies Mentioned:
- America Mvil
- Ancel Uruguay
- C&W
- Claro
- Digicel
- ICE
- Millicom
- Movistar
- Nextel
- Oi
- Telefnica
- Telmex
- Tigo
- VTR
For more information visit http://www.researchandmarkets.com/research/41e443/latin_america_tele
Source: Pyramid Research, Inc.