Telecoms market expected to reach US$1.2bn this year

Friday, December 2, 2011

Paraguay's telecom market is expected to close 2011 with US$1.2bn in services revenue, up 12.7% from the US$1.1bn posted last year, according to a report by US consultancy firm Pyramid Research.

Pyramid expects the overall market to grow at a 4.7% CAGR between 2011 and 2016, reaching total revenue of US$1.5bn, mainly boosted by the national telecommunications plan, which aims to increase broadband penetration to 50% of households by 2015.

Over the same period, VoIP and fixed broadband would be the fastest growing segments, according to the consultancy, with a 57.5% and 22.7% CAGR, respectively.

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While the fixed broadband segment generated 4.8% of the industry's total revenues last year and is set to move 6.8% in 2011, Pyramid estimates this figure will increase to 15% by 2016.

Pay TV will be the third fastest growing segment between 2010 and 2016, with a 19.5% CAGR boosted by the entry of new players in 2011-12.

Fixed telephony is expected to decrease progressively, as in most regional markets, due to fixed-to-mobile substitution in the voice segment.

The lack of competition in the segment, along with low levels of investment over the years, has resulted in one of the lowest penetration rates of the region at 4.2%.