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Research and Markets: Venezuela's Telecom Market (Including Pay-TV) To Grow At A CAGR of Only 2.9% over the Next Five Years, From $10.3bn in 2009 to $11.9bn In 2014

Research and Markets ( has announced the addition of the "Venezuela: Telecom for the Masses to Bring Mixed Results for Network Operators" report to their offering.

Competition will fuel Venezuela's telecom industry through 2014, as overall growth slows due to policy objectives to bring telecom services to everyone at affordable prices, according to a new report.

Venezuela: Telecom for the Masses to Bring Mixed Results for Network Operators offers a precise profile of the country's telecommunications, media, and technology sectors based on proprietary data from our research in the market. It provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies.

Pyramid Research expects the telecom market to grow at a CAGR of only 2.9 percent over the next five years, from $10.3 billion in 2009 to $11.9 billion in 2014. This slow growth will be directly influenced by the government's social policies that are pushing down on voice revenue. These policies cut fixed and mobile voice rates in order to increase service penetration by making it more affordable to the lower-end costumer, notes Omar Salvador, Senior Analyst at Pyramid Research and author of the report. "Modest economic growth in the country in the near future will also play a part in new service adoption levels and telecom spend," he says.

"Ruled by policy guidelines in the National Plan for Telecommunications, Information, and Postal Services for 2007 to 2013, the industry's main strategic objectives are to bring telecom services to everyone at affordable prices while developing a local telecom and IT industry," illustrates Salvador. "The nationalization of incumbent Cantv created new competitive challenges, since government ownership is reinforcing the operators leadership position in both fixed and mobile markets."

These changes have put a downward pressure on overall revenue. As a result, competition is fueling revenue growth in Venezuela, as well as fixed broadband, mobile data, and pay-TV as the fastest growing revenue segments. "Contenders, such as Telefnica and Digitel, are focusing on market segmentation, product differentiation, operational efficiency, cost savings, and innovation to protect margins," Salvador says.

Executive Summary:

The telecom market's growth in Venezuela will slow down in the next few years, following a period of astonishing growth in recent years that resulted from strong growth in penetration of both mobile and fixed telecom services. Pyramid Research expects the telecom market (including pay-TV) to grow at a CAGR of only 2.9% over the next five years, from $10.3bn in 2009 to $11.9bn in 2014. The total market evolution will be negatively influenced by fixed and mobile voice price pressures, the result of mobile penetration nearing saturation levels and of tariff reductions driven mainly by Cantv and Movilnet. This will result in fixed and mobile voice revenue decreasing at CAGRs of -3.2% and -1.2%, respectively, between 2009 and 2014. Future growth will be driven by fixed broadband, mobile data and pay-TV, which will grow at CAGRs of 14.2%, 12.2% and 6.9%, respectively.

Key Topics Covered:

  • Executive summary
  • Market and competitor overview
  • Venezuela in a regional context
  • Economic, demographic and political context
  • Regulatory environment
  • Demand profile
  • Service evolution
  • Competitive landscape
  • Major market players
  • Segment analysis
  • Mobile services
  • Fixed services
  • Pay-TV
  • Convergence
  • Identifying opportunities

For more information visit

Source: Pyramid Research, Inc.

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