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Frost & Sullivan Report Says Colombian Telecommunications Market Set to Grow Exponentially

February 15, 2013

Frost & Sullivan Report Says Colombian Telecommunications Market Set to Grow Exponentially

By Calvin Azuri
TMCnet Contributor

New analysis from Frost & Sullivan (News - Alert) on Colombia's Total Telecommunications Services Market has revealed that in 2012 the market generated revenue of $10,710.0 million and that based on current market trends, this figure is set to grow to $14,060.7 million in 2017. The expansion will be propelled by operators' efforts in coverage service expansions. These will catalyse competition and government plans for digital inclusion - 'Vive Digital'.

The report from Frost & Sullivan covered fixed telephony, mobile telephony, and broadband services, pay TV services and, data communications services.

In a statement, Frost & Sullivan Telecom Services Industry Analyst Gina Sanchez, said that, "Competition is promoting the development of competitively priced, integrated services and networks that improve quality, ubiquity, mobility, and convergence. This is resulting in enhanced products and services for customers. Government incentives and tax reductions are necessary to stimulate investments and attract service providers to enter the market. This will elevate competition levels, improve the quality of services nationwide, as well as push operators to invest in faster, more cost-efficient technologies."

The report also found a number of other reasons which include a positive economic outlook of Colombian markets, increase in investments by competitors keen on introducing triple-, quadruple- and quintuple-play bundles, and investments in 3G, LTE (News - Alert), GigaEthernet, and FTTH technologies will help in expanding the Colombian telecommunications markets.

The country is also increasingly moving toward a digitalized culture with the introduction of value-added applications such as IPTV (News - Alert), VoIP, Web 2.0-based applications, and social networks. To drive this growing trend and to address the demands placed by user preference for digital technology benefits, Colombian companies have increased investments in pay TV service operations and are integrating fixed and mobile operations for providing customers with converged services. Furthermore, operators are more open to mergers and fusions of fixed and mobile divisions which will help in expanding their service capabilities.

Along with commoditization and decreasing margins, which is a result of increased competition, low return on investments (ROI) pertaining to building infrastructure networks within remote areas and small cities will also serve to expand the Colombian telecom services market.

Edited by Brooke Neuman
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